CTO CIO Leadership Plans

Five market-leading technology leaders from Pediatrix Medical,Blackwell Consulting, AmerisourceBergen, CommonwealthFinancial, and White Associates R&D share their expertise on:

CTO/CIO Leadership Plans:Technology Leadership

for the FutureRobert C. Bryant

Senior Vice President and CIO, Pediatrix Medical Group Inc.

Warren HarringtonVice President and CIO, Blackwell Consulting Services

Thomas H. MurphySenior Vice President and CIO, AmerisourceBergen

Edmund SeftonChief Information Officer, Commonwealth Financial Network

Chas M. White, M.S.Managing Principal, White Associates Research & Development

The CIO must be a force for evolution in the company: not justa facilitator of change, but a true engine for business growth.This can only happen when the IT department learns to see tech-

nology as disposable — a tool for advancing corporate goals, never anend in itself. Everyone in the company must have the same goals, includ-ing the technology leader. This is how the CIO can add value to thecompany and become a true partner, valued by the senior leadership.This level of partnership has its foundation in a thorough knowledgeof the business and its markets, a focus on business metrics, and anorganization staffed with innovators and change drivers. The CIO whocan create this type of organization will create a legacy that lasts. ■

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Action Points

I. Becoming a Business PartnerThe way to become a successful CIO is to ensure you are a valuable teamplayer.

II. The Bottom LineShared organizational values and goalsare the foundation of profit-driving ITleadership.

III. Must-Have Steps for a Successful IT StrategyDevelop a clear understanding of thebusiness vision, and a technology visionthat helps achieve this. Turn the IT vision into a technology plan, then execute. Self-assess and realign.

IV. The Golden Rules for Becoming the CIO of the FutureKnow your business environment.Change constantly. Learn from your failures. Surround yourself with peoplewho are smarter than you are.

V. Essential Take-AwaysEnsure that your IT goals are alwaysaligned with the business goals of theorganization. Treat technology as a disposable tool, not an end in itself.

Contents

About the Authors . . . . . . . . . . . . . . . . . . . . p.2

Robert C. Bryant . . . . . . . . . . . . . . . . . . . . . p.3

Warren Harrington. . . . . . . . . . . . . . . . . . . . p.5

Thomas H. Murphy. . . . . . . . . . . . . . . . . . . . p.8

Edmund Sefton . . . . . . . . . . . . . . . . . . . . . p.11

Chas M. White . . . . . . . . . . . . . . . . . . . . . . p.13

Ideas to Build Upon & Action Points . . . p.15

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© Books24x7, 2006 About the Authors ExecBlueprints 2

About the Authors

Robert Bryant joined Pediatrix in 1996 asdirector of applications. In January 2000, hewas promoted to the position of vice presi-

dent and chief information officer. From 1997 toJanuary 2000, he served as director, informationservices.

Prior to joining the Company, Mr. Bryant wasapplications manager at the Columbia/HCA ambu-latory surgery division from April 1995 to September1996.

Earlier in his career, Mr. Bryant provided con-sultation services to Fortune 500 manufacturers andserved seven years as a data processing technician

in the United States Navy. He holds a master’s degreein business administration from Bryant College inSmithfield, Rhode Island.

Robert C. BryantSenior Vice President and CIO, Pediatrix Medical Group Inc.

☛ Read Robert’s insights on Page 3

Edmund Sefton started at Commonwealth inSeptember 2003. His team develops, delivers,and supports automated solutions, as well as

maintains and enhances the technology used atCommonwealth today.

Prior to Commonwealth, Mr. Sefton worked forSalomon Brothers Asia, Fidelity Investments, State

Street Global Advisors, and Pioneer Investments. Healso founded Black Ink Systems, which was featuredon the Sun Microsystems Web site for innovative useof Java/Jini technology. Mr. Sefton is fluent inJapanese and was one of the early developers of real-time data streams from the Tokyo Stock

Exchange. He graduated from Purdue with a B.S.in industrial engineering.


☛ Read Edmund’s insights on Page 11

Chas White has spent the majority of his pro-fessional life working with corporate andpublic sector leaders throughout the world.

His focus is on improving the strategic value of infor-mation technologies as enablers for the achievementof corporate and business unit goals.

Mr. White’s professional experience includes:executive vice president and global CIO/CTO of a$3 billion consulting and systems integration com-pany; global CIO of a Big Four accounting firm,based in Amsterdam; managing partner and CEOof a joint venture LLC owned by Cisco, Microsoftand KPMG Consulting; general manager for a LANmagazine Top-10 network integration company; co-founder and director of engineering for the BellAtlantic Network Integration (BANI) startup; man-ager of data services for a regional Bell operatingtelephone company; and, senior programmer for a

mining industry software services company. He holdsa master’s of science degree from Marshall Universityand has taught computer science and business management courses at the college level over the lastfifteen years.

In 1996, based upon his contributions to the useof technology in education, he was named by theWest Virginia State Board of Education as one ofthree Leaders of Learning. Two years prior, he wasrecognized by President Ronald Regan for his vol-unteer efforts in support of teacher education withregard to the adoption of technology in instructionalmethodologies.

Mr. White served on the board of EnterpriseIntegration Services LLC, KPMG’s international exec-utive team, BearingPoint’s corporate executive teamand as a member of their statutory managementboard in Germany. He remains active on the board

of Tachyon, a privately held, secure satellite servicescompany, as well as a business advisor to Primus, anAmman, Jordan-based consulting and systems integration company.

As a global enterprise leader Mr. White hasworked in more than 50 countries with a wide vari-ety of corporate, governmental, and technologicalleaders. He also served on Microsoft’s global exec-utive roundtable, Equant’s Paris-based customeradvisory board, and Dell Computer’s CIO PlatinumKnowledge Share. In addition, he is a frequent pre-senter at international IT leadership conferences. Hisareas of expertise include IT finance, governancemodels, strategic planning, enterprise systems implementations, and compliance.

Chas M. White, MSManaging Principal, White Associates Research & Development

☛ Read Chas’ insights on Page 13

Warren Harrington is a vice president andCIO of Blackwell Consulting Services. Inaddition to his CIO duties, Mr.

Harrington performs a wide variety of clientengagements in the insurance, distribution, manu-facturing, health care, and public sectors. Mr.Harrington acts as the executive for large projectsand client engagements.

Mr. Harrington is board member of theGateway Foundation and chair of the board’sProgram Services Committee, a member of theSociety for Information Management, ExecutiveClub of Chicago, Worldwide Executive Council, andthe Project Management Institute.

Mr. Harrington graduated from the Universityof Illinois, Champaign - Urbana with an M.B.A. and

bachelors degree in mathematics. He is PMP andITIL certified.


☛ Read Warren’s insights on Page 5

Tom Murphy is the CIO ofAmerisourceBergen, a $50 billion wholesaledistributor of pharmaceuticals and related

health care products and services to the health sys-tems, retail, and alternate care markets. Mr. Murphyis responsible for all information technology activ-ities across five major lines of business, comprised

of more than 15 individual companies doing busi-ness as AmerisourceBergen.

Mr. Murphy has over 20 years of informationtechnology leadership experience, primarily in theTour & Travel industry. He was named one ofComputerWorld ’s 2002 Premier 100 IT Leaders andhis organizations have been recognized for

Innovation, Resourcefulness, and as being Best Placesto Work in the IT industry.


☛ Read Tom’s insights on Page 8

Recent LeadershipStrategiesWe are based in South Florida, and we have been shoring up ourdisaster recovery ability over the lastcouple of years. We have imple-mented a new hot site in the Dallasarea. We are preparing to move ourIT operations out to Texas for aweek of ongoing tests on our massrecovery team capabilities.

We have had to rouse the ITtroops. There is some generalunease because we have never doneanything like this before, but wehave put on a positive face andensured our employees that we areconfident in their ability to sustainthe work. While this is an IT ini-tiative, we have had to reach out toall of our departments to make surethey know what is going on.

We are all in the same boat. Weare growing in the same direction and everybody has appro-priate expectations. For corporateoffice users, the performance andmethod of accessing our systemswill be different. We have had towork diligently to ensure successthrough constant review. We wantto bring people onboard in a con-fident manner and achieve a veryhigh level of success.

Anticipating SuccessIt is important that everybody in thecompany has a common goal. Wewant people to feel the sense ofownership that will make our evo-lution a success. When we walkedinto initial meetings, we could seethe fear on people’s faces. Theyquestioned our motivation and wehad to communicate clearly.

We know our plan will work andwe are confident that we are goingto achieve great success. At the sametime, there is a lot of work to bedone. Many steps have to be taken.

We still need to get our cus-tomers on board. Our customers arewondering why we would put themthrough an interruption in their nor-mal day-to-day processes. We tellthem that it is important they havethe very best recovery team ability.We don’t want a hurricane comingthrough and forcing our hand. We

would much rather experiment in acontrolled manner.

Current StepsWe have communicated our inten-tions for a number of months. Inorder to really get people on board,

© Books24x7, 2006 Robert C. Bryant ExecBlueprints 3

Robert C. BryantSenior Vice President and CIO

Pediatrix Medical Group Inc.

“It is very important to set expectationsthat are attainable.”

• Joined company in 1996

• Prior experience at Columbia/HCAAmbulatory Surgery Division

• Provided consultation services toFortune 500 manufacturers

Mr. Bryant can be e-mailed [email protected]

Robert C. BryantSenior Vice President and CIO, Pediatrix Medical Group Inc.

It is critical to involve the right people in disaster recovery situations. We have to put the correct technical infrastructure, hardware, andtelecommunications connectivity in place. We are turning the lights off inone place and turning them on in another. The switch cannot happenwithout a set of processes and capable people. When we find out whatdoesn’t work, we have to adapt. IT operations and business operations gohand-in-hand.

Robert C. Bryant

Senior Vice President and CIOPediatrix Medical Group Inc.

It is important thateverybody in thecompany has acommon goal.

Robert C. Bryant

Senior Vice President and CIOPediatrix Medical Group Inc.

we had to give them a date and getthem over their fear. We communi-cated the fact that we have taken anumber of steps to test everythingwe need in our disaster recoverysite. We talked to people withineach department to determine what,if anything, we are missing andallow every employee to bring theircomments and concerns to thetable.

We have talked to our cus-tomers about all of the work wehave done. We passed along infor-mation on the date and time of theprogram’s launch and communi-cated its potential impact. We arecommunicating with our customerson a daily basis to let them knowwhat is happening, and havingteam meetings on a weekly basis toprovide our departmental ownerswith opportunities to ask questions.

We want to make sure that peo-ple understand that our project hasthe potential to be a significantlypainful process, and we are listeningto their concerns and suggestions. ■

© Books24x7, 2006 Robert C. Bryant ExecBlueprints 4

Robert C. BryantSenior Vice President and CIO, Pediatrix Medical Group Inc. (continued)

Set a date for the change

Work to get people over their fear

Communicate openly about your change processes

Talk with people to determine their needs

Allow employees to voice their concerns

Pass along information to customers

Guide the organization smoothly through change

Overcoming Change Aversion

Vision for a SuccessfulLeadership PlanBasic IT services need to be pro-vided at a level that meets andoften exceeds the client/customer’srequirements. There should neverbe any question about the ITorganization’s ability to accomplishthis: it should be similar to how wethink about telephones or electri-cal power coming out of the wall.To be a successful IT leader run-ning an effective IT organization,it is important that those key ITservices are reliable, effective, andnot questioned.

Assuming an IT organization hassucceeded at reliable, effective ser-vices, the next key element is per-formance on new projects andwork requests that meet agreed-totimetables and resource require-ments such as people and budget.Generally in IT, there are two typesof projects. First, there are IT proj-ects that are internally focused —updating infrastructure andinstalling new equipment, increas-ing capability, putting out a newrelease of a software product.Internal efforts should be done verywell and performance-to-planshould be very high. Second, thereare the IT projects in which theorganization is engaged that involvework with one or many key business sponsors. These projects

have a significant impact in the busi-ness, whether the impact is internalor provides some kind of competi-tive advantage, working closelywith customers or suppliers. The ITorganization’s ability to successfullyperform these projects should behigh and very reliable.

The Executive TeamThe CIO should be a valued mem-ber of the executive team. He or sheshould not be viewed as just a mem-ber of the service organization. TheIT team should be viewed as avalue-added, key contributor to theorganization’s effectiveness, andthose individuals leading the teamshould be seen as key members ofthe management team.

Ultimately, the way to become asuccessful CIO is to ensure you area valuable team player. The chal-lenge I think many CIOs are facedwith is that you have to be verycareful that you are not trying tofully satisfy everybody on the exec-utive team or every departmentwithin the firm. There are key ele-ments on which a company has todeliver, and you need to ensure thatthe IT team is focusing on those ele-ments and not spreading itself toothin. You cannot do everything foreverybody all the time.

Knowing Your BusinessEnvironment Even in a stable business environ-ment IT leaders should look foropportunities for the organizationto improve and achieve more valuefor the business. The major focus inthis non-dynamic environment is tocontinue to provide the best servicesat the lowest cost while continuingto perform projects that successfullyachieve the objectives on time andbudget. It isn’t necessary for the ITleader to come up with massive newopportunities because incrementaland continuous improvement willsuffice.

The majority of firms in today’sbusiness climate are facing constant

© Books24x7, 2006 Warren Harrington ExecBlueprints 5

Warren HarringtonVice President and CIO

Blackwell Consulting Services

“An IT organization should epitomizethe phrase ‘Plan the work and workthe plan.’”

• Active in the insurance, distribution,manufacturing, health care, and public sectors

• Acts as the executive for large projects and client engagements

• Board member of the GatewayFoundation

Mr. Harrington can be e-mailed [email protected]


The IT team should be viewed as a value-added,key contributor to the organization’seffectiveness, and those individuals leading theteam should be seen as key members of themanagement team.

Warren Harrington

Vice President and CIOBlackwell Consulting Services

change and challenges. Bringingabout successful responses to thesenecessary changes and challenges isa cyclical, six-step process. The firststep is to identify those challenges,tasks, objectives — those things thatyou need to go after or achieve. Thesecond step is to gain a level of sup-port, a level of sponsorship andcommitment, in order to make theright things happen and achieve the opportunities of change. Thethird step is to begin to staff ormake the investment in achievingthose actions, elements, and proj-ects. The fourth step is to perform.You have made the investment, sonow you need to do the work. Thefifth step is, as you are achievingresults and as you think you havecompleted the work, evaluate yoursuccess. Have you met what youthought you would have done? Ifso, why? If not, why not? If thereis more to achieve, the sixth andfinal step is to look for continualimprovement. Generate more ideas,which in turn might lead you back to the beginning of the wholesix-step process.

There are four levels of involve-ment regarding the IT implemen-tation strategy. This is fairlyconsistent with typical projectmanagement.

• First, you have sponsors andpeople who represent thosewho have approved the invest-ment and who will support the changes and investment

necessary for the project to goforward.

• Second, there are people whoare responsible for the changeor for making the change hap-pen within the organization byperforming the necessary tasksfor the implementation. Theseare not just people from IT.These are people from any


Warren HarringtonVice President and CIO, Blackwell Consulting Services (continued)

In IT projects, more often than not, your lack of complete success is not dueto technical reasons or technology problems. Quite often the reasons you arenot successful are related to the people involved in the effort. Keycontributors such as the sponsor for the effort or other key roles may havechanged due to these people leaving the organization for one reason oranother. It is a genuine challenge for IT to maintain its pace on projects andsuccessfully impact our firms business when the key contributors move onor relocate. Ultimately, the people side of the organization is immenselyimportant to IT success.

Warren Harrington

Vice President and CIOBlackwell Consulting Services

Identify challenges,tasks, and goals

Gain supportand sponsorship

Make the investment

Perform

Evaluate success

Look for continualimprovement

MeetingChanging

Challenges

department who are criticallyaccountable in the effort.

• Third are the involved staffand management who aremuch more closely linked tothe task. They are not the oneswho will make it happen butsupport those who areaccountable.

• Finally, there are those partici-pating people who activelysupport what is going on butwho are not as intimately

active as the others involved inthe implementation.

Shaping Views of SuccessI do not know any one person ororganization that has always beencompletely successful in theirimplementations or proposing ideas.You should celebrate successes;however, at the same time youshould also learn from your successand failures. Successes will help youmake sure you continue to do whatcaused you to be successful, and

look for ways of gaining more success.

When you lose or fail, do nottake it as a loss but an opportunityto learn. Understand better whathappened and figure out whether itwas a major strategic error orwhether there was a point along theway that a decision was made fromwhich you can learn. You tend tolearn more from failures, so failureis not always bad. However, as weall know if you fail to perform toooften, you tend to not be keptaround. ■


Warren HarringtonVice President and CIO, Blackwell Consulting Services (continued)

Leadership PlansA specific leadership plan that I exe-cuted successfully when I wasemployed with Royal Caribbeanand have now started executing atAmerisourceBergen is building ahigh performance organization thatis grounded in creating organiza-tional values and a purposeful cul-ture. I believe strongly in reallyinvesting in our people and ourorganization in order to evolve theculture, and focus the culture onattaining the goals of the organiza-tion. The process involves strongleadership, engagement with outsideresources, and benchmarking.

I take a tiered approach to driv-ing this into the organization. Thelead team (direct reports) first goesthrough a process called “Clicks &Mortar”. This is a leadership devel-opment course specifically designedaround driving high performanceorganizations, starting with theleadership team. We then cascadethe major principles to the organi-zation, and work with the wholeteam to develop shared organizationvalues. These are the values uponwhich we want to build our teamand culture. We then engage theorganization in a process calledManaging Personal Growth, whichencourages each individual to iden-tify personal values and map thoseto the organizational values. Wehave found that when associates

identify more closely with the orga-nizational values performanceincreases. Finally, we put the organ-ization through a program calledLeading Out Loud, which teacheseach associate how to develop andarticulate an idea in a meaningful,impactful way.

Another leadership plan Irecently implemented was a bitmore tactical and revolved aroundthe execution of a major outsourc-ing initiative that involved personaland professional leadership, processand planning, measurement, andhuman resource management.Pulling off a strategic outsourcinginitiative requires a focus on effec-tive and honest communication, acommitment to each individual totreat them with dignity and respect,and integrity in the negotiation toinsure the best possible outcome forthe associate and the company.Human resources and legal are integral in the course of this effort.

New CompensationStrategiesIn traditional organizations, successis largely measured by title, paygrade, and compensation. By com-pensating people solely by financialand title rewards, companies losesight of more important personaldrivers, creating friction amongpeers and reducing the opportunity

to drive higher performance. I puta premium on specific competen-cies, bucketed under professional,personal, and leadership.

With this I have tried to intro-duce a compensation philosophythat uses much broader bands ingrades and titles, allowing people toachieve job opportunities and expe-riences through different programswithout necessarily expecting animmediate change in status. A per-son needs to master certain com-petencies to move up, and withbroader bands a move up does not

© Books24x7, 2006 Thomas H. Murphy ExecBlueprints 8

Thomas H. MurphySenior Vice President and CIO

AmerisourceBergen

“My first rule of leadership is to surround myself with people who aremuch smarter than I am.”

• $50 billion wholesale distributor ofpharmaceuticals and related healthcare products and services

• Over 20 years of information technology leadership experience

• Named one of ComputerWorld’s2002 Premier 100 IT Leaders

• His organizations have been recognized for Innovation,Resourcefulness, and as being BestPlaces to Work in the IT industry

Mr. Murphy can be e-mailed [email protected]


By compensating people solely by financial andtitle rewards, companies lose sight of moreimportant personal drivers, creating frictionamong peers and reducing the opportunity todrive higher performance.

Thomas H. Murphy

Senior Vice President and CIOAmerisourceBergen

necessarily mean up on terms ofcompensation or title. This hasreduced a lot of the noise in theorganization because people focusless on a job title and more on per-forming their given job to theirhighest ability. We have docu-mented the competencies by bandso each associate has perfect clar-ity as to the expectation for achieve-ment. We have also increased thefrequency of performance appraisalsto encourage our managers to takea more proactive approach to men-toring and coaching competencies.

Successful StrategiesI have been successful in myapproach because I know that thiscommitment to shared organiza-tional values driving high perform-ance teams works. I truly believe inmy strategies. A challenge for a lotof senior executives is that they donot understand the differencebetween leading through authorityof title and leading through authenticity and genuineness.

An important evolution for mepersonally in my leadership journeyhas been to realize that title, author-ity, and accountability does notautomatically make be a leader. Ilead by example, and I hold myselfas accountable for the success of myassociates as I hold them. After thecompany went through the majoroutsourcing, which resulted in themove of 80 percent of the workforceto our outsourcing partner, a brandnew organization was created witha brand new mission. I worked with a leadership developmentorganization to create a two-dayprocess that brought every memberof the new organization together todevelop the organizational valuesupon which we wanted to create

our team. Everyone from the administrative assistants to thehighest titled senior managers wasinvolved, and we wound up withseven core values that will neverchange, no matter what changes weare faced with in the future. In otherwords, the core values are the “safeharbor” our associates know theyhave in the sea of constant change.

Leadership Self-EvaluationPeople who are insecure in theirown capabilities tend to surroundthemselves with people who makethem comfortable with what theyknow. Leaders who recognize theimportance of the team surroundthemselves with people who sup-plement their weaknesses and cre-ate a balanced approach. The onlyway to find those weaknesses is to

perform honest self-evaluations.For example, I love macro-management and deep businessengagements, but I do not like gran-ular detail. Thus, I learned to hirepeople who embrace the minutiaand detail. Often, leaders hire smartpeople but then shackle them withunnecessary oversight, rules, regu-lations, and processes so the leadercan stay aware of everything goingon in the organization. I give thepeople I hire the freedom andaccountability to perform.

Managing the TeamI tell my team that they are on stageand that the more people theydirect, the higher the stakes, becauseit is our responsibility as the lead-ers of this organization to embodythe behaviors, values, and culture of


Thomas H. MurphySenior Vice President and CIO, AmerisourceBergen (continued)

Our Tiered Leadership Training

LeadingOut Loud

ManagingPersonal Growth

Organizational Values

Clicks & Mortar

the company. I gather the directreport team for a two-day leader-ship program to talk about the“undiscussables” in the organiza-tion. Undiscussables are those 600-pound gorillas in the room thateveryone can see but no one wantsto talk about. These get in the wayof performance and interactionamong the team and the quicker weacknowledge and deal with themthe better off we are. These happenevery quarter, and it is our way ofmaintaining our commitment tomanaging the organization withinthe values we espouse.

At the management level, wehold two-day sessions where peoplecan discuss ideas that would sig-nificantly change or have a tangibleimpact on the business. The mes-sage I hope to send during both ofthese programs is that everyone isa leader and that our core organi-zation values and purposeful cultureare important. The people who havethe tightest alignment from theirpersonal values to their organiza-tional values are the people who aregoing to perform at the highestlevel, so we recently held a trainingprogram that showed people howto align those values.

We plan on holding a future pro-gram that focuses on translatingthose beliefs into something that canmake a difference in the company.This program is called Leading OutLoud. At one session in a previouscompany an associate had an ideafor a grass roots leadership programbut did not possess the communi-cation skills to sell it. He learnedduring Leading Out Loud how toarticulate the idea, which he did,and we started the program, calledLead IT. It was later written up byCIO magazine as an innovativeleadership program. ■


Thomas H. MurphySenior Vice President and CIO, AmerisourceBergen (continued)

The tangible benefits of having a cultural leadership plan in place can beseen in a number of different places. One way is through the actualproduction of the organization. A group of high-performing individuals willbring a higher level of execution capability, focus, and alignment to theirjobs every single day. They will know that what they are doing has apurpose within the organization, and that will drive a lot of measurablebehaviors and productivity. That knowledge will also result in higherretention levels.

Thomas H. Murphy

Senior Vice President and CIOAmerisourceBergen

Strategic VisionImplementationAny technology leadership planmust be aligned with the businessvision/plan. Any explanation ofthe plan must be presented in thecontext of business goals.

I always discuss the businessgoals and explain how technologyhelps achieve those goals. I avoiddiscussing the details of the tech-nology unless asked. I stress thattechnology is not important: it isdisposable and has no value if itdoes not help achieve the goals ofthe business. It’s very easy tobecome distracted and confused byfocusing on details of technologyinstead of the goals of the business.

This works because everything istied to a business objective thateveryone understands. Many exec-utives are not interested in tech-nology. They don’t want to knowany details. They are, rightfully,only interested in the effectivenessof technology in helping them reachtheir business goals. This approachalso helps the technology staffunderstand that we are all here forthe business, and business goals arealways more important than tech-nology. Many CIOs get boggeddown in the specifics of technologydecisions. Few business ownerscare what specific technologies arechosen to reach business goals.

Steps for Implementing aSuccessful TechnologyLeadership Strategy These are my steps for creating and implementing a successful technology leadership strategy:• Step one: Develop a clear

understanding of the businessvision and the steps being

taken to make the vision areality. Review all of the goalswith the business executivesand get clarity on what isreally desired. Determinewhich goals can be helped withthe use of technology. Takethose goals and test the technology vision against thosegoals. If the technology visiondoes not align, change thetechnology vision.

• Step two: Develop a technol-ogy vision that helps achievethe business vision. Make surethe vision is clearly understoodby everyone within the organi-zation. Review the vision withthe business heads to makesure everyone is in agreement.

• Step three: Turn the technologyvision into an executable technology plan. Take all ofthe technology-based businessgoals and turn them into executable projects. Present theprojects to the business headsfor prioritization.

• Step four: Execute the plans.

• Step five: Continuously reviewand re-align the executabletechnology plans to the business goals.

All development is iterative.Plans change as the business dynam-ics change. The ability to execute inreal time is a major component ofstaying in line with business needs.

The most common mistake madein step one is to develop a visionthat is more focused on technologythan business. The key to success-ful execution is to make sure thebusiness heads are fully engaged andhave vested interest in the successof the technology. It’s also veryimportant to make sure everyoneunderstands that technology goalsare not valid unless they line upwith business goals.

© Books24x7, 2006 Edmund Sefton ExecBlueprints 11

Edmund SeftonChief Information Officer

Commonwealth Financial Network

“I avoid using technology as a driverfor decisions, and I stress the fact thattechnology is only a tool that helpsachieve business goals.”

• Joined company in 2003

• Founded Black Ink Systems

• Experience with Salomon BrothersAsia, Fidelity Investments, StateStreet Global Advisors, and PioneerInvestments

• One of the early developers of real-time data streams from TokyoStock Exchange

Mr. Sefton can be e-mailed [email protected]


I stress that technologyis not important: it isdisposable and has novalue if it does nothelp achieve the goalsof the business.

Edmund Sefton

Chief Information OfficerCommonwealth Financial Network

Resources Required forSuccessful StrategyImplementationTechnology executives and businessexecutives are needed in the initialphases. Great collaboration andmutual trust and respect are criti-cal. In subsequent execution phases,great business analysts and projectmanagers are needed. This processtakes a huge time and resource com-mitment from the business. This isnot the type of thing that can beachieved by gathering businessrequirements and building technol-ogy. If it is done by the technologydepartment alone, it will not suc-ceed. The business units must buyinto the time and resource com-mitment they must make. Thisprocess takes a lot of up front plan-ning. The business units loseresources that would typically notbe assigned to technology projects.

The Role of Technology inDriving Business DecisionsI have been in many organizationswhere the technology executive drovea lot of the business decisions byusing the limitations or capabilities of

technology as a reason for moving ina particular business direction. Thisresulted in the business executivebecoming disengaged and no longerdirectly vested in the success of thestrategy. An “us against them” men-tality resulted. The business ownerbecame a spectator in the develop-ment of business solutions, and sub-sequently, there were many projectfailures. Business needs were notclearly defined. Discussions weredominated by technologists, andmore time and energy was spent ontechnology issues and needs insteadof business issues and needs. Businessgoals were rarely achieved.

The failures resulted in technol-ogy being blamed for many of theproblems. Business units wouldtake a passive role and would insome cases encourage the failure ofthe project.

I have seen many project failuresbecause the technology executiveknew what was best for the busi-ness. I have always stressed theunimportance of technology and theimportance of the business. I alwaysstress letting the business units set the goals. Technology is a toolfor the business. If you can really

believe that, you will be very successful.

The Three Golden Rules forTechnology’s Role inStrategic BusinessDecisions

1. It’s not about technology. Keeptechnology in perspective andunderstand that the businessgoals are the drivers for deci-sions. Technology is a dispos-able tool that can always bechanged for the business.

2. Always align the technologygoals with the business goals.Make sure everyone in theorganization understands thattechnology goals are subservient to business goals.

3. Never let technology capabili-ties drive business direction.It’s always a factor. Don’t letbusiness decisions get turnedinto technology decisions. Iftechnology is driving businessdirection, then the businessleaders aren’t thinking enough. ■

© Books24x7, 2006 Edmund Sefton ExecBlueprints 12

Edmund SeftonChief Information Officer, Commonwealth Financial Network (continued)

This strategy helps line up the business owners with the technologydepartment. It helps focus the technology staff on the business needs. Thebusiness units feel that IT really understands the problems and the goals. Business goals are presented as much more important than technologydecisions (which they are). All areas work toward common goals. Whenthings go wrong, there is less interest in assigning blame, and more energy isfocused on solving the problems. Overall the relationship is much morecollaborative.

Edmund Sefton

Chief Information OfficerCommonwealth Financial Network

Personal Leadership PlansIn the course of my professional ITcareer, I have had the opportunityto be the initial ‘C-level’ technologyofficer at three firms: a startup sys-tems integration spin-off from aregional RBOC with approximately350 US-based employees; a globalBig Five Accounting firm head-quartered in Europe with 110,000seats spread across 106 countries;and an extremely mobile, majorprofessional services consulting firmwith approximately 18,000 employ-ees and a presence in 43 countries.

Despite the variances in scopeand scale, personal leadership plan-ning has followed essentially thesame tenets. Key among them istransitioning IT from the technol-ogy plumbers to a business partnerwhose goal is to provide the appro-priate technology fabric to enabledelivery of the business’ productsand services at the most efficientcost, while providing the greatestrange of motion, thereby allowingthe organization to adapt to chang-ing market conditions. In this phase,technology is operationally definedas a business enabler rather than a business driver; therefore, tech-nology decisions must have a business-case basis.

My teams have been able todeliver to executives a three-year

planning approach, with annualupdates, that will track the ITinvestment directly in support ofbusiness direction. This strategic IT business plan has become thecore document that the IT teamleaders use as the starting point for their projects and just as importantly, their annual goals.

Successful LeadershipPlansI try to instill a culture in which atechnologist can best advancewithin an IT organization bybecoming a business partner andcontributing IT knowledge with aneye toward building the success ofthe company. This clearly setsexpectations for personal growthand advancement. Changing theparadigm that a reasonable grasp oftechnology and an acceptable levelof political skills is the path to suc-cess is not an easy task. It becomesincumbent upon the entire ITorganization that a new set of skillsbecome a personal responsibility.

In technical terms, the role ofCIO is that of a protocol converter:speaking the language of businesswith the executive team, learningwhat they need and their plans forthe future, understanding anddefining what those plans mean in technical terms, then communicat-

ing the technical specifics back tothe IT team. The IT team then turnsthis information into a plan, witha timeline, budget, and levels ofaccountability.

Implementing a SuccessfulStrategyOne of the barriers to entry whenconsidering adoption of such aleadership model within an ITorganization is institutional inertia.As an example, too often business

© Books24x7, 2006 Chas M. White, MS ExecBlueprints 13

Chas M. White, MSManaging Principal

White Associates Research & Development

“My personal leadership plan has consistently included transforming theIT organization into an operating unit inwhich business strategies are the guiding principals for IT planning.”

• Experience in consulting and systemsintegration; a Big Four Accountingfirm; a regional Bell telephone company; et al.

• Named by the WV State Board ofEducation as one of three Leaders of Learning

• Has worked in more than 50 countries with a wide variety of corporate, governmental, and technological leaders

Mr. White can be e-mailed [email protected]

Chas M. White, MSManaging Principal, White Associates Research & Development

In technical terms, the role of CIO is that of aprotocol converter: speaking the language ofbusiness with the executive team, learning whatthey need and their plans for the future,understanding and defining what those plansmean in technical terms, then communicating thetechnical specifics back to the IT team.

Chas M. White, MS

Managing Principal, White Associates Research & Development

units demonstrate a tendency todefine their requirements as tech-nology solutions rather than busi-ness requirements. To be successful,the IT team needs to have the lati-tude to select the most appropriatetechnological enablers, consistentwith the operating network fabric,to facilitate accomplishing the business objectives.

Not surprisingly, almost every-one in an organization has a pre-ferred partner, vendor, ortechnology solution when it comesto implementing new strategies.This can present an impediment tothe aforementioned approach, par-ticularly within the professional ITservices industry.

To address the challenge and fos-ter discipline around the business-focused approach, BearingPointdeveloped a methodology known asscope and approach. Scope andapproach was a structured tech-nology procurement vehicle thatmanifested the principals associatedwith aligning IT spend with businessgoals. A group wishing to make asignificant IT procurement wasrequired to identify an executivesponsor who would define a business case, citing businessrequirements rather than technical

requirements. IT would then developa series of solution scenarios designedto address the business require-ments. These were then mapped intoa series of graphs representing tim-ing, risks, and costs for considerationagainst a present method of operation (PMO) scenario.

All data was presented in thecontext of resolution of the businessproblem and stated in business per-formance terms such that an eval-uation could be made by leadershipwith regard to allocation of invest-ments in IT projects as compared toother initiatives. The tone of the ITdiscussions became more similar towhat one might have with theirfinancial advisor rather than their plumber — in terms of timingas well as content.

Changing Role of CIOWe are headed toward a new gen-eration of C-level IT leaders drivenby internal pressures for businessperformance and statutory compli-ance, as well as by external pres-sures from investors, regulators, and the analyst community.Organizations are dealing with thechange in a number of ways withinthe various governance constructs.

Some are segregating duties intoCIO and CTO roles; one having thetactical management and operatingresponsibilities, while the otherassumes the more strategic part-nering and planning responsibilities.Others are positioning departmen-tal CIOs with a single CTO alignedwith the organization’s long-rangeplanning functions. Still others areemploying IT steering committeesor solutions architecture boards asa proxy for a named CTO, againprimarily to address corporate stan-dards, investment, and consistencyof operations.

There are any number of com-binations that will evolve, but allshow that increasingly the IT leaderis about more than just technology.Today’s IT leaders must also com-prehend business value. One of thebetter analogies I have heard likensIT to an aircraft carrier. It is a hugestrategic as well as tactical asset,capable of changing the outcome ofmany events, but it does not turnquickly and must be piloted by awell-trained individual who under-stands not only its capabilities butalso its mission. ■

© Books24x7, 2006 Chas M. White, MS ExecBlueprints 14

Chas M. White, MSManaging Principal, White Associates Research & Development (continued)

As the IT organization makes the transition from plumber to businesspartners the leadership planning evolves, especially with regard tosuccession planning, presentation skills, and financial analysis. In mostcases this represents a very positive image to the employee with regard toself-image and a sense of well being with regard to career planning. It alsoprovides them insight into why a particular technology is appropriate andcontributes to better requirements definition over time. Just as the role ofthe CIO is evolving to include more business focus, so too are the otherleadership roles within IT organizations.

Chas M. White, MS

Managing Principal, White Associates Research & Development

I. Becoming a BusinessPartnerThe way to become a successfulCIO is to ensure you are a valuableteam player.

• The IT team should be viewed as a value-added, key contributor to the organization’s effectiveness.

• Those individuals leading theteam should be seen as keymembers of the managementteam.

To achieve the position of businesspartner, remember:

• Business goals are the driversfor decisions.

• Make sure that technologygoals are subservient to business goals.

• Never let technology capabilities drive businessdirection.

II. The Bottom LineShared organizational values andgoals are the foundation of profit-driving IT leadership.

This works because everything istied to a business objective thateveryone understands.

Any technology leadership planmust be aligned with the businessvision.

• Any explanation of the planmust be presented in the context of business goals.

• Technology is not important: itis disposable and has no valueif it does not help achieve thegoals of the business.

III. Must-Have Steps for aSuccessful IT StrategyDevelop a clear understanding ofthe business vision.• Understand the steps being

taken to make the vision areality.

• Determine which goals can be helped with the use of technology.

Develop a technology vision thathelps achieve the business vision.

Make sure the vision is clearlyunderstood by everyone within theorganization.

Turn the technology vision intoan executable technology plan.

Take all of the technology-basedbusiness goals and turn them intoexecutable projects.

Execute the plans.Communicate constantly with

business leaders to maintain alignment.

Self-assess and realign.Continuously review and

re-align the executable technologyplans to the business goals.

IV. The Golden Rules forBecoming the CIO of theFutureKnow your business environment.

• Understand the ways theorganization is growing.

• Align your organization tomaximize your impact ongrowth.

Change constantly.

• Bringing about successfulresponses to necessary changesand challenges is a constantprocess, but is the heart of theIT organization’s mission.

• Incremental and continuousimprovement is a central partof the CIO’s role.

Learn from your failures.

• When you lose or fail, do not take it as a loss but anopportunity to learn.

• People can learn more fromfailures than from successes.

Surround yourself with peoplewho are smarter than you are.

Leaders who recognize theimportance of the team surroundthemselves with people who sup-plement their weaknesses and create a balanced approach.

V. Essential Take-AwaysEnsure that your IT goals arealways aligned with the businessgoals of the organization.

• It is important that everybodyin the company has a commongoal.

• This strategy helps line up thebusiness owners with the technology department. Ithelps focus the technology staffon the business needs.

Treat technology as a disposabletool, not an end in itself.

• CIOs must make their organization subservient to thebusiness needs and goals.

• This attitude is central to making your technology organization a driver of changeand a true business partner. ■

© Books24x7, 2006 Ideas to Build Upon & Action Points ExecBlueprints 15

Ideas to Build Upon & Action Points

© Books24x7, 2006 Ideas to Build Upon & Action Points ExecBlueprints 16

Ideas to Build Upon & Action Points (continued)

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10 KEY QUESTIONS AND DISCUSSION POINTS

Can you tell me about your vision for executing one or more of your most effective leadership strategies with respect to how you would explain it to another executive?

Why has this been successful for you? How is your leadership strategy different fromhow others in the industry may approach the situation?

What are the results this type of strategy yields? What are the goals? Can you break itdown in percentages or monetary significance the type of success you have had with it in the past?

When do you implement this type of strategy? When is the right time for it?

Can you walk me through the four to five steps it takes for you to implement this strategy from beginning to end, as if you were teaching another person how to do it?

What resources are needed to engage in this type of situation? What types of costsare associated with it?

What are the roles and motivations of each individual involved in it? Can you tell mewho else would be involved in implementing the strategy/this type of situation and whatrole they play?

What type of situation presented itself to force you to develop this strategy? Can youwalk me through an example of how you first engaged in this type of situation?

How has your experience in your position helped shape your views on this strategy?What in your previous experiences has enabled you to have success with this leader-ship strategy?

What are the three most important things to keep in mind in this type of situation inorder to achieve success?

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Documents

CTO CIO Leadership Plans