the role of the cio qingjiang qu jennifer page kristen smith nora teske elizabeth vadakkan

The Role of the CIO

QingJiang Qu

Jennifer Page

Kristen Smith

Nora Teske

Elizabeth Vadakkan

2

Overview

• What is a CIO?• Why is a CIO Important?• Demographics• What Should a CIO Know?• Top Ten Issues for CIOs• Challenges of the CIO• Case Studies• Comparisons• What We Have Learned

3

What is a CIO?• A chief architect who designs future opportunities for the

business• A change leader who orchestrates resources to achieve

optimal implementation• A product developer who helps define the company’s place

in the emerging digital economy• A technology provocateur who embeds IT into the business

strategy• A chief operating strategist who invents the future with

senior management and brings innovation• A coach who trains people to implement and use new

technolgoy

Gottschalk,Peter. "IS/IT Leadership Roles," hicss, p. 7055, 33rd Hawaii International Conference on System Sciences-Volume 7, 2000

4

Why is a CIO Important?

• Dual roles• Manage IT as a department• Manage IT as a partner with the organization’s

business leaders

Heather A, Smith, “IT in 2010:the next frontier” MIS, Sep 2006, volume 5, Issue

5

•Average annual compensation of a CIO in 2008 was $237,400

•Most public CIOs (47%) earn $100,000 to $149,000

Salary Demographics

10%

15%

12%

9%

10%

6%

5%

7% 7%

4%

12%

0%

2%

4%

6%

8%

10%

12%

14%

16%

% o

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less than$100K

$100K to$125K

125,K to150K

150K to175K

175K to200K

200K to225K

225K to250K

250K to300K

300K to350K

350K to400K

morethan400K

Annual compensation of CIOs

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2008. http://www.cio.com/state/ , viewed March 20, 2008. (Sample Info: Survey was conducted between 7/9/07-7/31/07. 558 heads of IT from a broad range of industries including non-computer-related manufacturing (12 percent), healthcare/pharmaceuticals/medicalservices/biotech (10 percent), wholesale/retailer/distributor (9 percent), education/nonprofit (9 percent),finance/banking/accounting (9 percent) and government (9 percent). The margin of error on a sample sizeof 558 is +/- 4.1 percent. 64% of the respondents hold a CIO/CTO title, 21% hold VP/SVP/EVP of IT titles, 11% an EVP/SVP/VP, 4% list their title as “other.” 26% of the respondents are from companies with annual revenue of less than $100M, 39% are from companies with revenue between $101M and $999.9M, and 32% are from companies with over $1B (3% did not answer this question).) Survey sample details for this source will not be repeated on subsequent slides.

6

Gender Statistics, CIOs and IT

• In 2007 908,000 women worked in IT. 26.2% of all IT.(US). This was a 7.7% drop from 2000.

BUT• According to Dice.com

2006 survey, Female CIOs earned $109,912 averaging 1.4% more than men! 86%

14%

1. ITAA June 22, 2005 Press Release - Minorities - http://www.itaa.org/eweb/Dynamicpage.aspx?webcode=PRTemplate&wps_key=0bf6f8eb-20ab-4906-957d-2ffa85ea205b2. CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2008. http://www.cio.com/state/3.The Dice Salary Survey viewed 3/31/08 http://career-resources.dice.com/tech_salary_survey_06.shtml administered online among 19,182 registered Dice.com job seekers and visitors between August 2 and November 30, 2006. Respondents participate in the survey through a notification on the Dice homepage, and registered job seekers. A cookie methodology was used to ensure that there was no duplication of responses between or within the various sample groups, and duplicate responses from a single e-mail address were removed.

Blue-Male Red-Female

CIOs % Male v. Female

7

Years 2003 2004 2006 2007 2008

Average tenure years

4.3 4.5 4.9 5.1 4.5

Average Turnover Percentage

Less than 2 years

2 to 5 years

5 to 10 years

More than 10 years

2008 31% 34% 28% 7%

2007 27% 33% 29% 11%

2006 24% 35% 31% 9%

CIO Tenure & Turnover

http://www.cio.com--© 2008 CXO Media Inc.

8

General Statistics on CIO Reporting Structure

Jerry Lufftman, “key issues for IT executives 2005”,MIS, June 2006, volume 5, Issue

41%

23%

16%

20%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

CEO/Equiv CFO COO Other

9

Previous Background

77%

7% 4% 3% 3% 2% 1% 1% 1% 2%0%

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CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2008. http://www.cio.com/state/

10

What Should a CIO Know?

• The federal CIO council produced a set of "high-level competencies" that government CIOs need

• As of March 2001, the list came to 549 learning objectives in 12 categories• The leadership/managerial category alone has 80 learning objectives

• Other Skills• Communication and conflict management, behavioral principles, theories of

motivation, infrastructure building expertise, performance assessment, IT retention, and knowledge management.

www.cio.com/article/31426/Elements_of_a_CIO_Education

11

Top ten issues for CIOs

1. IT and business alignment2. Attracting, developing, and retaining IT professionals3. Security and privacy4. IT strategic planning5. Business process engineering6. Introducing rapid business solutions 7. Measuring the value of IT investments8. True return on IT investment (What is true return?)9. Complexity reduction 10. IT governance

Jerry Lufftman, “key issues for IT executives 2005”,MIS, June 2006, volume 5, Issue

12

Challenges of the CIO

• Bring vision and innovation to the company

• Develop technology expertise and business acumen

• Stay current with emerging technology

• Attract and retain IT staff in a competitive market

• Manage change

13


• CEOs report gap between business and technology; affects customer satisfaction, speed & flexibility…the CIO must close this gap.

• 84% of CIOs surveyed by IBM believe technology is transforming industries and enabling competitive advantage

• 16% of CIOs surveyed by IBM said their companies were taking full strategic advantage of IT

• CIOs must bring new ideas, processes, and select projects that fit business needs while improving current processes

Bring Vision and Innovation:CIO vs. Corporate Culture

1. Huber, Bill. “The New Face of IT Leadership” Technology. Inc. Viewed 3/21/08. http://technology.inc.com/managing/articles/200702/huber.html 2. IBM Global Services. “The New CIO: Change Partner and Business Leader” May 2007. http://www-935.ibm.com/services/us/cio/pdf/wp_cio_leadership_forum_g510-6605-00.pdf3. “Expanding the Innovation Horizon,” The IBM Global CEO Study 2006 http://www-935.ibm.com/services/uk/bcs/pdf/g510-6259-01-the-global-ceo-study-2006.pdf (The survey population included 765 CEOs and public sector leaders, spanning 20 different industries and 11 geographic regions (including representation both from mature markets and developing markets such as China, India, Eastern Europe and Latin America. Sample comprised leaders of companies both large and small, some public and some privately held Sample data will not be repeated on future slides).4. “IBM Survey: CIO Role Is Changing; CEOs Need to Further Align IT and Business to Drive Innovation and Growth” Zane, Randy. Press Release Viewed 3/20.08. June 19,2007. (Surveyed 170 Global CIOs, Public and Private, at the 2006 Leadership Forum. Hosted By IBM.)

14


• Businesses are technologically lagging because CIOs can’t build good cases for IT investment, or gain organizational commitment.

• 43% of CIOs now report they have responsibilities in departments other than IT.

• Mentoring may be useful in making the tech-only CIOs more business savvy.

• Non-technical CIOs should work closely with IT staff to stay informed of operational issues

Develop Technology Expertise and Business Acumen

1. “Generating Premium Returns on Your IT Investments,” P. Weill & S. Aral, MIT Sloan Management Review, Vol. 47 No. 2, Winter 2006.2. Harvey Nash USA’s 2006/2007 CIO Survey Viewed 3/30/08. It was conducted online from September 22 to November 10, 2006. One hundred and seventy-two IT leaders completed a 56 question survey. Respondents included CIOs and senior IT business leaders from companies located primarily in or around the region of the 11 major markets served by Harvey Nash: Atlanta, GA; Boston, MA; Denver, CO; Chicago, IL; New York, NY; Parsippany, NJ; Phoenix, AZ; San Francisco, CA; Seattle, WA; Stamford, CT; and Tampa, FL. Survey respondents serve in a wide range of industries, including software and computing services (24%), financial services (14.6%), media/publishing (11%),healthcare/pharmaceuticals (10.4%) and retail/FMCG (6.7%). http://www.harveynash.com/usa/services/it_services/documents/USCIOsurvey_final.pdf

15


• MIT’s technologyreview.com• CIO social networks• Seminars• Technology fairs

Stay Current with Emerging Technology

“Online delivery and taming disruptive technology key themes for 2008” McNevin, Ambrose. Viewed 3/20/08. CIO Magazine. December 7, 2007. http://www.cio.co.uk/concern/alignment/news/index.cfm?articleid=2367&pagtype=allchandate&pn=2

16


• 60% of CEOs, CIOs, and other C-level executives reported insufficient IT staff as a problem

• Demand for IT workers is very high

• Top 3 factors of IT staff retention• Career advancement• Financial rewards based on company advancement• Innovation and risk

Attract and Retain IT Staff in a Competitive Market

1. “Not Enough IT Workers on Staff, Survey Finds” Dubie, Denise. Viewed 3/18/08. NetworkWorld December 13, 2008. http://www.networkworld.com/news/2008/021308-it-worker-shortage.html2. “What Do Employees Really Want?” Finegold, David, PhD. Viewed 3/20/08. LiNE Zine http://www.linezine.com/7.2/articles/dfwderw.htm

17


• Resistance to change: one reason businesses do not take full strategic advantage of technology

• CIOs must learn to manage people

• CIOs must lead by example

Manage Change

IBM Global Services. “The New CIO: Change Partner and Business Leader” May 2007. http://www-935.ibm.com/services/us/cio/pdf/wp_cio_leadership_forum_g510-6605-00.pdf

18

Our CIO Case Studies

We interviewed four different CIOs in four different working environments to see how they stack up against the demographics and each other.

19

• Appointed in January 2005 with a mandate for IT consolidation and modernization

• 37 years with the state• Deputy Secretary of State • Highway Department • National Park Service• No previous IT experience

• B.A. Industrial Relations Lincoln University

• Master’s of Public Policy Administration Univ. of MO

Dan RossCIO of Missouri

Interview with Dan Ross: CIO of Missouri

20

Vinny FerrariCIO of Edward Jones

Interview with Vinny Ferrari: CIO, Edward Jones

• Joined Edward Jones in 2003 as Senior Director, Information Systems division after a 22-year career in technology on Wall Street.

• Named principal in the firm in 2004• Named to the firm’s Management Committee in 2006• Assumed the role of CIO in 2007• Education: Bachelor’s degree in economics from Ursinus College in

Pennsylvania • Started off at Wall Street as a “Quant”

21

Mark CountsDirector of Internal Technology

• Joined RubinBrown in December 2006

• Bachelors Degree in Business Administration, Minor in Accounting from UMSL

• 14 years of Technology and Accounting experience

Interview with Mark Counts: IT Director, RubinBrown LLP

22

Eric GorhamDirector of Internal Technology

• Began work at REJIS in 1983

• Associate’s in Applied Science Data Processing from STLCC-Meramec

• Certifications – Computer Programming & Operations

• Graduate of SIM RLF

Interview with Eric Gorham: Director of IT, REJIS

23

Organizational Backgrounds

24

• In 2007, there were an estimated 5,878,415 residents

• The FY08 Budget is roughly $7.9 Billion

• Budgetary Funds are Divided into 18 General Categories

• Within these categories are the budget allowances for the 15 Major State Agencies

• The Governor expects to have a $200 million dollar surplus by year-end

Office of Social and Economic Analysis, University of Missouri Extension http://www.oseda.missouri.edu/State Budget Summary, Fiscal Year 2008 http://www.oa.mo.gov/bp/budpress08/budpress08.pdf

25

• Founded in 1871

• US employees: 30,326

• Employees outside U.S: 2,037

• Services in 3 countries: US, UK & Canada

• 2006 revenue: 3.5 Billion

Edward Jones Investments. (2008, April 1). In Wikipedia, The Free Encyclopedia. April 3, 2008, from http://en.wikipedia.org/w/index.php?title=Edward_Jones_Investments&oldid=202624312

26

• The firm's 10,000-plus financial advisors work directly with more than 7 million clients to understand their personal goals - from college savings to retirement

• Create long-term strategies for client’s investments

• Embraces the importance of building long-term, face-to-face relationships with clients


27

• Highest in investor satisfaction with full service brokerage firms, three years in a row. – J.D Power & Associates

• For the eighth year, Edward Jones was named one of the “100 Best Companies to work for in America” by FORTUNE magazine in it’s annual listing

• Edward Jones ranked #29 overall. The firm ranked #9 on the magazine’s Best Large-Sized Company List (FORTUNE January 22, 2007)

• Ranked #1 among the nation’s top 7 brokerage firms for the 15th

consecutive year (Registered Representative, December 2007)


28


• What is the average yearly IT budget? None

• Approval process for IT Projects• Approval from Business Owner needed for IT Projects• IS Working Group prioritizes the projects• The PMO (Program Management office) will obtain CIO's signature• CIO will obtain CFO's signature (if IT Project cost >$250,000) and

Managing Partner's signature (if IT Project cost >$1,000,000)

29

RubinBrown is the 2nd largest publicaccounting firm in St. Louis. The firm

provides accounting and businessconsulting services to closely held and

publicly traded companies in specializedmarket sectors as well as non-profit and

public sector organizations.

30

• Founded 1952• 2 locations: St. Louis & Kansas City• 300+ Team Members, 51 Partners

• Inside Public Accounting Report 2007

• RubinBrown is ranked #44 among America’s Largest Accounting/Consulting Firms (ranked by U.S. net revenue)

• Business Journal Book of Lists 2007

• St. Louis: RubinBrown is ranked #2 (ranked by number of local CPAs)

• Kansas City: RubinBrown is ranked #14 (ranked by number of local CPAs)

Inside Public Accounting “IPA’s Top 100 Accounting Firms 2007” August 2007Volume 21, Number 8 http://www.plattgroupllc.com/top100_2007.pdfSt. Louis Business Journal “Book of Lists 2007” Accounting Firms, CPAs December 2007Kansas City Business Journal “Book of Lists 2007” Accounting Firms: CPAs 2007

31

• Sells Computer Services to Government Agencies, Local Law Enforcement, and Municipalities

• Annual Revenues $16,000,000

• Annual IT Budget of $10,000,000


32

What is the Reporting Structure?

33

State Legislature

Lt. Governor

Governor

Commissioner. of Office of Admin.

CIO

IT Staff

14 Agency Heads

MODOT Conservation Committee


34

COONorm Eaker

Human Resources

Information Systems CIOVinny Ferrari

Services

Managing partner

Jim Weddle

IS Business Develop Software

IS Business Infrastructure

IS Chief Technology Office

IS Infrastructure IS Network Services

IS Planning, Quality & Control

IS Procurement


35

Family Office

ArchitectsAutomotiveContractorsHealth Care

Home BuildersHospitalityLaw Firms

ManufacturingMortgage Bankers

Not-For-ProfitPublic SectorReal Estate

Strategic Client

Development

Industry Group

Office Managing Partners

Compensation Committee

Finance Committee

Risk Management Committee

AssuranceCorporate Finance & Forensic

Internal AuditTax

Litigation Services

SEC

Plan Audits

Small Business

SALT

Wealth Mgmt

Investment Advisors

Benefits

Valuation

Staffing Business Units

Financial Management

Marketing

Human Resources

Technology Support

RubinBrown Board

Chairman

Managing Partner

Information Technology

Mergers & Acquisitions


36


General Manager

Director of Administration

Director of IT (CIO)

Director of Client Services

Senior Manager Applications

Senior Manager Operations

Senior Manager Network Services

Network StaffApplications Staff Operations Staff

37

How Do They Get Along With the CEO?

38

Dan Ross’ Relationship

with the Governor

• Frequently Speaks with the Governor and the Commissioner of the Office of Administration

• Monthly reports

• Has worked with the Governor for years

• Handpicked as CIO


39

Mark Counts’ Relationship with the

Managing Partner• Informal meetings twice weekly

• Monthly formal lunch meeting

• Bi-annual formal evaluation sessions

• Formal meetings with equity partners at the firm

“Even with all that communication, it’s still not enough!”


40

Eric Gorham’s Relationship with the Governor

• Very open• Meet several times a week-both formal and

informal• One-on-One and in group settings• Discuss client and business issues• Open door policy• GM takes an active interest in IT


41

What Keeps Them Up at Night?

42

• Dan Ross: Disaster Recovery!“The State’s IT facilities are not yet adequately capable of recovering data in the event of a widespread disaster.”

• Vinny Ferrari: Security Issues

• Mark Counts: Data loss or physical equipment loss; Protection from hackers

• Eric Gorham: System Availability





43

What They Do - How They Do It

44

“There is one thing IT should never be and that is static. There is always a way to improve on what we are doing. It is definitely strategic.”

– Dan Ross

Dan Ross• IT Staff 1200

• Cost efficient IT solutions• Large project management• Change management• Gets project approval from COA &

governor

• NASCIO member

• Represent the State

• Push for IT funding


45


• Oversees the technology support department, ensuring all RubinBrown departments and groups are making the most effective use of available technology

• Participates in the planning, design, implementation and support of cost-efficient technology solutions

Mark Counts

46

Vinny Ferrari

• People: You need to know the people

• Process: Based on the business need, you may need to break the process

• Business and Technology: We are in the financial services business


47

Eric Gorman• Budgeting, Purchase approvals, proposals

• Dealing with clients

• Work with GM staff on marketing, development and other issues• Meeting with 1st and 2nd level management teams

• Getting involved with staff and projects

• Emails, paperwork, etc.


48

Successes and Challenges

49

• Consolidated 14 of 15 state IT departments under the Office of Administration

• Saved $9,000,000 in software licensing fees

• Software is now ordered in bulk

• Eliminated 50 unnecessary IT positions without firing

• Interoperable radio system to connect police, fire departments, hospitals, and child protective services

• Currently working on comprehensive, cooperative patient healthcare file system for Public Health Clinics


Successes/Innovations

50

• Data security: 218 attempted attacks per day

• IT budget cuts• 2007 Dept. of Homeland Security cut IT grants• Constant battle with state legislature for funds

• Attracting and retaining staff


Challenges

51

• Being more flexible with the business group

• Helping to change the mindsets of people

Successes/Challenges


52


• FY ’07-’08 Plan: Revamping the infrastructure

• FY ’08 – ’09 Plan: End-User Experience

• Generational changes in business environment

• Working to understand decisions made by IT predecessors


53


• The Design, Construction, and Move-in to New Data Center Facility

• Jail Management Services- Not troublesome from a development or management perspective, but initial acceptance and client/market growth• Better Marketing Materials• More Client Interaction


54

Comparison of Data

55

Comparison of DataDan Ross Mark

CountsVinny Ferrari

Eric Gorman

Statistics

IT Budget $218 mill. N/A Per Project $10,000,000 Varies

Prior Background State worker.No IT

Accounting and IT

IT IT IT

Years as CIO 3 1.4 1 10 Tenure of 4.5 years

# of IT Staff 1200 5 4000 140 Varies

Tactical / Strategic Strategic Tactical Strategic Strategic Tactical

56

ConclusionWhat We Have Learned

• Regardless of the work environment, many CIOs face similar challenges.

• The Role of the CIO is constantly changing. Today, CIO’s are faced with increasingly higher expectations and more responsibility. A CIO must be many things to many people- Business strategist, technology innovator, change manager, project advocate, and budget watchdog.

• The CIO has gone from a small departmental role, to a key force in shaping and improving business processes.

57

References1. Dorothy E. Leidner “How incoming CIOs transition into their new jobs”MISQE,March 2007, volume 6,Issue1

2. Jerry Luftman, “ An update on business-IT alignment:”A Line” has been drawn”,MISQE, Sept 2007, volume6,ssue 33. Chris Curran, “CIO advisory board response to “IT in 2010:the next frontier” MIS, Dec 2006, volume5, Issue44. Heather A, Smith, “IT in 2010:the next frontier” MIS, Sep 2006, volume 5, Issue 5. Jerry Lufftman, “key issues for IT executives 2005”,MIS, June 2006, volume 5, Issue 6. Dorothy E. Leidner, “How CIO’s manage IT during economic decline:surviving and thriving amid uncertainty” MISQE, March 2003, volume2, Issue 17. Fortune, “100 Best Companies to Work for in America” January 22, 2007 http://money.cnn.com/magazines/fortune/bestcompanies/2007/snapshots/29.html8. Inside Public Accounting “IPA’s Top 100 Accounting Firms 2007” August 2007 Volume 21, Number 8 http://www.plattgroupllc.com/top100_2007.pdf9. St. Louis Business Journal “Book of Lists 2007” Accounting Firms, CPAs December 200710.Kansas City Business Journal “Book of Lists 2007” Accounting Firms: CPAs 200711. ITAA June 22, 2005 Press Release - Minorities - http://www.itaa.org/eweb/Dynamicpage.aspx?webcode=PRTemplate&wps_key=0bf6f8eb-20ab-4906-957d-2ffa85ea205b12. J.D. Power and Associates, “Investor Satisfaction Among Brokerage Firms” July 24, 200713. Office of Social and Economic Analysis, University of Missouri Extension Viewed 3/20/08. http://www.oseda.missouri.edu/

58

References (cont.)14. State Budget Summary, Fiscal Year 2008 Viewed 3/20/08. http://www.oa.mo.gov/bp/budpress08/budpress08.pdf15. “Not Enough IT Workers on Staff, Survey Finds” Dubie, Denise. Viewed 3/18/08. NetworkWorld December 13, 2008. http://www.networkworld.com/news/2008/021308-it-worker-shortage.html16. “What Do Employees Really Want?” Finegold, David, PhD. Viewed 3/20/08. LiNE Zine http://www.linezine.com/7.2/articles/dfwderw.htm17. “Online delivery and taming disruptive technology key themes for 2008” McNevin, Ambrose. Viewed 3/20/08. CIO Magazine. December 7, 2007. http://www.cio.co.uk/concern/alignment/news/index.cfm?articleid=2367&pagtype=allchandate&pn=21 18. Huber, Bill. “The New Face of IT Leadership” Technology. Inc. Viewed 3/21/08. http://technology.inc.com/managing/articles/200702/huber.html19. IBM Global Services. “The New CIO: Change Partner and Business Leader” May 2007. http://www-935.ibm.com/services/us/cio/pdf/wp_cio_leadership_forum_g510-6605-00.pdf20.“Expanding the Innovation Horizon,” The IBM Global CEO Study 2006 http://www-935.ibm.com/services/uk/bcs/pdf/g510-6259-01-the-global-ceo-study-2006.pdf21.Gottschalk,Peter. "IS/IT Leadership Roles," hicss, p. 7055, 33rd Hawaii International Conference on System Sciences-Volume 7, 200022.“IBM Survey: CIO Role Is Changing; CEOs Need to Further Align IT and Business to Drive Innovation and Growth” Zane, Randy. Press Release Viewed 3/20.08. June 19,2007.

the role of the cio qingjiang qu jennifer page kristen smith nora teske elizabeth vadakkan

Documents

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