14 th CIO Workshop July 27th, 2001 CEO IT Survey Findings
Mar 26, 2015
14th CIO Workshop
July 27th, 2001
CEO IT Survey Findings
2 © Accenture 2001
The CEO IT Survey
The Singapore Tribe Has Spoken
What Other Tribes Had Said
Agenda
3 © Accenture 2001
The CEO IT Survey Objectives Survey Administration Survey Demographics
The Singapore Tribe Has Spoken
What Other Tribes Had Said
Agenda
4 © Accenture 2001
The CEO IT Survey centers on the CIO Role and IT PracticesThe CEO IT Survey centers on the CIO Role and IT Practices
Objectives
To assessassess the organizational status of CIOs
To surveysurvey CEOs’ views on the roles of CIOs
To examineexamine the desired profiles of CIOs
To identifyidentify emerging IT Management Practices
Key ObjectivesKey Objectives
5 © Accenture 2001
The survey was conducted for a period of approximately two monthsThe survey was conducted for a period of approximately two months
Survey Administration
Start Date: June 1June 1stst
End Date: July 25July 25thth
Survey Sample: 80 CEOs in Singapore80 CEOs in Singapore
Responses Received: 3131
Response Rate: 39%39%
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6 © Accenture 2001
In all, 13 industries were represented in the survey sample… In all, 13 industries were represented in the survey sample…
Survey Demographics
26%
Number of Companies % of TotalIndustry
Electronics & High Tech
Manufacturing
Transport
Financial & Business Services
Government
Telecommunications
Commerce
Others
Energy
Health Care
Construction
Media & Entertainment
Social & Hospitality Services
Total
8
13%
13%
10%
10%
10%
6%
6%
3%
0%
0%
0%
4
4
3
3
3
2
2
1
1
0
0
0
31 100%
3%
7 © Accenture 2001
… which included organizations of various types… which included organizations of various types
Survey Demographics
Corporate Profile of Survey Respondents
SME
23.5%
Large Domestic Enterprise
10%
Local MNC
16.5%
Foreign MNC
10%
Statutory Board/ Government Body
36.5%
Others
3.5%
8 © Accenture 2001
The CEO IT Survey
The Singapore Tribe Has Spoken
Key Findings The CIO Status The Role of the CIO The CIO Profile IT Management Practices
What Other Tribes Had Said
9 © Accenture 2001
While our survey echoed certain findings of past research, it also presented interesting new findingsWhile our survey echoed certain findings of past research, it also presented interesting new findings
Survey Response & FindingsKey Findings
Key Survey Findings
CIO Status – There is a significant elevation of the CIO status, signifying the strategic importance of IT as a corporate function
CIO Role – In addition to the CIO’s role as a technology advocate, he/she has been asked to wear two other hats: those of ‘strategy maker’ and ‘external relationship builder’
CIO Profile – Most CIOs were hired externally, with their selection (by CEOs) based overwhelmingly on their strong business orientation and good organizational skills
IT Management Practices – The majority of organizations has outsourced a part of their IT functions, and expresses a general satisfaction of the services received
10 © Accenture 2001
Survey Response & FindingsThe CIO Status
In evaluating the general standing of CIOs in their organizations, we posed CEOs with the following questionsIn evaluating the general standing of CIOs in their organizations, we posed CEOs with the following questions
Q. Do you agree that the CIO should Q. Do you agree that the CIO should report directlyreport directly to the CEO as a to the CEO as a member of the senior team?member of the senior team?
No. of Survey Respondents
0
0
2
7
22
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Q. Which of the following Q. Which of the following designationsdesignations apply to the CIO equivalent executive apply to the CIO equivalent executive in your organization?in your organization?
19
0
1
5
6
0 5 10 15 20 25
Chief Information Officer
Chief Innovation Officer
Chief Knowledge Officer
Chief Technology Officer
Director of Information Syst.
No. of Survey Respondents
11 © Accenture 2001
The survey results indicate that the status of the CIO is rising with a larger group reporting to the CEO as a member of the senior team
The survey results indicate that the status of the CIO is rising with a larger group reporting to the CEO as a member of the senior team
Survey Response & FindingsThe CIO Status
* Source: CSC Index Research and Advisory Services, Foundation Report 109 New IS Leaders, 1997
**Survey Results: ‘Do you agree that the CIO should report directly to the CEO?’- ‘Strongly Agree’ responses
Where CIOs Reported To (1997)*
Others
21%
CFO
23%
CEO33%
COO
23%
Where CIOs Should Report To (2001)**
CEO
71%
Others
29%
12 © Accenture 2001
CIOs today are more influential as they enjoy a more visible executive role CIOs today are more influential as they enjoy a more visible executive role
Survey Response & FindingsThe CIO Status
Survey Findings
CIOs report to the Chief Executive – There is a visible trend in CIOs reporting to the CEO or COO rather than to the CFO- the tradition
CIOs are a part of the senior executive team – More CIOs are either on the board or on the executive committee at their respective organizations
Stronger support for CIOs – Most CIOs now receive much stronger support from top management regarding corporate IT standards, enterprise-wide systems, and centralized IT policy making
13 © Accenture 2001
The majority of CIO equivalent job roles have also adopted the designation of ‘Chief Information Officer’…The majority of CIO equivalent job roles have also adopted the designation of ‘Chief Information Officer’…
Survey Response & FindingsThe CIO Status
CIO Equivalent Job Designations
61.5%
16%
19.5%
Director of Information
Systems
Chief Information
Officer
Chief Technology
Officer
Others
3%
In place of a CIO, some organizations have a senior executive with overall responsibility for IT and other operational activities
It is also common for a Senior VP of Technology, and in some cases, the COO to perform the role of the CIO
Other CIO Function Other CIO Function AlternativesAlternatives
14 © Accenture 2001
… though other designations have surfaced with the increased responsibilities associated with the CIO role… though other designations have surfaced with the increased responsibilities associated with the CIO role
Survey Response & FindingsThe CIO Status
Survey Findings
CIOs as ‘change agents’ – In other research* conducted, it was found that some CIOs are called Directors of Process Change. This designation is applied to some of them who have acquired change-related responsibilities such as overseeing the human resource function
CIOs as ‘strategic planners’– As the business role of the CIO expands, a few have had ‘strategy’ in their title
* Source: Harvard Business Review, Mar-Apr 2000, ‘Are CIOs Obsolete?’, Michael J. Earl
15 © Accenture 2001
We asked CEOs how they perceive the role of their CIOsWe asked CEOs how they perceive the role of their CIOs
Survey Response & FindingsThe Role of the CIO
Q. What should be the responsibilities Q. What should be the responsibilities of the CIO?of the CIO?
No. of Survey Respondents
84%
84%
94%
6%
81%
0 5 10 15 20 25
Technology Direction Setting
System and App. Dev.
Information Management
Knowledge Management
Others
Disagree
Q. Do you agree that the CIO should play a Q. Do you agree that the CIO should play a role in the formulation of role in the formulation of business business strategystrategy??
No. of Survey Respondents
0%
0%
3%
39%
58%
0 3 6 9 12 15 18
Strongly Disagree
Neutral
Agree
Strongly Agree
30
16 © Accenture 2001
Although most CEOs expect their CIO to be a technology evaluator, they believe that he or she should also have operational and corporate planning responsibilities
Although most CEOs expect their CIO to be a technology evaluator, they believe that he or she should also have operational and corporate planning responsibilities
* Source: Accenture, Series on IT Management & Delivery (SITE), March 2000
Survey Response & FindingsThe Role of the CIO
Survey Findings
Traditional Job Responsibilities Remain Intact – Data center operations, network uptime, help-desk service, and systems development are still the CIO’s job
CIO Job Time Allocation – From a previous study conducted by Accenture *, the typical CIO allocates his time as follows:
Technological Issues - 40%
IT Professional and the IS Organization - 30%
Business issues - 30%
CIOs play a part in Corporate Strategizing – Our survey results demonstrate that CIOs should have formal responsibilities for business strategy
17 © Accenture 2001
We also obtained the views of CEOs on whether the demands placed on CIOs have changed over the past 3-5 years
We also obtained the views of CEOs on whether the demands placed on CIOs have changed over the past 3-5 years
Q. Do you agree that the CIO’s technical Q. Do you agree that the CIO’s technical planning responsibilities have expanded planning responsibilities have expanded to include strategic planning?to include strategic planning?
Q. Do you agree that CIOs should have Q. Do you agree that CIOs should have business and financial skills in business and financial skills in addition to technical expertise?addition to technical expertise?
Survey Response & FindingsThe Role of the CIO
Survey Respondents (%)
Q. Do you agree that the CIO’s role has expanded to provide Q. Do you agree that the CIO’s role has expanded to provide external customer support and communications?external customer support and communications?
Yes
84%
No16%
71%
29%
Yes
No
74%
26%
Yes
No
Survey Respondents (%)
Survey Respondents (%)
18 © Accenture 2001
Survey Response & FindingsThe Role of the CIO
Survey Findings
The CIO role now requires an enlarged set of knowledge, skills and abilities – to include business principles and techniques of administration, organization, and management
CIOs are now an integral part of Merger and Venture Formation Committees – Two CEOs cited the important role their CIOs played in their organizations’ launch of new ventures or M&A activities.
CIOs have external roles – CIOs are becoming involved in official roles beyond their departments and organizations. In their role as technical advisor to customers, they act as a bridge between engineers and senior management of both organizations
It is evident from the CEOs’ responses that CIO roles have expanded considerably as technology becomes a corporate enabler
It is evident from the CEOs’ responses that CIO roles have expanded considerably as technology becomes a corporate enabler
19 © Accenture 2001
Survey Response & FindingsThe CIO Profile
Q. Which of the following profiles best suggests your Q. Which of the following profiles best suggests your CIO’s CIO’s employment historyemployment history??
With respect to the recruitment of CIOs, CEOs are four times as likely to hire a candidate with a career track in IS than to hire one without
With respect to the recruitment of CIOs, CEOs are four times as likely to hire a candidate with a career track in IS than to hire one without
No. of Survey Respondents
0%
54%
21%
25%
0 2 4 6 8 10 12
External Hire/ With Non-IS Background
External Hire/ With IS Background
Internal Promote/ With Non-IS Background
Internal Promote/ With IS Background
14 16
20 © Accenture 2001
Survey Response & FindingsThe CIO Profile
CEOs were asked to rate the relative importance of several attributes they might consider a CIO to possessCEOs were asked to rate the relative importance of several attributes they might consider a CIO to possess
Q. A CIO should have the ability to Q. A CIO should have the ability to implement implement goals that focus on IT goals that focus on IT efficiencyefficiency
Q. A CIO should have a firm Q. A CIO should have a firm understanding of key IT issues and understanding of key IT issues and technologiestechnologies
No. of Survey Respondents
0%
0%
0%
29%
71%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Strongly Disagree
No. of Survey Respondents
0%
3%
0%
36%
61%
0 4 8 12 16 20 24
Disagree
Neutral
Agree
Strongly Agree
21 © Accenture 2001
Survey Response & FindingsThe CIO Profile
Q. A CIO should have an understanding of Q. A CIO should have an understanding of business issues and the business issues and the alignmentalignment of IT of IT activities to business objectivesactivities to business objectives
Q. A CIO should have a Q. A CIO should have a visionvision of what of what IT needs to do and its purpose IT needs to do and its purpose within the enterprisewithin the enterprise
No. of Survey Respondents
0%
0%
0%
26%
74%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
No. of Survey Respondents
0%
0%
0%
29%
71%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
(continued)(continued)
22 © Accenture 2001
Survey Response & FindingsThe CIO Profile
Survey Findings
CIOs must maintain an appropriate level of technical competence – Though there is an increasing bias toward business proficiency, CIOs would need to keep abreast of IT developments to deliver the required IT functionalities
CIOs must position IT strategically – aligning IT and corporate goals are fundamental to IT delivering value to the organization
The results show that apart from possessing an understanding of technology, a CIO should be able to implement the organization’s IT vision, and align it to corporate objectives
The results show that apart from possessing an understanding of technology, a CIO should be able to implement the organization’s IT vision, and align it to corporate objectives
23 © Accenture 2001
In surveying the current IT scene, we found CEOs to be very involved in IT spending issues. This could be expected as IT budgets have increased rapidly in most companies
In surveying the current IT scene, we found CEOs to be very involved in IT spending issues. This could be expected as IT budgets have increased rapidly in most companies
Survey Response & FindingsIT Management Practices
Q. Should the CEO participate in key IT Q. Should the CEO participate in key IT decision-making?decision-making?
Survey Respondents (%)
Yes
86%
No14%
Q. Has your enterprise’s rate of IT spending Q. Has your enterprise’s rate of IT spending accelerated over the past 3-5 years?accelerated over the past 3-5 years?
Survey Respondents (%)
Yes
93%
No7%
24 © Accenture 2001
Survey Response & FindingsIT Management Practices
Q. Do you agree that IT initiatives are Q. Do you agree that IT initiatives are within within budget controlbudget control??
Q. Do you agree that IT initiatives are Q. Do you agree that IT initiatives are allocated allocated sufficientsufficient budgets? budgets?
No. of Survey Respondents
0%
7%
14%
62%
17%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
No. of Survey Respondents
0%
3%
59%
24%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
The survey results indicate that IT Management and Delivery at most organizations have met their CEOs’ expectationsThe survey results indicate that IT Management and Delivery at most organizations have met their CEOs’ expectations
14%
25 © Accenture 2001
Survey Response & FindingsIT Management Practices
Q. Do you agree that IT initiatives are Q. Do you agree that IT initiatives are generally able to generally able to deliver clear deliver clear valuevalue??
Q. Do you agree that IT initiatives are Q. Do you agree that IT initiatives are completed in a completed in a timelytimely fashion? fashion?
No. of Survey Respondents
0%
17%
52%
14%
0 4 8 12 16 20 24
Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Strongly Disagree
No. of Survey Respondents
0%
0%
21%
48%
31%
0 4 8 12 16 20 24
Disagree
Neutral
Agree
Strongly Agree
(continued)(continued)
17%
26 © Accenture 2001
On IT outsourcing, we surveyed the extent of IT functions that companies have outsourced…On IT outsourcing, we surveyed the extent of IT functions that companies have outsourced…
Q. Which of the following IT functions does your enterprise Q. Which of the following IT functions does your enterprise contract out?contract out?
Survey Response & FindingsIT Management Practices
No. Survey Respondents
21%
76%
59%
0 4 8 12 16 20 24
Does not Outsource
E-Commerce App. Dev.
General App. Dev.
Data Center Operations
72%
27 © Accenture 2001
… and found CEOs to be generally satisfied with the service received in contracting out these functions … and found CEOs to be generally satisfied with the service received in contracting out these functions
Survey Response & FindingsIT Management Practices
Q. Please rate your overall satisfaction of contracting Q. Please rate your overall satisfaction of contracting out the relevant IT function?out the relevant IT function?
0% 10% 20% 30% 40% 50% 60%
Very HighVery High
HighHigh
NeutralNeutral
LowLow
Very LowVery LowE-Commerce App. Dev.
General App. Dev.
Data Center Operations
28 © Accenture 2001
The CEO IT Survey
The Singapore Tribe Has Spoken
What Other Tribes Had Said
Agenda
29 © Accenture 2001
What attributes work?What attributes work?
First, let’s discount the obvious
No correlation between type of business and the CIO’s success
No correlation between CIO’s background and the targeted company’s industry
There does seem to be a correlation between understanding key IT issues and success
Secondly, the CIO must have a vision of what needs to be done
What is the purpose of IT within the enterprise?
Focus is broadly visible -- both within IT and within the business Thirdly, the CIO must translate the vision into action
Able to bold goals matched with practical short term moves
Focus on long term IT effectiveness
Focus on short term IT efficiency
CIO Success Factors
30 © Accenture 2001
What attributes work (continued)?What attributes work (continued)?
Fourth, the CIO must have a Focus on Customer Value
Seek to deliver differentiated services that customers find valuable
Propose options which deliver value externally driving top-line growth
Use external services where value cannot be delivered internally Finally, the CIO must align IT’s activities in an organic manner
Understand the big picture
Develop the trust of the executive team
CIO Success Factors
31 © Accenture 2001
Elements of the CIO’s Job DescriptionElements of the CIO’s Job Description
Reporting Relationship Trend is away from the CFO and/or COO reporting relationship Trend is towards reporting to the CEO as a peer of the senior team
Status and Scope Plays major role in IT Governance (e.g., Chairs IT Steering
Committee) Interacts with senior leadership to ensure alignment of IT activities All IT activities of consequence have a solid or dotted line to the CIO CIO is responsible for managing major vendor relationships IT Planning and Strategy is a major element of the CIO’s ongoing role IT Infrastructure reports to the CIO
Essential Functions IT Leadership
— Focuses proactively on emerging business initiatives— Develops relationships with customers to better understand needs
What Does a CIO’s Job Look Like?
32 © Accenture 2001
Elements of the CIO’s Job Description (Continued)Elements of the CIO’s Job Description (Continued)
Essential Functions (Continued) Leadership (Continued)
— Develops broad range of relationships to ensure sponsorship of IT initiatives
— Fosters innovations and risk management in evaluating emerging technologies
IT Strategy and Planning— Works with Business Leadership to develop, evaluate and
implement IT strategies that are aligned with business imperatives
— Contributes to the business strategy development process— Understands the latest technologies and innovations and how
these might enable business processes
What Does a CIO’s Job Look Like?
33 © Accenture 2001
Michael Earl, a leading academic, described in 1990 the successful CIO profile as having four essential elements along with a number of survival attributes.
Visionary
Relationship Builder Deliverer
Tactician
Source: Earl, M.J., Information Management, 1996
The 1990 View CIO Profile Elements Survival Attributes
Personal•IS Experience•IT Know-How•Social Skills•Sensitivity
IS Management Processes•Building a shared vision•Building relationships•CEO Relationship•Proactive Planning
Organizational Context•Organization’s attitude to IT
Performance•Creditability
Survival Attributes
Personal•IS Experience•IT Know-How•Social Skills•Sensitivity
IS Management Processes•Building a shared vision•Building relationships•CEO Relationship•Proactive Planning
Organizational Context•Organization’s attitude to IT
Performance•Creditability
CIO Profile
34 © Accenture 2001
Earl’s current perspective is additive with some interesting insights from his continued study of this issue
Visionary
Systems Thinker
Relationship Builder
Alliance Manager
Deliverer
Architect
Tactician
Reformer
Source: Earl, M.J., Information Management, 1996, HBR, 2000
The 1996, 2000 View CIO Profile Elements Knowledge of IT is critical
One non-surviving CIO (and former CEO) in Earl’s study said “I want to take up the CEO job again -- but I only get offered CIO jobs. I want four times the rate for being a CIO than I would accept for being a CEO”
One states that CIO means ‘Career Is Over’
Knowledge of IT is critical
One non-surviving CIO (and former CEO) in Earl’s study said “I want to take up the CEO job again -- but I only get offered CIO jobs. I want four times the rate for being a CIO than I would accept for being a CEO”
One states that CIO means ‘Career Is Over’
Selected InsightsFortune 500 CIO’s
CIO Profile