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Abbie Lundberg, Editor in Chief, CIO
              Presenter’s name
1             Presenter’s title
Depending on their primary focus and predominant
       activities, CIOs can be classified into three types:


    FUNCTION HEADS Focused on running the IT
       organization, achieving IT operational excellence and providing
       reliable, effective services
    TRANSFORMATIONAL LEADERS Focused on creating change for
       their enterprise through process transformation and a close
       partnerships with business operations
    BUSINESS STRATEGISTS Focused on driving strategy for
       competitive advantage through activities that face across the
       enterprise and externally

    Based on CIO Executive Council Future State CIO model
2
CIOs Allocate Time Across Role Types




3
      A typical CIO
How the Archetypes Spend Their Time




4
State of the CIO 2008 Distribution



                                  12%
                         51%

                37%



5
Current and Future Distributions
    0                                          100
            25             50   75




                                     Future
6                                    Distri-
                 Current
                                     bution
Evolutionary Divergence:
    The Rise of the Business Strategists

    • “It’s anathema to me that a CIO can live a long and happy life
      as an operationally focused CIO. Titles should mean
      something.” – Bob Badavas, President & CEO, TAC Worldwide

    • “I think the CIO role will be offered less and less to those
      coming purely up an IS track. A lot of industries are evolving
      to the point where they will want a CIO to be half IS and half
      business.” – George Chappelle, former CIO, now Chief Supply Chain
      Officer, Sara Lee Corp.

    • “If CIOs are only looking out for IT, and not doing their jobs at
      the strategic level, that path leads to outsourcing and
      irrelevancy.” – Gerry McCartney, CIO, Purdue University.

7
Executive Leadership skills:
    Nine core competencies
                                              Results Orientation
                                                   7.0

                                                   6.0
                  Customer Focus                                            Market Knowledge
                                                   5.0

                                                   4.0

                                                   3.0

    Change Leadership                              2.0                               Commercial Orientation

                                                   1.0




        Team Leadership                                                           Strategic Orientation




                         People Development                         Collaboration & Influencing
         Egon
       Zehnder
8        International
9
“Outstanding” CIOs vs. CEOs
                                            CEO         CIO



                                    Business Results Orientation
                                              5.5

                                              5.0
                   Customer Focus                                  Market Knowledge
                                              4.5

                                              4.0

                                              3.5

     Change Leadership                        3.0                        Commercial Orientation
                                              2.5




          Team Leadership                                              Strategic Orientation



                       People Development                 Collaboration & Influencing

       Egon
     Zehnder
10     International
Trends in the role, and how Business
           Strategists are different




11
The CIO Title Grows




12
Most CIOs Are Members
     of the Executive Committee




13
More CIOs Report to the CEO
     than Any Other Position




14
CIOs Spend Most of
     Their Time with Staff




     NOTE: Respondents were asked to estimate the amount of time spent with each group.


       Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent
15
       with each group.
Business Strategists Spend
     More Time in the Business




      Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent
16
      with each group.
Leadership Competencies
     Different Among Types




      Q: Which of the following executive leadership competencies is most critical to your current role? Choose three.
17
Business Strategists More
     Focused on External Processes
     Q: Which business processes are you                                       Total                Function   Transfrm'l      Bus.
     currently improving with IT?                                                                    Head       Leader      Strategist
     Accounting & finance                                                    71% (1)                 73% (1)    69% (1)      70% (2)

     Customer service/support                                                69% (2)                 67% (2)    67% (2)      81% (1)

     Human resources                                                         54% (3)                 51% (3)    57% (3)      54% (5)

     Compliance                                                              48% (4)                 47% (5)    48% (4)       48%

     Asset management/maintenance                                            43% (5)                 48% (4)     39%          40%

     Sales                                                                     42%                     36%       42%         63% (3)

     Supply chain/logistics                                                    42%                     37%      45% (5)       41%

     Order/invoice processing                                                  40%                     42%       39%          41%
     Marketing                                                                 39%                     34%       39%         56% (4)

     Inventory management                                                      39%                     40%       39%          33%

     Risk management                                                           38%                     39%       39%          32%



             Q: Which business processes are you currently improving with IT? Please check all that apply.
18
Personal & Career Payoff
     for Business Strategists
     • Seats on the executive committee: 84% (vs. 70% and
       68%)




     • Report to CEO: 51% (vs. 42% and 39%)




     • More money! 44% more than function heads and
       23% more than transformational
19
The CIO’s Choice


     Traditional IT     Business
                        Technology
     Focus on…
                        Leadership
     Operations
                        Strategy
     Efficiency
                        Innovation
     Optimization
                        Enablement




20
Questions
     1. Do CIOs and up and coming leaders really have a choice?
     2. Chicken and egg – enlightened c- level leadership or
        enlightened CIO?
     3. Gaining new competency –
        classroom, experience, mentoring, - how to grow?

     Scenarios – What to Do?
     1. You are there, your staff isn’t
     2. You are there, your boss and CEO aren’t
     3. You are exceeding at today’s requirements but clearly see
        gaps in tomorrow’s



21
Handouts and more resources …

     • State of the CIO 2008 reports
       http://www.cio.com/article/163700
     • Strategic Impact Assessment
       http://quizzes.cio.com/impact_quiz/
     • CIO Executive Council & Future-State CIO Program
       http://www.cioexecutivecouncil.com
     • Egon Zehnder International
       http://www.egonzehnder.com/




22
Survey Methodology and
     Respondent Profile
     •   Conducted online across a sample of senior IT executives from the CIO
         audience database. The survey was also sent to the 2007 State of the CIO
         survey respondents.
     •   Respondents: 558 heads of IT.
     •   64% hold a CIO/CTO title; 21% general manager/managing director/director
         IT; 11% EVP/SVP/VP (w/out CIO) and 4% other.
     •   90% are responsible for enterprise-wide IT decisions and 10% for divisional
         IT decisions.
     •   Company size defined by revenue: Small: <$100 million; Mid-size: $100
         million - $999.9 million; Large: $1 billion or more.
     •   Broad range of industries represented including manufacturing
         (12%), medical/healthcare (10%), wholesale/retailer/distributor
         (9%), education/nonprofit (9%), finance/banking/accounting
         (9%), government (9%).
     •   Margin of error: +/- 4.1%. Percents may not sum to 100 due to rounding.

23

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Stateofthecio2008 1210987739793979 8

  • 1. Abbie Lundberg, Editor in Chief, CIO Presenter’s name 1 Presenter’s title
  • 2. Depending on their primary focus and predominant activities, CIOs can be classified into three types: FUNCTION HEADS Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services TRANSFORMATIONAL LEADERS Focused on creating change for their enterprise through process transformation and a close partnerships with business operations BUSINESS STRATEGISTS Focused on driving strategy for competitive advantage through activities that face across the enterprise and externally Based on CIO Executive Council Future State CIO model 2
  • 3. CIOs Allocate Time Across Role Types 3 A typical CIO
  • 4. How the Archetypes Spend Their Time 4
  • 5. State of the CIO 2008 Distribution 12% 51% 37% 5
  • 6. Current and Future Distributions 0 100 25 50 75 Future 6 Distri- Current bution
  • 7. Evolutionary Divergence: The Rise of the Business Strategists • “It’s anathema to me that a CIO can live a long and happy life as an operationally focused CIO. Titles should mean something.” – Bob Badavas, President & CEO, TAC Worldwide • “I think the CIO role will be offered less and less to those coming purely up an IS track. A lot of industries are evolving to the point where they will want a CIO to be half IS and half business.” – George Chappelle, former CIO, now Chief Supply Chain Officer, Sara Lee Corp. • “If CIOs are only looking out for IT, and not doing their jobs at the strategic level, that path leads to outsourcing and irrelevancy.” – Gerry McCartney, CIO, Purdue University. 7
  • 8. Executive Leadership skills: Nine core competencies Results Orientation 7.0 6.0 Customer Focus Market Knowledge 5.0 4.0 3.0 Change Leadership 2.0 Commercial Orientation 1.0 Team Leadership Strategic Orientation People Development Collaboration & Influencing Egon Zehnder 8 International
  • 9. 9
  • 10. “Outstanding” CIOs vs. CEOs CEO CIO Business Results Orientation 5.5 5.0 Customer Focus Market Knowledge 4.5 4.0 3.5 Change Leadership 3.0 Commercial Orientation 2.5 Team Leadership Strategic Orientation People Development Collaboration & Influencing Egon Zehnder 10 International
  • 11. Trends in the role, and how Business Strategists are different 11
  • 12. The CIO Title Grows 12
  • 13. Most CIOs Are Members of the Executive Committee 13
  • 14. More CIOs Report to the CEO than Any Other Position 14
  • 15. CIOs Spend Most of Their Time with Staff NOTE: Respondents were asked to estimate the amount of time spent with each group. Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent 15 with each group.
  • 16. Business Strategists Spend More Time in the Business Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent 16 with each group.
  • 17. Leadership Competencies Different Among Types Q: Which of the following executive leadership competencies is most critical to your current role? Choose three. 17
  • 18. Business Strategists More Focused on External Processes Q: Which business processes are you Total Function Transfrm'l Bus. currently improving with IT? Head Leader Strategist Accounting & finance 71% (1) 73% (1) 69% (1) 70% (2) Customer service/support 69% (2) 67% (2) 67% (2) 81% (1) Human resources 54% (3) 51% (3) 57% (3) 54% (5) Compliance 48% (4) 47% (5) 48% (4) 48% Asset management/maintenance 43% (5) 48% (4) 39% 40% Sales 42% 36% 42% 63% (3) Supply chain/logistics 42% 37% 45% (5) 41% Order/invoice processing 40% 42% 39% 41% Marketing 39% 34% 39% 56% (4) Inventory management 39% 40% 39% 33% Risk management 38% 39% 39% 32% Q: Which business processes are you currently improving with IT? Please check all that apply. 18
  • 19. Personal & Career Payoff for Business Strategists • Seats on the executive committee: 84% (vs. 70% and 68%) • Report to CEO: 51% (vs. 42% and 39%) • More money! 44% more than function heads and 23% more than transformational 19
  • 20. The CIO’s Choice Traditional IT Business Technology Focus on… Leadership Operations Strategy Efficiency Innovation Optimization Enablement 20
  • 21. Questions 1. Do CIOs and up and coming leaders really have a choice? 2. Chicken and egg – enlightened c- level leadership or enlightened CIO? 3. Gaining new competency – classroom, experience, mentoring, - how to grow? Scenarios – What to Do? 1. You are there, your staff isn’t 2. You are there, your boss and CEO aren’t 3. You are exceeding at today’s requirements but clearly see gaps in tomorrow’s 21
  • 22. Handouts and more resources … • State of the CIO 2008 reports http://www.cio.com/article/163700 • Strategic Impact Assessment http://quizzes.cio.com/impact_quiz/ • CIO Executive Council & Future-State CIO Program http://www.cioexecutivecouncil.com • Egon Zehnder International http://www.egonzehnder.com/ 22
  • 23. Survey Methodology and Respondent Profile • Conducted online across a sample of senior IT executives from the CIO audience database. The survey was also sent to the 2007 State of the CIO survey respondents. • Respondents: 558 heads of IT. • 64% hold a CIO/CTO title; 21% general manager/managing director/director IT; 11% EVP/SVP/VP (w/out CIO) and 4% other. • 90% are responsible for enterprise-wide IT decisions and 10% for divisional IT decisions. • Company size defined by revenue: Small: <$100 million; Mid-size: $100 million - $999.9 million; Large: $1 billion or more. • Broad range of industries represented including manufacturing (12%), medical/healthcare (10%), wholesale/retailer/distributor (9%), education/nonprofit (9%), finance/banking/accounting (9%), government (9%). • Margin of error: +/- 4.1%. Percents may not sum to 100 due to rounding. 23