Archive for the ‘CIO’ Category

Just Exactly What Did The Big CIOs Do Last Year?

Wednesday, March 17th, 2010
Image Credit
What A CIO Can Accomplish In A Year Just Might Surprise You…

What A CIO Can Accomplish In A Year Just Might Surprise You…

It Was A Tough Year

To say that last year was a rough year, might be the understatement of the decade. Every business seemed to be taking it on the nose and anytime you opened the paper or turned on the TV, it just seemed as though the bad news kept on coming. What’s interesting for all of you who dream of someday becoming a CIO, is that the best CIOs didn’t allow all of the bad news to discourage them – they still made progress…

Yes, I believe that we all know what the right thing to do is. However, sticking to our guns when it seems like the rest of the world is falling apart all around us is what separates the good CIOs from the not-so-good ones. What does it take to keep moving forward? Most of the best CIOs all agree that even in bad times an IT department should be an externally directed force that is focused on growth, customers, and creating market-facing leadership

The Best CIOs Still Made Progress

Amazingly enough, a global recession can be good for business. It shakes out the weaker companies and primes customers to start buying again once things pick up again. Bob Evans has been talking with some of the CIOs for the biggest global firms and he’s found out that they’ve been quite busy, despite the global recession. Here are some examples:

  • Liu Zhixuan, CIO of China’s Shenzhen Airlines: Liu has been working on what he calls a “service-chain integration” project for the airline. Once it’s in place, this IT solution will offer an end-to-end view of not just the airline’s business processes but it will also allow customers to be segmented. As an additional value to the airline, this project will automatically reset the outcomes of some of business processes based on a customer’s status.
  • Kim Tac Keuk, CIO of LG Electronics: : Since my current cell phone is made by LG, I’m always interested in what they are up to. During the past year Kim has lead their efforts to implement a global single-instance Oracle ERP system. Anyone who has been involved in one of these projects knows what a bear they can be even when they aren’t global in nature. This project started off by requiring an 18-month effort to map, integrate, and optimize 440 business processes across LG’s 83 subsidiaries. What I liked best about this accomplishment is that it gave the IT department intimate knowledge about how the company does business. Kim believes that it is important also because he says that in his company IT teams must be masters of all processes across the enterprise.
  • Tania Nossa head of IT for Alcoa Brazil: : Making Aluminum requires a lot of raw material and energy. Trying to create a successful company to do this is difficult enough even when you aren’t in the middle of the Amazon rainforest. Tania spent last year working to extend and upgrading the company’s connectivity. This might not seem like such a big deal, until you consider that it means running LAN cables down into mines in the Amazon rainforest – then you start to appreciate what he’s been able to accomplish.
  • Alan Matula, CIO of Royal Dutch Shell: : One of the things that many want-to-be CIOs forget is that very little of what a CIO does has anything to do with technology. For example, Alan spent part of his time last year signing over $4B in outsourcing contracts. Clearly he’s going to have a big job in the upcoming year managing and keeping track of each of those contacts. Oh, and during the same year he implemented one of the world’s largest unified communications solutions. That makes for a full year!

What All Of This Means For You

It’s all too easy to get distracted by what we read in the newspaper and see on TV. This past year was an excellent example of how bad news can flood our minds and distract us from what we really should be doing.

As Bob’s research has shown, the best CIOs didn’t allow a global recession to stop them from moving forward. Sure it may have impacted their budgets and slowed their projects down, but they still made progress.

Learning by example is how one can become a great CIO. Let what these CIOs accomplished this year serve as an example for you on how to keep your eye on the prize as you work towards become a great CIO.

Do you think these CIOs were correct in launching big projects during a global recession?

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What We’ll Be Talking About Next Time

Remember when using offshored resources as a part of an IT department was such a big deal? These days it’s hard to find an IT department that doesn’t have at least some portion of its work done off shore. When you become CIO, offshoring is something that you’re going to have to deal with. It turns out that things aren’t as simple as they used to be…

CIO’s In The Wild: A Field Report

Wednesday, December 9th, 2009
Image CreditCIO Lindsey Jarrell Was Observed Doing What CIOs Do

CIO Lindsey Jarrell Was Observed Doing What CIOs Do

One of life’s great mysteries is “just exactly what do CIOs do” I’m pretty sure that we all think that we know what they do, but do we REALLY know? In order to prepare you for your future job as a CIO, I have undertaken a dangerous field study in order to observe the wild CIO in their natural habitat and I’m now prepared to make my report back to you. Listen and learn.

The Subject

Our subject in this case was Mr. Lindsey Jarrell who is currently the CIO of BayCare Health System. BayCare is a community-based health care system in the Tampa Bay, Florida, area. They connect patients to a complete range of services through their not-for-profit hospitals, outpatient and imaging facilities, and other regional services that reach beyond the Bay area.

These observations were made as part of my attending a healthcare conference that was being held in the Tampa area. Lindsey had been invited to give a talk about how BayCare has been using IT as a part of its operations.

Overall Knowledge

In order to judge how a CIO is doing his job, you have to take a careful look at just what he says. This is truly a case where words may speak even louder than actions.

Lindsey showed that a CIO needs to know about more than just IT issues. The key to being a successful CIO appears to have a good understanding of where the company is trying to go and how the IT department can help it get there:

  • IT Vision: The goal of BayCare’s IT department is to understand how physicians think.
  • Relationships: The CIO has to have a good relationship with the Chief Medical Information Officer (CMIO). This required Lindsey to get over his need to always be in control.
  • Extra Knowledge: Things that the BayCare CIO needs to know about that are not IT related include how doctors work and a lot about vendor contracts.
  • Who Owns Quality?: A company’s quality project is not an IT project, instead it is a company-wide transformation project.
  • Deep Knowledge: Lindsey was able to quote off the top of his head the incoming call volume that his help desk was currently fielding.

IT Projects

IT is all about projects: we start them, we run them, and hopefully the company is made better by them in the end. It was clear that Lindsey had spent a lot of time trying to find the best way to do IT projects and here’s what he had to say about that:

  • Where?: Lindsey was able to admit some of the functionality of the large-scale project did not have to be located in the IT department.
  • Keeping The Right Focus: He believes that his project teams needed to be out in the field in front of the doctors. One of the reasons for this is that inside of BayCare they have a completely different focus: they deal with an in-patient environment whereas doctors are focused on people who come to their offices (out-patient care).
  • Dates: He believes that for large IT projects you need to avoid announcing a “go live” date until AFTER you are either weeks or months into the project and have a good understanding of what it’s really going to take.
  • Project Management: The CIO came to understand that vendors really only care about getting to “live” (which is when they get paid). Realizing this, Lindsey hired his own project manager who is responsible for keeping track of the “big picture” for his projects.

What All Of This Means For You

This kind of observation of a real, live CIO is exactly the kind of information that you need to be considering as your career moves you closer and closer to the day that you’ll be named CIO. Hopefully my field notes have provided you with some insights into what a CIO really does.

Of special note should be the fact that Lindsey didn’t spend any time talking about servers, operating systems, development tools, networking, or security issues. These are all part-and-parcel of what an IT department deals with on a daily basis, but Lindsey realized that these are internal issues that nobody else cares about. CIO’s need to focus on what the rest of the business wants and keep the IT stuff inside the IT department.

Do you agree that IT vocabulary and IT specific issues should be kept inside of the IT department or should we share them with other departments?

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What We’ll Be Talking About Next Time

When you become CIO, almost instantly everything that you know will quickly start to become out-of-date. Just to make things even worse, as the CIO one of your jobs is going to be to accurately predict the future. Just how are you going to go about doing this? It turns out that when you need insights into what the future of IT is going to look like, it helps to sit down and have a talk with the guys who are busy creating it

5 Things That CIOs Need To Stop Doing

Monday, June 15th, 2009

CIOs Need To Stop Doing Things That Hold The Company Back

CIOs Need To Stop Doing Things That Hold The Company Back

I firmly believe that the reason that any firm has a CIO is so that they have someone who can drive the company’s IT department to provide services and support that will enable the rest of the business to grow faster. It really is that simple – if you can leverage your IT department to support what the business is trying to do, then you’ll be more successful. Of course, this only works if the CIO is doing his / her job

First You Need Respect

Bob Evans (no, not the breakfast sausage Bob Evans) over at InformationWeek has been thinking about why, of all of a company’s senior leadership, CIOs seem to be the ones who get the least amount of respect.

His conclusions are that the world at large believes that CIOs lack the business skills that are needed in order to have a seat at a company’s strategy steering table. It doesn’t help that all too often CIOs tend to talk using technology terms that seem to go right over the heads of the rest of the business.

If CIOs are to take the reins of the IT department and turn it into the engine that allows the rest of the company to move faster, then there are 5 things that they need to STOP doing.

#1: Stop Avoiding Customers

In order to provide the firm with the tools and services that it needs to meet the needs of its current and potential customers, CIOs need to be spending time meeting with customers. It’s all too easy to become focused on internal issues, cost cutting, and staffing challenges. Get out and talk to customers in order to find out what you REALLY need to be doing to support the company.

#2: Stop Avoiding Change

It is all too easy for an incoming CIO to adopt the “if it’s not broke, don’t fix it” mentality. However, even as you read this the world is being changed by the arrival of Twitter, the long rumored Apple tablet PC, etc. Changes of this magnitude mean that everything must be constantly reconsidered by the CIO in order to find ways to allow the company to move faster and perform better.

#3: Stop Doing Projects Based On “Gut Feel”

Microsoft is getting ready to come out with a new operating system. Should the firm upgrade all of its PCs? Good question. The answer lies in another question: how would upgrading those PCs help the company achieve its business goals? Could the money be spent on something else that would do a better job of achieving those goals? It’s the ability to justify projects based on solid business reasons and not “gut feel” that has been missing from the way that CIOs have been doing business.

#4: Stop Spending So Much On Support

We’re not just talking about money here, we’re also talking about time. Everyone seems to be hung up on the 80/20 rule when it comes to support / new business. Over at HP they’ve found a way to do it, so why can’t everyone else?

#5: Stop Supporting Stereotypes Of CIOs

Evans points out that both at the online version of CIO magazine as well as over at Fortune magazine, disparaging things have been said about the role that CIOs play in firms. CIOs need to stand up and push back – as long as reporters and press are allowed to push them around, they will. CIOs need to start to publicize the fact that their departments are powerful enablers that the firm desperately needs in order to stay ahead of the pack.

Final Thoughts

No senior leadership position is easy to perform these days. However, CIOs have the double burden of having to stay in front of a rapidly changing technological wave as well as being intimately connected to what’s going on in the firm’s business. This can be done; however, in order to be successful, CIOs need to stop doing things that produce more harm than good.

Questions For You

How often does your CIO meet with customers: once a week, once a month, or once in a blue moon? Does your CIO talk about change or does he/she actually cause it to happen? Does your CIO have the ability to turn off the technology talk and turn on the business talk? Leave me a comment and let me know what you are thinking.

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         The Accidental Successful CIO Blog is updated.

Coming Up Next Time

The role of a  CIO in any organization is to find ways to enable the company to be more successful. Underlying all of these different ways to assist the business there is one area that every CIO must master first: providing great internal communications. An opportunity to radically transform how a firm’s employees communicate has arrived and it’s time for CIOs to step up and lead the charge…

What Can HP Teach You About How To Run Your IT Department?

Monday, April 27th, 2009

HP's CIO Has Taken Bold Steps That Can Teach Us A Few Things

HP's CIO Has Taken Bold Steps That Can Teach Us A Few Things

When I say “HP” what is the first thing that pops into your mind? In my case it’s a flashback to the HP 12C calculator that became welded to my hand while I was working on my MBA. These days, HP does a lot more and we all probably have some HP printers or PCs laying around somewhere. However, it’s what HP’s CIO Randy Mott has been up that has caught my attention.

Let’s start with results because otherwise Randy’s story really isn’t worth telling: HP has cut IT spending from 4% or revenue to about 2% of revenue, 70% of staff’s time spent on new development with just 30% being spent on support, shrunk 85 data centers down to just 6, 6,000 applications shrunk down to 1,500. Wow – sure looks like Randy must be walking on water, eh?

Any CIO would lust after results like these. However the devil is, as always, in how Randy got them. Chris Murphy over at InformationWeek did some digging and found out that Randy had to do a number of things that would make even the strongest of us think twice.

Randy’s most important strategy: he realized that it was not just enough to identify the big areas of HP’s IT department that needed to be transformed, what he needed to do was to go after all of them at the same time as one big, huge, effort.

Here’s what he took on (all at once): portfolio management, IT workforce effectiveness, world class IT organization, global data center consolidation, and a single enterprise data warehouse. Whew! You could build a CIO career on any one of those.

To accomplish all of this, HP needed to get their metrics right. Here’s what they measured:

  1. On-Time Delivery: Just like pizza, this is what really can make an IT department have some credibility. HP went one step farther – it’s weighted so delivering big projects on time counts for more than delivering a bunch of little projects on time.
  2. Time Spent Innovating: This measures how much IT time is spent working on new things as opposed to doing support tasks.
  3. Time-Phase Boxing: Similar projects should take the same amount of time to do similar phases. This metric serves as a warning flag if a project is starting to go off course.
  4. Collaboration: how many different locations are involved in a project? The goal here is to keep this number as low as possible.
  5. Cost / Benefit Analysis Validation: In a nutshell, this is an agreement BEFORE the project starts as to what it’s going to cost and what value it’s going to deliver. This metric tracks how close the team is to completing the CBA and nobody starts the project until it’s complete.

Do you think that your IT department could take all of these major initiatives on at the same time? Which of these metrics do you think would provide you with the best insights into how your IT projects are doing? What metric should be added to this list? Leave me a comment and let me know what you are thinking.

Where Is Your Next CIO Coming From?

Wednesday, February 25th, 2009
Many Firms Don't Have A Plan For How They Would Replace Their Current CIO

Many Firms Don't Have A Plan For How They Would Replace Their Current CIO

So here’s the scenario: a previously unknown meteor comes streaking down to earth and somehow lands squarely on top of your CIO squashing him/her instantly. What do you do next? Where would your replacement CIO come from and do you know who that would be?

A study conducted by the equipment supply firm CDW has revealed that even at firms with 1,000 or more employees, 38% of them did not have a formal CIO succession plan. Ouch – watch out for those meteors!

Even if your CIO doesn’t spend a lot of time outside where there might be meteors, a good point to keep in mind is that the average tenure of a CIO is 3-5 years. When you start to think about who might replace your current CIO, one question comes to mind immediately: internal vs external.

It really doesn’t help matters that exactly what the qualifications to be CIO are can be quite subjective. In most cases it really depends on several factors including the size of your company, what industry you play in, and what the current expectations of the IT department are.

A study done by Information Week revealed that of 500 current CIOs, 58% of them were recruited from the outside. This means that choosing the outsider is not all that unusual.

When it comes down to deciding if you should be looking internally vs externally, company culture can play a big role. If your firm has a history of hiring from the outside, then getting your next CIO from their will feel much more natural.

Internal candidates can be a great way to go because they already know so much about the company. At the same time, they often find themselves in a situation in which they are in over their heads in responsibilities. External CIO candidates often have the experience to do the job; however, simply because they come from the outside expectations will be higher for them.

In the end make sure that you choose carefully from all of your potential sources – you’re going to need the best possible talent in your top IT spot.

Does your company have a CIO succession plan? Have you ever had to use it? Do you get your CIOs internally or externally? How long do they last? Leave me a comment and let me know what you are thinking.