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As we look around the corporate suite through the lens and data of our sister programs that serve CFOs, CMOs, CPOs, CTOs, and heads of Sales,
Strategy, HR, and Supply Chain, we are struck by the disproportionately high annual turnover rates among the CIO ranks. Furthermore, the
complexity of the challenges facing today’s CIOs and the criticality of IT as an enabler of business strategy have increased the scrutiny of newly
appointed CIOs, necessitating effective and rapid onboarding. To help member CIOs address this mandate to move quickly up the “learning curve,”
the CIO Executive Board conducted interviews with new and tenured CIOs, spoke with several CIO executive recruiting firms, and scoured trade
press and consulting literature.
The resulting research study, The CIO’s First 100 Days, provides a road map for the growing ranks of recently appointed CIOs to enable effective
onboarding within a new organizational setting. Specifically, as you embark on your first 100 days in seat, we hope this study will provide a toolkit
for achieving the following three objectives: 1) understanding performance expectations, 2) gaining visibility into current performance and
resources, and 3) executing on transition initiatives.
As always, we welcome your feedback and guidance on this research study. Our staff would be happy to provide additional assistance around any
of the topics or case studies included here through customized research, networking introductions, and presentations of any portion of the materials
to any audience of your choosing.
Thank you for your continued support of the CIO Executive Board.
Shvetank Shah Matthew Grimes Kristin Sherwood Jacob Carney Sujatha Sivakumaran Aalap Shah
Introduction
Confronting the Challenging IT Landscape
…cluster around a handful of key initiatives… …that can be frustrated by a lack of continuity in IT leadership
Key Growth Initiatives at Major Corporations Overcoming the Malaise
Corporate Executive Board Analysis “CIO turnover is one of the telling symptoms of the malaise
1. Business Portfolio Reconfiguration—Acquisitions and Divestitures that makes our IT less effective than its potential….The only
way to compensate for the absence of consistency in policy
and precedent is to put in place leadership in the person
2. Solutions Businesses—Move from Product to Services
of the CIO, who will steer a steady course and be able to
provide the necessary guidance for the IT organization. A
3. Cross-Sales leader can accomplish that only by taking a long-term view.”
* Registered trademark of E.I. du Pont de Nemours and Company, Wilmington, Del. Source: CIO Executive Board research.
Introduction: Confronting the Challenging IT Landscape 3
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 4
CIO at a Crossroads
Charged with stewarding the company’s data, the newly appointed
CIO must quickly establish a vision for his or her role
Source: Bansal, Parveen, “Why Does the CIO have So Many Hats?,”
The Banker, 1 December 2003; CIO Executive Board research.
Challenge #2: Misaligned Organizational Design and Competencies
Core business strategies continually shift in response to external market factors. As a result, CIOs looking to organize around core business strategies,
such as attaining lowest-cost producer status, accelerating time-to-market, or becoming more customer centric, find there is no dogmatic “end state.”
A further challenge is building a comprehensive picture of existing IT priorities and resources. Yet, to build a compelling business case for organizational
adjustments, such as revising reporting structures and altering skill requirements, new CIOs must complete a highly objective organizational assessment,
articulating a complete view of existing current strengths and weaknesses.
…while proactively building and managing the required talent portfolio for improving business–IT partnerships
Importance of IT Staff Skills to Effectively Drive Business Value
Percentage of CIO Respondents
63% 58% 52%
43%
28%
9% 7%
Understanding Communication Management/ Collaboration Intellectual Risk Taking Understanding
of Company Skills Executive Skills Courage of Emerging
Value Drivers Skills Technologies
n = 76 CIOs. Source: CIO Executive Board surveys, 2003, 2005.
CIO Role in Business Strategy Formation CIO Role in Business Opportunity Identification
100%
2%
100%
34% 29%
49%
Information
68% Resource/None
50% Participant 50%
55% 55%
Leader
51%
30%
11% 16%
0% 0%
Current Ideal Current Ideal
n = 81 CIOs. Source: CIO Executive Board survey, 2005.
Challenge #4: IT Portfolio Risks
Concurrent with the process of aligning IT strategy with corporate objectives, the CIO must ensure successful realization of promises to reduce inefficient
IT maintenance spending and increase value-added IT solutions delivered on time and on budget. Crafting a detailed execution plan is a daunting
task for a new CIO with limited understanding of a firm’s existing IT architecture and ongoing projects’ business cases. A comprehensive execution
agenda, however, helps ensure that the CIO’s first 100 days include successful project delivery, reduced inefficient IT spending, and increased customer
satisfaction.
Risky Business
As development projects get larger and more complex… …on-time, on-budget performance
becomes harder to achieve
Average Project Size
Function Points Rate of Successful Project Delivery
60%
20,000
● 46%
11%
●
2%
0 0% ●
1970 1980 1990 2000 2005 < $750.00 K $3.00–$6.00 M > $10.00 M
$0.75–$3.00 M $6.00–$10.00 M
Size of Project ($)
Source: IFPUG. Source: The Standish Group CHAOS Survey, 2004.
Growing Pains
Given the scale of the role’s challenges, …and relatively short tenures
the CIO position is plagued by high turnover…
Average CIO Tenure in Role
Average Annual Turnover Rate by Position
34% More Than
Five Years
18%
Three to
Five Years
CEOs CFOs CIOs
n = 51. n = 51.
Source: CIO Executive Board survey, 2004; CIO Executive Board research.
Implication: Shorter Time to Move up the Learning Curve
These pressing initiatives complicate the already difficult task of senior executive onboarding by multiplying the chances of onboarding failure
and shrinking the traditional onboarding grace period. To successfully adapt to the position, CIOs must compress the learning curve, moving quickly
to master their portfolio of responsibilities and cement working relationships with key individuals.
Source: Association of Executive Search Consultants; Centre for Creative Source: Gabarro, John J., “When a New Manager Takes Charge,” Harvard Business Review
Leadership; Kennedy Publications; Manchester Partners International. (May/June 1985); Hoffman, Von, “The Survivalists,” CMO Magazine (September 2004).
Pedal to the Medal
“At the end of 100 days, either I have to execute or be executed. The first 100 days should be spent observing, analyzing, and brainstorming, but after that,
actionable steps and deliverable results should be the key focus for any CIO.”
CIO
Automotive Manufacturer
External Hire
with Previous CIO
Experience
Internal
Promotion from
the Technology
Organization
Internal Transfer
from a Business
Role
Action Steps
Build Relationships: Understand business challenges and IT’s priorities by networking with business units and internal customers.
Executive Partnering Program (p. 16)
Identify Expectations: Gauge the expected mandates from the senior executive team to develop an appropriate outlook for IT.
Define Discretionary Powers: Address questions that calibrate an employer’s resolve to support IT.
Ascend the Learning Curve: Increase familiarity with the industry, business, and technology to ease transition and achieve rapid results.
Solicit Feedback: Establish formal and informal feedback to shape a CIO’s career trajectory.
Building Partnerships
New CIOs gain significant insight into company challenges and corporate
strategic objectives by meeting with all business units and internal customers
Critical Questions
Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition 15
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 16
President and
Chief Executive Officer
Group Vice Group Vice Group Vice Group Vice Chairman and Group Vice President, President, Vice Process
President, President, President, President, CEO, Ford President, Ford of Ford South President, Leadership
Product Manufacturing Purchasing Premier Credit Asia–Pacific Europe, Inc. America Business
Development and Ford of Auto Group Operations Operations and Product
and Quality Mexico and Strategy
Associations
VP, Truck VP, Vehicle VP, Volvo
Vehicle Operations
Center
The new executive’s set of partners is selected to provide broad-based
learning about Ford’s key strategic issues across product lines and operations.
Role of the CIO Description Share of the CIO's Time That Should Be Devoted to Each Role
IT Cost Reduction
The Head of IT
Coordination IT centralization, simplification,
and governance and standards % % %
Value Creation
The Business
Driving business efficiency via
Strategist
process optimization and digitization % % %
Execution Focus
Practical CIO
Practical implementation: “Getting things done” % % %
Chief Technology Technology Futuring
Officer Finding new technology to transform industry % % %
1.
Key Priorities
for the 2.
Coming Year
3.
Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition 17
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 18
CIOs occasionally fail due to an overestimation of the discretionary powers ascribed to the position. While the initial impression is that information
technology is the key to success for the corporation, they only realize after assuming the position that they cannot get projects funded or that line
absorption of technology is poor. To this end, the CIO Executive Board asked IT executive recruiters to construct a list of questions for incoming CIOs
seeking to measure a potential employer’s resolve to support IT.
Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition 19
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 20
Considering the short time frame in which new CIOs are expected to deliver results, formal and informal feedback from a variety of sources provides
valuable performance insight. Immediate and regular solicitation of feedback can help to propel and direct one’s career trajectory.
80%
65% 67%
55%
49%
41% 43% 41% 41%
39% 37%
Informal
31%
Formal
20% 22%
8% 6%
Source: CIO Executive Board survey, 2004; CIO Executive Board research.
Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition 21
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 22
Order Relevant Published Research: Key Attributes of the World-Class IT Organization (pp. 90–91) Source: CIO Executive Board research.
Business Process Design Reusable Application Services and Middleware User Readiness
Emerging • Provision of methodologies and tools for business • Development, support, and consulting on reusable • Development of education and training
Central Roles process design application services and middleware to ensure business users understand
Data Architecture how to use new technology
• Standard definitions and formats for shared • Proactive identification of needed
information investments in process change
• Data integrity stewardship Source: CIO Executive Board research.
Order Relevant Published Research: Achieving Responsive Scale (pp. 90–91)
Diagnostic Questionnaire on p. 76
Organizational Design Diagnostic
Transitioning CIOs must also assess the effectiveness of their organizational structure to ensure the appropriate balance of centralized cost efficiencies
and distributed alignment with dynamic business objectives. Recognizing the importance of harmonizing business strategy with organizational structure,
the CIO Executive Board offers the following diagnostic, drawn from analysis of organizational designs at member companies.
Business Portfolio Stability Pursuing divestiture or joint ventures 0 1 2 Stable or pursuing M&A or alliances
Customer facing (e-commerce and channel Primarily back office (finance, HR, and
Role of Technology 0 1 2
enablement) core transactions)
* Registered trademark of E.I. du Pont de Nemours and Company, Wilmington, Del. Source: DuPont; CIO Executive Board research.
Note: Reprinted from “Core IS Capabilities for Exploiting Information Technology” by David F. Feeny
and Leslie P. Wilcocks, MIT Sloan Management Review, Spring 1998, pp. 9-21, by permission of
publisher. Copyright © 1998 by Massachusetts Institute of Technology. All rights reserved.
Order Relevant Published Research: Strengthening the IT Leadership Bench (pp. 90–91)
Organizational Assessment: Evaluating IT Effectiveness and Optimizing Organizational Design 29
© 2005 Corporate Executive Board
© 2005 Corporate Executive Board
The CIO’s First 100 Days 30
Iverson Financial* analyzes enterprise roles for alignment with key skills dimensions
Role Competency Rankings List
0ROCESS 0EOPLE
*OB &AMILY 2OLE 4ECHNICAL "USINESS
,EADERSHIP ,EADERSHIP
4ECHNICAL #4/ "USINESS
s $EEP TECH SKILLS #!/ s 5NDERSTAND AND LEAD DEVELOPMENT
s #AN SOLVE DIFl CULT TECH ISSUES !PPLICATION -ANAGER OF BUSINESS PRODUCTS IMPACT OF TRENDS
s "ROAD UNDERSTANDING OF MARKET AND REGULATORY ENVIRONMENT
DIRECTION #ONTINUITY -ANAGER 4"$ 4"$
s 5NDERSTAND AND LEAD DEVELOPMENT
s $EEP TECH SKILLS )NFORMATION 2ISK -ANAGER OF BUSINESS PRODUCTS
s #AN SOLVE DIFl CULT TECH ISSUES 1UALITY -ANAGER s &AMILIAR WITH SPECIl C AREAS ONLY
s +NOWLEDGE OF PORTION OF TECH MARKET 0ROJECT -ANAGER s 'ENERAL PRODUCT KNOWLEDGE
s 4ECH EXPERIENCEBACKGROUND "USINESS s 5NDERSTAND THE TRENDS OF THE
2ELATIONSHIP -ANAGER
s !CTIVE SKILL SET -ANAGEMENT MARKETPLACE
s "ROAD UNDERSTANDING OF MARKET )NFRASTRUCTURE $EMAND -ANAGER
s 5NDERSTAND SPECIl C BUSINESS PRODUCT
STRATEGIC DIRECTION 2ESOURCE -ANAGER s .O VIEW OF TRENDS OF MARKETPLACE
s !CTIVE TECH SKILLS 4ESTING -ANAGER
s #AN CODE s 5NDERSTAND BASIC l NANCIAL TERMS
&INANCIAL -ANAGER
s .O VIEW OF BROADER TECH MARKET
"USINESS 4ECHNOLOGY -ANAGER 2$
s "ASIC COMPUTER SKILLS
2ELEASE -ANAGER
s .OT FAMILIAR WITH TECH MARKET
+NOWLEDGE -ANAGER
4ECHNICAL !NALYST
!PPLICATION !PPLICATION $EVELOPER 4"$ 4"$ 4"$ 4"$
$EVELOPMENT 2ELEASE !NALYST
,EADING
%DGE 4ECHNOLOGY $EVELOPER
0ROCESS ,EADERSHIP 5SABILITY %NGINEER 0EOPLE ,EADERSHIP
s $EVELOP NEW PROCESS "USINESS !RCHITECT s -ANAGE LARGE STRATEGIC ACTIVITIES
s 0ROVIDE CHANGE VISION !PPLICATION !RCHITECT s $EVELOP STRATEGIC PLAN
3YSTEMS
s $EVELOP STRATEGIC STRUCTURE FRAMEWORK %NGINEERING 4ECHNICAL !RCHITECT s -ANAGE MULTIPLE TEAMS
IE MITIGATE RISKS
"USINESS 4ECHNOLOGY !RCHITECT 2$
s $EVELOP TACTICAL METHODOLOGIES s -ANAGE INDIVIDUAL TEAMS
IE IMPLEMENT AND MANAGE RISKS )NFORMATION !RCHITECT
s %NHANCEMAINTAIN PROCESS "USINESS !NALYST s )NDEPENDENT CONTRIBUTOR WITH
OCCASIONAL TEAM LEADERSHIP
s %NHANCEMAINTAIN PROCESS "USINESS 3YSTEMS 0-/ !NALYST RESPONSIBILITIES
&INANCIAL !NALYST
s %XECUTE PROCESS s 3ELF
LED
3TRESS 4ESTING
1UALITY !SSURANCE 1! 4ESTER
-ETHODOLOGY !NALYST
$ATA 3ECURITY 2ISK )NFORMATION 2ISK !NALYST
-ANAGEMENT #ONTINUITY !NALYST 4"$ 4"$ 4"$ 4"$
$ATABASE !DMINISTRATOR
$ATA -ANAGEMENT
$ATABASE $EVELOPER
3OURCE )VERSON &INANCIAL !PPLICATIONS