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
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
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
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.
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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
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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
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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/
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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.
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