1. Chapter 4 The Role of the CIO
Managing the Information Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 4 - Slide 1

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
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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
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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
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5. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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6. Distributed Era of CIO Roles
Four Roles Emerged from Distributed Era
Organizational Designer
Strategic Partner
Technology Architect
Informed Buyer
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7. Web-Based Era CIO has new responsibilties
Role includes suppliers and customers
New roles are added to CIO
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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
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9. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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10. Current View of the CIO Highly mobile – high turnover
Must deliver effectively and rapidly
Well-rounded
Technically astute
People-oriented
Business skills
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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
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12. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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13. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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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
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15. 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
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16. 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
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17. 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
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18. Organizational Attributes
Personal/informal executive style
Executive workshops on strategic issues
CIO accepted in executive team
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19. CEO Fit for Information Age
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20. CEO Must Believe in IT Importance
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
Creating context
Setting priorities
Signaling continuously and positively
Spending quality time
Relating with CIO
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21. 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
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22. 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
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23. 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
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24. IT Managerial Skill Mix
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25. What Makes a Manager? 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
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26. 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
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27. 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
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28. 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
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29. 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
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30. Leaders vs. Managers
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31. 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
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32. Critical IT Management Processes
Setting strategic direction
Establishing infrastructure systems
Scanning technology
Transferring technology
Developing business systems
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33. 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
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34. 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
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35. 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 and threat of outsourcing
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