the fwsim cio executive leadership summit the transformational cio: winning in a globally...
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The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
From Tech Leader to From Tech Leader to Board DirectorBoard Director
Harriet EdelmanHarriet Edelman
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Personal Board HistoryPersonal Board History
– Started with non-profit organizations
– Public Company Board Service
• $500 million direct marketer recruited
• $5 billion CPG company recruited
• $4 billion hospitality industry recruited
• $400 million I.T. business network
– Currently: 2 public and 3 non-profit Boards
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Attraction to Board ServiceAttraction to Board Service– Deep involvement in business and
shareholder-level strategy– Exposure to other industries,
business models– Long-term, enterprise-level
discussions– Fresh mind, fresh challenges– C-level leadership and talent– Colleagues
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Opportunities AboundOpportunities Abound– Boards and CEOs seek strategic advice and
industry expertise
• Penetration of women and minorities still low
• Retirements over the next decade – 29% of S&P 500 boards with an average age of 64+
» 75% of Boards have a mandatory retirement age
• “Over-boarding” forcing openings
• Demand for financial experts
• Smaller Boards increasing size to add capacity
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Recruiting PictureRecruiting Picture– 50% cite a shortage of capable
board members
– 37% have challenges finding financial experts
– 50% report difficulties finding international expertise
– 50% report difficulties recruiting technology backgrounds
PwC/Corporate Board Member survey of 1,000 corporate directors
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Value Tech Leaders BringValue Tech Leaders Bring– Functional expertise:
• Capital investment• Technology-enabled business
transformation• Privacy and security• Customer solutions• ERM• “De-coder”
– but avoid dependency
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Value Tech Leaders BringValue Tech Leaders Bring– Business Competencies
• Solid management skills• Financial acumen• Strategic Thinking• Process and analytical orientation• Complexity management• Collaboration skills• Global experience• Acquisition/divestiture/integration
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Voice of a Top Board RecruiterVoice of a Top Board Recruiter
• When Boards are considering CIOs:• It is usually in recognition of how vital technology is to
both the business model success of the company as well as to the cost structure
• Clients seek: • Executives who know the digital, e-commerce and
social networking side of technology• Corporate strategy perspective and engagement • Strong commercial and business development skills
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• ConundrumConundrum– Boards have
reservations about recruiting Directors with no Board experience
• “No one on training wheels”
How do How do you get you get started?started?
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Building Blocks Building Blocks – Non-profit service
• Governance, teaming
– Advisory Boards• Future candidate pool• Intellectual capital and advice• Non-binding, non-fiduciary
– Private company Boards
– Recruiters
– Network
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Realities of ServingRealities of Serving– Time commitment has increased
• “New normal” average of ~ 200 hours/year • Requirement when there is an “event”
– Learning curve with a new industry• Metrics, competition, value chain, culture, innovation,
customers, acronyms
– Home company support– Fiduciary responsibilities, liabilities– Increased public scrutiny of Directors and Boards
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• ““Noses In, Fingers OutNoses In, Fingers Out””– You are not management You are not management
• A key difference in how a Board contributes to discussion and decision making
• Can be a difficult adjustment for Directors who are operators and “hands-on” executives
– The adjustment must be made
• Follow protocols in engaging with line management
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• Due diligence: do Due diligence: do your homework on your homework on the Company and the Company and the Boardthe Board
– Be willing to walk away
• Product• Reputation, litigation• Understand they make
money • Ethics and values• Leadership• Teamwork/culture• Meet each Director and
top management• Governance
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
• BenefitsBenefits
– A unique and valuable element of your personal development
– Enhances knowledge and perspective for your “home” company
– Strengthens interaction with your company Board
– Adds “edge”
The FWSIM CIO Executive Leadership Summit
The Transformational CIO: Winning in a Globally Competitive Marketplace
October 25, 2010
Questions?Questions?