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ROLE OF THE CIO…

ROLE OF THE CIO…. Kera Alexander Bill Geoffroy Chuck Hickey Shallu Kanwar Bart Truitt. Chief Information Officer. “Chief Information Officer: Usually the head over the technology/computer department at companies”. Learnthat.com: “What is a CIO? CIO Definition”. Source:.

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ROLE OF THE CIO…

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  1. ROLE OF THE CIO… Kera Alexander Bill Geoffroy Chuck Hickey Shallu Kanwar Bart Truitt

  2. Chief Information Officer • “Chief Information Officer: Usually the head over the technology/computer department at companies” Learnthat.com: “What is a CIO? CIO Definition” Source:

  3. CIO Reporting Tree

  4. CIO’s Educational Background and Work Experience • Most Advanced Degree • Work Experience

  5. Technical Technical/Business Strategic Planning 1978 1988 1998 1999 2000 2001 2002 2003 2004 2005 Role of the CIO • The Changing Role of the CIO

  6. Most Important Attributes for the job.

  7. Current Issues facing the CIO • Lack of key staff and skill sets, retention. • Inadequate budgets. • Shortage of time for strategic thinking. • Volatile market condition.

  8. 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.

  9. CIO Turnover • According to an old joke, CIO stands for “Career Is Over”.1 • Turnover Statistics :Time spent in last job 2

  10. CIO Turnover • CIO’s turnover rate in comparison with other top executives : • Turnover rate :

  11. CIO Turnover • What makes CIO’s leave their jobs? • More interesting challenges. • Career advancement. • Better financial packages. • Disconnects with CEO/other seniors.

  12. 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):

  13. 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.

  14. 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 562

  15. City’s Budget City of St. Louis • 1 Billion Dollar Annual Budget • $435,834 Surplus FY02 • IT Budget of $5,785,293 FY03 • Budget by Cost Recovery (Does not work) Source: St. Louis Annual Operating Plan FY03, City of St. L., Page 562

  16. Budget Division Information Technology

  17. Director of TechnologyCity of St. Louis Chris Dornfield • Architect Degree University of Kansas • Executive Access U.S. – Director of Corporate Strategy Source: Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

  18. Allocation of Time… Source: Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

  19. 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- Source: Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

  20. 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. Source:

  21. The Biggest Challenge… • Political Issues Board 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…

  22. Loss of Control • 28 Alderman • Comptroller • President of the Board of Alderman

  23. Political Hold up Summer Recess Committee Jan Feb Mar Apr May Jun July Sep Oct Nov Dec IT Department-City View Board Bill 96 is the last Hurdle... Source: Chris Dornfeld, CIO of St. Louis, interviewed in person by Chuck Hickey, September 30th, 2002 & October 10th, 2002.

  24. IT Department • What does the future hold for IT???

  25. GKN • 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 Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  26. Fanny Sloan Education • Masters in Business Administration • Bachelors of Science • - Major in Banking,and Finance • - Minor in Accounting Source: Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.

  27. 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.) Work Experience Interview With Fanny Sloan Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  28. The CIO - CEO Relationship Strategy CEO CFO Executive Steering Committee COO CIO Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  29. Typical Day Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  30. 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. Source:

  31. Accomplishments Eng. Config. Control, Cost Acctg, Quality Systems... Network, Business, and Machine Tool A record 8 month IT infrastructure Implementation ERP Data and Voice Comm. Surgically Removed from Boeing Systems Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002.

  32. The Mission of IT in a Manufacturing Co • 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 Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  33. The Mission of IT in a Manufacturing Co “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”. -Fanny Sloan- Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  34. 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. Source:

  35. The Future of IT • 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 Fanny Sloan, CIO of St. Louis, interviewed in person by Bill Geoffroy, September 30th, 2002. Source:

  36. “The primary focus of the CIO is aligning Monsanto’s IT strategy with business strategy”- Jan Holloway JAN HOLLOWAY Vice President And Chief Information Officer Monsanto Company Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.

  37. 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

  38. 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:

  39. 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:

  40. 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:

  41. 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 26th, 2002.

  42. MONSANTO ORG CHART Source: Jan Holloway, CIO of Monsanto, interviewed in person by Bart Truitt, September 26th, 2002.

  43. 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:

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