role of the cio…

04/19/23 1

ROLE OF THE CIO…

Kera AlexanderBill GeoffroyChuck HickeyShallu KanwarBart Truitt

04/19/23 2

Chief Information Officer

“Chief Information Officer: Usually the head over the technology/computer department at companies”

Source: Learnthat.com: “What is a CIO? CIO Definition” Learnthat.com: “What is a CIO? CIO Definition”

04/19/23 3

CIO Reporting Tree

Other22%

COO12%

Corp. CIO4% CEO

51%CFO11%

Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine

http://www.cio.com/archive/030102/relationships.htmlBase : 500 CIO’s and equivalent head of IT

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CIO’s Educational Background and Work

Experience

• Most Advanced Degree

• Work Experience

Business 49.2% Computer Science 26.8%

Engineering 16.4%

Economics/Finance 7.1%

Source: CIO Insight Magazine, CIO Role Survey, April 15,2002

Base: 305 Senior Executives

IT Related Non-IT Related

Mean in year

15.3 7.9

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Role of the CIO The Changing Role of the CIO

1978 1988 1998 1999 2000 2001 2002 2003 2004 2005

TechnicalTechnical

Technical/BusinessTechnical/Business

Strategic PlanningStrategic Planning

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Most Important Attributes for the job.

8.90%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

30.00%

35.00%

40.00%

45.00%

50.00%

55.00% BusinessUnderstandingLeadership Ability

Communication skills

Strategic Thinker

Ability to work well withtop executivesTechnical Acumen

Source: CIO Insight Magazine, CIO Role Survey, April 15,2002 Base: 305 Senior Executives

04/19/23 7

Current Issues facing the CIO

Lack of key staff and skill sets, retention.

Inadequate budgets. Shortage of time for

strategic thinking. Volatile market condition.


http://www.cio.com/archive/030102/challenges.html Base: 500 CIO’s & equivalent heads of IT

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Gender Gap• 91% of the CIO’s are male compared to 9% female.1

• Salary Gap is smaller in technology : 2

– In general workforce, women are paid 24% less than men.

– Not so in IT.

1 Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine

http://www.cio.com/archive/030102/salary.html2 Source : Gender Gap is smaller in Technology by Jennifer Mateyaschuk ; April 26,1999;http://www.informationweek.com/731/salsurve3.htm

Median salary

IT Staff IT MGMT

Men $50,000 $72,000

Women $45,000 $68,000

04/19/23 9

CIO Turnover• According to an old joke, CIO stands

for “Career Is Over”.1

• Turnover Statistics :Time spent in last job 2

1 Source : CIO Turnover : New Horizons by Stephanie Stahl http://www.informationweek/748/48uwen.htm 2 Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine http://www.cio.com/archive/030102/turnover.html

< 1 year4%

6 - 10 years19%

1 - 3 years27%

3 - 6 years31%

> 10 years19%

> 10 years

6 - 10 years

3 - 6 years

1 - 3 years

< 1 year

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CIO Turnover• CIO’s turnover rate in comparison

with other top executives :– Turnover rate :

IS Executives 23%

Sales and Marketing Executives 24%

Finance 20%

Manufacturing 16%

Human Resources 13%

Source : Special report on CIO Turnover - November 1, 1996 Issue of CIO Magazine http://www.cio.com/archive/110196/survey_content.html

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CIO Turnover

• What makes CIO’s leave their jobs?– More interesting challenges.– Career advancement.– Better financial packages.– Disconnects with CEO/other

seniors.


http://www.cio.com/archive/030102/turnover.html

04/19/23 12

IT Budget• On average, IT budget represents approximately

6% of company’s annual revenue.

• Average IT Budget as a percentage of company’s revenues (by company size):

4.00%

8.70%6.40%

5.00% 4.20%

0.00%

5.00%

10.00%

< $100M$100M - $499m$500M - $999M$1B - $4.9B$5B - $10B


http://www.cio.com/archive/030102/demofraphics_content.html

04/19/23 13

CIO Compensation• Most CIO’s are in the $100,000 -

$250,000 a-year range. They make $183,245 on average including stock options and bonuses.

• Most of CIO’s salary comes from base pay (81%), which is not the case for other executives.

• CIO’s pay rises with the size of the company. Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine

http://www.cio.com/archive/030102/salary.html

04/19/23 14

City of St. Louis

Gateway to the Midwest 7,771 Full Time Employee’s We sell Protection & Quality of

Life We serve the Citizens of St.

Louis (348,189 Population 2000)

Source: St. Louis Annual Operating Plan FY03, City of St. L., Page 562Source: St. Louis Annual Operating Plan FY03, City of St. L., Page 562

04/19/23 15

City’s Budget 1 Billion Dollar Annual Budget

$435,834 Surplus FY02

IT Budget of $5,785,293 FY03 Budget by Cost Recovery (Does not

work)

City of St. LouisCity of St. Louis

Source: St. Louis Annual Operating Plan FY03, City of St. L., Page 562Source: St. Louis Annual Operating Plan FY03, City of St. L., Page 562

04/19/23 16

Categories

IT Departme

nt

% of Total City

Budget$5,785,29

31.4%

Capital Expenditure

s

$1,785,000

5%

Employee’s 51 <1%

04/19/23 17

PersonnelPersonnel

PolicePolice

FireFire

ParksParks

CollectorOf

Revenue

CollectorOf

Revenue License Collector

License Collector

JudgesJudges

JailHouse

JailHouse

CityCounselor

CityCounselor

Bd. Of Alderman

Bd. Of Alderman

Comptr.Comptr.MayorMayor

ITIT

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CITIZENS OF ST.LOUIS

COMPTROLLER MAYORPRESIDENT

BD. OFALDEMAN

CIO

Budget DivisionBudget Division

Information TechnologyInformation Technology

04/19/23 19

Director of TechnologyCity of St. Louis

Chris Dornfield Architect Degree

University of Kansas

Executive Access U.S. – Director of Corporate StrategySource:

Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

Source: Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

04/19/23 20

Allocation of Time…Budget

5%

Security10%

IT Equip.20%

Political Issues65%

PoliticalIssuesIt Equip.

Security

Budget

Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

Source:Source:

04/19/23 21

What is the most important skill required for your job?

“People Skills are the number one attribute required for my job…” -Chris DornField-

“Organization, Organization, Organization…and Accountability” -Chris DornField-

Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

Source:Source:

04/19/23 22

Are you a member of Top Management? “Yes”

Mr. Dornfield works with the Mayor (CEO) everyday & all Directors weekly (face to face).

Board Of Alderman and the Comptroller (CFO) are limited to several a month.

Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Source:Source:

04/19/23 23

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The Biggest Challenge…

Political IssuesBoard Bill 96

Outdated View of the CIO as only a High-Class Technician

Board Bill 96 will give complete control of the IT department to the Mayor ending the Political Maze…

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Loss of Control

28 Alderman

Comptroller

President of the Board of Alderman

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IT Department-City View

Board Bill 96 is the last Hurdle...

Jan Feb Mar Apr May Jun July Sep Oct Nov Dec

Political Hold upPolitical Hold up

Summer RecessSummer Recess

CommitteeCommittee

Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.Source:Source:

04/19/23 30

IT Department

What does the future hold for IT???

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•GKN Aerospace Services St.Louis

•A subsidiary of GKN PLC (Great Britain) (Guest, Keen, and Nettlefolds 1854)

•Supplier of structures, components and design services to aircraft and aero-engine manufacturers

•Acquired in early 2001 from Boeing structures operation

•Employs approximately 1500 people

•Estimated 2002 sales = $330M

GKNGKN

Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.Source:Source:

04/19/23 33

Fanny Sloan

• Masters in Business Administration

• Bachelors of Science

- Major in Banking,and Finance

- Minor in Accounting

Education

Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.


Source:Source:

04/19/23 34

Work Experience

• Current: Director of

IT (GKN)

• Manager of IT (TRW

Aeronautics)

• Operations Systems

Manager (ITT Gilfillan)

• Director of Quality

Assurance (ITT Globe

Mackay Cable & Radio Corp.)

Interview With Fanny SloanFanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.Source:Source:

04/19/23 35

The CIO - CEO Relationship

Executive Steering

Committee

CEO

COO CIO

CFO

Strategy


04/19/23 36

Typical Day

Educating7%

Lean Activities

8%Staff

Meetings10%

Problem Solving15%

Strategizing15%

Planning20%

Communicating


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The IT Biggest Success

• ERP implementation project completed in four & one half months

• GKN saved $1 million per month versus rental costs of the Boeing system

• Project implementation earned Computer World Honors Commemorative Medallion for manufacturing

• Also received 2001 GKN aerospace Services Excellence Award


04/19/23 38

Accomplishments

A record 8 month IT

infrastructure Implementatio

n

Network, Business,

and Machine

Tool

Data and Voice

Comm.Surgically Removed

from Boeing

Systems

Eng. Config. Control,

Cost Acctg, Quality

Systems...

ERP



04/19/23 39

• Involvement in every aspect of the company’s

business

• Ensure decision makers have accurate and

timely data

• World class security measures to protect the

system

The Mission of IT in a Manufacturing Co


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“Emerging information technologies and electronic commerce creates significant opportunities for IT to improve services and reduce cost. New technologies provide new means to interact and transact with customers and suppliers. New technologies offer simplification and improved process that will enable us to produce quality products on time at lower cost”.

The Mission of IT in a Manufacturing Co

-Fanny Sloan-


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Keys to Success

• Employ selective IT outsourcing as a routine

means of increasing competitiveness

- Gaining access to new resources and skills.

• Concentrate highly needed skills.

• Involvement in company’s program, i.e. lean

events

• Keep in tune with Executive Staff goals and

make sure they are supported adequately.


04/19/23 42

• Review the effectiveness of IT in every organization

• The nature of IT mandates the dilemma of outdated skills of current staff, outdated applications, and connectivity

• Most infrastructures are old and built using non-architect solutions

• New challenges

-Changing needs of customers, and constituents

- Performing strategic planning, investment management, and engineering activities in support of business needs

The Future of IT


04/19/23 43

JAN HOLLOWAYVice President And Chief

Information Officer

Monsanto CompanyJan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.

“The primary focus of the CIO is aligning Monsanto’s IT strategy with business strategy”- Jan Holloway

“The primary focus of the CIO is aligning Monsanto’s IT strategy with business strategy”- Jan Holloway

04/19/23 44

MONSANTO’S BACKGROUND

Leading Provider of: Agricultural Products and Integrated Solutions

Products: Roundup-the world’s best selling herbicide DeKalb and AsGrow Seed brands

Our Customers are: Farmers, Corporations, Scientists, Home and

Landowners worldwide Employing over 14,500 people in 380

global locations Sales of $5.5B in fiscal 2001

Source: Monsanto Company 2001 annual Report

04/19/23 45

BUDGETS AND PROCESSES 2002 Numbers were a 5% reduction from 2001

Ground Up Annual Budget Process:

Existing Capabilities Initiatives Identified Initiatives Scrutinized

Approved Initiatives Added to Existing Capabilities

Joint Efforts with SBUs may be funded by SBU

Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.Source:Source:

04/19/23 46

BACKGROUND OF A CIO

Education: M.S. Computer Science,

Washington University B.S. Mathematics, Augusta

College

Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.

Source:Source:

04/19/23 47

BACKGROUND OF A CIO

Experience: Co-Lead, Information Technology, Monsanto

Agriculture Director, Information Technology, Monsanto Crop

Protection Manager, Information Technology, Monsanto

Agriculture Manager, Information Technology, Monsanto Ag New

Products Senior Group Leader, Monsanto Research Center

User Support Staff Research Associate, Washington University


Source:Source:

04/19/23 48

Breakdown of the CIO Skills Mix

40% Business Skills: Leaders need market and customer

knowledge 40% People Skills:

Correct organizational structure Processes for personal development

20% Technical Skills Reliance on technical specialists for

this

Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26 th, 2002.

40%

40%

20%Business Skills

People Skills

Technical Skills

04/19/23 49

MONSANTO ORG CHART

Ja n H o llo w ayC h ie f In fo rm a tio n O ff ice r

H u gh G ra n tC h ie f O p e ra tin g O ff ice r

R o b e rt T . F ra leyC h ie f Te ch no lo g y O ffice r

T e rre ll C re w sC h ie f F in a n c ia l O ff ice r

C h a rle s B u rsonG e n era l C ou n se l

H e n d rik V e rfa illieP re sid e n t a n d C E O


Source:Source:

04/19/23 50

SENIOR MANAGEMENT MEMBER

Reports to Hugh Grant, Senior Vice President and COO Monsanto Mr. Grant has championed IT initiatives

Member, Monsanto Leadership Team (MLT) Member, Operations Team Member, Cost Management Team Sponsor, Culture and Capability Team


Source:Source:

04/19/23 51

IT AS A STRATEGIC ADVANTAGE

1. Operational Excellence for all customers

2. Helping to Deliver the R&D Pipeline3. Optimized Sourcing to reduce costs4. New Technology Scan5. Customer and Cost Focused Project

Evaluation


Source:Source:

04/19/23 52


1.) Operational Excellence for all customers:

95 to 100% of Monsanto employees are customers

Ensure Focus on External Customers: Farmers, Retailers, Distributors, B2B with key customer accounts


Source:Source:

04/19/23 53


2.) Delivering the R&D Pipeline: Scientifically specialized software programs

Information Management


Source:Source:

04/19/23 54


3.) Optimized Sourcing to Reduce Costs Commodity-based Activities (such as

pc break-fix, audio-conferencing) Highly Specialized Activities (such as

some found in R&D-Genomics, Biotech, Seed Breeding)

Temporary Situations (staff augmentation)


Source:Source:

04/19/23 55


4.) New Technology Scan Virtual teams

IT personnel across the organization

Focus on tools and technologies resulting in strategic advantage


04/19/23 56

IT AS A STRATEGIC ADVANTAGE5.) Customer and Cost Focused IT Project

Evaluation New Projects with SBU’s Scope and Benefits defined early NPV on front end Subjective Audit for closing evaluation Critical feedback from:

Customers Sponsoring SBU“

…IT cannot make this assessment alone; it has to be done with the sponsoring and user group.”

–Jan Holloway


Source:Source:

04/19/23 57

BIGGEST SUCCESS TO DATE

Reduced Costs by >30% within the last 3 years: Work Concentration Delivering Innovation Initiative Selectivity


Source:Source:

04/19/23 58

HER BIGGEST CONCERNS ARE…

Security

People Motivation


04/19/23 59

A TYPICAL DAY FOR THE CIO


Partners20%

Colleagues25%

Reports25%

Vendors5%

Community5%

Traveling10%

Networking10%

Reports Colleagues Partners Traveling

Networking Vendors Community

Source:Source:

04/19/23 60

HER TENETS

“Aligning Business Strategy and IT Strategy is a two way street.”**

“Never Say No…Find a Way!”**

“Drive the Future.”**

**Jan Holloway, CIO of Monsanto.


Source:Source:

04/19/23 61

ReportTo

Size in Rev.

IT-Employee’s as a % of

total

City OfSt. Louis

Mayor $1B <1%

GKN CEO $330M <1%

Monsanto

COO $5.5B 6.5%

04/19/23 62

Research 91% Male

City OfSt. Louis

Male

GKN Female

Monsanto Female

GenderGender

04/19/23 63

Background/Experience

Background

Experience

City OfSt. Louis

Architect Degree

2 years

GKN MBA 22 years

Monsanto M.S. in C.S. 25 years

04/19/23 64

The Value Of IT Productivity Paradox 1

Cost center vs. value center2

Value30%

Cost 70%

Cost Value

1. Brynjolfsson E., and Hitt L., Beyond the Productivity Paradox: Computers are the Catalyst for Bigger Changes, Communication of the ACM, August 1998

2. http://www.cio.com/research/surveyreport.cfm, viewed 9/15/2002

Source:Source:

04/19/23 65

Can the Value of IT be Measured?

Finding tangible equivalents

Intangible benefits Customer satisfaction Quality Service Convenience

http://www.cio.com/research/surveyreport.cfm, viewed 9/15/2002Source:Source:

04/19/23 66

How to Communicate the Value of IT

Metrics & Measurements NPV Real Option Theory Revenue Distance Theory

Alignment with business

http://knowledge.wharton.upen.edu/print-version.cfm, Viewed 9/4/2002Source:Source:

04/19/23 67

The Added Value of the CIO

Obsessive and continuous focus on business imperatives

Interpretation of external IT stories Establishment and Maintenance of IS

executive relationships Establishment and communication of IS

performance record Concentration of the IS development effort Achievement of a shared and challenging

vision of the role of IT Personal contributions beyond the IT function

Earl, M., and Feeny, D., "Is Your CIO Adding Value?," in Managing IT as a Strategic Resource, (Willcocks et al. eds),McGraw Hill, Berkshire, 1997Source:Source:

04/19/23 68

Changing Role of CIO

“Technology & Business visionary that utilizes IT to drive business initiatives resulting in a competitive advantage for the firm.” – Mis 480

Group (The role of the CIO)

04/19/23 69

The End…

role of the cio…

Documents

cio of

cio turnoverwhat

cio turnoveraccording

cio compensationmost

cio turnovercios turnover

cios salary

dollar annual budget

companies source