The CIO at the crossroads The start of a new journey

1
The CIO at the crossroadsThe start of a new
journey

• John Fisher
• October 23, 2003

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Research Goal

• To understand the continuing evolution of the CIO
  role in light of recent economic and cultural
  changes
• Currently 50 Chicago area CIOs in transition
• Value of IT is being questioned in light of
• Dot com crash
• Y2K spending spree
• How does the relationship between the CIO and the
  CEO reflect the relationship between the IT
  organization and the company as a whole?

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Survey Results

• Background of CIO role
• Survey Approach
• Results
• Initial conclusions

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Background of CIO role

• First mention of Chief Information Officer was
  during a presentation by William Synnott in 1980
• An outgrowth of the Information Resource
  Management concept
• Data Processing was evolving into Information
  Management and a new role was emerging

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Technology Management Framework
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Survey Approach

• Components of the survey instrument
• Business Environment
• Roles and Responsibilities
• Networking and Relationships
• Demographics
• Sample characteristics of pilot
• Ten surveys with CIOs
• Four Current CIOs
• Two Ex-CIO now in different position
• Four CIOs in transition
• Too early to correlate CIO types with responses

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Business environment

• Responses reflect uncertain business environment
• 80 report change in management in past year
• 20 have been involved in merger/acquisition
• 60 report declining profits and revenues
• 30 show declining customer base
• Customers are not going away, but they want more
  and want to pay lower margins

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IT and the organization

• IT continues to struggle for legitimacy
• 80 believe IT has a good understanding of the
  business
• 60 say the business leaders to not agree
• 80 agree that IT is viewed as a strategic asset
• Only 20 say IT has an equal voice in discussing
  business opportunities
• 60 do not believe IT gets the respect it
  deserves within the organization
• Quotes on IT having a seat at the table
• I physically had a seat, but I would be ignored
  most of the time, even when technology issues
  were being discussed.
• It seems the company wanted to view IT as a
  strategic asset, but it just didnt happen.

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CIO relationships

• Most (80) report to CEO or COO
• Few have casual or appropriate access to CEO
• 30 have 3 or more one-on-one meeting per month
• Imagine CFO having this few meeting with CEO
• Topics of conversations are mixed
• 50 say technology issues are 1 topic
• 40 say business issues are 1
• Few list either business or technology
  opportunities as 1 topic
• Business 10
• Technology 20

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CIO Relationships

• Best working relationship is not with the CEO
• 50 indicate business leader
• 20 say CEO
• Relationships to develop also focus on business
  leaders as well as CEO
• 50 business leader
• 40 CEO

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Characteristics of success

• Top Three Characteristics of Success
• Most important for CIO role
• 50 Business Knowledge
• 50 Business Relationships
• 40 Strong IT Capability
• What CIOs want to develop
• 40 Business Relationships
• 40 IT Marketing
• 30 Strategic Planning

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Demographics

• Industry
• 20 Manufacturing
• 20 Financial Services
• 20 Business Services
• 20 Higher Education
• IT Organization Size
• 50 - 10-50
• 20 - 51-100
• 30 - Over 100
• Organization Size
• 20 - lt 500
• 20 - lt 1,000
• 60 - gt 1,000

• Years in position
• 10 - lt 1
• 30 - 1-2
• 60 - 3
• Times in CIO Role
• 80 - 1-2
• 20 - 2
• Gender
• 60 Male
• 40 Female
• Age
• 10 lt 45
• 80 45-54
• 10 gt 55

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Initial conclusions

• Strategic value of IT not realized for many
• IT still viewed as not understanding the business
• Seat at the table does not guarantee a voice at
  the table
• CIO does not have casual access to the CEO,
  which limits the ability to assume trusted
  advisor role
• Relationships are critical but at times elusive
• Good relationship with business unit leaders vs.
  CEO are key
• Better marketing of IT is one way to build the
  relationships
• Business leaders may be more accessible than the
  Senior Management Team
• CIO at the crossroads
• A technology historically takes from 80-100 years
  to go from start to full acceptance
• IT started in 1950s and is just now reaching a
  mid-point
• The next 40-50 years will see IT and the CIO role
  evolve

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Areas for further study

• Continue interviews with additional CIOs
• Determine factors that may lead to CIO success or
  failure
• Relationships
• Voice at the table
• Marketing
• Investigate the changing role of the CIO in the
  last half of the Information Age