Intersection of Leadership and Technology

1. Intersection ofLeadership andTechnology

2. Our goals today • What are some tangible things that each of us can do to lessen or eliminate the gap that exists between technology and boards or business leadership? • What has caused the “gap” • Why do we need to be concerned?

3. Can we agree on a few things? • Technology and innovation are critical to the success of our existing organizations • Most boards and Executive Teams lack deep technology skills/background • Technology change is exponential and disruptive • Some of the largest and most profitable organizations today were founded and driven by “technologists” (Facebook, Microsoft, etc) • Traditional organizations (health, gaming, government, etc) have a different challenge due to their “traditional structures”.

4. Panel Introductions • Representing Technology: Patrick Tinklenberg – CIO, Sycuan • Representing Exec Office: David Owens – CEO, Skokomish Tribal Enterprises • Representing Industry Research: Marcel Van Hulle, SVP, InfoTech

5. Start with some data • InfoTech has research on the importance of technology to the organizations Executives and leaders. • How technology tools and terms relate to value that business leaders traditionally focus on.

6. Technology factors are the chief external influence on the enterprise The C-Suite is No Different I N F O - T E C H R E S E A R C H G R O U P 6 Source: IBM C-Suite Studies

7. Percentage of Board Positions Filled By Technologists Where is Technology represented on boards? I N F O - T E C H R E S E A R C H G R O U P 26 Source: BoardEx database, October 2016. Deloitte University Press, dupress.deloitte.com

8. Organizational Growth and Business Outcome are the New Names of the Game The endgame and the ultimate “what” The conventional “what” is actually the “how” Revenue Market Share Speed Digital Innovation Agile Profit Information Integration to Market IoT Organizational Growth Business Outcome Customer Engagement Market Value Industry 4.0 Security AI Mobile Cloud Social Media 3 Info-Tech Research Group

9. What is this “Gap”? • Patrick, from a CIO perspective – what is the “gap” between technology and the board/executive leaders and how does it effect what you do? • David, same question from a CEO perspective

10. Discussion question • The CEO position at an organization similar to your own is about to be filled. All things being equal and the candidates both being well rounded with strengths you would expect from their existing job title. One candidate is the organization CIO and the other is the organization CFO. Who is likely to get the job and why?

11. Back to the data • So boards and business leaders are not focused on the same things. Marcel, do you have some information on what traditional boards/leaders are focused on versus the technology team? Are they aligned?

12. “The burden is on the CIO to make the case that IT is more then cyber & risk management, and it’s more than a cost center” Business Acumen & Strategic Mindset Proven P&L Experience Communication & Leadership Skills What Profile Are Board Members Looking For? I N F O - T E C H R E S E A R C H G R O U P 29 Source: Info-Tech Research Group, Interviews

13. Shared Goals Problem Solving High Integrity Executive Team Profile Outspoken Individual Accountability Measure the Important Strong Interpersonal Relationships Meaningful Purpose Helpful Operating Principles I N F O - T E C H R E S E A R C H G R O U P 12

14. 20% 15% 10% 5% 0 I N F O T E C H R E S E A R C H G R O U P 30

15. IT Is Not Well Aligned with Business Needs I N F O - T E C H R E S E A R C H G R O U P 7

16. So, who needs to change? • Who holds the responsibility to bridge the gap between technology and executives/leaders? Is it the technology team adding traditional business skills? Is it the exec/leaders adding technology skills and understanding? Is it both? • How do you do that?

17. Why change or worry about this? • In the keynote yesterday the presenter discussed disruptive change across all organizations and business. He had a slide that suggested that 40% of the top 500 companies in the world will not exist in just a few years. The suggestion is that the inability to react or handle the disruptive change of technology will cause this. • Question: Should we be concerned about our own organizations?

18. What can each of us do to fix this? • In my own career I was fairly successful in removing the gap between technology, organizational leaders and “the business”. It was a process of regular engagement, communication and focus on outcomes important to them. This included the ability to deliver effective presentations. • The next slides speak to that, and I would like to discuss those as we go through them.

19. How would you assess the board presentation skills of the following individuals at your company? 62% 35% 3% Chief Financial Officer Presentation Skills are Critical 52% 39% 5% 4% General Counsel 38% 46% 6% 10% Head of Internal Audit 35% 37% 7% 21% Head of Investor Relations 33% 47% 5% 16% Controller 26% 44% 10% 20% Chief Information Officer 21% 41% 7% 31% Head of Tax 19% 40% 7% 33% Chief Information Security Officer Excellent Adequate Lacking N/A or no contact Base: 850-859 Source: PwC, Annual Corporate Directors Survey, Oct. 2017 I N F O - T E C H R E S E A R C H G R O U P 28

20. They want to know that you believe in what you are saying • If there is a flaw in your logic, numbers, or content… they will find it • You will get more candor and opinion sharing than asked for • They will pressure you for a timely outcome and delivery • They are first and foremost part of the Executive Team What to Expect? I N F O - T E C H R E S E A R C H G R O U P 14

21. Meet on important issues and have compelling business reasons • Show openness and curiosity but bring value • Stay away from techie language and give context • Respect confidentiality & discretion • Always deliver on your commitments • Rehearse before a meeting • Thank the executive office How to Behave? I N F O - T E C H R E S E A R C H G R O U P 15

22. Specific examples to implement • InfoTech has a few examples from their research on effective methods for “technologists” to use to bridge the gap between technology and boards or business leaders. • As we go through the next two slides I would like each of you to comment on which tips you believe are the most critical and why?

23. Understand the Board’s way of working and work with your CEO • Highlight IT’s alignment with the business: • Core resource capabilities • Financial benchmark • Process readiness • Bring the right people into the meeting • Business units’ counterparts • Leave the IT jargon behind • Have some non-for-profit board experience • Governance • Language How to Engage With Your Board I N F O - T E C H R E S E A R C H G R O U P 31

24. Learn the language of CEOs and board members and drop the IT jargon. • Seek broader managerial experience, as well as international experience. • Grab any opportunity to get more involved in business planning. This will develop strategic thinking both personally and in the IT function. • Demonstrate analytical and numerical skills as Boards are accustomed to discussions based on numbers. Connect your IT expertise to wider business issues. • Build confidence through broadening knowledge, particularly of the business issues affecting the organisation. • Join other Boards wherever possible. Gain sponsorship from the CEO and chairman Key Takeaways before heading down this route. I N F O - T E C H R E S E A R C H G R O U P 32

25. For the non-technical leaders in the room • What are some steps any individual can take to position themselves and the organization for greater success? • What do you really need to know about technology?

26. Questions?