Chapter 4 The Role of the CIO Managing the Information Technology Resource Jerry N. Luftman

Chapter Outline Role of the Chief Information Officer How role has changed over time Key characteristics of effective CIOs Relationship of the CIO to the need for alignment

Synott’s Definition of CIO Manage information resources as vital corporate asset Bring systems into competitive marketplace Manage and coordinate increasingly decentralized information resources Manage end-user computing so that it serves corporation's needs Be a catalyst for corporate change

Evolution of CIO Term coined in 1980s and continues to change over time Viewed as a strategist, not a manager Leadership is key Influence of CIO on forces determines effectiveness of CIO

Applications Portfolio Executive Attitude CIO Role & Responsibilities Applications Portfolio Dominant Suppliers Figure 4-2 Forces Influencing the CIO Role

Distributed Era of CIO Roles 4 Roles Emerged from Distributed Era Organizational Designer Strategic Partner Technology Architect Informed Buyer

Web-Based Era CIO has new responsibilities Role includes suppliers and customers New roles are added to CIO

CIO’s Resume Today Knowledge of applying IT to business Visionary leader Relationship manager Marketer Open systems-oriented 20 years in LOB management jobs French, German, Japanese Masters, Harvard Business

IS Executive View Non-IS Executive View CEO’s View Leadership (57%) Knowledge of Applying IT to business (49%) Knowledge of Applying IT to business (44%) Knowledge of Applying IT to business (29%) Leadership (36%) Leadership (32%) Innovation (10%) Innovation (8%) Interpersonal Comm. (8%) General business knowledge (8%) Technology Awareness (6%) Innovation (5%) General business knowledge (4%) Interpersonal Comm. (3%) Interpersonal Comm. (3%) Technology Awareness (3%) Figure 4-4 What is the #1 Qualification for a CIO?

Current View of the CIO Highly mobile – high turnover Must deliver effectively and rapidly Well-rounded Technically astute People-oriented Business skills

Concerns of CIOs 94% Enhancing customer satisfaction 92% Security 89% Technology evaluation 87% Budgeting 83% Staffing 66% ROI analysis 64% Building new equipment 45% Outsourcing hosting

Figure 4-6 What is your Professional Background?

Figure 4-7 CIO Career Plan: What Organization is the Source of CIOs?

How CIO Affects Value of IT Focus on business needs as they relate to IT organization Educator to business executives Demonstrate importance of IT Foster greater interaction Communicate successes and value of IT Good understanding of business vision

Figure 4-8 To Whom Does Your Top IS Manager Report?

Figure 4-9 Do You Sit on Your Company’s Internal Board?

Global CIO Must deal with factors from other nations Education and experience in dealing with people of other nationalities and cultures Knowledgeable about cultural differences Knowledgeable about geography and history Effectively deal with language differences

CIO Attributes Analyst background and orientation Promote IT as agent of business transformation Contributes beyond IT function Accurate perception of CEO views on business and IT Integrates IT with business planning Profile stresses consultative leadership and creativity

CEO Attributes General management and/or marketing background Change-oriented leadership Attended IT “awareness” seminars Experience IT project success Perceives IT as critical to the business Positions IT as agent of business transformation

Organizational Attributes Personal/informal executive style Executive workshops on strategic issues CIO accepted in executive team

Scanning and understanding Practicing Scanning and understanding New technologies Working on Vision of future Living Creating context Challenging IT’s supply side Believing IT as 1st order thinking Setting priorities Relating with CIO Spending Quality time Signaling continuously Embedding info. mgmt. processes Sponsoring Int. & ext. architectures Figure 4-10 Diagnosing CEO Who is Fit for the Info. Age

CEO Must Believe in IT Importance Creating context Setting priorities Signaling continuously and positively Spending quality time Relating with CIO Scan and understand new technologies Working on vision of the Future Sponsoring internal and external architectures Embedding information management processes Challenging IT’s supply side

Top 10 CIO Requirements Ability to create and manage change Leadership Knowledge and experience in specific industry International experience Ability to hire, develop, and retain quality IT professionals Leadership Expertise in aligning and leveraging Business savvy Relationship skills Management skills Communication skills

The Effective CIO Delegation of Operational Tasks Seize Expenditure/Financial Authority Avoid Adversarial Positions Initiate Contacts Outside the Information Technology Unit Create relationships with business peers Use Language Carefully Avoid use of technology jargon

Feeny’s Characteristics of “Ideal” CIO Honesty, Integrity, Sincerity, Openness Business Perspective, Motivation, Language Communicator, Educator, Motivator, Leader, Politician, Relationship Builder Continuously Informed on Developments in IT, Able to Interpret their Significance to Business Change-Oriented Team Play, Catalyst to Business Thinking

Figure 4-11 IT Managerial Skill Mix Types of Skills 3rd level Management (Executives) Business Partner Administrative & Conceptual Skills Manager Entrepreneur 2nd level Management (Managers) Interpersonal Skills Marketing Technical Skills 1st level Management (Supervisors) Technical Figure 4-11 IT Managerial Skill Mix

What Makes a Manager? Disseminator Monitor Spokesperson Information Processing Roles Disseminator Interpret and edit before passing along Monitor Analyze information available to ascertain problems Stay informed of activities outside subunit Spokesperson Source of information about subunit Sell capabilities and value of organization

What Makes a Manager? Decision-Making Roles Entrepreneur Ability to change design of unit structure Disturbance Handler Deal with conflict and crises Resource Allocator Control resources with organization Negotiator Negotiate commitments

What Makes a Manager? Interpersonal Roles Liaison Figurehead Leader Maintain relationships with other units Figurehead Formal obligations that come with managerial title Leader Includes human resources activities

What Makes a Leader? Broad business and organizational knowledge Broad set of relationships in firm and industry Excellent reputation and strong track record Keen mind and strong interpersonal skills High integrity and personal values High level of motivation

Characteristics of Effective Leadership Has willing followers Relationship between leaders and followers Leadership occurs as an event Use influence beyond formal authority Operate outside boundaries of defined procedures Involves risks and uncertainty Not everyone will follow leader’s initiative Consciousness creates leadership Is a self-referral process

Figure 4-13 Leaders vs. Managers A sensible and appealing picture of the future Vision Leaders define WHAT A logic for how the vision can be achieved Strategies Specific steps & timetables to implement the strategies Plans Managers define HOW Plans converted into financial projections & goals Budgets Figure 4-13 Leaders vs. Managers

Organizational Role Changes of CIO Networking resources to exchange information Share data elements among business units/external firms Apply common application systems across the firm Requirements for specialized IT human resources

Critical IT Management Processes Setting strategic direction Establishing infrastructure systems Scanning technology Transferring technology Developing business systems

Functional Changes in Role of CIO Focus on Strategist role At the center of operations for strategy pertaining to technology Implementation of strategies pertaining to technology Technology executive acting as counselor to business executives

Tips for New CIO Get a seat at the table One-to-one communications with CEO Partnership with peers Study corporate culture Understand business model Define current commitments Establish credibility through small things

Tips for New CIO Build personal board of directors Listen and talk Be accessible and responsive Set realistic goals Take inventory Assess your people Understand value & threat of outsourcing

Discussion Questions How has the Internet Age affected the role of the CIO? What is the primary role of the CIO in your organization? Is it primarily one of management or leadership? Does the size of an organization affect the roles of the top IT management position, regardless of title? Do you think the CIO must report to the CEO to be effective?

Department of the Navy (DON) Chief Information Officer (CIO) HISTORY With enactment of the Information Technology Management Reform Act (subsequently known as the Clinger-Cohen Act) in 1996, then Secretary of the Navy, John H. Dalton established the Office of the Department of the Navy Chief Information Officer (DON CIO) and appointed Dr. Marvin J. Langston to head it. Under Dr. Langston, DON CIO developed the Department's first Strategic Plan, in 1997. Dr. Ann Miller was appointed DON CIO in April, 1998. She focused on the Department's infrastructure and standards until leaving government service in May, 1999 to return to academia. http://www.doncio.navy.mil/fy04stratplan/

Department of the Navy (DON) Chief Information Officer (CIO) Mr. Dan Porter, a veteran of the Navy Acquisition Reform Office, was designated the third DON CIO in October, 1998. As CIO, he stressed development of information assurance, providing architecture and standards guidance, initiating knowledge management strategies and processes, and facilitating development of the Navy-Marine Corps Intranet. Mr. David M. Wennergren became the fourth DON CIO in December, 2002. Prior to his appointment as DON CIO, he served for four years as the DON Deputy CIO for Enterprise Integration and Security, where he was the Department's champion for eBusiness, process reengineering, knowledge management, information assurance, critical infrastructure protection, the IM/IT workforce, privacy, smart cards and Y2K.

DON CIO ORGANIZATION DON CIO is organized to align and integrate IM/IT programs across the Navy and Marine Corps and focus Department-wide IM/IT efforts on warfighter priorities. Overall leadership responsibility is vested in the CIO, supported by one Deputy CIO each for the Navy and Marine Corps, and a Deputy CIO for Policy and Integration who directs the operations of the DON CIO Functional Teams. The Teams advance the goals and objectives of the DON Information Management/ Information Technology Strategic Plan.

DON CIO FUNCTIONAL TEAMS Architecture Development/Data Management Architecture Integration/Standards Content Mgmt & Info Integrity/Knowledge Mgmt Critical Infrastructure Protection DoD & Intergovernmental Coordination eGovernment/eBusiness IM/IT Workforce Information Assurance Policy Integration Team Smart Card Policy Spectrum Management Statutory Compliance Strategic Planning Tools for Policy Development

DON CIO Strategic Plan 2004-05 VISION A joint net-centric environment that delivers knowledge dominance to the Naval warfighting team. MISSION Transform Naval Information Management/ Information Technology to provide affordable, next generation capabilities to the warfighter.

DON CIO Strategic Plan 2004-05 GOVERNING PRINCIPLES Enables warfighter readiness Leads continuous IM/IT transformation Implements the President's Management Agenda Optimizes information resources Builds integrated, joint IM/IT solutions Ensures information access Measures performance Adopts best practices

DON CIO Strategic Plan 2004-05 GOALS Develop and maintain a secure, seamless, interoperable Naval IM/IT infrastructure. Transform applications and data into web-centric Naval capabilities. Provide Full Dimensional Protection that ensures Naval warfighting effectiveness. Ensure Naval IM/IT investments are selected, resourced, and acquired to optimize Naval mission accomplishment. Create optimized processes and integrated systems that enable knowledge dominance and Naval transformation. Shape the IM/IT workforce of the future.

DON CIO Strategic Plan 2004-05 GOAL 1: Develop and maintain a secure, seamless, interoperable Naval IM/IT infrastructure. DESCRIPTION: We will plan, develop, implement, operate, and sustain a global information infrastructure to provide seamless and secure interoperability and end-to-end connectivity to all our Sailors, Marines, and Civilians. This infrastructure's common architecture and technical standards will ensure that the Naval component of the DoD Global Information Grid is a critical element to maintaining interoperability with joint forces, allied coalitions, and interagency partners. (Naval Power 21/FORCEnet)

DON CIO Strategic Plan 2004-05 SUPPORTING OBJECTIVES 1.1. Develop the architecture, standards, and protocols for the FORCEnet "blueprint." 1.2. Create a global, secure, interoperable network by integrating the Navy Marine Corps Intranet (NMCI), Information Technology-21 (IT-21), Base Level Information Infrastructure (BLII), and Marine Corps Tactical Data Network (MCTDN) into the FORCEnet Network Information Infrastructure (NII). 1.3. Ensure that the FORCEnet NII is interoperable with the Global Information Grid (GIG) and the Federal Enterprise Architecture. 1.4. Establish and manage global strategic partnerships to maximize access to the electromagnetic spectrum by our Sailors and Marines. 1.5. Develop the standards, architecture, and execution plan for server consolidation throughout the Enterprise.

FORCENET VISION