03/30/22 1 ROLE OF THE CIO… Kera Alexander Bill Geoffroy Chuck Hickey Shallu
Dec 31, 2015
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”
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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
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Current Issues facing the CIO
Lack of key staff and skill sets, retention.
Inadequate budgets. Shortage of time for
strategic thinking. Volatile market condition.
Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine
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
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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.
Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine
http://www.cio.com/archive/030102/turnover.html
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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
Source : The 2002 State of the CIO Survey ; March 1, 2002 Issue of CIO Magazine
http://www.cio.com/archive/030102/demofraphics_content.html
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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
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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
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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%
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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
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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:
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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.
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:
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The CIO - CEO Relationship
Executive Steering
Committee
CEO
COO CIO
CFO
Strategy
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 36
Typical Day
Educating7%
Lean Activities
8%Staff
Meetings10%
Problem Solving15%
Strategizing15%
Planning20%
Communicating
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 37
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
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 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
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.
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
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 40
“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-
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 41
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.
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 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
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 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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
Source:Source:
04/19/23 52
IT AS A STRATEGIC ADVANTAGE
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
Source:Source:
04/19/23 53
IT AS A STRATEGIC ADVANTAGE
2.) Delivering the R&D Pipeline: Scientifically specialized software programs
Information Management
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
Source:Source:
04/19/23 54
IT AS A STRATEGIC ADVANTAGE
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)
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
Source:Source:
04/19/23 55
IT AS A STRATEGIC ADVANTAGE
4.) New Technology Scan Virtual teams
IT personnel across the organization
Focus on tools and technologies resulting in strategic advantage
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.Source:Source:
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
Source:Source:
04/19/23 58
HER BIGGEST CONCERNS ARE…
Security
People Motivation
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.Source:Source:
04/19/23 59
A TYPICAL DAY FOR THE CIO
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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.
Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.
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…