ECT 589: E-Commerce Management Week #9 Leadership and New IT Organization for e-Business 4/17/2019 ECT 589 Susy Chan, Ph.D.

Agenda Market News Planning for Emerging Technologies (cont.) Leadership Building the New IT organization General Motor Case Week 10: Guest Lecture Week 11: Final Project Presentation Source: Broadbent & Kitzis, The New CIO Leader, 2005. 4/17/2019 ECT 589 Susy Chan, Ph.D.

Leadership vs. Management Leadership is about change and influencing others to change; requires vision, strategy, inspiration, and passion. (charisma?) Management is about execution and control; planning, organizing, control, and analysis. Adaptive change vs. technical change 4/17/2019 ECT 589 Susy Chan, Ph.D.

The Elements of Leadership Vision Communication Relationship building (functional vs. relationships) Building political capital (political=“knowing your context, your environment, and when to concede a point to win support for some long-term position.”) Emotional intelligence: self-awareness, self-management, social awareness (empathy), social skills 4/17/2019 ECT 589 Susy Chan, Ph.D.

CIO: Leading Through Influence Influence vs. formal power base Personality types (Carl Jung Myers-Briggs Type Indicator (E/I, S/N, T/F, J/P) Sample online test: www.humanmetrics.com/cgi-win/JTypes2.asp) MBTI for leadership and team building: example (www.teamtechnology.co.uk/leadership-styles.html ) Leadership style (Hay/McBer): All styles have their time and place. Commanding: “Follow me because I say so!” Pacesetting: “Follow me – do what I do.” *Visionary: “Follow me because I see the future.” *Affiliative: “Follow me because we’re in this together.” Coaching: “Try doing it this way.” *Democratic: “What do you think?” 4/17/2019 ECT 589 Susy Chan, Ph.D.

CIO Leadership Takes Two Forms Demand Side (60%-90%) Understand the environment Create a vision Shape/inform expectations Create IT governance Integrate business and IT strategies by persuasion & relationship Supply Side Communicate IT performance Manage enterprise & IT risks Develop a high-performance IS team Build a new IS organization formal authority? 4/17/2019 ECT 589 Susy Chan, Ph.D.

Traditional IS Responsibilities Driving Innovation Delivering Change Supporting Infrastructure 4/17/2019 ECT 589 Susy Chan, Ph.D.

The Shape of IS Lite Embedded in the business units Traditional IS Responsibilities Driving Innovation Embedded in the business units Outsourced to external service providers Delivering Change Supporting Infrastructure 4/17/2019 ECT 589 Susy Chan, Ph.D.

Five Key Roles to Retain in IS IT leadership Architecture development Business enhancement Technology advancement Vendor management 1 Supply Side Demand Side Driving Innovation 2 Embedded in the business units 3 Outsourced to external service providers Delivering Change 4 Supporting Infrastructure 5 4/17/2019 ECT 589 Susy Chan, Ph.D.

Five Critical Roles to Retain IT Leadership: crucial to the implementation of IT vision and IT organization transformation Architecture development: essential for ensuring system links with outsourcers, process-based work, control standards, and security management Business enhancement: essential for shifting from a technical to a business orientation and from a cost-centric to a value-centric focus Technology advancement: introduction of emerging technologies that will directly support business goals. Vendor management: important for outsourcing and capability management (performance monitoring) 4/17/2019 ECT 589 Susy Chan, Ph.D.

Develop a High-Performing IS Team Leadership skills/style of the CIO and the IS team Human skills: self-awareness, self-management, social awareness, and social skills Task needs: clarity of direction, procedures, etc Group needs: size, structure, coherence, process, roles, communications Individual needs: empathy, not just technical skills Understand staff’s personality types Practice a range of leadership styles in the IS group Build team’s human leadership skills 4/17/2019 ECT 589 Susy Chan, Ph.D.

Develop a High-Performing IS Team New IS Competencies Technical Business Behavioral Analyze the competencies needed for IS jobs Competency assessment : basic, proficient, advanced, coach Compare role profiles with individual profiles Close competency gaps with training and recruiting 4/17/2019 ECT 589 Susy Chan, Ph.D.

New IS Competencies -- Technical T1: Understanding existing systems and technology T2: Designing and developing applications T3: Applying procedures, tools, and methods T4: Integrating systems T5: Designing technical architecture T6: Understanding emerging technologies 4/17/2019 ECT 589 Susy Chan, Ph.D.

New IS Competencies -- Business B1: Understanding business practices and approaches B2: Understanding business organization, politics, and culture B3: Behaving commercially B4: Understanding and analyzing the competitive situation B5: Managing projects B6: Managing change in the business from IT applications B7: Planning, prioritizing, and administering work B8: Communicating & listening and gathering information B9: Focusing on customers 4/17/2019 ECT 589 Susy Chan, Ph.D.

New IS Competencies – Behavioral H1: Leading, inspiring, and building trust H2: Thinking creatively and innovating H3: Focusing on results H4: Thinking strategically H5: Coaching, delegating, and developing H6: Building relationships and teamwork H7: Influencing and persuading H8: Principled negotiating H9: Resolving conflicts and problems H10: Being adaptable 4/17/2019 ECT 589 Susy Chan, Ph.D.

Hierarchy of Business Value Measures Revenue growth Return on assets Rev per employee Business financial value Business Management Time to bring a new Product to market Sales from new products Products/service quality Business operational value Dilution of IT trail Fewer handoffs Ability to cross-sell Supplier integration Business process value Implementation time and cost of new app IT application business value IT investment Infrastructure Availability Cost/transaction Cost/workstation IT infrastructure business value IT Management IT investment Time for Business Impact 4/17/2019 ECT 589 Susy Chan, Ph.D. Source: Weill & Broadbent, 1998

Dashboard for IT Responsiveness Product Development Effectiveness Demand Management Market Responsiveness Sales Effectiveness What the Business Watches Customer responsiveness Supplier effectiveness Supply Management Operational efficiency Finance & Regulatory responsiveness IT responsiveness Support Services HR responsiveness IT Responsiveness What CIO Reports to the Business System Performance IT support performance Partnership ratio Service-level effectiveness New project index IT total Cost ratio New-Projects Index Monitor New Initiatives On budget On time Customer Care Performance Sales cycle index On-time delivery 4/17/2019 ECT 589 Susy Chan, Ph.D.