The Role of the CIOCarine BonnetJohn MaynardGavin SheltonRositsa TsokovaSarah Wilkinson

1

Learning Objectives

Why this topic is important for the General Managers CIOs can add real value to the business Business skills vs. IT skills

What you will learn from our presentation CIO statistics and information from scholarly

research CIO role in US & Europe Real interview results with CIOs of Anheuser-

Busch, Smurfit-Stone and NSI2

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CIO Role

CIO – Defined Chief Information Officer (CIO) is an “executive responsible for development, implementation, and operation of Information Technology policies. CIO oversees all information systems infrastructure within the organization, and is responsible for establishing information related standards that support enterprise goals.”

(source 1)3

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CIO Role

“The role of the modern CIO is less being purveyor of technical solutions and more being a business partner” - CIO Bob Worralls - Sun Microsystems

“ Further, CIOs are expected to be business partners who understand the business aspects of the organization. Given that IS permeates all business functions, the CIO ideally needs to also have a holistic understanding that crosses functional boundaries” - Karahanna and Watson

“The CIO position is also continuously evolving. One key is that the CIO must develop both a business and IT perspective.” - Patten, K.

(source 2,30,31)4

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3 Types of CIOs

5

Business Strategist

• Developing/refining business strategy• Developing external customer insight• Developing business innovations• Identifying opportunities for competitive

differentiation

Function Head• Redesigning business processes• Aligning IT initiatives and strategy with business goals/strategy• Cultivating the IT/business partnership• Leading change efforts• Implementing new systems and architecture• Mapping IT strategy to overall enterprise strategy

Transformational Leader• Managing IT crises• Developing IT talent• Improving IT operations• Improving system performance• Security management• Budget management

(source 3)C

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Type of CIO related to the company needs

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Type of CIO related to the company needs

Function Head

• Restructuring or major improvement of the ISs .

• Security and compliance need modernizing.

Transformational Leader • IT organization

needs major strategic realignment with business goals

• New architecture standards and enterprise-level systems need to be implemented

Business Strategist • The business needs for

IT envision and enable new market opportunities and more sources of innovation.

• The business needs exploit new technologies that make possible new types of competitive differentiation/advantage

7(Source 3)

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8

CIO Role

(source 3) Based on 558 companies

S

9

CIO Role

CEO COO CFO Corp CIO Other0%

10%

20%

30%

40%

50%41%

14%

24%

5%

15%

(source 3) Based on 558 companies

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CIO Demographics

86%

14%

Gender

Males

Females

10

California study of their 200 largest companies found only 4 companies have female CIOs. (source 4)

(source 3) Based on 558 companies

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CIO Annual Compensation

Declin

ed

< $

100

$100

-125

$125

-150

$150

-175

$175

-200

$200

-225

$225

-250

$250

-300

> $

300

0%

5%

10%

15%

20%

25%

Annual Compensation

11(source 3) Based on 558 companies

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CIO Demographics

71%

29%

Member of Executive Management Committee Yes

No

(source 3) Based on 558 companies 12

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CIO IT Budget

13

> $100 $50-$99.9

$10-$49.9

$5-$9.9 < $5 Don’t Know

0%5%

10%15%20%25%30%35%40%45%

10% 8%

25%

16%

40%

1%

IT Budget

* In Millions

(source 3) Based on 588 companies

The slow down of the US economy in 2008 has affected the IT budgets of the companies.According to the findings of Forrester , a US-based research company, 43 % of companies have already cut their overall IT budgets in 2008, and 24 % have put discretionary IT spending on hold.

(source 5)

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IT Spending in EUROPE

IT spending in Europe versus the US:

UK businesses and governments will spend €61 billion ($79 billion)

German businesses and governments will spend €57 billion ($74 billion)

France and Italy spend about two-thirds the size of the UK ($52 billion) Spain, Netherlands, and Switzerland will spend €15 billion to €20 billion each

($20 to $25 billion)

(source 6)

2006 (US$Billion) 2007 Growth 2007 spending

Europe $565 3.7% $586

The US $721 2.9% $741

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EUROPEAN CIO’s INVOLVEMENT

Role of the CIO Europe France

CIO involved in company decision making

47% 33%

• Most European companies see the CIO as a Technician who has no role in the company’s strategic decisions and innovations.

(sources 32,33)

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CIO Tenure

“State CIOs are averaging 26 months in their jobs, which is why state and local chief information officers joke that CIO stands for Career Is Over.” (Source 14)

“Rob Tabb is the 13th head of IT in 26 years, according to a longtime employee. This turnover rate is even more stunning considering that the CEO has been with the $3.4 billion chemical company for more than 45 years.” (Source 15)

16

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CIO Tenure

Average CIO Tenure Since 2003 Average CIO tenure climbed from 2003 to 2007 but dropped

in the 2008 State of the CIO poll results. (Data not available for 2005)

Year Average Tenure (Years)* 2003: 4.3 Years 2004: 4.5 Years 2005: N/A 2006: 4.9 Years 2007: 5.1 Years 2008: 4.4 Years (Notice the drop)

*Number surveyed = 558(source ) 17

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CIO Tenure

Been in the Job Long? CIOs who have held their job for less than 2 years has

increased by 7 % since the “State of the CIO” survey in 2006

How Long Have You Been In Your Current Position?

18

< 2 Years

2-5 Years

5-10 Years

10+ Years

2008 31% 34% 28% 7%

2007 27% 33% 29% 11%

2006 24% 35% 31% 9%

(source 3) Based on 558 companies

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CIO Tenure

“You only stick around by delivering results. CIO’s have demonstrated they are good business managers.” Mark McDonald, VP of Gartner Inc. referring to the increase in tenure of Chief Information Officers. (Source 27)

CIOs must possess leadership qualities to last in the business “The ability to lead and motivate people is a must.”

-Richard Hoppe, Director of IT, Anheuser-Busch (Source 28)

“Leadership is the traditional role of the CIO…the CIO is personally instrumental in the organizational exploitation of IT.”

Feeny / Willcocks (Source 29)19

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How CIOs Spend Their Time

Your company’s executives

Your IT staff or team

Non-IT employees

IT vendors/ service

providers

External business

partners/vendors

Base 555 555 555 555 555

51% or more

0% 14% 0% 0% 0%

41% to 50%

3% 22% 0% 0% 0%

31% to 40%

10% 30% 5% 0% 1%

21% to 30 %

31% 23% 22% 4% 5%

11% to 20%

33% 8% 39% 24% 18%

10% or less

23% 2% 31% 71% 66%

0% 0% 1% 2% 1% 11%

Mean 22% 40% 18% 11% 9%

Median 20% 40% 20% 10% 5%20

• 2 main viewing points• Group• Amount of time

• Both mean and median show most time is spent with …

1. IT staff or team (40%)

2. Company’s executives (avg. 21%)

(source 3) Based on 555 companiesG

How CIOs Spend Their Time

Function Head 37%

Transforma-tional Leader

51%

Business Strategist

12%

Chart Title

*(source 3) (Based on 542 respondents’ choices of which activities comprise their primary focus

“It’s not surprising that most CIOs are consumed with transformational duties and alignment, and that an

additional large percentage are homed in on the IT function and its operations. Few CIOs have the luxury of

spending most of their time on strategy; those that do have earned it by building a smooth-running,

efficient IT operation and a strong partnership with the business that keeps the portfolio in synch with

business needs.” –CIO Magazine (source 3)21

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How CIOs Spend Their Time

Looking towards the future…the importance of a business outlook.

“When chief information officers (CIOs) first entered the executive suite…they were not exactly a popular addition. ‘More comfortable with computers than people’ was a common verdict on CIOs who had risen through the information system ranks. Employers seemed to face a simple trade off: CIOs with depth and breadth of technology experience or those with general business and interpersonal skills, such as the ability to exercise influence within the organization.” - Mary Kwak

“We believe that this is the future-state of the CIO role, which in time will become the mandate for

most CIOs at most businesses. None of this is to say that we, or any other CIO, should turn our backs on the operational or IT transformational aspects of our role. But as the position evolves, we are spending proportionally much more of our time as strategists versus the other aspects of the role.” - Louis Ehlrich, CIO of Chevron Global Downstream and Vice President of Strategy and Services.

22

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(Source 18, 3)

Evolving CIO Leadership RoleBusiness skills vs. Technical skills

Established CIOs spend about 2/3 of their time on non-technical issues

The emphasis on non-technical issues shows the leadership role of CIOs is changing, with a greater focus on business issues and improving organizational growth

23

“He realizes that his role is not just about technology, but is concerned with business transformation, business success, and business leadership.” Jerry Luftman and Rajkumar Kempaiah on Cendant Corporation CIO Lawrence Kinder

23%

16%

8%9%7%

37%

Manage Business relationship Strategy HR

IT Governance Non- IT tasks IT Issues

(source3) Based on 558 companies

(source 35)

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CIO Interviews

24Mark O’Bryan

Joseph Castellano

Mary Ann Jacoby

Main Facts of Companies Interviewed

Smurfit-Stone Anheuser-Busch NSI

Type of Company Paper/Box/Recycler Mainly alcohol and entertainment

Marketing/Advertising service

2007 Sales $7.42 billion $ 16.69 billion ?

2007 Net Income $ -115 million $ 2.12 billion ?

Location (Main Offices)

Chicago and St. Louis

St. Louis (home) with breweries and offices internationally

St. Louis (home), New York, Los Angeles, Detroit

Number of employees

22,700 30,849 200+

(source 19,20,21)

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Companies Background Information

Companies Anheuser-Busch, Inc Anheuser-Busch

International, Inc. Anheuser-Busch

Packaging Group Metal Container Corp. Eagle Packaging Inc. Longhorn Glass Corp.

Busch Entertainment Group

Manufacturers Railway Co.

Anheuser-Busch Agricultural Operations

St. Louis Refrigerator Car Co.

Anheuser-Busch traces its origins back to the Bavarian brewery, which was established in 1852. 1860 - Eberhard Anheuser acquired the Bavarian brewery and renamed it E. Anheuser & Co. In 1864 Adolphus Busch, joined the company that would later become Anheuser-Busch.

48.8% of U.S. beer sales 2007 Net sales $16.69 billion

Net Income $2.12 billion 30,849 full-time employees

27(source 22)

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28

North America’s premier packaging company

Smurfit-Stone Container Corporation was formed November 18, 1998, when St. Louis- based Jefferson Smurfit Corporation (JSC) merged with Chicago-based Stone Container Corporation.

Home offices in Chicago and St. Louis World’s largest paper recycler Industry’s largest paper based

packaging company

Size 22,700 employees 2007 net sales were $7.42 billion with a

net income of about $ -115 million

Capabilities Corrugating packaging (world’s largest) Mill products Recycling solutions Point-of-purchase displays Packaging Equipment

29

Some factories located in Canada, Mexico, and China

(sources 23,24,25)

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Was started as a commercial art company in 1919

Family owned until 2005 (still private company)

Offices in St. Louis (Home), Los Angeles, New York, and Detroit

Largest advertising agency in St. Louis

200 employees Core Components

Asset Management Co-op and Compliance Sales Promotion Print on Demand Research and Intelligent New Media Solutions

Major Clients

30(source 26)

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IT Departments structure

32

VP/CIO

Business Technology

Project Mgmt &

TechnologyOperations“Plan” “Build” “Run”

• Faces business units – primary contact for all I.T.

• Develops deep understanding of how business works

• In partnership, develops I.T. Strategies with “customer”

• For new applications, lead in designing requirements, effective implementation, benefits

realization• Provides user training,

maintenance, minor work on systems

• Innovates how information is obtained, used to drive business unit performance

• Manages all new major projects,developments• Manages consistent, quality

approach for system developers• Leads, coordinates development,

updating of enterprise-wide systems (SAP,

Siebel, etc.) and tools (e.g. “business intelligence)• Develops, applies expertise inI.T. “state of the art”

• Runs the systems that deliver business applications

• Delivers and maintains I.T. infrastructure and customer support services for the business, with ongoing focus on availability, performance,

security, customer service, and cost effectiveness• Anticipates and plans future

infrastructure and enterprise systems needs for the business,

including capacity growth and R&D of new technologies• Partners with BusinessTechnology and PMT

Accounting HR

Anheuser-Busch IT

(source 17)

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Anheuser-Busch IT Breakdown

About 1200 people within IT worldwide

Budget is about 1.6% net sales (about $267 million) Didn’t disclose in detail Largest percentage went to salary

“Money buys brainpower” – Joe Castellano

33(source 17)

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34

Smurfit-Stone IT

DemandManagement

ContainerKeith Fehd

Mill/Board Sales/Supply Chain/ Reclamation

Greg Schissler

Finance & HRChuck Miller

ApplicationsDoug Bolen

Infrastructure & ArchitectureJim Adams

SupplyManagement

John KnudsenSteve StricklandMatt Denton

Sonny JacksonMath BlanchardMike Oswald

Paul KaufmannRon Hackney

Operational/Functional

Owners

IT

(source 26)

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Smurfit-Stone IT Breakdown

About 320 people within IT worldwide Budget is about $89 million (1.2 % of

the Net Sales) $30 million salary $25 million depreciation The rest is used for

consultants/outsourcing/hosting fees

35(source 26)

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NSI IT

36(source 18)

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NSI IT Breakdown

About 30 people within IT Budget is still being worked on

Since 2005, all budgets were individual per project thru CFO

2009 will be the first budget year brought to senior management

Salaries are most expensive within IT budget

IT is most expensive department at NSI

37(source 18)

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CIOs Background

Joseph Castellano

Received a degree in journalism from Northwestern University

Got hired into AB in the marketing department where he spent several years

He served as Vice President of Retail Marketing from 2001-2004

He then served as Vice President of Corporate Human Resources from 2004 to March 2007

In march of 2007 he was named Vice President and Chief Information Officer

39(source 17,34)

“It appears that only highly interpersonally skilled individuals—regardless of technical background—advance to the CIO position.” – Enns et al.

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Mark O’Bryan

Bachelors and Masters in mechanical engineering from the University of Dayton

Worked at GE in aircraft engineering, then audit staff, and supply chain and procurement—worked for GE for a total of 13 years

Brought to Smurfit-Stone right after merger and was appointed Vice President of Procurement in order to help two companies find synergy after merger—4 years

Was appointed Vice President of Operational Management

Moved up to Vice President of Strategic Initiatives in July 2005

In April 2007, Mr. O’Bryan was named Senior Vice President of Strategic Initiatives and Chief Information Officer

40(source 26)

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Mary Ann Jacoby Received a degree in Business Administration

(Management Information Systems) from UMSL Got hired by Ralston Purina as a Tech Specialist

in the Emerging Technologies Group Then served as the IT liaison to the

sales/business side “Claim to fame” was automating the district sales

team

Built technical training programs for sales teams

Left Ralston Purina and started her own consulting company (12 years)

“Boutique place for small to mid-sized companies that needed IT solutions to various business components”

Eventually sold off pieces of the company and just did web-based marketing services on her own

Got hired by NSI in 2005 in Technical Business Development (made up position)

Bridge gap between IT and sales Taught company IT vision instead of on a client by

client basis Was appointed CIO when old CIO left

Pushed IT development and vision alignment with business

41(source 18)

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Typical Day/Major Responsibilities

Typical Day/Major Responsibilities

Lots of non-technical duties Communicate with managers (often

times learning on technical issues) Keep senior managers up to date

Sits on Strategic Planning Committee Most time spent on being “face guy” to

business side to align IT with business and instill IT value in company

43(source 17)

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44

• Manage 3 models from IT layout (see chart)• Operational• Demand• Supply

• Most time spent working with business working on change• Not very technical – trust managers under him• “Face guy” to business side to instill value in IT

• Money for projects (new $130 million IT project to centralize processes/system for factories)

• Communicate with senior manager to help align strategies

Typical Day/Major Responsibilities

(source 26)

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Smurfit-Stone IT

DemandManagement

ContainerKeith Fehd

Mill/Board Sales/Supply Chain/ Reclamation

Greg Schissler

Finance & HRChuck Miller

ApplicationsDoug Bolen

Infrastructure & ArchitectureJim Adams

SupplyManagement

John KnudsenSteve StricklandMatt Denton

Sonny JacksonMath BlanchardMike Oswald

Paul KaufmannRon Hackney

Operational/Functional

Owners

IT

(source 26)

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Typical Day/Major Responsibilities

Never a typical day (smaller, new company) Try to put structure in company

Never has been formal structure Managing priorities within IT and various department

Install overall vision for future Teach management team to have process in IT

“Sell it then build it” vs. “Have model already in place” Have departments understand how IT works

Align IT with company view Support sales team How IT will keep company competitive in the future

“I’m a very hands on CIO which is probably different from other corporate CIOs you have talked to.” –Mary Ann Jacoby

46(source 18)

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Who Does a CIO Report to?

Who Does a CIO Report to?

Mr. Castellano felt this debate is highly overrated The debate between CFO/CEO receives too much press

Reports to Mike Owens (Vice President of Business Operations) Has a great relationship

Because of previous positions held, relationships with all senior executives are excellent Trust from his dept. and from other senior managers Because of seniority, Mr. Castellano has a strong voice in

lots of decisions (Strategic Planning Committee)

48(source 17)

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Who Does a CIO Report to?

49

• Mr. O’Bryan Reports to CEO (Patrick Moore)• Used to reports to CFO (Charles Hinrichs) –focus on driving cost

down• Now focused on IT change so reporting to CEO helps this

process• Has worked for CEO in other positions at Smurfit-Stone (lots of

trust)• Give updates once every 3 weeks• Weekly update through email• Uses CEO to fire department up when needed• Thinks its better to work for CEO (keeps alignment with business

close)

(source 26)

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Who Does a CIO Report to?

Ms. Jacoby used to report to CEO (Mark Mantovani)

Now reports to COO (Dennis Griebel) Very close relationship Mr. Griebel helps lead support for IT

Is really important for Ms. Jacoby Views on reporting to the COO

Mr. Griebels play “traffic cop” for all the departments, so reporting to him makes sure IT and the other departments are in synch

50(source 18)

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IT/Business Strategy

IT/Business Strategy

Anheuser-Busch believes that by following these operating principles, we achieve optimal benefit from our information technology investments.

Deliver Business Value1. Information technology is pursued with the business in mind, and all work enables the business to perform better.2. All information technology work follows business strategies and process optimization. 3. We pursue optimum, not maximum, functionality – balancing resources, time, risk and cost – to provide true value

for the business and the end user.4. As information technology experts within the company, A-BIT seeks to influence the adoption of innovative

technology for competitive advantage.Use Technology Efficiently5. We pursue standardization and simplicity to optimize spending, drive security, and mitigate risk. Customization is

considered only when necessary to meet an overriding business need.6. We continually improve our services, ensuring that we deliver cost effective solutions to the business.Invest Wisely in I.T.7. We use an objective process to drive prioritization of I.T. investments, and escalate for decisions when conflicts

cannot be resolved.8. No information technology work is done without the total impact evaluated and considered – benefits weighed

against total cost, system complexity, and risk.Collaborate9. All involved are accountable for the business result, and we drive accountability through collaboration, openness,

and fact-based measures.10. All users of information technology are responsible for safeguarding the integrity, confidentiality, security and

reliability of A-B’s computer resources in their care.11. We build partnerships with our suppliers to enhance our capabilities and leverage our investments.Value People12. We believe in the value of our employees and invest in their development, engagement and retention.

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Mr. Castellano serves on 17 person Strategy Committee that meets monthly

(source 17)

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Smurfit-Stone IT/Business Strategy

53

• Within cost structure, IT and business is very well aligned• Directly helps overall business=overall business support

• Strategy within supply chain thinking/connections with customers, IT and business alignment starts to get separated• Lots of managers don’t understand IT cost and how this investment

will create a more efficient system• Mr. O’Bryan constantly acts as “face guy” to various senior managers

• Show value in IT investment instead of just driving down IT department cost

(source 26)

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IT/Business Strategy

When the company was family run, IT was not involved within business strategy Company driven by sales

NSI just started implementing strategy committees for overall business and within IT

Ms. Jacoby works hard to push for strategy management within the company instead of just focusing on increasing revenue

Good relationships with senior management helps this process Educate CEO/COO on value of aligning IT with business

because of Co-op/Compliance (40% of sales)

54(source 18)

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Characteristics of a Successful CIOAll 3 CIOs said… People skills/communication is the most

important role Most of job is managing people and

communicating effectively with senior management

Communication skills are needed to sell management on IT ideas/investments

Understanding the business side of the company Helps in seeing where IT can truly be an

asset Respect gained from other senior

managers—support for IT projects/investments

Most of job falls between the IT department and the business side—one needs to understand that space very well

55(source 17,18,26)

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Top IT/IS IssuesWhat Keeps You Up At Night?

Top IT/IS Issues

Joseph P. Castellano, CIO of Anheuser-Busch The fact that he is still learning, while trying to maintain

the business aspect of the organization as well Reading IT literature to keep up with the pace of the

ever-changing market

57(source 17)

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Top IT/IS Issues

Richard Hoppe, Director of IT, Anheuser-Busch “Concern about the InBev acquisition on the employees

that have made A-B successful. “Planning for the attrition of 10-15% of my staff by year

end, as the result of the early retirement program announced in June.”

58(source 28)

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Mark O’Bryan, CIO of Smurfit-Stone (SSCC) The new $130 Million IT investment in the corrugating

packaging segment on Smurfit’s Demand side of their IT structure

Due to the increased market demand of corrugating packaging

Attempting to maintain market share (as they are currently the world’s largest supplier)

59

Top IT/IS Issues

(source 26)

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Top IT/IS Issues

Top IT/IS issues and what keeps you up at night? Mary Ann Jacoby, CIO of The National System Inc.

“The fact that IT is always the last stop.” This was an IT/IS issue as well as something that remained in her thoughts after work.

IT was often given a project that they were expected to do, within a short range of time, with little notice.

“Can we manage priorities (Sales vs. IT department) to keep people motivated.”

60(source 18)

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Biggest Success/Most Troublesome

Biggest Success/Most Troublesome

Biggest Success/Failure Joseph P. Castellano, CIO of Anheuser-Busch

Success: The smooth implementation of SAP at Anheuser-Busch after a lengthy planning period

Richard Hoppe, Director of IT, Anheuser-Busch Success: “The reduction in proliferation of server computers

through the use of ‘virtualization’ technology.” (Enables a single computer to host multiple instances of Microsoft Windows operating systems, and thus multiple business applications.)

Troublesome: “Our corporate efforts to achieve compliance with the recent PCI standards* have been costly and slow.”

*”PCI DSS stands for Payment Card Industry Data Security Standard.”

62(source 17,28)

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Biggest Success/Most Troublesome

Biggest success/most troublesome issue Mark R. O’Bryan, CIO of Smurfit-Stone

Success: The approval of a $130 million budget increase for the I.T. department by the executive board. Mr. O’Bryan also mentioned the successful roll-out of PeopleSoft®

Troublesome: Attempting to stay cost-efficient on a daily basis with all of the new technology.

63(source 26)

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Biggest Success/Most Troublesome Biggest success/failure

Mary Ann Jacoby, CIO of The National System Inc. Success: Turnaround of the IT department morale as

well as forming a team that is as business minded as it is tech minded.

Troublesome: The compliance website used by NSI (compliance is 40% of NSI’s business). “The architecture is bad because the environments are split. Eventually, we will re-write the back-end.”

64(source 18)

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IT Governance

66

AB IT Governance

Accounting HR

*Alignment with Engineering I.T.

VP/CIO

Business Technology

Project Mgmt &

TechnologyOperations

(source 17)

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AB IT Governance

IT Governance Joseph P. Castellano, CIO of Anheuser-Busch

Strategy Committee (which Castellano sits on) is the main decision-making body. (Duopoly)

Richard Hoppe, Director of IT, Anheuser-Busch “In a current state, many decisions are made by the

individual business units based on specific needs and the level of executive influence that they wield.” (FUEDAL)

67(source 17,28)

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IT Governance

68

COOSteve Klinger

COOSteve Klinger Human Resources

Ron Hackney

Human ResourcesRon Hackney

CIO/Strategic Initiatives

Mark O’Bryan

CIO/Strategic Initiatives

Mark O’BryanCFO

Chuck Hinrichs

CFOChuck Hinrichs

Container SalesSteve Strickland

Container SalesSteve Strickland

Chairman & CEOPatrick Moore

Chairman & CEOPatrick Moore

LegalCraig Hunt

LegalCraig Hunt

CommunicationsSue Neumann

CommunicationsSue Neumann

ContainerManufacturingJohn Knudsen

ContainerManufacturingJohn Knudsen

MillsSonny Jackson

MillsSonny Jackson Reclamation

Mike Oswald

ReclamationMike Oswald

Board Sales/Supply Chain

Math Blanchard

Board Sales/Supply Chain

Math Blanchard

SourcingDavid Harrison

SourcingDavid Harrison Transportation

Peter Burke

TransportationPeter Burke

(source 26)

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Smurfit-Stone IT

DemandManagement

ContainerKeith Fehd

Mill/Board Sales/Supply Chain/ Reclamation

Greg Schissler

Finance & HRChuck Miller

ApplicationsDoug Bolen

Infrastructure & ArchitectureJim Adams

SupplyManagement

John KnudsenSteve StricklandMatt Denton

Sonny JacksonMath BlanchardMike Oswald

Paul KaufmannRon Hackney

Operational/Functional

Owners

IT

(source 26)

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NSI IT Governance

IT Governance NSI still remains very sales driven, and thus,

much of the IT demands and decisions concerning what the company needs comes from the Sales Department and what the client is requesting.

When making IT decisions (more money, new systems, etc.) it is very important to “put the information in ‘bottom line’ terms for the CXOs. They need to understand the principals of risks especially,” when making IT decisions.

IT Monarchy

70(source 18)

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71

Anheuser-BuschJoe Castellano

Smurfit-StoneMark O’Bryan

NSIMary Ann Jacoby

Survey

Tenure

1 year, 8 months 1 year, 7 months About 2 years All 3 represent about 19% of

CIOs

ReportVP of Business

OperationsCEO COO CEO-41%

COO-14%

Background

Marketing/HR Engineering/ Operations

IT/Marketing IT-77%Marketing-1%

Eng.-4%Operations-3%

Type of Leader

Transformational Leader/Business Strategist

Transformational Leader/Business Strategist

ALL 3 Function Head-37%Transformational Leader-51%Business Strategist-12%

Looking Back…

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The Big Picture-An Understanding of Business and People

“Having a CIO that understands the importance of people skills and an understanding of the business side of the company not only allows him to be an effective communicator to senior management and his department, but also gains the trust and respect of senior management and his department. It is this trust and respect that allows him to be successful as a CIO.” – Rick Hoppe, Director of IT Anheuser-Busch

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(source 28)

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99-112.

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