CIO Group - January 2004 Presenter: Yogi Schulz

1. CIO Group - January 2004Presenter: Yogi Schulz The CEO - CIO Relationship

2. PresentationOutline • CEO - CIO Relationship Effectiveness • How CIOs Self Destruct • How CIOs Add Value • How CEOs Fail the CIO • How CEOs Support the CIO • Conclusions • Recommendations

3. CEO - CIO RelationshipEffectiveness • Working poorly • CIO fired • most or all of IT outsourced • business objectives under-achieved; IT value missed • Working well • CIO well-regarded member of top management team • valuable parts of IT managed internally • business objectives achieved with IT value

4. How CIOs Self Destruct • Believe that IT budget is beyond challenge • Insist that business must trust superior, specialist knowledge • Focus on IT performance measures and/or administrative tasks • Achieve no conspicuous IT successes • Believe in IT strategies • Not aligned with business direction or doesn't understand business • Allow a large number of active development projects

5. How CIOs Add Value • Focus obsessively on business imperatives • Interpret external IT success stories • Establish and maintain executive relationships • Communicate the IT performance record • Work to achieve a shared vision for the business • Understand how IT performance ranks against industry competitors • Enable business transformation • Insist on a few active development projects

6. How CEOs Fail the CIO • View IT as a support function • Focus on IT cost minimization • Believe that IT doesn’t apply to his/her industry • Manage IT as an adjunct to the business • Position the CIO as specialist functional manager • See the CIO as a high-paid technologist • Micro manage IT

7. How CEOs Support the CIO • Position the CIO as agent for change • Focus on IT effectiveness within business initiatives • Institutionalize business values for IT • Include the CIO on the top management team • Manage IT as integral to the business

8. Conclusions The effectiveness of the CEO-CIO relationship has a huge impact on the value that IT can contribute to the business plan

9. Recommendations • Strengthen the CEO - CIO relationship • CIO can coach CEO in expectations for the relationship

10. The CEO - CIO Relationship • Yogi Schulz 1800, 250 - 6th Ave. S.W. Calgary, Alberta Canada T2P 3H7 Phone: (403) 249-5255 E-mail: YogiSchulz@corvelle.com Web: www.corvelle.com Management Consultants • President of Corvelle Management Consultants • Information technology management consulting • Project management and systems development • Computing Canada & Calgary Herald columnist • PPDM Association Board of Directors

11. Bibliography - 1 • Center for Research on Information Technology and Organizations (CRITO) • http://www.crito.uci.edu • The CEO/CIO Relationship • Beverly Lieberman, president of Halbrecht Lieberman Associates, Inc. • http://www2.cio.com/ask/expert/2001/session295.html • The CIO-CEO Relationship • Most IT execs give positive assessments in a recent study. • June 27, 2002, By Sandra Swanson • http://www.informationweek.com/story/IWK20020627S0015

12. Bibliography - 2 • The CIO as Business Strategist • By Karen Rubenstrunk of MetaGroup • http://www.bettermanagement.com/Library/Library.aspx?a=8&LibraryID=4701 • Information Technology for the 21st Century • http://www.inpo.navy.mil/it-21/outsrc.html • Inside the CIO/CFO Relationship • http://perspective.uk.tlcollect.com/tlml/ciocfo • The State of the CIO • http://www.cio.com/state/2002.html

13. Business/I. T.Partnership Results Meets important needs System works well Development completed Needs well addressed System doesn’t work Development ongoing Business Leadership Compromise Meets no needs System doesn’t work Development never completed Meets few needs System really works Development quick I. T. Leadership