State of the CIO 2008

1Presenter’s namePresenter’s title

Abbie Lundberg, Editor in Chief, CIO

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Depending on their primary focus and predominant activities, CIOs can be classified into three types:

FUNCTION HEADS Focused on running the IT organization, achieving IT operational excellence and providing reliable, effective services

TRANSFORMATIONAL LEADERS Focused on creating change for their enterprise through process transformation and a close partnerships with business operations

BUSINESS STRATEGISTS Focused on driving strategy for competitive advantage through activities that face across the enterprise and externally

Based on CIO Executive Council Future State CIO model

3 A typical CIO

CIOs Allocate Time Across Role Types

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How the Archetypes Spend Their Time

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State of the CIO 2008 Distribution

37%

51%12%

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Current and Future Distributions

025 50 75

100

CurrentDistribution of

CIOs

FutureDistri-bution of CIOs

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Evolutionary Divergence:The Rise of the Business Strategists• “It’s anathema to me that a CIO can live a long and happy

life as an operationally focused CIO. Titles should mean something.” – Bob Badavas, President & CEO, TAC Worldwide

• “I think the CIO role will be offered less and less to those coming purely up an IS track. A lot of industries are evolving to the point where they will want a CIO to be half IS and half business.” – George Chappelle, former CIO, now Chief Supply Chain Officer, Sara Lee Corp.

• “If CIOs are only looking out for IT, and not doing their jobs at the strategic level, that path leads to outsourcing and irrelevancy.” – Gerry McCartney, CIO, Purdue University.

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Executive Leadership skills:Nine core competencies

1.0

2.0

3.0

4.0

5.0

6.0

7.0Results Orientation

Market Knowledge

Commercial Orientation

Strategic Orientation

Collaboration & InfluencingPeople Development

Team Leadership

Change Leadership

Customer Focus

EgonZehnderInternational

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10

2.5

3.0

3.5

4.0

4.5

5.0

5.5Business Results Orientation

Market Knowledge

Commercial Orientation

Strategic Orientation

Collaboration & InfluencingPeople Development

Team Leadership

Change Leadership

Customer Focus

CEO CIO“Outstanding” CIOs vs. CEOs

EgonZehnderInternational

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Trends in the role, and how Business Strategists are

different

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The CIO Title Grows

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Most CIOs Are Membersof the Executive Committee

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More CIOs Report to the CEO than Any Other Position

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CIOs Spend Most of Their Time with Staff

NOTE: Respondents were asked to estimate the amount of time spent with each group.

Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent with each group.

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Business Strategists Spend More Time in the Business

Q: Of the time you typically spend interacting with each of the following constituencies, please estimate the percent of your time spent with each group.

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Leadership Competencies Different Among Types

Q: Which of the following executive leadership competencies is most critical to your current role? Choose three.

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Business Strategists More Focused on External ProcessesQ: Which business processes are you currently improving with IT?

Total Function Head

Transfrm'lLeader

Bus. Strategist

Accounting & finance 71% (1) 73% (1) 69% (1) 70% (2)

Customer service/support 69% (2) 67% (2) 67% (2) 81% (1)

Human resources 54% (3) 51% (3) 57% (3) 54% (5)

Compliance 48% (4) 47% (5) 48% (4) 48%

Asset management/maintenance 43% (5) 48% (4) 39% 40%

Sales 42% 36% 42% 63% (3)

Supply chain/logistics 42% 37% 45% (5) 41%

Order/invoice processing 40% 42% 39% 41%Marketing 39% 34% 39% 56% (4)

Inventory management 39% 40% 39% 33%

Risk management 38% 39% 39% 32%

Q: Which business processes are you currently improving with IT? Please check all that apply.

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Personal & Career Payofffor Business Strategists• Seats on the executive committee: 84% (vs.

70% and 68%)

• Report to CEO: 51% (vs. 42% and 39%)

• More money! 44% more than function heads and 23% more than transformational

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Traditional ITFocus on…

Operations

Efficiency

Optimization

Business Technology LeadershipStrategy

Innovation

Enablement

The CIO’s Choice

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Questions1. Do CIOs and up and coming leaders really have a

choice?2. Chicken and egg – enlightened c- level leadership or

enlightened CIO?3. Gaining new competency – classroom, experience,

mentoring, - how to grow?

Scenarios – What to Do?1. You are there, your staff isn’t2. You are there, your boss and CEO aren’t3. You are exceeding at today’s requirements but

clearly see gaps in tomorrow’s

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Handouts and more resources … • State of the CIO 2008 reports

http://www.cio.com/article/163700• Strategic Impact Assessment

http://quizzes.cio.com/impact_quiz/• CIO Executive Council & Future-State CIO

Program http://www.cioexecutivecouncil.com

• Egon Zehnder International http://www.egonzehnder.com/

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Survey Methodology and Respondent Profile• Conducted online across a sample of senior IT executives from the CIO

audience database. The survey was also sent to the 2007 State of the CIO survey respondents.

• Respondents: 558 heads of IT. • 64% hold a CIO/CTO title; 21% general manager/managing

director/director IT; 11% EVP/SVP/VP (w/out CIO) and 4% other. • 90% are responsible for enterprise-wide IT decisions and 10% for

divisional IT decisions.• Company size defined by revenue: Small: <$100 million; Mid-size: $100

million - $999.9 million; Large: $1 billion or more.• Broad range of industries represented including manufacturing (12%),

medical/healthcare (10%), wholesale/retailer/distributor (9%), education/nonprofit (9%), finance/banking/accounting (9%), government (9%).

• Margin of error: +/- 4.1%. Percents may not sum to 100 due to rounding.