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The Future-State CIO:The Rise of the Business Strategist
Steve RovniakDirector, EMEA
About the CIO Executive Council
Mission Summary1.Members are trusted advisors to one another
2.Members work together on discrete projects aimed at promoting professional excellence, and at advancing the role of the CIO in business.
Mission Summary1.Members are trusted advisors to one another
2.Members work together on discrete projects aimed at promoting professional excellence, and at advancing the role of the CIO in business.
• Founding Date: 1 April 2004
• Current Worldwide Membership: 520+
• Founding Date: 1 April 2004
• Current Worldwide Membership: 520+
Bob Willett, Global CIOBob Willett, Global CIO
Marc West,Marc West,
Louis Ehrlich, CIOLouis Ehrlich, CIO
The “Blended” CIO:Part technology - part business
& VP of Business Strategy & Services
& CEO, Best Buy International
President, Commercial MarketsCIO
Three “Classifications” of CIOs
1. FUNCTION HEADS
2. TRANSFORMATIONAL LEADERS
3. BUSINESS STRATEGISTS
The “Function Head”
Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services
Predominate activities include: Developing IT talent Sourcing strategy and execution Improving IT operations Improving system performance Security management Budget management Managing IT crises
The “Transformational Leader”
Focused on creating change for their enterprise through process transformation and close partnerships with business operations
Predominate activities include: Redesigning cross-enterprise business processes
Leading change efforts in IT and across enterprise
Implementing new systems and architecture
Aligning IT initiatives and strategy with business goals/strategy
Cultivating the IT/business partnership
The “Business Strategist”
Focused on driving strategy for competitive advantage through activities that face across the enterprise and the external customer
Predominate activities include: Co-developing/refining business strategy with CXOs Studying market trends and external customer needs and
behaviors to identify new IT-enabled products/services Driving and enabling business innovations Identifying opportunities for IT-enabled competitive
differentiation Reengineering or developing new go-to-market strategies
and related technologies
CIOs represent a “blending” of the three classifications
The “typical” CIO
50%
40%
10%
37%
51%12%
“State of the CIO” 2008 survey distribution 758 IT heads across North America & Europe
41% (+4)
49% (-2)
9% (-2)
North AmericaEurope
CIO type distribution0
25 50 75100
CurrentDistribution of CIOs
FutureDistribution of CIOs
(Page B5)
"Half of my job is now product innovation and understanding market opportunities," says Mr. West, 47. In contrast, at his previous CIO job, 75% of his time was devoted to supporting tech systems, he says.
"Half of my job is now product innovation and understanding market opportunities," says Mr. West, 47. In contrast, at his previous CIO job, 75% of his time was devoted to supporting tech systems, he says.
The business community is paying attention
Critical indicators …
1. With whom do they spend the most time?
2. What are their top management and technology priorities?
3. Where do they want to have the greatest impact?
4. What skills do they need to develop?
How does the Business Strategist CIO differ from other CIOs?
Who are they hanging out with?
8%
20%
11%
18%
42%
10%
23%
11%
18%
39%
14%
27%
10%
17%
32%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
IT staff or team Non-IT employees IT vendors/ svcproviders
Your company'sexecs
Externalpartners/ customers
FUNCTION HEAD TRANSFORMATIONAL LEADER BUSINESS STRATEGIST
Top 10 management and technology priorities of the Business Strategist
1. Aligning IT and business goals
2. IT-enabled process improvement
3. Revenue-generating services & products
4. Improving internal user satisfaction
5. Business continuity/risk management
6. IT staff development
7. Controlling IT costs
8. Improving project management discipline
9. Data privacy
10. Measuring and communicating IT value
1. Create competitive advantage2. Enable business innovation3. Enable new revenue streams4. Improve customer (external) satisfaction5. Reduce business costs6. Grow existing revenue streams7. Improve security/risk management8. Enable global expansion9. Supply chain automation/visibility10.Enable regulatory compliance
Where do they want to have the greatest impact? Top 10
What skills are Business Strategists developing?In collaboration w/ Egon Zehnder International
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Strategic Orientation
Collaboration & Influencing
People Development
Team Leadership
Change Leadership
Customer Focus
EgonZehnder
International
Eight core competencies for executive management
Scoring range of 1 - 7
Basic management competence
Increasing stretch - Building towards world class
competence
Transformational, visionary competence1
2
3
4
5
6
7
Middle Management Senior Executives World-Class Leaders
EgonZehnder
International
“Good” CIOs vs. “Good” CEOs (50-85th percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Strategic Orientation
Collaboration & Influencing
People Development
Team Leadership
Change Leadership
Customer Focus
CEO CIO
EgonZehnder
International(n = 25,000 execs
across all functions)
“Good” CIOs vs. “Good” CFOs (50-85th percentile)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Results Orientation
Market Knowledge
Strategic Orientation
Collaboration & Influencing
People Development
Team Leadership
Change Leadership
Customer Focus
CIO CFO
EgonZehnder
International(n = 25,000 execs
across all functions)
2.5
3.0
3.5
4.0
4.5
5.0
5.5Business Results Orientation
Market Knowledge
Strategic Orientation
Collaboration & Influenceing
People Development
Team Leadership
Change Leadership
Customer Focus
CEO CIO
Outstanding CEOs vs. CIOs(85th percentile)
EgonZehnder
International(n = 25,000 execs
across all functions)
Business strategist “to-do” list
1. Spend more time with executive peers and external customers and partners; spend less with IT staff and vendors.
2. Focus more effort on improving external-facing processes such as customer service, sales and marketing.
Business strategist “to-do" list, continued
3. Shift some of IT’s value proposition from cost- cutting to creating competitive advantage, revenue-generating services and products and new revenue streams.
4. Prioritize and cultivate the leadership competencies of: » External customer focus» Market knowledge » Maintain strength in strategic thinking and
collaboration
Business strategist to-do list, continued
5. Check your timing. Make sure your enterprise needs and would embrace a business strategist CIO.
» Is the company looking to grow, diversify, innovate and differentiate? Is it willing to invest and take risks?
» Has the CIO and IT organization earned the trust of its business partners through effective IT operations, project delivery and strategic alignment?
