What Do Boards Want From CIOs?April 2016

2

CORY A. EAVES

Corporate Experience:

• Misys, EVP, CIO & CTO

• AllScripts, EVP, CIO, & CTO, Board Member

• SSA Global (now Infor), CTO

• Lycos, Director of Ecommerce

• General Electric

Focus Areas:

• Technology / product due diligence

• Evaluate and recruit technology / product leaders

• Refine product roadmaps and technology

infrastructure

• Post-Merger Integration Planning and Governance

Current GA Boards of Director:

• eviCore

• CitiusTech

• Aperture Group (Observer)

Current Outside Boards of Director:

• NetHope

• Chair, External Affairs Committee

• The Marfan Foundation

• Secretary

• Chair, Development

Cory provides expertise and strategic counsel to GA's investment teams. He is

responsible for value creation across GA’s portfolio companies and serves on the

firm's Portfolio Committee. Cory currently serves on the boards of directors at

CitiusTech and eviCore and serves as a board observer for Aperture Group.

Cory previously served as Chief Technology Officer of SSA Global, one of the world's

largest enterprise software providers and a prior GA portfolio company. Cory joined

GA in 2009 from Misys plc, a global provider of software and services to the

healthcare and financial services industries, where he was Executive Vice President,

Chief Technology Officer and Chief Information Officer.

3

Notes:

(1) As of December 31, 2015. The assets under management (“AUM”) as reported herein does not include non-portfolio assets (i.e. undistributed cash and other net assets) of General Atlantic’s

investment funds.

(2) As of March 1, 2016, investment staff consists of 82 investment professionals and 22 Portfolio, Research and Resources Group professionals.

Consistent Investment

Performance Since 1980, nearly $22 billion

invested in 250 companies globally

Consistent performance across five

sectors and geographies worldwide

Leader in Global Growth

Investing Focus on partnering with

entrepreneurs and building growth

companies

Founded as a private firm to invest

on behalf of the Atlantic

Philanthropies, which was

established by Charles Feeney, a

global entrepreneur and one of the

world's most notable

philanthropists.

Global Platform

Integrated global team, with single

pool of capital and global Investment

Committee

12 offices worldwide

Investment professionals comprise

94% local nationals and represent 18

different nationalities2

GA Offices

Amsterdam

Munich

Mumbai

Hong Kong

Beijing

Singapore

Palo Alto

São Paulo

Mexico City

New York

Greenwich

London

250

Investments

Globally

~$18

billion of

AUM1

~100

Investment

Professionals2

GENERAL ATLANTIC OVERVIEW

4

PROVEN GLOBAL EXPERIENCE

Note: Figures at top include all investments made from January 1, 1981 to December 31, 2015. EMEA represents Europe, Middle East and Africa. Realized Investments means investments

that have been fully realized or written down to zero as of December 31, 2015. Logos include all investments made from January 1, 2011 through March 1, 2016 except for follow-on

investments made in pre-2011 vintage companies and investments that are no longer in the GA portfolio.

(1) General Atlantic originally invested in Axel Springer Digital Classifieds, a joint venture with Axel Springer, in May 2012. In December 2014, Axel Springer acquired General

Atlantic’s stake in Axel Springer Digital Classifieds and, as part of the transaction, General Atlantic became a shareholder in Axel Springer in December 2015.

(2) General Atlantic originally invested in Yemeksepeti in November 2012. In May 2015, Delivery Hero acquired Yemeksepeti and as part of the transaction, General Atlantic became a

shareholder in Delivery

Hero.

$11.2bn Capital

Invested

145 Investments

First investment in

1981

113 Realized

Investments

$5.4bn Capital

Invested

52 Investments

First investment in

1989

38 Realized

Investments

$1.5bn Capital

Invested

19 Investments

First investment in

2002

10 Realized

Investments

$1.5bn Capital

Invested

19 Investments

First investment in

1999

14 Realized

Investments

$2.2bn Capital

Invested

15 Investments

First investment in

2000

8 Realized

Investments

India & Asia-

PacificChinaUnited States EMEALatin America

35 years of global growth investing across 12 global offices

5

• Identify long-term macro trends shaping

businesses, markets, and demographics

• For example, rising middle class in China

TWO SIMILAR PATHS

Macro

Thesis

Investment

Themes

Market

Scan

Due

Diligence

Investment

Company

Building

Role

Specification

Recruitment

Onboarding

Planning

Execution

• Based on macro thesis, identify specific,

actionable investment themes

• At GA, often driven by technology

• Scan the market to identify companies

capitalizing on these themes

• Broad top of funnel, narrow output

• Deep understanding of the company

• Technology & CIO is critical component

• Further narrows the funnel

• Invest and partner with management

• Provide capital, expertise, and

connections

• Board or management identifies a gap

between current performance and

aspiration

• Rethinking of the internal requirements of

the CIO role

• Market benchmark is changing

• Structured search process

• Balancing experience, domain (IT)

knowledge, sector, and culture

• Transition from incumbent

• 100-day plan

• Creating a medium-term plan

• Building a team

• Getting board and executive support

• Execution with urgency

• Metrics and KPIs

• Actively partner with management to grow

the business

• Technology plays a key role

Performance

Gap

Boards & shareholders increasing involved in both processes

Technology Investment Process CIO Role Process

6

EVOLUTION OF BOARD FOCUS ON TECHNOLOGY

Audit Committee

Approach

Operational Approach Strategic Approach Innovation Approach

Responsible

committee

Audit committee Technology committee Technology committee Technology or innovation

committee

Objectives Review IT as it relates to

internal controls and audit

findings

Examine operational

performance and

information security

Evaluate IT strategy and

investments

Oversee all aspects if IT,

including competitive

advantage

Company

examples

Prudential Financial

The Guardian Life

Insurance Company

FedEx

Morgan Stanley

Nationwide Mutual

Insurance Company

American International

Group

Westpac Banking

Corporation

American Express

The New York Times

Areas of focus • Internal controls

• Audit findings

• Risk management

• Overall IT performance

• Information and data

security

• Project priorities and

progress

• IT strategy and

investments

• Business Value of the

IT function

• IT capabilities in the

context of trends

• Competitive advantage

• Business process

improvement

• Risk management

• IT performance and

security

• Strategy and

investments

Source: BCG, The Proactive CIO: Three Strategies for Engaging with the Board, May 22, 2015

Degree of scrutiny

Quickly evolving

7

• Be proactive: initiate and steer the conversation

• Start with the CEO

• Identify directors & board members with a technology background and interest

Take the

Lead

HOW SHOULD CIOs ENGAGE THE BOARD?

• Carefully choose the issues to discuss, the sequence in which to present them,

so as to gradually build director’s knowledge and comfort

• Link the IT initiatives to relevant organizational priorities

• Look for ways to make the technology relevant to directors

• Business case and benefits must be clear

Assume the Role

of Advisor

• Create a standardized report

• Hone communications skills

• Tailor the topics around 3 key areas: risk, operations, and innovation

Professionalize

the

Communication

Source: BCG, The Proactive CIO: Three Strategies for Engaging with the Board, May 22, 2015

8

HOW DO YOU ACHIEVE THESE THINGS?

People

ProcessProduct

Plan

9

PEOPLE

• CIO

• CTO / Chief Architect

• Technology Leadership team

• Deviations from typical organization

structure

• Self-contained teams

• Sourcing strategy:

• What to outsource?

• What to off-shore?

• Vendor management

• Sized based on the business metrics

• Process to attract, retain, and grow talent

CIO

VP of Business Relationships

Market A

Market B

VP of Software Development

Product Team A

Product Team B

Partners

Off-shoring

VP of Operations

VP of Infrastructure

Cloud

Data Centers

Help Desk

CISO

CTO

CIOs should quickly evaluate their

team and have a plan to transform as

needed.

10

PRODUCT (OR SERVICE) PLAN

• Plan beats no plan

• Sometimes too high level

• Sometimes too detailed

• Bridges organization strategy with

technology strategy

• Might include one technology

“enabler”

Product (or Service) Plan

Organization Objectives

Technology Objectives

Benefits and/or business metrics

Timespan: 9-18 months

What are the 2 to 4 major objectives you must

achieve to advance the organization?

Typically should address:

• Data – Data at the center

• Social – Inherently social

• Mobile – Mobile first

• Cloud – 100% cloud infrastrucutre

• Enterprise Architecture – Ability to adapt

CIOs should quickly formulate a

product plan and revisit annually.

11

CIOs should establish processes and metrics

for portfolio management, development, and

operations.

PROCESS AND METRICS

• Objective: Improving organization metrics, not IT metrics

• Less is more: Only a few key metrics are predictive and important

• Many organizations:

• Organization: Financial, but not true KPIs

• Portfolio / Product Management: Weak processes and metrics

• Development: Movement toward agile process, good input metrics,

weak output metrics

• Operations: Movement toward ITIL. Good metrics

• Portfolio / Product Management

• Product Managers driving innovation

• Best practices are established, but not yet widely followed

• Critical for getting in-bound funnel under control

• Agile Development Process

• Established best practice

• Focus on delivering customer value iteratively by empowering

strong, self-contained teams

• Self-awareness of maturity and continuous improvement at each level

• Unified reporting, communications, and full transparency

Portfolio /

Product

Management

Development

Operations

• Process: Unique to each organization

• Metrics: True KPIs

NPS, Financial, Market share

• Process: Scaled Agile Framework (SAFe)

• Metrics: Feature cycle time, agility

• Process: Agile

• Metrics: Speed & efficiency

• Process: ITIL

• Metrics: Cost

Organization

Processes and Metrics

12

SUMMARY

• Every organization is now technology-enabled—or should be

• Boards consistently report not enough engagement from the CIOBoards Care about Technology

1

• Take the Lead

• Become an Advisor

• Professionalize the CommunicationsEngage with Your Board

2

• CIOs should evaluate their team and organization

• Develop a broader sourcing strategyPeople

3

• Plan beats no plan

• Build a plan that bridges organizational objectives with technology goalsProduct & Service Plan

4

• Establish and improve processes for program management,

development, and operations

• Use a small number of metrics to measure and communicate progressProcess

5

13

Questions?

Cory A. Eaves

General Atlantic

+1 (646) 833-8894

CEaves@GeneralAtlantic.com