1. Chapter 4 The Role of the CIO
Managing the Information Technology Resource
Jerry N. Luftman

2. Chapter Outline Role of the Chief Information Officer
How role has changed over time
Key characteristics of effective CIOs
Relationship of the CIO to the need for alignment

3. Synott’s Definition of CIO
Manage information resources as vital corporate asset
Bring systems into competitive marketplace
Manage and coordinate increasingly decentralized information resources
Manage end-user computing so that it serves corporation's needs
Be a catalyst for corporate change

4. Evolution of CIO
Term coined in 1980s and continues to change over time
Viewed as a strategist, not a manager
Leadership is key
Influence of CIO on forces determines effectiveness of CIO

5. Applications Portfolio
Executive Attitude
CIO Role &
Responsibilities
Applications Portfolio
Dominant Suppliers
Figure 4-2 Forces Influencing the CIO Role

6. Distributed Era of CIO Roles
4 Roles Emerged from Distributed Era
Organizational Designer
Strategic Partner
Technology Architect
Informed Buyer

7. Web-Based Era CIO has new responsibilities
Role includes suppliers and customers
New roles are added to CIO

8. CIO’s Resume Today Knowledge of applying IT to business
Visionary leader
Relationship manager
Marketer
Open systems-oriented
20 years in LOB management jobs
French, German, Japanese
Masters, Harvard Business

9. IS Executive View Non-IS Executive View CEO’s View
Leadership (57%)
Knowledge of Applying IT to business (49%)
Knowledge of Applying IT to business (44%)
Knowledge of Applying IT to business (29%)
Leadership (36%)
Leadership (32%)
Innovation (10%)
Innovation (8%)
Interpersonal Comm. (8%)
General business knowledge (8%)
Technology Awareness (6%)
Innovation (5%)
General business knowledge (4%)
Interpersonal Comm. (3%)
Interpersonal Comm. (3%)
Technology Awareness (3%)
Figure 4-4 What is the #1 Qualification for a CIO?

10. Current View of the CIO Highly mobile – high turnover
Must deliver effectively and rapidly
Well-rounded
Technically astute
People-oriented
Business skills

11. Concerns of CIOs 94% Enhancing customer satisfaction 92% Security
89% Technology evaluation
87% Budgeting
83% Staffing
66% ROI analysis
64% Building new equipment
45% Outsourcing hosting

12. Figure 4-6 What is your Professional Background?

13. Figure 4-7 CIO Career Plan:
What Organization is the Source of CIOs?

14. How CIO Affects Value of IT
Focus on business needs as they relate to IT organization
Educator to business executives
Demonstrate importance of IT
Foster greater interaction
Communicate successes and value of IT
Good understanding of business vision

15. Figure 4-8 To Whom Does Your Top IS Manager Report?

16. Figure 4-9 Do You Sit on Your Company’s Internal Board?

17. Global CIO Must deal with factors from other nations
Education and experience in dealing with people of other nationalities and cultures
Knowledgeable about cultural differences
Knowledgeable about geography and history
Effectively deal with language differences

18. CIO Attributes Analyst background and orientation
Promote IT as agent of business transformation
Contributes beyond IT function
Accurate perception of CEO views on business and IT
Integrates IT with business planning
Profile stresses consultative leadership and creativity

19. CEO Attributes General management and/or marketing background
Change-oriented leadership
Attended IT “awareness” seminars
Experience IT project success
Perceives IT as critical to the business
Positions IT as agent of business transformation

20. Organizational Attributes
Personal/informal executive style
Executive workshops on strategic issues
CIO accepted in executive team

21. Scanning and understanding
Practicing
Scanning and understanding
New technologies
Working on
Vision of
future
Living
Creating context
Challenging
IT’s supply
side
Believing
IT as 1st order thinking
Setting
priorities
Relating
with CIO
Spending
Quality time
Signaling
continuously
Embedding
info. mgmt.
processes
Sponsoring
Int. & ext.
architectures
Figure 4-10 Diagnosing CEO Who is Fit for the Info. Age

22. CEO Must Believe in IT Importance
Creating context
Setting priorities
Signaling continuously and positively
Spending quality time
Relating with CIO
Scan and understand new technologies
Working on vision of the Future
Sponsoring internal and external architectures
Embedding information management processes
Challenging IT’s supply side

23. Top 10 CIO Requirements Ability to create and manage change Leadership
Knowledge and experience in specific industry
International experience
Ability to hire, develop, and retain quality IT professionals
Leadership
Expertise in aligning and leveraging
Business savvy
Relationship skills
Management skills
Communication skills

24. The Effective CIO Delegation of Operational Tasks
Seize Expenditure/Financial Authority
Avoid Adversarial Positions
Initiate Contacts Outside the Information Technology Unit
Create relationships with business peers
Use Language Carefully
Avoid use of technology jargon

25. Feeny’s Characteristics of “Ideal” CIO
Honesty, Integrity, Sincerity, Openness
Business Perspective, Motivation, Language
Communicator, Educator, Motivator, Leader, Politician, Relationship Builder
Continuously Informed on Developments in IT, Able to Interpret their Significance to Business
Change-Oriented Team Play, Catalyst to Business Thinking

26. Figure 4-11 IT Managerial Skill Mix
Types of Skills
3rd level
Management
(Executives)
Business
Partner
Administrative
& Conceptual
Skills
Manager
Entrepreneur
2nd level
Management
(Managers)
Interpersonal
Skills
Marketing
Technical
Skills
1st level
Management
(Supervisors)
Technical
Figure IT Managerial Skill Mix

27. What Makes a Manager? Disseminator Monitor Spokesperson
Information Processing Roles
Disseminator
Interpret and edit before passing along
Monitor
Analyze information available to ascertain problems
Stay informed of activities outside subunit
Spokesperson
Source of information about subunit
Sell capabilities and value of organization

28. What Makes a Manager? Decision-Making Roles Entrepreneur
Ability to change design of unit structure
Disturbance Handler
Deal with conflict and crises
Resource Allocator
Control resources with organization
Negotiator
Negotiate commitments

29. What Makes a Manager? Interpersonal Roles Liaison Figurehead Leader
Maintain relationships with other units
Figurehead
Formal obligations that come with managerial title
Leader
Includes human resources activities

30. What Makes a Leader? Broad business and organizational knowledge
Broad set of relationships in firm and industry
Excellent reputation and strong track record
Keen mind and strong interpersonal skills
High integrity and personal values
High level of motivation

31. Characteristics of Effective Leadership
Has willing followers
Relationship between leaders and followers
Leadership occurs as an event
Use influence beyond formal authority
Operate outside boundaries of defined procedures
Involves risks and uncertainty
Not everyone will follow leader’s initiative
Consciousness creates leadership
Is a self-referral process

32. Figure 4-13 Leaders vs. Managers
A sensible and appealing picture of the future
Vision
Leaders
define WHAT
A logic for how the vision can be achieved
Strategies
Specific steps & timetables to implement the strategies
Plans
Managers
define HOW
Plans converted into financial projections & goals
Budgets
Figure Leaders vs. Managers

33. Organizational Role Changes of CIO
Networking resources to exchange information
Share data elements among business units/external firms
Apply common application systems across the firm
Requirements for specialized IT human resources

34. Critical IT Management Processes
Setting strategic direction
Establishing infrastructure systems
Scanning technology
Transferring technology
Developing business systems

35. Functional Changes in Role of CIO
Focus on Strategist role
At the center of operations for strategy pertaining to technology
Implementation of strategies pertaining to technology
Technology executive acting as counselor to business executives

36. Tips for New CIO Get a seat at the table
One-to-one communications with CEO
Partnership with peers
Study corporate culture
Understand business model
Define current commitments
Establish credibility through small things

37. Tips for New CIO Build personal board of directors Listen and talk
Be accessible and responsive
Set realistic goals
Take inventory
Assess your people
Understand value & threat of outsourcing

38. Discussion Questions
How has the Internet Age affected the role of the CIO?
What is the primary role of the CIO in your organization? Is it primarily one of management or leadership?
Does the size of an organization affect the roles of the top IT management position, regardless of title?
Do you think the CIO must report to the CEO to be effective?

39. Department of the Navy (DON) Chief Information Officer (CIO)
HISTORY
With enactment of the Information Technology Management Reform Act (subsequently known as the Clinger-Cohen Act) in 1996, then Secretary of the Navy, John H. Dalton established the Office of the Department of the Navy Chief Information Officer (DON CIO) and appointed Dr. Marvin J. Langston to head it. Under Dr. Langston, DON CIO developed the Department's first Strategic Plan, in 1997.
Dr. Ann Miller was appointed DON CIO in April, She focused on the Department's infrastructure and standards until leaving government service in May, 1999 to return to academia.

40. Department of the Navy (DON) Chief Information Officer (CIO)
Mr. Dan Porter, a veteran of the Navy Acquisition Reform Office, was designated the third DON CIO in October, As CIO, he stressed development of information assurance, providing architecture and standards guidance, initiating knowledge management strategies and processes, and facilitating development of the Navy-Marine Corps Intranet.
Mr. David M. Wennergren became the fourth DON CIO in December, Prior to his appointment as DON CIO, he served for four years as the DON Deputy CIO for Enterprise Integration and Security, where he was the Department's champion for eBusiness, process reengineering, knowledge management, information assurance, critical infrastructure protection, the IM/IT workforce, privacy, smart cards and Y2K.

41. DON CIO
ORGANIZATION
DON CIO is organized to align and integrate IM/IT programs across the Navy and Marine Corps and focus Department-wide IM/IT efforts on warfighter priorities.
Overall leadership responsibility is vested in the CIO, supported by one Deputy CIO each for the Navy and Marine Corps, and a Deputy CIO for Policy and Integration who directs the operations of the DON CIO Functional Teams.
The Teams advance the goals and objectives of the DON Information Management/ Information Technology Strategic Plan.

42. DON CIO FUNCTIONAL TEAMS Architecture Development/Data Management
Architecture Integration/Standards
Content Mgmt & Info Integrity/Knowledge Mgmt
Critical Infrastructure Protection
DoD & Intergovernmental Coordination
eGovernment/eBusiness
IM/IT Workforce
Information Assurance
Policy Integration Team
Smart Card Policy
Spectrum Management
Statutory Compliance
Strategic Planning
Tools for Policy Development

43. DON CIO Strategic Plan 2004-05
VISION
A joint net-centric environment that delivers knowledge dominance to the Naval warfighting team.
MISSION
Transform Naval Information Management/ Information Technology to provide affordable, next generation capabilities to the warfighter.

44. DON CIO Strategic Plan 2004-05
GOVERNING PRINCIPLES
Enables warfighter readiness
Leads continuous IM/IT transformation
Implements the President's Management Agenda
Optimizes information resources
Builds integrated, joint IM/IT solutions
Ensures information access
Measures performance
Adopts best practices

45. DON CIO Strategic Plan 2004-05
GOALS
Develop and maintain a secure, seamless, interoperable Naval IM/IT infrastructure.
Transform applications and data into web-centric Naval capabilities.
Provide Full Dimensional Protection that ensures Naval warfighting effectiveness.
Ensure Naval IM/IT investments are selected, resourced, and acquired to optimize Naval mission accomplishment.
Create optimized processes and integrated systems that enable knowledge dominance and Naval transformation.
Shape the IM/IT workforce of the future.

46. DON CIO Strategic Plan 2004-05
GOAL 1: Develop and maintain a secure, seamless, interoperable Naval IM/IT infrastructure.
DESCRIPTION: We will plan, develop, implement, operate, and sustain a global information infrastructure to provide seamless and secure interoperability and end-to-end connectivity to all our Sailors, Marines, and Civilians. This infrastructure's common architecture and technical standards will ensure that the Naval component of the DoD Global Information Grid is a critical element to maintaining interoperability with joint forces, allied coalitions, and interagency partners. (Naval Power 21/FORCEnet)

47. DON CIO Strategic Plan 2004-05
SUPPORTING OBJECTIVES
1.1. Develop the architecture, standards, and protocols for the FORCEnet "blueprint."
1.2. Create a global, secure, interoperable network by integrating the Navy Marine Corps Intranet (NMCI), Information Technology-21 (IT-21), Base Level Information Infrastructure (BLII), and Marine Corps Tactical Data Network (MCTDN) into the FORCEnet Network Information Infrastructure (NII).
1.3. Ensure that the FORCEnet NII is interoperable with the Global Information Grid (GIG) and the Federal Enterprise Architecture.
1.4. Establish and manage global strategic partnerships to maximize access to the electromagnetic spectrum by our Sailors and Marines.
1.5. Develop the standards, architecture, and execution plan for server consolidation throughout the Enterprise.

48. FORCENET VISION