1 The Role of the CIO Kali Kliethermes Luke Tierney Claire Kim Jamie Young.

11

The Role of the CIOThe Role of the CIOKali KliethermesKali Kliethermes

Luke TierneyLuke TierneyClaire KimClaire Kim

Jamie YoungJamie Young

22

Executive SummaryExecutive Summary

Skill Sets of a CIOSkill Sets of a CIO Organizational HierarchyOrganizational Hierarchy Relationship BuilderRelationship Builder Job StabilityJob Stability SalarySalary DemographicsDemographics BackgroundBackground InterviewsInterviews Lessons LearnedLessons Learned

33

Introducing Our CIOsIntroducing Our CIOs Interviewed 3 CIOs:Interviewed 3 CIOs:

– Patrick McNamee, CIO, Express ScriptsPatrick McNamee, CIO, Express Scripts Interview by Luke TierneyInterview by Luke Tierney

– Steve Becker, CIO, GraybarSteve Becker, CIO, Graybar Interview by Jamie YoungInterview by Jamie Young

– Jim Tom, CIO, UMSLJim Tom, CIO, UMSL Interview by Claire KimInterview by Claire Kim

44

What is a CIO?What is a CIO?

Wikipedia states the following about a CIO:Wikipedia states the following about a CIO: ““The chief information officer or CIO is a The chief information officer or CIO is a

job title for the head of the information job title for the head of the information technology group within an organization. technology group within an organization. They often report to the chief executive They often report to the chief executive officer or chief financial officer.”officer or chief financial officer.”

““CIO is sometimes facetiously ascribed the CIO is sometimes facetiously ascribed the backronym of ‘career is over’ – implying backronym of ‘career is over’ – implying the average tenure of a CIO is 18 months.”the average tenure of a CIO is 18 months.”

http://en.wikipedia.org/wiki/Chief_Information_Officer, viewed March 12, 2007.

55

Skill Sets of a CIO…Skill Sets of a CIO…

66

Skill Sets of a CIOSkill Sets of a CIO

Effective Communication - #1Effective Communication - #1 Business KnowledgeBusiness Knowledge Strategic ThinkingStrategic Thinking Leadership / Ability to MotivateLeadership / Ability to Motivate Ability to Drive ChangeAbility to Drive Change

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2007. http://www.cio.com/state/ , viewed March 12, 2007. (Sample Info: Survey was conducted between 8/11/06-8/24/06. 568 heads of IT from a broad range of industries including manufacturing (20%), medical/healthcare (12%), federal, state and local government (11%), education (10%), insurance (8%), and finance (6%). 55% of the respondents hold a CIO/CTO title, 28% hold VP/SVP/EVP of IT titles, 11% are line of business technology executives, 6% list their title as “other.” 39% of the respondents are from companies with annual revenue of less than $100M, 36% are from companies with revenue between $101M and $999.9M, and 22% are from companies with over $1B (3% did not answer this question).) Survey sample details for this source will not be repeated on subsequent slides.

77

Organizational Hierarchy Organizational Hierarchy It’s important for CIO to report to CEO if IT organization is going It’s important for CIO to report to CEO if IT organization is going

to be aligned with business strategy, to be aligned with business strategy, yet 59% still report to yet 59% still report to someone other than the CEO.someone other than the CEO.

Organizational Structure impacts likelihood of the CIO being on Organizational Structure impacts likelihood of the CIO being on the executive committee.the executive committee.

41%

62%

92%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Lik

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oo

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Mem

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Reports to CFO Reports to COO Reports to CEO

Reporting Structure

Polansky, M., Inuganti, T., and Wiggins, S., “The 21st Century CIO”, Business Strategy Review, Vol. 15, Iss. 2, Summer 2004, pp. 29-33.

Johnson, A., and Lederer, A., “The Effect of Communication Frequency and Channel Richness on the Convergence Between Chief Executive and Chief Information Officers”, Journal of Management Information Systems, Vol 22, No. 2, Fall 2005, pp. 227-252.

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2007. http://www.cio.com/state/ , viewed March 12, 2007.

88

Organizational Hierarchy Organizational Hierarchy

Polansky, M., Inuganti, T., and Wiggins, S., “The 21st Century CIO”, Business Strategy Review, Vol. 15, Iss. 2, Summer 2004, pp. 29-33.

Johnson, A., and Lederer, A., “The Effect of Communication Frequency and Channel Richness on the Convergence Between Chief Executive and Chief Information Officers”, Journal of Management Information Systems, Vol 22, No. 2, Fall 2005, pp. 227-252.

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2007. http://www.cio.com/state/ , viewed March 12, 2007.

Organizational Structure can also impact the IT budgetOrganizational Structure can also impact the IT budget Reporting to the CEO is key!Reporting to the CEO is key! ““The days of the CIO reporting to the CFO are gone at companies who The days of the CIO reporting to the CFO are gone at companies who

truly value the impact IT can deliver.”truly value the impact IT can deliver.”– Jeff Spar, Senior VP and CIO at the Readers Digest AssociationJeff Spar, Senior VP and CIO at the Readers Digest Association

7.50% 7.00%

9.30%

0.00%1.00%2.00%3.00%4.00%5.00%6.00%7.00%8.00%9.00%

10.00%

Reports to CFO Reports to COO Report to CEO

Reporting Structure

99

Relationship BuilderRelationship Builder

Must be able to sell their ideas Must be able to sell their ideas internallyinternally

CIOs can become unpopular - often CIOs can become unpopular - often forced to say “no” to other business forced to say “no” to other business units as a result of limited resources units as a result of limited resources and budgets.and budgets.

Must have excellent “soft” skills – Must have excellent “soft” skills – relationship management / persuasive relationship management / persuasive communicationcommunication

Raths, David, “CIO to CEO”, Computerworld, December 18, 2006, pp 27-28. Fowler, Julia, “The Right Ideas for a Bright Future”, Computer Weekly, January 16, 2007, pp. 22-23.

1010

Average Time on Job for Average Time on Job for CIO?CIO?

1111

Job StabilityJob Stability Big Risks – high turnover rate, but Big Risks – high turnover rate, but

improvingimproving Average time on the job for CIO is now Average time on the job for CIO is now

between 5 and 6 yearsbetween 5 and 6 years– Has increased since 2004Has increased since 2004– Is shorter at large companies than at Is shorter at large companies than at

small/medium size companies.small/medium size companies. In fact, CIOs may be gaining on other CXO In fact, CIOs may be gaining on other CXO

positions from a stability standpointpositions from a stability standpointAlter, Allan E., “CIO Role Survey April 2006: Achievement is the Issue, Not Survival”, CIO Insight, Ziff Davis Publishing Holdings, April 6, 2006. http://www.cioinsight.com/article2/0,1540,1963698,00.asp, viewed March 12, 2007. Source for the statistics in this article is a study by SpencerStuart. SpencerStuart is “one of the world’s leading executive consulting firms.” The firm conducted the study across 25 countries by partnering with clients including Fortune 500, mid cap, and emerging growth companies.

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2007. http://www.cio.com/state/

1212

SalarySalary For taking big risks, they make big $$For taking big risks, they make big $$ The larger the company, the larger the salaryThe larger the company, the larger the salary

CIO Magazine’s “State of the CIO Survey”, CXO Media Inc, 2007. http://www.cio.com/state/, viewed March 12, 2007.

$134,180

$184,000

$281,900

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

Ave

rag

e C

IO A

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In

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Small Midsize Large

Size of Company Also varies by industryAlso varies by industry

– Retailer / Insurance – highest salariesRetailer / Insurance – highest salaries– Government / Education – lowest salariesGovernment / Education – lowest salaries

1313

DemographicsDemographics According to CIO Magazine’s “State of the CIO 2007” Survey:According to CIO Magazine’s “State of the CIO 2007” Survey:

– 85% of CIOs are male, and 15% female.85% of CIOs are male, and 15% female.

CIO Gender Demographics

Female, 15%

Male, 85%


Alter, Allan E., “Meet the Hybrid CIO: Well-Paid and Powerful”, CIO Insight, Ziff Davis Publishing Holdings, April 5, 2005. http://www.cioinsight.com/article2/0,1397,1785600,00.asp , viewed March 18, 2007. (Sample Info: Conducted between 1/31/05 through 2/18/05. 405 respondents who identified themselves as their company’s top IT executive. Of those 405, 205 were from companies with 2004 revenues below $100M, 159 were from companies with revenues between $100M and $999M, and 41 were from companies with revenues over $1B. Survey sample details for this source will not be repeated on subsequent slides.

According to a CIO Insight Research Study:According to a CIO Insight Research Study:– Average Age - 47Average Age - 47– Average Hours of Work Per Week - 53Average Hours of Work Per Week - 53

1414

CIO Backgrounds… More CIO Backgrounds… More Business or More IT?Business or More IT?

1515


Alter, Allan E., “Meet the Hybrid CIO: Well-Paid and Powerful”, CIO Insight, Ziff Davis Publishing Holdings, April 5, 2005. http://www.cioinsight.com/article2/0,1397,1785600,00.asp , viewed March 18, 2007.

BackgroundBackground

Business KnowledgeBusiness Knowledge– IT is primary area of experience (65%)IT is primary area of experience (65%)– 9% have only business experience9% have only business experience– 26% have a combination of experiences26% have a combination of experiences

CIO Backgrounds

IT Only, 65%Business, 9%

Hybrid, 26%

1616

CIOs: Up Close and CIOs: Up Close and PersonalPersonal

Interviewed 3 CIOs:Interviewed 3 CIOs:

– Patrick McNamee, CIO, Express ScriptsPatrick McNamee, CIO, Express Scripts Interview by Luke TierneyInterview by Luke Tierney

– Steve Becker, CIO, GraybarSteve Becker, CIO, Graybar Interview by Jamie YoungInterview by Jamie Young

– Jim Tom, CIO, UMSLJim Tom, CIO, UMSL Interview by Claire KimInterview by Claire Kim

1717

# of IT # of IT EmployeesEmployees 1,1901,190 215215 8080

2006 Total IT 2006 Total IT BudgetBudget $226 Million$226 Million $48 Million$48 Million $10 Million$10 Million

Total Total RevenuesRevenues $18 Billion$18 Billion $5 Billion$5 Billion N/AN/A

% of Total % of Total RevenuesRevenues 1.3%1.3% 1.0%1.0% N/AN/A

Type of Type of OrganizationOrganization PublicPublic PrivatePrivate Non-ProfitNon-Profit

Company ComparisonCompany Comparison

1818

Corporate OverviewCorporate Overview

1919

One of America’s largest pharmacy benefit One of America’s largest pharmacy benefit managers dedicated to making the use of managers dedicated to making the use of

prescription drugs safer and more prescription drugs safer and more affordable. Covers over 50 million members affordable. Covers over 50 million members

and their families.and their families.

Corporate OverviewCorporate Overview

2020

Operational and Financial Overview

14,000+ employees 57,700 participating pharmacies

nationwide Home Delivery: 39.1 million prescriptions Participating Pharmacies: 398.8 million

prescriptions Specialty Drugs: 3.5 million prescriptions Generic Drugs: 58% of all prescriptions

dispensed $17.66 billion in revenue in 2006 ($16.3

billion in 2005

Key Corporate FactsKey Corporate Facts

2121

Rankings Rank 134 on Fortune 500 list Information Week’s 500 Most

Technologically Progressive Companies NASDAQ 100

Subsidiaries CuraScript — one of the largest,

independent specialty pharmacy services companies in the U.S.

ESI Canada — provides PBM services to 5 million Canadians

Key Corporate FactsKey Corporate Facts

2222

Corporate OverviewCorporate OverviewSpecializes in supply chain management services Specializes in supply chain management services

and is the leading North American distributor of and is the leading North American distributor of high-quality components, equipment and high-quality components, equipment and

materials for the electrical and materials for the electrical and telecommunications industries.telecommunications industries.

Established in 1869, Graybar procures, Established in 1869, Graybar procures, warehouses, and delivers just about any kind of warehouses, and delivers just about any kind of electrical or communications and data product, electrical or communications and data product,

component, or related service to its customers. It component, or related service to its customers. It stocks and sells hundreds of thousands of items stocks and sells hundreds of thousands of items

from thousands of manufacturers. from thousands of manufacturers.

2323

Key Corporate FactsKey Corporate FactsOperational and Financial Overview

8,000+ Employees Privately-held and Employee-owned $5+ Billion in sales in 2006 250 distribution centers throughout the

U.S., Canada, Mexico, and Puerto Rico

2424

Key Corporate FactsKey Corporate FactsRankings #462 on the 2005 Fortune 500 ranking of America’s

largest companies On the Fortune America’s Most Admired Companies list

for the fifth consecutive year (2005) #50 on Forbes’ 2006 ranking of the 500 Largest Private

Companies #12 on the National Center for Employee Ownership’s

Top 100 rankings 2006) On the InformationWeek 500 list of companies with the

best technology and business practices for the fourth consecutive year (2005)

2525

The The University of Missouri–St. University of Missouri–St. LouisLouis is one of four campuses in the is one of four campuses in the University of Missouri. Established in University of Missouri. Established in 1963, it is the newest campus and a1963, it is the newest campus and as of 2005, it is the largest university by , it is the largest university by enrollment in the St. Louis area.enrollment in the St. Louis area.

http://en.wikipedia.org/wiki/University_of_Missouri-St._Louis, viewed March 12, 2007.

Key Organization FactsKey Organization Facts

2626

Key Organization FactsKey Organization Facts

Established 1963Established 1963Chancellor- Chancellor- Dr. Thomas F. GeorgeDr. Thomas F. George

Faculty- Faculty- 1,0461,046Staff- Staff- 1,199 (Fall 2005)1,199 (Fall 2005)

Students- Students- 15,548 (Fall 2005)15,548 (Fall 2005)Undergraduates- Undergraduates- 12,59412,594

Postgraduates- Postgraduates- 2,9542,954Campus-Urban, 300+ acresCampus-Urban, 300+ acres

http://en.wikipedia.org/wiki/University_of_Missouri-St._Louis, viewed March 12, 2007.

2727

CIO BackgroundCIO Background

2828

Pat McNamee, CIO & SVPPat McNamee, CIO & SVPExpress Scripts, Inc.Express Scripts, Inc.

Joined ESI in 2004 Joined ESI in 2004 with over 20 years with over 20 years of technology and of technology and general general management management experience.experience.

2929

CIO BackgroundCIO BackgroundProfessional:

TitleTitle CompanyCompany

President and General ManagerPresident and General Manager MISYS Physician SystemsMISYS Physician Systems

President and General ManagerPresident and General Manager Orthopedic Equipment Corp. Orthopedic Equipment Corp. (General Electric)(General Electric)

SVP, CIO and Chief Quality SVP, CIO and Chief Quality OfficerOfficer

NBCNBC

CIO and General ManagerCIO and General Manager GE Transportation SystemsGE Transportation Systems

CIOCIO GE PowerGE PowerEducational:

Bachelor’s Degree in Biomedical Engineering (Marquette University)Master’s Degree in Electrical Engineering and Computer Science (Marquette University)

3030

Steve Becker, CIO & VPSteve Becker, CIO & VPGraybar Electric, CoGraybar Electric, Co

Steve has a bachelor of Steve has a bachelor of science degree in science degree in Marketing, with a minor in Marketing, with a minor in Accounting from the Accounting from the University of Colorado.University of Colorado.

Steve joined Graybar in Steve joined Graybar in 1976 as a shipping clerk 1976 as a shipping clerk after college.after college.

He has 31 year of business He has 31 year of business experience mostly on the experience mostly on the operations side.operations side.

3131

Dr. Jim S.C. TomDr. Jim S.C. Tom

CIO & Associate

Vice Chancellor

of Information Technology

Dr. Jim S.C. Tom

3232

CIO’s BackgroundCIO’s Background

Wide Educational background:

B.Sc. Physics, Univ. of British Columbia, Vancouver, CanadaB.Sc. Physics, Univ. of British Columbia, Vancouver, Canada M.Eng. Systems Engineering, Carleton University, Ottawa, M.Eng. Systems Engineering, Carleton University, Ottawa,

CanadaCanada Ph.D. Engineering-Economic Systems, Stanford University, Ph.D. Engineering-Economic Systems, Stanford University,

CaliforniaCalifornia

3333

CIO’s BackgroundCIO’s BackgroundBroad work experience: Programmer/analyst -- Transport Canada, Ottawa, CanadaProgrammer/analyst -- Transport Canada, Ottawa, Canada Management policy analyst -- National Oceanic and Management policy analyst -- National Oceanic and

Atmospheric Admin, Miami, FLAtmospheric Admin, Miami, FL Economist-statistician -- Statistics Canada, Ottawa, CanadaEconomist-statistician -- Statistics Canada, Ottawa, Canada Manager, Strategic Planning -- Imapro Corp, Ottawa, Manager, Strategic Planning -- Imapro Corp, Ottawa,

CanadaCanada VP Research and Engineering -- Imapro Corp, Ottawa, VP Research and Engineering -- Imapro Corp, Ottawa,

CanadaCanada Director, Networks -- University of British Columbia, Director, Networks -- University of British Columbia,

Vancouver, CanadaVancouver, Canada Chief Technology Officer -- University of British Columbia Chief Technology Officer -- University of British Columbia

School of Medicine, Vancouver, CanadaSchool of Medicine, Vancouver, Canada

““The consistent theme has been trying to figuring out The consistent theme has been trying to figuring out ways you can use technologies to enhance business, ways you can use technologies to enhance business, whatever that business might be whether it is in whatever that business might be whether it is in engineering or universities.” - Jim Tomengineering or universities.” - Jim Tom

3434

Organizational HierarchyOrganizational Hierarchy

3535

Executive Reporting Structure at Executive Reporting Structure at ESIESI

“A successful leader is not bounded by reporting relationships. What matters instead is the ability to establish a clear vision and an optimized strategy along with a plan that is then socialized across the organization to gain the support necessary to drive positive change.” -Pat McNamee

3636

Executive Reporting Structure at Executive Reporting Structure at Graybar Electric, CoGraybar Electric, Co

Executive OfficeExecutive Office

Bob ReynoldsBob Reynolds

Chairman & CEOChairman & CEO

FinanceFinance

Beatty D'AlessandroBeatty D'Alessandro

SVP & CFOSVP & CFO

Information TechnologyInformation Technology

Steve BeckerSteve Becker

VP & CIOVP & CIO

3737

Reporting Structure at UMSLReporting Structure at UMSL

ChancellorOffice of the ChancellorDr. Thomas F. George

Vice ChancellorManagerial & Technological Services

Dr. James M. Krueger

Provost/Vice ChancellorAcademic AffairsDr. Glen H. Cope

Dr. Jim S.C. Tom

3838

IT OverviewIT Overview

3939

IT at ESI OverviewIT at ESI Overview

2006 Annual Budget: $226 Million2006 Annual Budget: $226 Million Full Time Employees: 890Full Time Employees: 890 Contractors: ~ 300Contractors: ~ 300 Operating Scope: 2 countries (U.S. & Operating Scope: 2 countries (U.S. &

Canada), 26 sitesCanada), 26 sites

4040

Overview of IT at GraybarOverview of IT at Graybar IT group made up of 215 professionalsIT group made up of 215 professionals 43 professionals involved in requirements 43 professionals involved in requirements

definition, business alignment, user support, and definition, business alignment, user support, and testingtesting

69 technologists in the development group with 69 technologists in the development group with skills in ABAP, Web Applications, Applications skills in ABAP, Web Applications, Applications Messaging (EDI, Workflow), Business Messaging (EDI, Workflow), Business WarehouseWarehouse

103 technologists in the infrastructure group 103 technologists in the infrastructure group supporting mainframe, UNIX, Microsoft, Novell supporting mainframe, UNIX, Microsoft, Novell networking, Oracle databases, SAP Basis, etc.networking, Oracle databases, SAP Basis, etc.

4141

Graybar IT Continued…Graybar IT Continued…

Approximately 10,000 combination Approximately 10,000 combination desktops and laptops.desktops and laptops.

Roughly 500 servers managed by only Roughly 500 servers managed by only three individuals. three individuals. More about this later in More about this later in outsourcing section. outsourcing section.

2006 Annual budget was $47.5 2006 Annual budget was $47.5 Million ($48 Million in 2007)Million ($48 Million in 2007)

4242

IT at UMSLIT at UMSL OverviewOverview

About 80 people work for CIOAbout 80 people work for CIO Type of services provided: Type of services provided:

- - Services that support teaching and learning Services that support teaching and learning

labs, classrooms, myGateway.labs, classrooms, myGateway.- Basic services - Basic services

emails, network, telephone systems, infrastructures in emails, network, telephone systems, infrastructures in

datacenters, and web servers.datacenters, and web servers. 2 Datacenters 2 Datacenters BudgetBudgetAround 10 millionAround 10 millionCome from technology fees , regular central funding, Come from technology fees , regular central funding,

4343

Top 3 PrioritiesTop 3 Priorities

4444

1.1. Assure system Assure system reliabilityreliability

2.2. Define and deliver Define and deliver innovative innovative applications that applications that drive growth or drive growth or increase productivityincrease productivity

3.3. Develop talent for Develop talent for use within IT and use within IT and across the businessacross the business

Top 3 Priorities at Express Top 3 Priorities at Express ScriptsScripts

4545

1.1. People: Retention of good skilled People: Retention of good skilled employees. employees.

2.2. Graybar’s continuous improvement Graybar’s continuous improvement strategic initiative to reduce cost, strategic initiative to reduce cost, eliminate waste and improve eliminate waste and improve business process. business process.

3.3. Technology and ways to move the Technology and ways to move the business forward and make us business forward and make us stand out from the competition. stand out from the competition. Manage enablers.Manage enablers.

Top 3 Priorities at GraybarTop 3 Priorities at Graybar

4646

1.1. Enhancing the support of the Enhancing the support of the academic mission to improve academic mission to improve teaching, learning and research teaching, learning and research

2.2. Compliance issues - concerns about Compliance issues - concerns about complying with health care complying with health care information. information.

3.3. Hiring and keeping good people and Hiring and keeping good people and getting a better hand on security.getting a better hand on security.

Top 3 Priorities at UMSLTop 3 Priorities at UMSL

4747

What Keeps a CIO Awake at What Keeps a CIO Awake at Night?Night?

4848

““Worrying that IT is not doing Worrying that IT is not doing everything it can do to help our everything it can do to help our business win and that we can never business win and that we can never most fast enough if we want to win in most fast enough if we want to win in the marketplace.” –Pat McNameethe marketplace.” –Pat McNamee

What Keeps the Express What Keeps the Express Scripts CIO Awake at Night?Scripts CIO Awake at Night?

4949

Not much on a regular basis. Not much on a regular basis. Occasionally, a big projects may Occasionally, a big projects may

keep him up at night. keep him up at night.

Why does he sleep so well?Why does he sleep so well? He has extraordinary faith in his He has extraordinary faith in his

team.team.

What Keeps the CIO of What Keeps the CIO of Graybar Awake at Night?Graybar Awake at Night?

5050

The main issue that keeps him at night The main issue that keeps him at night is staffing.is staffing.

Non-competitive salaries due to Non-competitive salaries due to under-funding.under-funding.

A lot of choices for jobseekers in this A lot of choices for jobseekers in this metropolitan region. metropolitan region.

Turnover rate has been stable but Turnover rate has been stable but recruitment has been difficult. recruitment has been difficult.

What Keeps the UMSL CIO What Keeps the UMSL CIO Awake at Night?Awake at Night?

5151

Relationship with the CEORelationship with the CEO

5252

Meet 2 -3 times per week with regular Meet 2 -3 times per week with regular email/phone as necessary.email/phone as necessary.

Meetings usually revolve around sales Meetings usually revolve around sales opportunities and client issues.opportunities and client issues.

Meet quarterly to review overall Meet quarterly to review overall performance of IT and 3 time per year with performance of IT and 3 time per year with CIO’s direct staff to review IT 3 year rolling CIO’s direct staff to review IT 3 year rolling strategic plan.strategic plan.

Social Interactions: Play golf often and Social Interactions: Play golf often and have dinner with their spouses at least have dinner with their spouses at least once per month.once per month.

Relationship with CEORelationship with CEO

5353

Meets formally every other month with Meets formally every other month with the CEO at the IS Committee meeting the CEO at the IS Committee meeting (which CEO chairs).(which CEO chairs).

Meets formally once a month with the Meets formally once a month with the CFO and then informally multiple times a CFO and then informally multiple times a week. week.

CFO is viewed as a buffer and supporter CFO is viewed as a buffer and supporter of the IT initiative at Graybar. He has the of the IT initiative at Graybar. He has the ear of the CEO and is a corporate ear of the CEO and is a corporate sponsor. sponsor.

Relationship with CEO/CFORelationship with CEO/CFO

5454

Do not meet regularlyDo not meet regularly

but, meet socially on occasion.but, meet socially on occasion.

“ “ He is a pretty busy guy.”He is a pretty busy guy.” – J.T. – J.T.

Relationship with other executives?Relationship with other executives?

Do not meet regularly, but works Do not meet regularly, but works with them time to time.with them time to time.

Relationship with CEORelationship with CEO

5555

What Makes a CIO What Makes a CIO Successful?Successful?

5656

Understanding of the market, customers and Understanding of the market, customers and business processes.business processes.

Communication and collaboration skills.Communication and collaboration skills. Ability to translate market opportunities into Ability to translate market opportunities into

business strategy.business strategy. Ability to translate business strategy into Ability to translate business strategy into

technological innovations.technological innovations. Ability to build a strong team of Ability to build a strong team of

business/technology leaders.business/technology leaders.

““A CIO with a 100% technical background has a 20% A CIO with a 100% technical background has a 20% chance of success, but a CIO with a 100% business chance of success, but a CIO with a 100% business background has a 80% chance of success.” background has a 80% chance of success.” - Patrick McNamee- Patrick McNamee


5757

Business experience is the number Business experience is the number one essential item for success. one essential item for success.

Also, being a leader and not a Also, being a leader and not a caretaker. caretaker.


5858

Paying attention to business. Paying attention to business.

Being business focused Being business focused

“ “ You have to make the technology work for the You have to make the technology work for the business, provide value to the business.”business, provide value to the business.” – Jim – Jim TomTom

Making sure that the system works. Making sure that the system works.

BothBoth operational and strategic side. operational and strategic side.

““Unfortunately, sometimes people, technical Unfortunately, sometimes people, technical people pay too much attention to operational side people pay too much attention to operational side and not enough attention to strategic side”and not enough attention to strategic side” - Jim - Jim TomTom


5959

Views on Views on Outsourcing/OffshoringOutsourcing/Offshoring

6060

““Valuable tool that can have huge Valuable tool that can have huge benefits when done effectively. benefits when done effectively. Difficult in our our environment with Difficult in our our environment with Dept of Defense (current client) and Dept of Defense (current client) and HIPAA regulations.”HIPAA regulations.”

– Pat McNameePat McNamee

Views on Views on Outsourcing/Offshoring at Outsourcing/Offshoring at

Express ScriptsExpress Scripts

6161

Views on Outsourcing/Offshoring Views on Outsourcing/Offshoring at Graybarat Graybar

Views outsourcing as a tool. Has investigated Views outsourcing as a tool. Has investigated (along with consultants) outsourcing disaster (along with consultants) outsourcing disaster recovery as well as call center and other recovery as well as call center and other functions in IT. functions in IT.

Discovered that he could not do so as Discovered that he could not do so as efficiently as he is operating today. efficiently as he is operating today.

Does have experience in off-shoring (Israel, Does have experience in off-shoring (Israel, India and Toronto) developments during our India and Toronto) developments during our ERP conversion. Described as a terrible ERP conversion. Described as a terrible experience with substandard quality.experience with substandard quality.

Views on Outsourcing/Offshoring Views on Outsourcing/Offshoring at Graybarat Graybar

6262

Views on Outsourcing/Offshoring Views on Outsourcing/Offshoring at UMSLat UMSL

Open to outsourcing some functions Open to outsourcing some functions if external groups can do better with if external groups can do better with lower cost. Get some offers from lower cost. Get some offers from external outsourcing groups from external outsourcing groups from time to time. However, most of the time to time. However, most of the time “time “we can do it more cost-we can do it more cost-effectively.”effectively.”

– Jim TomJim Tom

Views on Outsourcing/Offshoring Views on Outsourcing/Offshoring at UMSLat UMSL

6363

How should IT be Governed?How should IT be Governed?

6464

How Should IT be Governed?How Should IT be Governed?

““IT should be governed by IT leadership and an IT should be governed by IT leadership and an internal audit function to assure SOX and SAS-70 internal audit function to assure SOX and SAS-70 compliance. IT leadership should assure no compliance. IT leadership should assure no money is spent without functional ownership for money is spent without functional ownership for process improvement, a clear ROI, and alignment process improvement, a clear ROI, and alignment with the IT architecture.”with the IT architecture.”

– Patrick McNameePatrick McNamee


6565

Believes IT should be governed by the business needsBelieves IT should be governed by the business needs Currently Currently governed logistically by the IS Committee, governed logistically by the IS Committee,

chaired by the CEO. chaired by the CEO. Committee consists of CEO, CIO all corporate officers Committee consists of CEO, CIO all corporate officers

as well as a few non-voting directors both from as well as a few non-voting directors both from business and IT side. business and IT side.

The committee sets the priorities for the IT dept. Any The committee sets the priorities for the IT dept. Any project that will take over 500 hours is taken before project that will take over 500 hours is taken before the IS committee. the IS committee.

Interesting note: He is trying to get the name of the Interesting note: He is trying to get the name of the IS Committee changed to the IT Committee to IS Committee changed to the IT Committee to emphasize technology over systems.emphasize technology over systems.

How Should IT Be Governed?How Should IT Be Governed?

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“ “Most infrastructure decisions can be made by IT Most infrastructure decisions can be made by IT organization, with oversight by an executive organization, with oversight by an executive committee. However, many IT decisions these committee. However, many IT decisions these days are actually quite intertwined with business days are actually quite intertwined with business decisions, so IT needs to be involved in the decisions, so IT needs to be involved in the business decision-making, and not just given the business decision-making, and not just given the problem of implementation once the decision has problem of implementation once the decision has been made.” been made.”

– Jim TomJim Tom


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Lessons LearnedLessons Learned

When asked about their top priorities, When asked about their top priorities, all 3 CIOs mentioned people/staffing.all 3 CIOs mentioned people/staffing.

Relationships with CEOs vary widely, Relationships with CEOs vary widely, from fairly social to very formal from fairly social to very formal relationships.relationships.

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Lessons LearnedLessons Learned

All said that business experience is All said that business experience is biggest factor for CIO success.biggest factor for CIO success.

With respect to outsourcing/offshoring, With respect to outsourcing/offshoring, all mentioned either that they could do all mentioned either that they could do it cheaper internally, or that it’s a it cheaper internally, or that it’s a “tool” to be used, indicating that it’s “tool” to be used, indicating that it’s only a part of the IT portfolio.only a part of the IT portfolio.

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In ClosingIn Closing

““There is no defined career path for There is no defined career path for CIOs, nor is there any certification, CIOs, nor is there any certification, degree, or even common body of degree, or even common body of knowledge that such a person should knowledge that such a person should have mastered to fulfill this kind of have mastered to fulfill this kind of position effectively. Like the search for position effectively. Like the search for any other executive position, finding the any other executive position, finding the right CIO is more about aligning right CIO is more about aligning personal traits, skills, professional personal traits, skills, professional orientation, proven success, and vision.”orientation, proven success, and vision.”

Hawkins, Brian L., “A Framework for the CIO Position”, EDUCAUSE Review, November/December 2004, pp. 94-103.

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Thank you!Thank you!

1 The Role of the CIO Kali Kliethermes Luke Tierney Claire Kim Jamie Young.

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Transcript of 1 The Role of the CIO Kali Kliethermes Luke Tierney Claire Kim Jamie Young.