how cios provide transformational leadership in the ... · how cios provide transformational...

How CIOs Provide Transformational

Leadership in The Digital Age

©2015 Strategere Consulting

Implication Theme

• Consumerization

of IT

•CIOs & IT Partner in

Business Teams

• IT needs to develop business skills

to collaborate in business teams

that create new markets and

competitive opportunities.

•Pressure to Increase

the Pace of Change • IT organizations need to improve

throughput/ organization agility

•Role of CIO / IT

•Play an important strategic role in

leveraging information and

technology for competitive

advantage

•Consumers demand new/information

rich products and services, which

impact business personnel across the

entire value network.

The Role of The CIO is Changing

2


How Strategic is Your IT Organization?

3

Is There A Common Process CIOs Use To Transform into a Strategic IT Organization ?

How Can I Measure the Strategic Maturity of My IT Organization?


Strategic IT Competencies and Skills ?

4

What are the IT Competencies and Skills of a Strategic IT Organization?

How Can I Measure the Strategic Maturity of My IT Organization’s Competencies and Skills?

Forewords

Rob Carter – CIO, FedEx

Filippo Passerini-CIO, P&G

5 ©2015 Strategere Consulting

6

Val

ue

3. Implement Initiatives to Improve Margin (Sales / Cost)

2. Understand the Business, Focus on User Experience, and Improve Business Skills of IT Personnel

4. Leverage Technologies Strategically to Innovate Value

Strategic IT Organization Transformation Phases

Time

1. Deliver Commodity and Business Services Exceptionally Well

©2015 Strategere Consulting 6



6 12 18 25

Tactical

Bu

sin

ess

Val

ue

Strategic

Efficient Inefficient IT Efficiency

6

12

18

25

0

Tactical Focus

Inefficient

Delivery

Strategic Value

Delivered

Inefficiently

Tactical Focus

Efficient Delivery

Strategic Value

Delivered

Efficiently

7 7


Deliver Commodity and Business Services Exceptionally Well

Understand Business, Focus on User Experience / Improve

Business Skills

Implement Initiatives to Improve Margin (Sales / Cost)

Leverage Technologies Strategically to Innovate Value


9 ©2015 Strategere Consulting 9

Val

ue






Time


A Common Process to Improve

Delivery of Services

Chapter 3, Page 26

Steve O’Connor VP & CIO CSAA Insurance


Improve the Business Value of IT Services A Strategic Framework

Measure / Analyze

Report/ Revisit /

Optimize

Identify Process

KPI/ Key IT

Services Metrics

• Identify the Key

Performance Indicator

Metrics (KPI) that Measure

the Effectiveness for Each

Business Process

• Identify the Costs and

Performance Metrics

that Measures the

Efficiency for Each

Business Service

• Identify Opportunity

Areas Across the

Value Chain to

Leverage Process

Performance

• Measure and

Analyze Process

Effectiveness and

Services

Efficiency

Assess Process /

IT Service

Maturity

• Assess Process / IT

Services Maturity

-Business Process

-IT Service -Metrics -Reporting

Develop Process

/ IT Services

Alignment Map

• Develop a Process

/ Business

Services Portfolio

Alignment Map

• Develop Business

Services and

Technical Services

Portfolio

Chapter 6, Page 122



IT Planning Business Insights

IT Benchmarking Cost Transparency Bill of IT

“We transformed the way Cisco’s business leaders look at IT”

“We must recognize that our traditional approaches are no longer sufficient. We need a new way to manage the business of IT.” Rebecca Jacoby…..CIO-Cisco

Chapter 6, Page 134



“I learned the business quickly participating in

business simplification initiative, which involved

all major work processes”.

Mike McClaskey –CIO, Dish Network

“I spent time at our satellite uplink installation where our

giant 10-meter dishes link to satellites distributing the

video products customers receive through their dishes.”

“I spent days in a call center wearing a headset and

listening in on customer service calls sitting aside a

customer service agent”.

“I also spent days in a truck with an installation technician,

including a snowy, below-zero day watching our technician

install the satellite dish atop a customer's roof and interact

with the customer during the installation process.”

Chapter 8, Page 147

14

BUSINESS KNOWLEDGE (Business Awareness Skills)

Strategic IT Organization Competencies and

Skills Framework

TECHNOLOGY PROWESS (Strategic Technology Skills)

• Technology Strategy / Adaptability • Organization Agility • Strategic Project Capability

MARKET KNOWLEDGE (Strategic Product/Market Skills)

• Product Knowledge • Industry Insight • Competitive Landscape

• Environment • Opportunities • Process Centric

• Vision

Organization Culture

•Leadership

•Communication

CROSS DIMENSION COMPETENCIES


Chapter 10

15

Strategic IT Organization Competencies and Skills


How to Measure Your IT Organization Strategic Competencies and Skills


Business Knowledge

Market Knowledge

Technology Prowess

Cross Dimension

Average Maturity

Cost Benefit Range

Maturity

Level 1

2

3

4

25-50%

15-35%

15-35%

5-15%

Optimized

Need to Improve

Knowledge and

Skills

Continuous

Improvement

Drives Additional

Outcomes

Greatest Opportunity

to Create Business

Outcomes

Ski

ll

Kn

ow

led

ge

Low Value

High Value

Applying Skills for

Business Outcomes

Inefficient

7.5

15 0

7.5 15

Reevaluate

Knowledge

and Skills

Training

25-50%

15-35%

15-35%

5-15%

1

2 3

4

How to Measure Your IT Organization Strategic Competencies and Skills


18

•Business Knowledge •Market Knowledge

•Technology Prowess •Cross Competency Skills

What is the Maturity Score of Your IT Organization Strategic Competencies and Skills?

15 15 15 15

15 15 15 15


Strategic IT Organization Maturity Assessment – Summary 6 Month Assessment Compared to 2 Year Assessment


20




21st-century CIOs have a dual responsibility: driving down costs and creating new business value. Managing this seeming dichotomy is the domain of top business executives, and CIOs everywhere are learning to step it up …Randy Spratt, Executive Vice President, CIO/CTO - McKesson

Increase the Speed of Integrating

Acquired Businesses

12 Weeks 3 Weeks

75% Improvement

$$$ Benefits Realization

The team documented the information into a "process play book,"

defining the specific processes, work activities, and artifacts used by

all McKesson departments for integrating actions.

“We need to improve the integration process. The faster

we integrate, the sooner we will derive the economic

benefit”


Chapter 13, Page 283


"Kids brains are wired differently than those of previous

generations. They live in a world centered on technology”

“We wanted to create an experience leveraging technology

to innovate value for our customers” David Finnegan, CIO


Chapter 18, Page 403



Develop a Digitize, Visualize, and Simulate

strategy to manage, display, and model data.

Decision

Cockpits Digitize

Visualize The Virtual

Shelf

Business Sphere

Conference Rooms Simulate

“Our role is to help the business make well-informed business decisions”

Chapter 17


Val

ue

Strategic IT Organization

Transformation Phases 4. Leverage Technologies

Strategically to Innovate Value




Time 25


Recommended Next Steps

-Assess the Strategic Maturity of Your IT Organization / Competencies and Skills of IT Personnel?

-Identify The Challenges Preventing You from Improving Your Strategic IT Maturity / Competencies and Skills of IT Personnel?

-Identify Where You Need to Be on the Maturity Grid Based Upon Your Company’s Competitive Profile

Continued

-Develop a Strategic IT Maturity / Competencies and Skills Improvement Plan

-Seek Out Insights and Lessons Learned From Peers and Industry Thought Leaders


How to Measure the Strategic Maturity of

Your Organization

Co

mp

ete

nci

es

an

d

Ski

lls M

atu

rity

Tran

sfo

rmat

ion

M

atu

rity

Chapter 11

Chapter 19

28

a. Value You Derived From this Roundtable?

b. Value vs Other Roundtable Type Events?

c. Value to CIO/IT Executives/ Business Unit Executives / IT Leadership Team?

Roundtable Debrief



[email protected]

www.strategere.com

Thank You !

mailto:[email protected]


Strategic Maturity Assessment

DELIVERING SERVICES EXCEPTIONALLY WELL

CATEGORY BEST PRACTICE Score ( 1 = Low / 8 = High)

Business Value(a)

Efficiency (b)

1. Business Services

- Regularly Solicit Business Unit Management to Assess Value of Key Business Services (Current Value, Trend, Gaps and Opportunities)

-Develop / Measure / Communicate Key Metrics (Business Value and IT Efficiency)

-Implement a Business Services Continuous Improvement Process Involving Business Unit/IT Teams

2. Operational Stability

-IT Organization Uses Reliable and Repeatable Processes to Ensure Operational Stability

-Operational Stability: IT employs best practices from recognized authority (e.g. ITIL, COBIT)

-Operational Security: Successfully Implementing Security Standards (i.e. SSAE 16, ISAE 3402, ISO 27001 and 27002)

3. Project Portfolio Governance

- Project Governance Process (all IT Activities) is Proactive, Identifies Key Predictors for Project Success and Promotes Teaming Through an Effective Communication Process

ROUNDING 1 1

SUB TOTAL

MAXIMUM SCORE 25 25

MATURITY % (sub-total / maximum score)

UNDERSTAND BUSINESS / FOCUS ON USER EXPERIENCES/IMPROVE BUSINESS SKILLS

CATEGORY BEST PRACTICE

Score ( 1 = Low / 8 = High)

Business Value(a)

Efficiency (b)

1. Understand the Business

- Key IT Personnel Understand the Business, Key Processes, Customer Value and Alignment to Business Services

2. User Experiences

- IT Teams Understand How Customers Use the Company Products and Services

- Key IT Personnel Team with Business Personnel to Interact with Customers, as well as Strategic Partners to Better Understand the Value/Gaps/Opportunities of the Company Products and Services

3. Improve Business Skills of IT Personnel

- Regularly Assess the Maturity of Your IT Organization Strategic Competencies and Skills to Measure Improvement, Value and Gaps (Understand Industry Landscape and Upcoming Trends and their Alignment to Enterprise Products and Services)

- Successfully Implement a Business Skills Learning Program for IT Personnel to Improve Their Strategic IT Competencies and Skills

ROUNDING 1 1

SUB TOTAL

MAXIMUM SCORE 25 25



FOCUS ON INITIATIVES TO IMPROVE MARGIN ( SALES / COST )



Business Value(a)

Efficiency (b)

1. Margin Opportunities

- You and Key IT Personnel Map Business Process Value (Sales/Margin) to Enabling Business Services and IT Technical Services

- Identify and Successfully Implement Opportunities to Improve Process Value through Improving Enabling Business Services or Modifying Performance Metrics to Reduce Costs

2. Risk Mitigation Through Improved Decision Making

- Lower Cost and Improve Margin by Reducing Decision Making Risk Using an Enterprise-Wide Decision Support System

3. Continuous Improvement

- Regularly Measure/Communicate with Business Teams to Monitor Performance and Identify New Opportunities

ROUNDING 1 1

SUB TOTAL

MAXIMUM SCORE 25 25


LEVERAGE TECHNOLOGY STRATEGICALLY TO INNOVATE VALUE



Business Value(a)

Efficiency (b)

1. New / Improved Products & Services

- You and Key IT Personnel Collaborate Regularly with Business Teams to Identify Opportunities to Create/Enhance Products and Services

2. Technology Strategy

- You and Key IT Personnel are Key Influencers in Developing an Enterprise Technology Strategy that Aligns and Integrate to the Overall Business Strategy and Enables Your Company's Current and Future and Products and Services

- Your CTO and IT Teams Understand How to Leverage Innovative Technologies into New and Improved Products and Services

3. Enabling Value

- The Technology Strategy is Designed to Improve Customer Value, Increase Margin, and Enhance Shareholder Wealth

ROUNDING 1 1

SUB TOTAL

MAXIMUM SCORE 25 25



SUMMARY

CATEGORY Score ( 1 = Low / 8 = High)

Business Value(a)

Efficiency (b)

SUB TOTAL : DELIVERING SERVICES EXCEPTIONALLY WELL

SUB TOTAL: UNDERSTAND BUSINESS/FOCUS ON USER EXPERIENCES/IMPROVE BUSINESS SKILLS OF IT PERSONNEL

SUB TOTAL: FOCUS ON INITIATIVES TO IMPROVE MARGIN

SUB TOTAL: LEVERAGE TECHNOLOGY STRATEGICALLY TO INNOVATE VALUE

TOTAL SCORE

AVERAGE MATURITY

MAXIMUM SCORE 100 100

MATURITY % (TOTAL SCORE / MAXIMUM SCORE)


Strategic IT Competencies and Skills Assessment

COMPETENCIES AND ASSOCIATED SKILLS

BUSINESS KNOWLEDGE

SKILL BEST PRACTICE


Skill

Knowledge(a)

Applying

Skill (b)

Business Environment

Understanding and Ability to Articulate the Enterprise

Business Strategy, Objectives, Culture and Internal

Environment

Opportunities/Challenges

Understanding and Ability to Articulate the Enterprise

Business Opportunities that Can Enhance Customer

Experience/Value, Enterprise Revenue/ Profitability/ROI,

and the Challenges that Impact Enterprise Growth

Process Centric

Understanding and Ability to Articulate How IT Services

Align and Support Enterprise Process and Innovate New

Processes as Needed

SUB TOTAL BUSINESS KNOWLEDGE

MAXIMUM SCORE 15.0 15.0



MARKET KNOWLEDGE

SKILL BEST PRACTICE


Skill Knowledge(a) Applying

Skill (b)

Product Knowledge Knowledge of How Customer Value is Derived from

Enterprise Products and Services

Industry Knowledge Knowledge of Industry Landscape and Upcoming Trends and

their Alignment to Enterprise Products and Services

Competitive Landscape

Awareness of Competitive Environment and the Existing

Customer Value Gaps and Associated Opportunities to Provide

Customers Additional Value in the Form of New/Enhanced

Products and Services

SUB TOTAL MARKET KNOWLEDGE

MAXIMUM SCORE 15 15



TECHNOLOGY PROWESS

SKILL BEST PRACTICE


Skill

Knowledge(a)

Applying

Skill (b)

Technology Strategy /

Adaptability

Incorporates Emerging and Existing Technologies into New

and/or Enhanced Products/Services that Provide Customer

Value that will Drive Additional Revenue, Reduce Costs,

and/or Increase ROI

Organizational Agility

Teams of IT/Business Personnel Rapidly Form Based Upon

Changing Business Needs Leveraging Enabling

Technologies to Develop/Enhance Customer Products and

Services

Strategic Project Capability

Capability to Implement Strategic Projects by Reducing

Costs of Run & Maintain Activities and Enhancement

Projects as well as Improving IT Personnel Technology/

Business Skills to Improve Efficiencies

SUB TOTAL TECHNOLOGY PROWESS

MAXIMUM SCORE 15.0 15.0




CROSS COMPETENCY SKILLS

SKILL BEST PRACTICE


Skill

Knowledge(a)

Applying

Skill (b)

Vision IT Vision that Aligns with Corporate and all Business Units

(including IT)

Leadership

CIO and Key IT Personnel guide the IT Organization in

Developing the Skills/Competencies/Knowledge to Enhance

and Develop the IT Services Aligned to Business Needs,

Development and Enhancement of Products and Services as

well as Effectively Collaborates with Business Peers to

Achieve Business Vision / Market Strategies/ Financial

Objectives

Communication

IT Personnel Effectively Communicate, Collaborate, and

Team with Business Personnel to Understand/Uncover

Opportunities to Drive Revenue, Reduce Costs and Improve

ROI

SUB TOTAL CROSS COMPETENCY SKILLS

MAXIMUM SCORE 15 15



SUMMARY

SKILL BEST PRACTICE


Skill Knowledge Applying

Skill




SUB TOTAL CROSS DIMENSION

TOTAL SCORE

AVERAGE MATURITY

MAXIMUM SCORE 15 15



SUMMARY

SKILL BEST PRACTICE


Skill Knowledge Applying

Skill




SUB TOTAL CROSS DIMENSION

TOTAL SCORE

AVERAGE MATURITY

MAXIMUM SCORE 60 60


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