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© 2005 Corporate Executive Board

CIO Executive Board

The CIO’s First 100 Days

Accelerating the Onboarding of Transitioning IT Principals

Understanding Performance Expectations Gaining Visibility into Current Performance and Resources

Executing on Transition Initiatives



Catalog No.: CIO1387OQD

IT Practice Quantitative and

Financial Analysis Group

DirectorKevin Acker

AnalystsRich Nyman • Hosung Shin

Project Support DeskDepartment Head

Matthew Grimes

Research ManagersJacob Carney • Kristin Sherwood

Research AssociatesAalap Shah • Sujatha Sivakumaran

Creative Solutions Group

Lead Graphic Design SpecialistRami Bizri

Contributing DesignersChristie Parrish • Ladaska Robinson • Todd Threats

ProofreaderTracy Banghart

Publications EditorLacey White

CIO Executive Board Staff

Managing DirectorShvetank Shah

Practice ManagerKris van Riper

Project ManagersAndrew Horne • Matt McWha

ConsultantsJohn Fiske • Deb Goldberg

Senior AnalystsChristopher Axarlis • Mark Davenport

Rich Flanagan • Kiran Mishra

AnalystMarie Elliott

Managing DirectorJaime M. Capellá

Senior Director

Brian Foster

DirectorsSheldon Himelfarb • Matt Kelly • Stuart Roberts • Audrey Taylor

Associate DirectorsLoraine Brown • David Dunleavy

Executive DirectorGlenn Tobin

CIO Executive Board

Corporate Executive Board2000 Pennsylvania Avenue NWWashington, DC 20006Telephone: +1-202-777-5000Fax: +1-202-777-5100

The Corporate Executive Board Company (UK) Ltd.Victoria HouseFourth Floor37–63 Southampton RowBloomsbury SquareLondon WC1B 4DRUnited KingdomTelephone: +44-(0)20-7632-6000

Fax: +44-(0)20-7632-6001

www.cio.executiveboard.com

© 2005 Corporate Executive Board. All Rights Reserved.

Note to Members

This project was researched and written to fulfill the research requests of several membersof the Corporate Executive Board and as a result may not satisfy the information needs of allmember companies. The Corporate Executive Board encourages members who have additionalquestions about this topic to contact the Board staff for further discussion. Descriptions orviewpoints contained herein regarding organizations profiled in this report do not necessarily reflect the policies or viewpoints of those organizations.

Confidentiality of Findings

This document has been prepared by the Corporate Executive Board for the exclusive use of its members. It contains valuable proprietary information belonging to the Corporate Execu-tive Board, and each member should make it available only to those employees who requiresuch access in order to learn from the material provided herein and who undertake not to

disclose it to third parties. In the event that you are unwilling to assume this confidentiality obligation, please return this document and all copies in your possession promptly to theCorporate Executive Board.

Legal Caveat

The CIO Executive Board has worked to ensure the accuracy of the information it providesto its members. This report relies upon data obtained from many sources, however, and theCIO Executive Board cannot guarantee the accuracy of the information or its analysis in allcases. Furthermore, the CIO Executive Board is not engaged in rendering legal, accounting,or other professional services. Its reports should not be construed as professional advice onany particular set of facts or circumstances. Members requiring such services are advised toconsult an appropriate professional. Neither the Corporate Executive Board nor its programsare responsible for any claims or losses that may ar ise from a) any errors or omissions in theirreports, whether caused by the CIO Executive Board or its sources, or b) reliance upon any recommendation made by the CIO Executive Board.



iii© 2005 Corporate Executive Board

Letter from the CIO Executive Board • iv

Introduction: Confronting the Challenging IT Landscape • 1

Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition • 13

Ford: Executive Partnering Program • 16Organizational Assessment: Evaluating IT Effectiveness and Optimizing Organizational Design • 23

DuPont: Defining Competencies and Career Paths • 29

Iverson Financial*: Core Competency Rankings by Role • 30

DuPont: Personalized Development Plans • 35

IT Strategy Setting: Aligning with Business Goals and Prioritizing Needs • 37

Seagate Technology: Aligning IT Strategy with Corporate Goals • 39

KeyCorp: Guiding IT Architecture Principles • 42

Schlumberger: Visualizing Project Portfolio Value • 43

Texas Instruments: Ensuring Benefits Capture Across All Projects • 45

IT Strategy Execution: Realizing Operational Objectives • 47

IBM: Legacy System Sunset Project Cards • 49

Merrill Lynch: Revalidating Business Case Assumptions Midcycle • 50

Bowne: Scorecard Rollout • 56

Cemex: Data Collection and Quality Assurance • 57

Corning: Scorecard Review and Revision • 58

Corning: Facilitating Scorecard Adoption • 59

Appendix I: IT Budget Benchmarks • 61

Appendix II: Vendor Management and Outsourcing • 67

Appendix III: Diagnostic Questionnaires • 73

Order Form • 90

In-Person Research Presentations • 93

CIO Executive Board Project Support Desk • 95

Table of Contents

* Pseudonym.



iv © 2005 Corporate Executive Board

Letter from the CIO Executive Board

First and foremost, welcome to the CIO Executive Board! As a newly appointed CIO, this may be your first encounter with our services, designedto provide best practices research and executive education to senior corporate IT leaders across every industry and around the world. Guided

continuously by member feedback, our task is to chronicle the successes and failures of those who pioneer the most innovative and potentially mostpivotal practices in IT strategy and management. We strive to capture that which is of consequence and report back to our members without bias orcommercial intent.

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, thecomplexity 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 tradepress 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 effectiveonboarding within a new organizational setting. Specifically, as you embark on your first 100 days in seat, we hope this study will provide a toolkitfor achieving the following three objectives: 1) understanding performance expectations, 2) gaining visibility into current performance andresources, and 3) executing on transition initiatives.

A Note on Peer Networking Opportunities

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 materialsto any audience of your choosing.

Thank you for your continued support of the CIO Executive Board.

With our warmest regards,

Shvetank Shah Matthew Grimes Kristin Sherwood Jacob Carney Sujatha Sivakumaran Aalap Shah



1© 2005 Corporate Executive Board

IntroductionConfronting the Challenging IT Landscape



Introduction: Confronting the Challenging IT Landscape 3© 2005 Corporate Executive Board

Amid a climate of economic recovery, many industry market leaders are emphasizing key initiatives aimed at top-line growth, relying on their CIOs toprovide the supporting technologies to enable such objectives. These companies remain cautiously optimistic that the CIO will be able to leverage existingand future investments in information technology to support the underpinning business processes essential for growth. New CIOs, however, reportconsiderable obstacles during their first 100 days in seat, as they look to maximize IT’s potential.

Growth Strategies of Bellwethers Require Information TechnologyCurrent growth strategies of leading companies…

The Boardroom Perspective

…cluster around a handful of key initiatives…

Key Growth Initiatives at Major Corporations

Corporate Executive Board Analysis

…that can be frustrated by a lack of continuity in IT leadership

Overcoming the Malaise

“CIO turnover is one of the telling symptoms of the malaisethat 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 personof the CIO, who will steer a steady course and be able toprovide the necessary guidance for the IT organization. Aleader can accomplish that only by taking a long-term view.”

Former CIOConsumer Packaged Goods

Company

Source: CIO Executive Board research.

• Alter business mix by exiting or reducingpresence in application software, hard-disk drive,networking hardware, low-end printer, and retailPC segments and increase presence in distributedmiddleware, nonhardware maintenance services,Intel-based servers, and mobile PCs

• Increase revenue in business and technologyconsulting services

• Grow aggressively in emerging markets such asChina, India, Russia, and Brazil

• Increase rate of new account growth

• Reshape portfolio by divesting energy,chemicals and pigments, pharmaceuticals,specialty polymers, and fibers and polyesterbusinesses and acquiring or partnering ingrowth areas such as agriculture and nutritionand performance materials

• Increase share of growth from innovationand new products

• Integrate marketing and research functionsmore closely

• Globalize R&D and Sourcing

• Technicalleadership

• Servicesacceleration

• Customerfocus

• Acquisitionof growthplatforms

• Globalization

• Focus product portfolioon 400 leading brands downfrom 1,600

• Synchronize data withcustomer via Transora onlinemarketplace

• Consolidate manufacturingat 150 strategic sites

• Consolidate around strategicpartners to increaseenterprise purchasing

• Deliver a high-quali ty, consistentcustomer experience by gettingthe basics right every time

• Build valued relationshipsby developing a superiorunderstanding of customers’

needs and their relationshippreferences

• Deliver integrated bankingand wealth management adviceand solutions

Source: DuPont CEO Presentation, Sanford B ernstein Strategic Decisions Conference,3 June 2004; www.GE.com; IBM Annual Report, 2003; Unilever Annual Report, 2003;National Australia Bank Group Annual Report, 2003.

1. Business Portfolio Reconfiguration—Acquisitions and Divestitures

2. Solutions Businesses—Move from Product to Services

3. Cross-Sales

4. Geographic Expansion—The Race to China

5. Customer-Driven Innovation

* Registered trademark of E.I. d u Pont de Nemours and Company, Wilmington, Del.

*




IT has experienced dramatic shifts that impact the CIO, who is now viewed as a business technology leader responsible for innovation and inculcatingbusiness objectives into IT. As the CIO forms partnerships with the business, identification of key stakeholders in the “IT value chain” and their variedperceptions of IT’s strategic role is a crucial step to accomplishing IT objectives. Upon arrival a new CIO must quickly uncover nuanced perceptions of ITand the dynamic political environment in an effort to inf luence senior executive leadership.

CIO at a CrossroadsCharged with stewarding the company’s data, the newly appointed

CIO must quickly establish a vision for his or her role

Reshaping the Role

“The continuing focus on transparency is reshaping the role to become Chief Information Officer versus Chief Computer Officer. In the daysof data processing directors, their role was much more focused on running the data center environment….Today, the CIO has become a clearguardian of the information and is expected to stand for the integrity and validity of the data. Now more than ever, CIOs are being heldaccountable for driving the business value…to be involved not only in strategy development but also in business and product innovation.”

Gregor BailarCIOCapital One Financial Corporation

Technology Expert

• Ensures consistent availability and accessto network resources

• Leads large-scale deployments of newtechnologies and systems

• Contributes to corporate energy throughprocess automation

• Minimizes costs to running Infrastructureand Applications

Strategic Business Partner

• Corporate Officer central to strategicand operational decisions

• Proactively provides insights into opportunitiesfor innovation

• Leverages cross-functional visibility to optimizebusiness processes

• Identifies opportunities to reduce costs throughstrategic sourcing and economies of scale

Challenge #1: Evolving Role Definition and Shifting Expectations

Source: Bansal, Parveen, “Why Does the CIO have So Many Hats?,”The Banker, 1 December 2003; CIO Executive Board research.




Core business strategies continually shi ft 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 organizationaladjustments, such as revising reporting structures and altering sk ill requirements, new CIOs must complete a highly objective organizational assessment,articulating a complete view of existing current strengths and weaknesses.

Organizing for Competitive Advantage

Challenge #2: Misaligned Organizational Design and Competencies

Percentage of IT Spend Controlled Centrally by the Group CIO

n = 45 CIOs.

50%

88%95%

As control over IT spend progressively consolidates at the center…

…new CIOs must reconcile diminishing returnsand trade-offs in organizational responsiveness…

Balancing Efficiency and Responsiveness

Source: CIO Executive Board surveys, 2003, 2005.

…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

n = 45 CIOs.

IT’sContributionto Business

Value

Degree of IT Centralization

Efficiency

Improved Scale Contributesto Bottom-Line Savings

Responsiveness

Reduced Flexibility UnderminesAreas of Competitive Advantage

Low

High

HighLow

“Finding the Right Balance”

63% 58% 52%43%

28%

9% 7%

Understandingof Company Value Drivers

CommunicationSkills

Management/Executive

Skills

CollaborationSkills

IntellectualCourage

R isk Taking Unders tandingof EmergingTechnologies

n = 76 CIOs.

2002 2004 2006(E)




0%

50%

100%

16%

55%

29%

51%

49%

0%

50%

100%

11%

55%

34%

30%

68%

2%

Due to the IT executives’ historical focus on project execution, CIOs have struggled to gain a seat at the business strategy–setting table, getting tappedmore frequently for tactical input. As new CIOs strive to make a strategic impact on the business and prove the value of IT investments, their challengeis compounded by a lack of exposure to existing strategy-setting processes and styles. Furthermore, the IT strategic agenda represents a new CIO’s firstmajor attempt to expose the executive board to a comprehensive organizational vision, influencing initia l perceptions of competence.

No Seat at the Strategy TableNew CIOs desire a more leveraged role in strategic planning to increase IT’s contribution to enterprise growth initiatives

Technology Solution Life Cycle

Challenge #3: Large Gaps in Business Strategy Participation

CIO Role in Business Strategy Formation CIO Role in Business Opportunity Identification

InformationResource/None

Participant

Leader

Business Strategy

Formation

Business Opportunity

Identification IT Project ExecutionUser Absorption Value

Measurement

Source: CIO Executive Board survey, 2005.

Current Ideal Current Ideal

n = 81 CIOs.




Concurrent with the process of aligning IT strategy with corporate objectives, the CIO must ensure successful real ization of promises to reduce inefficientIT maintenance spending and increase value-added IT solutions delivered on time and on budget. Crafting a detailed execution plan is a dauntingtask for a new CIO with limited understanding of a firm’s existing IT architecture and ongoing projects’ business cases. A comprehensive executionagenda, however, helps ensure that the CIO’s first 100 days include successful project delivery, reduced inefficient IT spending, and increased customersatisfaction.

Risky Business

Challenge #4: IT Portfolio Risks

●

●

●

●0%

30%

60%

●

As development projects get larger and more complex…

Average Project Size

Function Points

…on-time, on-budget performancebecomes harder to achieve

Rate of Successful Project Delivery

The Bigger They Are

“Anything $5 million and less, we hit those out of the park all day long. We always meet deadlines and, in most cases, get that on or under budget. But the double-digit guys, we’re at 75%. That’s not bad if you’re playing baseball, but in a culture that’s not really compassionate about defects, it’s not a good batting average.”

VP and Divisional Information OfficerInternational Automotive Company

AverageProject

Size(FPs)

ProjectSuccess

Rate

Source: IFPUG. Source: The Standish Group CHAOS Survey, 2004.

46%

23%

32%

Size of Project ($)

< $750.00 K > $10.00 M$6.00–$10.00 M

$3.00–$6.00 M$0.75–$3.00 M

11%

2%

1970 1980 1990 2000 20050

10,000

20,000




Previous failures of IT executives to clearly articulate and drive strategic responses to the pressing challenges impacting the corporate technology organization have contributed to substantially high turnover rates among the CIO ranks. CIO Executive Board survey results indicate a correlated findingthat nearly half of the CIO bench maintains less than three years in role, narrowing the window of opportunity these executives have to positively impacttheir businesses.

Growing PainsGiven the scale of the role’s challenges,

the CIO position is plagued by high turnover…

Average Annual Turnover Rate by Position

…and relatively short tenures

Average CIO Tenure in Role

CEOs CFOs CIOs

12%

17%

34%

48%

34%

18%

More ThanFive Years

Fewer ThanThree Years

Three to

Five Years

Outcome: Disproportionately High Turnover Rates

Whistling in the Dark

“Given the complexity of the IT terrain, I am little surprised at the rapid turnover rates we have experienced [in the CIO role]….Many of these individuals bring with them an avid love for technology but fail to adapt to the business challenges of the position. Without thisbusiness perspective to guide the investments of technology, they seemed to be whistling in the dark.”

CEOUtilities Company

n = 51.

Source: CIO Executive Board survey, 2004; CIO Executive Board research.

n = 51.




These pressing initiatives complicate the already diff icult task of senior executive onboarding by multiplying the chances of onboarding failureand 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.

Quick and Painless?Pressures exacerbate traditional drivers of onboarding failure…

Drivers of Failure for Newly Appointed Executives

…while also reducing time to onboard

Current Versus Historical Grace Period for New CIO Onboarding

82%

58%

50%

47%

28%

25%

Failed to BuildPartnership with Peers

and Subor dinates

Unclear or ConfusedAbout Role

Expectations

Lacked RequisitePolitical Savv y

Failed to AchieveTwo or Three CriticalExpected Objectives

Took Too Long toLearn Job/Role

Lacked Balance Between Work and Personal Life

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.”

CIOAutomotive Manufacturer


Stages in the

Path to FullProductivity

OnboardingCompleted

Length of Tenure

Operatingat Full

Productivity

Starting to MakeDecisions

1 Day 2 Months 4 Months 6 Months

New CIO Onboarding Trajectory

Historical CIO Onboarding Trajectory

…whereasin the past,CIOs often had

a six-month“honeymoon” period to master the challengesof onboarding.

Implication: Shorter Time to Move up the Learning Curve

New CIOs now havea very short window of time to move upthe learning curve…

Source: Association of Executive Search Consultants; Centre for CreativeLeadership; Kennedy Publications; Manchester Partners International.

Source: Gabarro, John J., “When a New Manager Takes Charge,” Harvard Business Review (May/June 1985); Hoffman, Von, “The Survivalists,” CMO Magazine (September 2004).




Understandingthe Role andAssociated

Expectations

Evaluating CurrentIT Organizational

Structure andPerformance

Assessing Staff Capabilities and

Readiness forChange

Defining aBusiness-Aligned

IT Strategy

Establishing anExecution Agenda

for OperationalObjectives

Examining FiscalRequirements

and VendorRelationships

External Hirewith Previous CIO

Experience

InternalPromotion fromthe TechnologyOrganization

Internal Transferfrom a Business

Role

PersonalBackground

Mandate

Variations in background and prior professional experience largely define the ease with which executives acclimatize themselves to the CIO role. The CIOExecutive Board has created the following road map to serve as a quick reference guide, outlining the degree of onboarding difficulty relative to severalchallenges faced by a new CIO. Each of these challenges is mapped to corresponding chapters and company case profiles that are designed to assist theCIO through his or her first 100 days.

Bridging the GapCIOs face a relative degree of difficulty based on personal background

Degree of Difficulty with Onboarding Challenge

● High Difficulty ●●◗ Medium Difficulty Low Difficulty

Implication: Shorter Time to Move up the Learning Curve (Continued)





Accelerating the Transition A road map for successful onboarding

Understanding PerformanceExpectations

Gaining Visibility into CurrentPerformance and Resources

Executing onTransition Initiatives

I.

Identifying Decision Makers’Perceptions of the IT Value

Proposition

Executive PartneringProgram (p. 16)

Expectations Profiling Exercise (p. 17)

Best-in-Class Learning (p. 19)

II.

Evaluating IT Effectivenessand Optimizing

Organizational Design

IT Competency Diagnostic Tool (p. 26)

Organizational DesignDiagnostic (p. 28)

Defining Competenciesand Career Paths (p. 29)

2

Core Competency Rankings by Role (p. 30)

Personalized Development Plans (p. 35)

III.

Aligning withBusiness Goals andPrioritizing Needs

Aligning IT Strategy withCorporate Goals (p. 39)

Business Unit Alignment Diagnostic Tool(p. 40)

Guiding IT Architecture Principles (p. 42)

Visualizing Project Portfolio Value (p. 43)

Ensuring Benefits Capture

Across All Projects (p. 45)

IV.

RealizingOperational Objectives

Legacy System Sunset Project Cards (p. 49)

Revalidating Business CaseAssumptions Midcycle (p. 50)

Project Cycle Timeand Cost Reduc tion (p. 51)

Scorecard Development andLife-Cycle Management Compendium

(pp. 54–55)

Scorecard Rollout (p. 56)

Data Collection and Quality Assurance(p. 57)

Scorecard Review and Revision (p. 58)Facilitating Scorecard Adoption (p. 59)

Additional Transitioning SupportDiagnostic Questionnaires(pp. 73–89)

Vendor Management andOutsourcing (pp. 67–72)

IT Budget Benchmarks(pp. 61–66)

1 Registered trademark of E.I. d u Pont de Nemours and Company, Wilmington, Del.2 Pseudonym.

Visit Resource Center @www.cio.executiveboard.com

Relevant Published Research(pp. 90–91)

1








I.

Identifying Decision Makers’Perceptions of the IT Value

Proposition




II.

Evaluating IT Effectivenessand Optimizing





2



III.

Aligning withBusiness Goals andPrioritizing Needs





Ensuring Benefits CaptureAcross All Projects (p. 45)

IV.

RealizingOperational Objectives



Project Cycle Timeand Cost Re duction (p. 51)


(pp. 54–55)





Vendor Management and

Outsourcing (pp. 67–72)


Visit Resource Center @


Relevant Published Research

(pp. 90–91)1 Registered trademark of E.I. d u Pont de Nemours and Company, Wilmington, Del.2 Pseudonym.

1




Roles and ExpectationsIdentifying Decision Makers’ Perceptions of the IT Value Proposition

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.



Roles and Expectations: Identifying Decision Makers’ Perceptions of the IT Value Proposition 15© 2005 Corporate Executive Board

New CIOs responsible for understanding how the organization functions and supplying technology to optimize the business can derive va luableinformation by building strong relationships with key constituencies. In an effort to learn crucia l information about business strategies and technology expectations, CIOs cannot overemphasize the importance of networking and relationship building upon entering the role. These relationships helpinf luence IT’s strategic vision and immediate priorities, while clari fying role expectations for the CIO.

Building PartnershipsNew CIOs gain significant insight into company challenges and corporate

strategic objectives by meeting with all business units and internal customers

Initial Conversations

“During my first month, I spent the largest percentageof my time with people within the organization,identifying personalities and relationships. With someof the discussions, I felt like I was driving people crazy with all of my questions, but I also talked to peoplewho seemed like they had never been listened to; thesepeople were hungry to share their issues.”

CIOBusiness Services Company

“What they tell you what they need is often not whatthey really need; it’s a CIO’s job to decipher what isimportant to them from a business perspective and useIT to solve it.”

CIOPharmaceutical Company

Critical Questions

• What are your key issues and strategic objectivesfor the coming year? Two years? Five years?

• What are the critical pain points of your job?

• What is your department’s relationship with IT?What would be an ideal relationship?

• Do you feel comfortable and/or confidentapproaching IT for support with your strategicinitiatives?

• What are your expectations for IT? Where is IT

currently not meeting your expectations?• What are your current IT priorities? How do you

anticipate these priorities changing across thenext year?

• Do you think IT is allocating resourcesappropriately to both technical and strategicbusiness issues?

• Are you aware of IT’s strategic plan?





Executive Partnering Program

In order to rapidly build a solid understanding of the company’s and industry’s strategic issues and challenges (as well as build an internal network), Fordruns an effective executive partnering program for new senior executives. This two-month program allows the CIO to “shadow” the top executives of different business units and/or functions one week at a time and, in the process, gain visibility into firm and industry issues as well as the organization’sinformal power structure.

Shadowing Key Strategic PartnersCarefully selected senior team members from across the company…

New Executive Partnerships

Source: Ford Motor Company; Corporate Strategy Board research; CIO Executive Board research.

…provide an intensive orientation to a company’s strategic and operational issues

Illustrative Calendar, New Executive

Week One “Partner”:VP, Business and Product Strategy

Week Two “Partner”:Group VP, Product Development and Quality

Week Three “Partner”:CEO, Ford Motor Company

Week Four “Partner”:Group VP, Manufacturing

Week Five “Partner”:VP, Truck Vehicle Center

Week Six “Partner”: Group VP, Premier Auto Group

Week Seven “Partner”:Group VP, Purchasing and Ford of Mexico

Week Eight “Partner”:Process Leadership Executive

September 2004 October 2004

President andChief Executive Officer

Vice Chairman Vice Chairmanand Chief of Staff

Vice President andChief Financial Officer

Chairman andCEO, Ford

Credit

Group VicePresident,

Asia–PacificOperations

andAssociations

President,Ford of

Europe, Inc.

President,Ford South

AmericaOperations

VP, VehicleOperations

Group VicePresident,

Manufacturing

Group VicePresident,Purchasingand Ford of

Mexico

VicePresident,Business

and ProductStrategy

ProcessLeadership

Group VicePresident,Product

Developmentand Quality

VP, Truck VehicleCenter

VP, Volvo

Group VicePresident,Premier

Auto Group

The new executive’s set of partners is selected to provide broad-basedlearning about Ford’s key strategic issues across product lines and operations.

A new executive dedicates upto 10 hours per day shadowingevery item on the “partner’s”agenda, including all staff andclient meetings and is frequentlycalled upon to contribute tomeetings and post-sessiondebriefings.




Role of the CIO Description Share of the CIO's Time That Should Be Devoted to Each Role

Own View CFO View CEO View

The Head of ITCoordination

IT Cost Reduction

IT centralization, simplification,and governance and standards

The BusinessStrategist

Value Creation

Driving business efficiency viaprocess optimization and digitization

Practical CIOExecution Focus

Practical implementation: “Getting things done”

Chief TechnologyOfficer

Technology Futuring

Finding new technology to transform industry

Key Prioritiesfor the

Coming Year

1.

2.

3.

Striving to affect business performance, new CIOs solicit the understanding of the CFO’s and CEO’s mandate for IT. The tool presented helps identify each of these expectations. Each executive is encouraged to fill out this form separately and then use the document for further discussion.

Your New Job Description

Gain visibility into expected mandates by networking with the senior executive team


Expectations Profiling Exercise

% %

%

%

%

%

%

%

%

%

%

%




CIOs occasionally fail due to an overestimation of the discretionary powers ascribed to the position. While the initial impression is that informationtechnology is the key to success for the corporation, they only realize after assuming the position that they cannot get projects funded or that lineabsorption of technology is poor. To this end, the CIO Executive Board asked IT executive recruiters to construct a list of questions for incoming CIOsseeking to measure a potential employer’s resolve to support IT.

Defining the CIO’s Discretionary PowersCultural factors offer subtle cues to define IT’s discretionary power

Industry Dynamics

Q: What drives industry competition: price or functionality?

Companies that compete on price are less likely to invest in strategic informationsystems.

Q: Is this company an industry leader or follower in terms of businessinnovation?

Companies that lead their industries are more likely to take risks with new advancedinformation systems.

Q: How quickly does change occur in this industry?Companies that are in rapidly changing industries are more likely to adopt newtechnologies and embrace new ways of doing business.

Financial Resources

Q: How is the corporation performing financially?

Many companies are simply unable to fully fund information technology.

Q: What is the size of the IT budget as a percentage of sales? Has it changedover the past five years?

The company’s proportional spending on IT is a good indicator of the value of technology to the company.

Q: How are capital-intensive IT projects approved?

Bottom-up funding implies a more network-intense first 100 days than top-downfunding.

Customer Priorities

Q: Who are the most important “internal customers” of IT in the company?

Manufacturing and logistics indicate cost-saving role for CIO; sales, marketing, and R&Dsuggest a more strategic customer-facing agenda.

Q: Do customers view IT as merely a back-office function or as an enablerto the business?

CIOs that operate as “business technology leaders” collaborate with the business tocreate value, extend scope of the franchise, improve operational efficiencies, and reducecosts.

Q: Does the CIO have genuine leadership responsibility for the company’senterprise security and risk strategy?

As a strategic partner, information technology can set and influence budgetary decisions,policies for end users, and risk management for the company.

Senior-Level Commitment

Q: Do senior executives believe that information technology can (and should)

materially affect the company?It is unlikely that IT can prove to be a strategic partner to the corporation without thesupport of the company’s senior management team.

Q: What is the turnover rate among the senior management team?

A high turnover rate might indicate a larger corporate concern. However, if the CIOposition is the only source of executive turnover, it may be difficult for the CIO topromote his or her agenda or break into the management “club.”

Q: Is IT mentioned in corporate communications as being critical to thesuccess of the company?

Public pronouncements set shareholders’ expectations for the corporation and aregenerally excellent indicators of management’s commitment to information technology.

Source: Korn/Ferry; Russell Reynolds; Spencer Stuart.




Best-in-Class Learning

Although all new CIOs need to learn the intricacies of the business, bui ld relationships with peers, and understand relevant technology, CIOs enteringuncharted industries or businesses face a steeper learning curve and thus need to increase their famil iarity with essential technology concepts and terms.

Scaling the Learning Curve

New CIOs use various strategies to clearly understand technology concepts, industry trends, and business intricacies

Onboarding 101

“I try to get up to speed in a new industry by doing a lotof reading. I work like a dog my first 6 to 12 months,meeting face to face with as many people as possiblefor 10 or 12 hours a day, both top down and bottom up.Then I expect to take home five or six hours of readinga night.”

CIOFinancial Services Company

The CIO Executive Board offers assistance to new CIOs during this criticalorientation period. Members can commission short-turnaround customresearch projects from the Project Support Desk (PSD) at no additional cost.Project Support Desk offerings include the following:

• Industry Watch —Annually published research brief detailing business andIT trends in select industries

• Budget Watch —Quarterly summary of spending trends and predictions

• Key Findings —Research brief to address a specific member need

• Vendor Profiles —Listing of vendors within a specific market space, withan objective description of product or services and client listing

• Networking —Targeted discussion with a peer within the membership todiscuss common challenges and lessons learned

To commission a PSD project please visit www.cio.executiveboard.com .

Reverse Mentoring

A new CIO can leverage internal experienceby tasking high-performing individualswith creating a targeted learning program.A single direct report may serve as a mentor,or several key employees can work togetherto create a comprehensive training plan.

As part of this reverse mentoring relationship,the mentor is responsible for providing the newexecutive with an adequate level of generic knowledgeimmediately and a more in-depth knowledge of specifictopics particularly crucial to the business and the goalsof the function. The mentoring relationship should beconfidential and objective, and it should provide thenew executive with honest and candid feedback.As part of the relationship, the mentor should providethe following:

Compilation of key readings to supplement

specific gaps in executive knowledge

Listing of possible executive educationcourses to address CIO learningrequirements

Schedule of networking contacts to buildrelationships with key individuals in thebusiness and IT


Project Support Desk




Considering the short time frame in which new CIOs are expected to deliver results, formal and informal feedback from a variety of sources providesvaluable performance insight. Immediate and regular solicitation of feedback can help to propel and direct one’s career trajectory.

Soliciting Relevant FeedbackCIOs seek varied performance feedback…

From Whom Do You Receive Feedback Regarding Your Performance?

Source: CIO Executive Board survey, 2004; CIO Executive Board research.

…to shape and focus their career trajectories

How Am I Doing?

“It was essential for me to get feedback early on in my tenure. And a lot of it. Most of the time you spend is on relationship building andfeedback; whether it is formal or informal, it is imperative to assess the circumstances of your customers, your team, and your boss. In asentence: ‘Your job depends on it.’”

CIOAutomotive Industry

41%

8%

65%

39%

49%

37%43% 41%

80%

20%

67%

22%

31%

6%

55%

41%

Board of Directors

DirectReports

ExternalStakeholders

FunctionalHeads

BU HeadsCOOCFOCEO

Informal

Formal

n = 51.








I.Identifying Decision Makers’Perceptions of the IT Value

Proposition




II.Evaluating IT Effectiveness

and OptimizingOrganizational Design




2



III.Aligning with

Business Goals andPrioritizing Needs






IV.Realizing

Operational Objectives





(pp. 54–55)










1




Organizational Assessment

Evaluating IT Effectiveness and Optimizing Organizational DesignAction Steps

Assess the IT Organization’s Effectiveness: Measure the competencies of the IT organization to identify opportunities for organizationalimprovement.

Optimize IT Organizational Design: Assess the effectiveness of the current organizational structure to mitigate competing demands for costsavings and responsiveness.

Define IT Skill Competencies to Align with Corporate Objectives: Determine core technical and business competencies to enable IT strategy execution.

Defining Competencies and Career Paths (p. 29)

Map Skill Requirements to IT Roles: Develop a comprehensive, uniform list of IT roles and performance expectations to inventory enterpriseresource capabilities and skill gaps among existing IT staf f.


Evaluate and Benchmark IT Leadership: Assess the competencies and leadership proficiencies of the IT management team.

Drive Employee Performance and Engagement Through Development: Form individual development plans for staff to target areas of improvement for underperformers and identify growth opportunities for high-potential employees.


2


1

© 2005 C t E ti B d



Organizational Assessment: Evaluating IT Effectiveness and Optimizing Organizational Design 25© 2005 Corporate Executive Board

Order Relevant Published Research: Key Attributes of the World-Class IT Organization (pp. 90–91)

Incoming CIOs should measure the competencies of their IT organizations in order to identify and prioritize IT initiatives. The CIO Executive Board hascompiled a tool—Key Attributes of the World-Class IT Organization—which identifies 25 attributes common to the most highly effective IT organizations,grouped into eight major areas of IT management. In addition to establishing a comprehensive, high-level view of an IT organization’s competencies, theKey Attributes diagnostic also serves as a gateway to the CIO Executive Board’s research library by mapping relevant literature to each IT attribute.

Assessing the IT Organization’s EffectivenessCIOs need a comprehensive framework to support strategic decision making


Strategic Priority IdentificationExamine performance gaps relative toattribute importance to set IT strategyagenda and assign responsibilities forshort- and long-term opportunities

Agenda Pressure-TestingAssess differences in scores betweensenior leadership and key staff (e.g., high-potential IT managers) to “pressure-test”IT priorities

Senior-Level CommunicationSecure executive support for IT initiativesby presenting internally assessedperformance gaps alongside benchmark comparisons from the CIO ExecutiveBoard membership

Attribute CIO Staff

CEOBU Heads

CIO

Recently transitioned CIOs can use the Key Attributes diagnostic tool as a framework to examine IT challenges.

CIO Executive Board members can use the tool in twoways:

Individual Assessment (Online)• Members complete an interactive, online diagnostic

survey.

• Participants receive immediate survey results onlineand by e-mail, with custom links to relevant research.

Collaborative Group Exercise• Executives can print the survey and administer it to

the IT leadership team or the entire organization.

• Participants can request a customized report tobenchmark results.

If your organization is interested in learning more aboutthe diagnostic, please visit the CIO Executive Board Website at www.cio.executiveboard.com or contact your AccountDirector.

Key Attributes of the World-Class IT Organization




Order Relevant Published Research: Achieving Responsive Scale (pp. 90–91)

In order to increase organizational transparency, simplify enterprise architecture, and leverage consolidated skills expertise, CIO Executive Board researchindicates that a growing number of companies are moving toward a centralized IT environment. Organizations have identified targeted IT responsibilitiesthat are suitable for centralization, including various governance activities and business-facing roles. Though centralization can enable several efficiencies,CIOs should not overlook the potential corresponding decrease in responsiveness to the business.

Roles of the IT CenterCIOs are migrating management and coordination roles to the center across the IT value chain


Traditional Rolesof the Center

Roles Migrating fromLocal to Center

EmergingCentral Roles

Implementationand Operations

“Building Things Right”

Needs Analysis

“Building theRight Things”

User Absorption

“Capturing Benefits”

Demand Management• Proactive identification of business needs• Focused business unit relationship management

through SLAs

Project Management Oversight• Creation of methodologies, business cases,

templates

IT Portfolio Management• Definition of portfolio prioritization criteria

and process

Business Process Design• Provision of methodologies and tools for business

process design

Infrastructure Shared Service

Enterprise Architecture

Sourcing and Vendor Management

IT Strategic Planning

Leadership Development

Security and Risk Management

Resource Management• Standardization of job descriptions,

career paths• Matching staff with project assignments• Skills forecasting

User Readiness• Development of education and training

to ensure business users understandhow to use new technology

• Proactive identification of neededinvestments in process change

Reusable Application Services and Middleware• Development, support, and consulting on reusable

application services and middleware

Data Architecture• Standard definitions and formats for shared

information• Data integrity stewardship

Diagnostic Questionnaire on p. 75





Order Relevant Published Research: Charting the Course for Principled IT Centralization (pp. 90–91)

Organizational Design Diagnostic

Transitioning CIOs must also assess the effect iveness of their organizational structure to ensure the appropriate balance of centralized cost eff icienciesand 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.

Aligning IT Organizational Design with Business ModelCompanies weigh a number of business factors in determining the structure of IT

Total Score Representative Organizational Models

0–1 Structured Collaboration

2–7 Tiered, Mirrored Central and Regional IT

8–10 IT Shared Service and Competency Centers

11–12 Global IT Linked by Business Liaison

Company is…

Business Model Attribute Closer to Both Closer to

Business DiversityDiverse business unit scale, market

environment, or product lines0 1 2

Similar business unit scale, marketenvironment, or product lines

Business Strategy Product differentiation and innovation 0 1 2 Lowest-cost provider

Business Portfolio Stability Pursuing divestiture or joint ventures 0 1 2 Stable or pursuing M&A or alliances

Role of TechnologyCustomer facing (e-commerce and channel

enablement)0 1 2

Primarily back office (finance, HR, and core transactions)

Regulatory Focus Local tax and labor arbitrage 0 1 2 Global compliance

Corporate Culture Local autonomy and entrepreneurship 0 1 2 Top-down management

Subtotal Subtotal Total Score=






Defining Competencies and Career Paths

To enable IT strategy execution, CIOs should examine their long-term human resources plan. IT organizations place increased value on general businesscompetencies including finance, procurement, communication, and leadership skills, ref lecting a closer alignment with the business. DuPont adopts acomprehensive strategic competency model to outline the Nine Critical IT Capabilities for the internal organization, detailing specific skills within theareas of business, technology, and vendor management to support an aggressive outsourcing strategy.

Aligning Competencies with Corporate Objectives An IT competency model defines nine key skills…

Nine Critical IT Competencies

…associated with three distinct career paths

DuPont’s IT Job Families

Source: DuPont; CIO Executive Board research.* Registered trademark of E.I. d u Pont de Nemours and Company, Wilmington, Del.

Making TechnologyWork

Informed Buying

Leadership

RelationshipBuilding

ContractFacilitation

Vendor Development

Contract Monitoring

ArchitecturePlanning

Design of IT Architecture

Delivery of IT Services

Business and IT Vision

Business Systems Thinking

1

3

2

General Competencies

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.

Leadership and Informed

Buying are cited asthe most importantcompetencies in anoutsourced environment.

LeadershipIntegrating IS/IT effort with business purpose and activity.

Business Systems Thinking Envisioning the business process that technology makes possible.

Relationship Building Getting the business constructively engaged in IS/IT issues.

Architecture Planning Creating a coherent blueprint for a technical platform that respondsto current and future business needs.

Making Technology Work Rapidly achieving technical progress—by one means or another.

Informed Buying Managing the IS/IT sourcing strategy that meets the interests

of the business.

Contract FacilitationEnsuring the success of existing contracts for IS/IT services.

Contract Monitoring Protecting the business’s contractual position, current and future.

Vendor DevelopmentIdentifying the potential added value of IS/IT service suppliers.

1

2

3

4

5

6

7

8

9

Informed Buying Managing the IS/IT sourcing strategy that meets the interests

of the business.

Contract FacilitationEnsuring the success of existing contracts for IS/IT services.

Contract Monitoring Protecting the business’s contractual position, current and future.

Vendor DevelopmentIdentifying the potential added value of IS/IT service suppliers.

Vendor Management

Skills

Technology Skills

BusinessSkills

Core IS Capabilities for Exploiting Information Technology


Order Relevant Published Research: Strengthening the IT Leadership Bench (pp. 90–91)

*




The CIO’s First 100 Days 30

Core Competency Rankings by Role

A comprehensive, uniform l ist of IT roles and performance expectations provides visibility into enterprise resource capabilities as well as potentialskill gaps among existing IT staff. Af ter creating 35 standardized roles across the company, Iverson Financial* scored the competencies of each positionaccording to four key skills d imensions to express each role’s strategic business impact. For each skills dimension, the roles receive a score on a scaleof 1 to 5, to provide an objective ranking of role expectations for both individual and enterprise-wide talent assessments.

Defining Required Skills and CapabilitiesIverson Financial* analyzes enterprise roles for alignment with key skills dimensions

Role Competency Rankings List

* Pseudonym.

Source: Iverson Financial; ApplicationsExecutive Council research.

*




Recent CIO Executive Board data suggest that CIOs should invest in the development and retention of a strong leadership to most effectively driveemployee discretionary effort. Compensation, by contrast, has only one-fifth the effect on employee effort as that of manager quality.

Investment in Management Leadership to

Build the High-Performance Workforce Manager quality is five times more impactful than compensation

Average Impact of Management Strategies on Discretionary Effort

20%19%

15%

9%

4%

Direct Manager Characteristics

OrganizationalCulture Traits

Day-to-Day Work Characteristics

Learning andDevelopmentOpportunity

CompensationStrategies

Source: Corporate Leadership Council research; CIO Executive Board research.

Change inDiscretionary

Effort

n = 3,564.

T C O’© 2005 Corporate Executive Board




Because strong leadership is imperative to a successful IT organization, new CIOs must evaluate the competencies and leadership styles of the function’scurrent management team. To assist new CIOs in understanding the most valuable leadership characteristics, the graph below presents the mostimportant attributes for effective IT leadership as ranked by IT staff in managerial positions.

What Leadership Characteristics Do

IT Leaders Consider Most Important?Focus investment on the most important leadership characteristics

Leadership Characteristic Importance Scores

n = 800.

* Percentage of leaders selecting each item as one of the eight most important

characteristics of effective leadership at their company and level.

Source: Corporate Leadership Council Leadership

Survey; CIO Executive Board research.

Order Relevant Published Research: Strengthening the IT Leadership Bench (pp. 90–91)




C r e a t i n g

L e a d e

r s h i p D e

v e l o p

m e n t P l a

n

I n t e r a

c t i n g w

i t h P e e r s

M e e t i n g

w i t h a

n E x e c

u t i v e

C o a c h

M e e t i n g

w i t h a

M e n t o r

F e e d b

a c k

A m o u

n t o f D e

c i s i o n

- M a k i n g

A u t h o

r i t y

T u r n i

n g A r

o u n d

a S t r

u g g l i n g

B u s i n

e s s

W o r k

i n g i n N e

w F u n

c t i o n a l

A r e a s

W o r k

i n g i n F o

r e i g n

C o u n t r i e

s

W o r k

i n g i n N e w

L i n e s

o f B u

s i n e s s

L a u n c h

i n g N e w

B u s i n

e s s e s

N u m b

e r o f D i r

e c t R e p o

r t s

Q u a l i t

y o f D i r e

c t R e

p o r t s

P e o p l e -

M a n a g

e m e n t S k i l l s

C o u r s

e s

O f f - S i t e

S e m i n

a r s i n B u s i n

e s s S k i l l s

T e c h n

i c a l S k

i l l s C o

u r s e s

B u s i n

e s s S k i l l s

C o u r s

e s0.0

5.0

10.0

8.0

6.96.6 6.4 6.2

8.6

5.95.6 5.5 5.4 5.2 5.1

4.8

5.9

4.9 4.84.4

Feedback and Relationship ActivitiesMean = 6.8

Experience-Based ActivitiesMean = 5.7

Education-Based ActivitiesMean = 5.0

5.9 = MeanImportance

for AllActivities

Acknowledging the importance of strong leadership, new CIOs are tasked with maintaining or developing a robust IT leadership pipeline to ensurecontinued organizational improvement and success. To help new CIOs provide staf f with the most effect ive development opportunities, the graph belowplots 17 common development activities according to importance.

What Development Activities Do

IT Leaders Consider Most Important?“Feedback and Relationship” is the most important category of development activity

Distribution of Importance Scores for Development Activities Among IT Leaders*

* Importance scores derived from conjoint analysis, measuring the relativeimportance leaders place on each activity for its development of leadership skills.

Source: Corporate Leadership Council Leadershipsurvey; CIO Executive Board research.

n = 800.

Average Importance or Higher

Below Average Importance

T CIO’ F 100 D 34© 2005 Corporate Executive Board




Competency Self-Assessment

Relationship Building

ProficientNeed development; add to development plan

Development Preferences

Development assignment or project

Mentoring

Course or seminar

Related courses for this capability (clicking this linkwill open course description in a new window)

Executive Program in Corporate Strategy

Related Development Opportunities

Next Performance Review Date

Personalized Development Plans

Newly appointed CIOs facilitate the formation of individual development plans for staff to target areas of improvement for underperformers and identify growth opportunities for high-potential employees. In the uncerta in environment following a change in leadership, development plans also shif t employeefocus toward future opportunities within the organization. DuPont’s customized development planning tools enable employees to gauge their proficiency in required competencies for a current or desired role and generate development plans that include development priorities, a recommended learningregimen, and suggested completion dates.

Fostering Motivation Through DevelopmentOnline self-assessment of competency

gaps and training activity preferences…

Online Competency Self-Assessment

Illustrative

…generates individualized development plans

that form a “baseline” for career-path guidance

IT Staff Personalized Development Plan

Illustrative

Source: DuPont; CIO Executive Board research.* Registered trademark of E.I. du Pont de Nemours and Company, Wilmington, Del.

Attend executive seminar on corporate strategy

11 30 03

Save Clear Changes

Relationship Building

Co mp ete ncy A sse ssm ent EducationOpportunity ProjectOpportunity TargetCompletion Date

LeadershipNeeddevelopment

DuPont 101Corporate Strategy

Course11/30/03

Making Technology Work

✓ 12/31/04

Informed Buying Needdevelopment

SpecialtyChemicals

E-Procurement10/31/03

Architecture

Planning ✓

Business SystemsThinking

Needdevelopment

Supply ChainE-Learning Module

RelationshipBuilding

Needdevelopment

Attend executiveseminar oncorporate

8/30/03

Staff: Scott CarneyTitle: Global IT Alliance Director

Direct Manager: Robin PriceNext Review Date: November 2003

My Development Plan

“Best-mix” recommendations of classroom and experiential development

Employee developmentpriorities

Opportunitycompletiondate

*




The CIO s First 100 Days 36

III.Aligning with



Business Unit Alignment Diagnostic Tool (p.40)









Proposition









2



IV.Realizing






(pp. 54–55)










1




IT Strategy Setting Aligning with Business Goals and Prioritizing Needs

Action Steps

Align IT Strategy with Corporate Goals: Create an IT strategic plan to support overall business objectives and drive value through IT.

Aligning IT Strategy with Corporate Goals (p. 39)

Align IT Strategy with Business Unit Goals: Understand business unit needs and perceptions to enable responsive IT service.

Evaluate IT Architecture and Architectural Management Strategies: Ensure architecture can support future IT investments.


Establish Governance Structure Around Future IT Investments: Establish an objective prioritization framework to ensure transparency around IT resource allocation.


Ensure Maximum User Absorption: Incorporate change-management strategies during project implementation to ensure maximum end-user adoption of IT projects.

Ensuring Benefits Capture Across Al l Projects (p. 45)




IT Strategy Setting: Aligning with Business Goals and Prioritizing Needs 39© 2005 Corporate Executive Board

Source: Seagate Technology; CIO Executive Board research.

Aligned CIO Goal

Illustrative

1. Growth/Profitability

Design and implement best-in-classprocesses that drive revenue growthand reduce costs

2. Technology and Time-to-Market

Lead our industry in developing andexecuting critical technologies to be firstto market

3. Customer Quality

Develop best-in-classproducts to meet customer’squality expectations

4. On Time Delivery

Achieve on timedelivery to customerrequest

5. People

Cultivate a diverse, high-performing team thatattracts, develops, recognizes, and retains thebest people

Aligning IT Strategy with Corporate Goals

Seagate Technology establishes a goal a lignment workshop and a formal cascade process to more effectively translate corporate objectives into functionaland operational goals. The company creates cascaded funct ional goals to directly ref lect strategic corporate objectives and establishes more granularproject metrics to track progress against those objectives.

Cascading Goals from CEO to StaffHighest-level corporate objectives align directly with IT executives’ annual goals

Seagate Corporate Objectives

Illustrative


Visit IT Strategic Planning Resource Center at www.cio.executiveboard.com

Address:

StopForwardBack Refresh ! !

Functional Goal Goal Description Measures

Launch a product andprocess data warehousefor Seagate

• Develop and execute product-centric data warehouse• Transition from multiple independent decision-support databases and tools to a single system• Begin moving decision-support features from execution systems into the new system

Q2: Design in place and approval to proceed confirmedQ2: Begin streaming data to the new data warehouseQ4: Strategy in place for execution systems

Address:


Current Goals Browse by Employee: CIOMy Goals and Tasks: Launch a product and process data warehouse for Seagate

Title Aligned To Due Date Status Updated

Develop infrastructure strategy for EDW VP, Infrastructure 30 Jun 04 On Track 30 Apr 04

Assess application strategy for future expansion of EDW VP, Applications 30 Jun 04 On Track 14 Mar 04

Create legacy systems integration strategy for EDW VP, Enterprise Systems 30 Jun 04 Issues 10 Mar 04

Improve data quality Senior Data Manager 30 Jun 04 Issues 20 Apr 04

Formulate new EDW business processesDirector, BusinessProcess Management

30 Jun 04 On Track 09 Jan 04

CIO prioritieslink clearly tothose of ITdirect reports.

Arrows indicatethe presence of downward- andupward-alignedgoals.

CIO Goal Alignment DashboardCIO Goal Alignment Dashboard





Business Unit Alignment Diagnostic Tool

To align IT strategy with corporate goals, IT must clearly understand business needs and perceptions. The IT–Business Alignment Diagnostic is a survey-based exercise that enables CIO Executive Board members to identify which attributes of IT process and serv ice delivery are of top priority to businesspartners and IT staff. An aggregate analysis of more than 1,850 survey responses from 28 companies identified common IT attributes where recurringgaps exist between importance and effectiveness ratings.

Properly Aligning IT with Business UnitsThe CIO Executive Board tool reveals six

general areas of top priority to the business…

Business Partner Importance Versus Business Partner Effectiveness Gap

…and provides an opportunity for

members to obtain custom results

●

●

●

●

●

● ●

●

●●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

4.25

5.25

6.25

0.2 0.4 0.6 0.8 1 .2 1.4 1.61.0

Effectiveness Gap(Business Partner Importance–Business Partner Effectiveness)

Business PartnerImportance

OpportunisticImprovement

High PriorityKey Strength

Low ROI

Security

Business Liaison

Requirements DefinitionVendor Alignment

Prioritization Discipline

Value Demonstration

System Adoption

Cost TransparencyCommunication

User TrainingLeadership Skills

Business Case Discipline

Technology Innovation

Financial ImpactBusiness Skills

Risk ManagementProject Skills

Technology Provisioning

End-User SupportTechnical Skills

Business Continuity PlanningAvailability Management

Responsiveness

Business CaseAchievement

Strategy and Planning

Data and KnowledgeManagement

Business Functionality

Project Delivery

Skills Adaptation

Average Gap

Average

Importance

n = 1,850 business partner respondents from 28 companies. Source: CIO Executive Board IT–B usiness Alignment Diagnostic Database.

To help recently transitioned CIOs understand businessexpectations, the CIO Executive Board is pleased to offerthe IT–Business Alignment Diagnostic to CIOs as part of

your membership.What You Will Do

• Identif y appropriate business partner and IT staff tocomplete Web-based survey

What You Will Receive• Detailed customized report identifying high-priorit y

areas to increase business alignment

Members Leverage the Diagnostic To• Focus strategic planning efforts for IT• Create a more informed dialogue between IT and

business partners• Tailor IT service delivery to better reflect the needs

of the business

If your organization is interested in learning more about thediagnostic or in reserving a spot for the current quarter,please contact your Account Director.

IT–Business Alignment Diagnostic




Order Relevant Published Research: Calibrating the Partnership (pp. 90–91)

For each attribute, IT’s self-assessment of performance is higher than the corresponding business partner rating. In the chart below, the columns representthe average attribute effectiveness ratings of business partners, while the dots represent the average attribute effectiveness ratings of IT staff. Amongattributes, the largest gaps exist in the Business Enablement and Project Design and Execution categories.

IT Overestimates Its EffectivenessDisconnect in perceptions highlights poor communication between IT and the business

Average Effectiveness by Attribute

Business Partners Versus IT Staff

n = 3,063.

Source: CIO Executive Board IT–Business Alignment Diagnostic Database.

Talent Managementand Development

Project Designand Execution

Service Deliveryand Management

BusinessEnablement Governance Security/Reliability

●

●

●

●

●

●

● ●

●●

● ●

●

●

●

● ● ●

●

●

●

●●

●● ●

● ●

●

1.00

7.00

4.07

4.404.12

4.32 4.414.59

3.98

4.284.14 4.24 4.26

4.044.24

3.954.24

4.84 4.82 4.824.60

4.19

4.824.63

4.404.28

4.42 4.48

5.19

5.07 5.044.71

5.31

4.875.15

4.875.16

4.83 4.924.67

4.854.70 4.77

5.09

4.27

4.965.21 5.16 5.25

5.52

4.61

5.47

4.794.96

4.814.99 4.97

5.20 5.13

5.85

F i n a n

c i a l I m

p a c t

P r o j e c

t D e l i v e r y

R e q u i r e

m e n t s

D e fi n i t

i o n

V a l u e

D e m

o n s t r a t i

o n

S t r a t e

g y a n d P

l a n n i n

g

C o m m

u n i c a

t i o n

P r i o r i t i z

a t i o n

D i s c i p l i n e

E n d - U s

e r S u

p p o r t

T e c h n o

l o g y P

r o v i s

i o n i n g

L e a d

e r s h i p

S k i l l s

B u s i n

e s s S k i l l s

P r o j e c

t S k i l l

s

R i s k M

a n a g e

m e n t

B u s i n

e s s L i a i s

o n

S e c u r i t y

T e c h n o

l o g y I n n

o v a t i

o n

S k i l l s

A d a p t a

t i o n

U s e r T r a

i n i n g

R e s p o

n s i v e n e

s s

B u s i n

e s s C o n t i n

u i t y P

l a n n i n

g

EffectivenessScore

S y s t e m

A d o p t i

o n

B u s i n

e s s C a s e

D i s c i p l i n e

A v a i l a

b i l i t y

M a n a g e

m e n t

B u s i n

e s s C a s e

A c h i e v

e m e n t

T e c h n i c

a l S k i l l s

Highly Effective

Highly Ineffective

B u s i n

e s s F u n c t i o

n a l i t y

D a t a

a n d K

n o w l

e d g e

M a n a g e

m e n t

C o s t T r

a n s p a r e

n c y

V e n d

o r A l i

g n m e

n t

IT Average: 4.98BP* Average: 4.26

Gap: 0.72

IT Average: 4.89BP Average: 4.25

Gap: 0.63


Gap: 0.57


Gap: 0.53


Gap: 0.49


Gap: 0.33

IT Effectiveness Rating

Business Partners’ Effectiveness Rating* BP = Business Partner.




Order Relevant Published Research: Case Studies in Enterprise Architecture Mitigation (pp. 90–91)

Guiding IT Architecture Principles

Before addressing enterprise goals through IT investments, new CIOs must f irst evaluate the organization’s IT architecture and architectural managementstrategies. KeyCorp’s principles reflect a single overarching theme: the simplif ication of the technology environment as a means to an end—the creationof a standard enterprise applications architecture and infrastructure. The net effect of these principles is to link simplicity with better, faster, cheaper ITperformance. Every resource al location decision made by KeyCorp’s Key Technology Services group invokes the f ilter of these eight guiding architectureprinciples.

Laying a Solid FoundationKeyCorp elevates simplicity to a strategic goal

KeyCorp’s 2001 IT Architecture Framework

Representative Overview

Use of technology forcycle-time reduction

Embrace of open standardsand nonproprietaryapproaches

Proactive management,

high scalability, and security

Standard applicationsand infrastructure

Enterprise TCOperspective(particularlywith applications)

Systems simplification,code reduction,and retirement

Minimal package

customization

Culture of reuse

Source: KeyCorp; CIO Executive Board research.

*

We b

EDI/XMLHub

M ROB2BInfrastructure N-TierMiddleware eCRM Database

ERP

Sa le s

Store

Fulfillme nt

Stra te g icCustome rCa mpa ig nM a na g eme nt

Da ta M a rts

Conte nt

Supplie r

M a rk e tpla ce

KnowledgeManagement

L e g a c y

S e c u ri t y

B u si n e s sL o gi c

M e s s a gi n g

Wa re house

Ca llCe nte r

Focus on Platform Focus on Life Cycle

1

2

3

4

5

6

7

8

Sigmaδ

* The CIO Executive Board does not endorse or r ecommend technology vendors. The technologies listed hereare for illustrative purposes only and do not necessarily represent the technologies used by profiled companies.




Visualizing Project Portfolio Value

To ensure objective alignment of future IT spending with stated corporate and business unit objectives, new CIOs must establish a transparentprioritization framework by which they evaluate project proposals. Schlumberger segments its IT projects into four “asset classes,” each with a uniquegoal and target spending allocation, to guide the budgeting process. By quantify ing both financial and strategic project benefits through project sponsorquestionnaires tailored to each of the four asset classes, Schlumberger creates a holistic view of each project’s impact on the organization.

Responsive IT Portfolio Prioritization

Source: Schlumberger Ltd. ; CIO Executive Board research.

To enable portfolio prioritization, Schlumberger creates an

IT project portfolio with principled project categories…

Schlumberger “Asset Classes” and Target Allocations

…and estimates the strategic, nonfinancial value

of projects based around the following categories

Asset Class-Specific Value Drivers

Representative

Realize measurable

business benefits(revenue generationor cost savings)

Innovation25%

BusinessOpportunity

25%

Infrastructure40%

Mandatory10%

Realize measurablebusiness benefits(revenue generationor cost savings).

Confer competitiveadvantage, e.g., incubatingnew platforms, or responses

to competitors’ offerings

Confer competitiveadvantage, e.g., incubatingnew platforms or responses

to competitors’ offerings.

Legal orregulatorycompliance

Ensure legalor regulatorycompliance.

Optimize the use of existing IT assets andreduce IT costs

Optimize the useof existing IT assetsand reduce IT costs.

Innovation Business Opportunity

• Reusability across BUs

• Speed of technology adoption• Competitive advantage potential• E nhancement of reputation as

technology leader• Fit with long-term corporate

strategy

• ROI

• Potential increase in market share• Potential to attract new customers

or facilitate new market entry• Simplification of end-user workflow• Improvement in speed and quality

of decision making• Fit with short-term corporate

strategy

Infrastructure Mandatory

Application• ROI

• Reusability across BUs• End-user satisfaction and urgency• Functionality versus technology

life spanNetwork• ROI• Reusability across BUs• Improvement to network

bandwidth, reliability, security, orperformance

• Cost per user• Deployment velocity

• Ease of use by end user• E ase of deployment• Impact on network bandwidth

and support resources


Visit Portfolio Management Resource Center at www.cio.executiveboard.com





Ensuring Benefits Capture Across All Projects

Responsible for ensuring that all IT projects achieve full business case real ization and maximum end-user adoption, new CIOs must institute a definedapproach for ongoing communication with all project stakeholders. Texas Instruments addresses this challenge by assigning a business readiness rating foreach project and accurately describing the engagement scope and communication level with sponsors, in addition to end-user training processes accordingto the rating.

Increasing User AbsorptionLevel of business readiness support aligned to end-user impact

Business Readiness Life Cycle

Source: Texas Instruments; CIO Executive Board research.

1 2 3BusinessReadiness Rating

Business ReadinessResources Engagement Scope Communications Plan Training Protocol

Full-time business readinesslead dedicated to project

• Conduct a deep stakeholderanalysis cataloging all affected

staff • Dedicate full-time resource

to project

• Conduct frequent in-person meetingswith steering teams to update them

on the progress and risk of the project• Inform end users about project status

and related disruptions through targetede-mail updates and newsletters

• Train power users to conductadoption sessions for all

end users• Develop and run training

classes for end users

Part-time involvementin project

• Identify project ownersand immediate end users

• Deliver routine progress reportsto steering committee

• Design an online trainingmodule for all affectedend users

Informal advisory role

• Consult with business sponsorsand selected users on aninformal basis

• Deliver a detailed checklist to projectmanager containing communicationsguidelines for status and risk reportingto stakeholders and selected users

• Deliver adoption instructionsto end users via e-mail

• Support and monitor training

StakeholderSegmentation Analysis

E-Mail Updates End-User Training Modules

Sample Deliverables

SAP

What YouNeed to Know

P a c k a

g i n g E n

g i n e e r i n g

D e s i g n E n

g i n e e r i n g

P r o c

e s s E n

g i n e e r i n g

P l a n n i n

g M

a n a g e r

M a r k e t

i n g C

o n t a

c t

B u s i n

e s s – I T

L i a i s o n

Tasks

Rolling Quarterly Forecast S C R I I

Procure Subcontracting Capacity A R I

Transition Support R S

Setup and Implementation S R

Device Setup R S

Starts R

Execution R I I S S S

Ship R C A

R o l e s

Business Unit Liaison Subject-MatterExperts

Responsibility AssignmentKey

R Responsible Accountable in Status Reviews

A Approver Veto Power

S Support Team Members

C Consultant Acknowledged Expert

I Informed Nonparticipant

To: All Staff From: CIORe: SAP Upgrade

High

Medium

Low

NetUnrealizedAppreciationScenario #2:

?????Sum Distribtution

Order Relevant Published Research: Achieving Responsive Scale (pp. 90–91)









Proposition









2



III.Aligning with






Ensuring Benefits Capture

Across All Projects (p. 45)

IV.Realizing




Project Cycle Timeand Cost Reduction (p. 51)


(pp. 54–55)










1




IT Strategy Execution

Realizing Operational Objectives

Action Steps

Simplify Existing Systems Portfolio: Establish a set of methodologies to reduce duplicate/obsolete systems, thereby cutting maintenancecosts.


Review Project Risks: Develop a detailed project-assessment framework to mitigate risks and prevent ROI degradation.

Revalidating Business Case Assumptions Midcycle (p. 50)

Decrease Project Cycle Time: Develop a set of disciplined implementation strategies to reduce costs and compress cycle time of large-scale IT

projects.

Ensure Continuity with Direct Reports: Engage directors of Infrastructure and Applications, diagnosing their current operational objectives.

Measure Strategy Execution: Establish performance metrics to gauge the performance of IT and track the progress of strategic initiatives.


Data Collection and Quality Assurance (p. 57)

Scorecard Review and Revision (p. 58)

Facilitating Scorecard Adoption (p. 59)




IT Strategy Execution: Realizing Operational Objectives 49© 2005 Corporate Executive Board

Legacy System Sunset Project Cards

IT budgetary pressures coupled with complex systems architectures require new CIOs to reduce rising maintenance spending through systematicrationalization of the existing legacy portfolios. IBM, for instance, developed a set of strategies that al lowed it to reduce maintenance spending and divertthe funds to more strategic, value-added activities. As part of IBM’s annual strategic planning cycle, business process IT heads determine a sunset targetfor each application and enforce timely retirement of all obsolete, redundant legacy systems.

Principled RationalizationCost–benefit analysis of applications produces sunsetting target and project plans…

➤

…while a dedicated team monitors BU performance against commitments

BU IT

Head

CorporateCIO Staff

BP IT

Head

Two CIO staff members track compliance with applicationsunset targets

Transparency of performanceagainst sunset targets incentsBU IT heads to retire systemsexpeditiously

BU and BP IT heads and corporate CIO representative reviewapplication portfolio as part of strategic planning cycleto identify applications for sunsetting

Sunset Target-Setting Session

Review yields individual BU sunset targets and applicationsunset project plans; assigned to project managers

Sunset Project Plan

Illustrative

BU IT StrategicPlan 2000

Sunset Project Plans

SunsetTarget

12%

❏ Testing Application

#3

❏ Procurement

Application #4–10

❏ Intranet

Application #2

BU 2 April

Below Schedule

Sunset Progress–Tracking Team Monthly CIO Report Card on Sunset Progress

Illustrative

Source: IBM Corporation; CIO Executive Board research.

➤

Sunset ResultsBU 1

4%

BU 2

0%Retired

Savings $100,000 $0BU 1 April

Ahead of Schedule

Order Relevant Published Research: Institutionalizing IT Cost Efficiency (pp. 90–91)




Revalidating Business Case Assumptions Midcyle

As IT’s credibility correlates directly with project success rates, many new CIOs are required to build their reputations by delivering on detailed midcycleproject—a potentially daunting task if initial business case assumptions lack support. New CIOs, therefore, can use risk as a means of continuously revisiting those business case assumptions to ensure project success. Progressive organizations such as Merril l Lynch employ cross-functional governanceteams that oversee progress on large projects every quarter and provide an independent assessment of project risks.

Midcycle Project Risk ReviewProjects over $2.5 M require reviews to determine ongoing funding…

Quarterly Project Review Process at Merrill Lynch

Source: Merrill Lynch; CIO Executive Board research.


Visit IT Management Implementation Tools at www.cio.executiveboard.com

Risk Ratings Scale Definitions

Very High Risk1

High Risk2

Moderate Risk3

Low Risk4

Very Low Risk5

S ScopeManagement

Numerous scope changes (> 30%)impact project (functionality,schedule, or cost)

Major increases in scope(10%–30%); major functionalitychanges

Scope changes with 5%–10%impact on costs

Consistent history of smallchanges to scope < 5% of costs

Minimal scope changes

C Clarity of BusinessBenefits

Business benefits unquantified andnot verifiable

Major areas of benefits quantifiedbut not verifiable

Most benefits quantified but littleconfidence in benefits capture

Most benefits quantified; mediumconfidence in benefits capture

Most benefits quantified;high degree of confidencein benefits capture

O On-TimeDelivery

Delays > 40% of lead time formajor deliverables

Delays 20%–40% of lead time formajor deliverables

Delays 10%–20% of lead time formajor deliverables

Delays < 10% of lead time formajor deliverables

On-time delivery

R Remaining onProject Budget

Costs > 20% higher than planned Costs 15%–20% higher thanplanned

Costs 5%–15% higher thanplanned

Costs up to 5% higher thanplanned

On-budget delivery

E Engagementof BusinessLeaders

Initiative not project owners’primary responsibility; sporadicbusiness attendance at steeringcommittee meetings(< 50%)

Initiative not project owners’primary responsibility; leadershipteam attends majority of steeringcommittee meetings(50%–75%)

Initiative not project owners’primary responsibility; steeringcommittee meeting attendancehigh (75%–100%)

Initiative primary responsibilityof operations, IT, and businessowners; 75%–100% attendanceat steering committee meetings

Full-time businessoperations and IT owners;100% attendance atsteering committeemeetings

…relying on detailed risk-assessment criteria

Benefits ContractAffirmation

GO FIX

KILL

Risk S.C.O.R.E.

1–5

Risk Reassessment 2 Distressed ProjectReview

Recommitmentof Project Funds

• Sponsor recommits to ROI

• Revisit projects

highlighted as high risk

3a

3b Proactive Termination

ProjectSponsor Contract

Costs Bene fits

I nit ia lF ore ca st $1. 2M $ 3. 5M

FY2004 Budget Adjustment

($3.5M)

C ur re nt Es ti mat e $1. 0M $ 3. 7M

Signature Tom Kovack Sponsor

Craig Reist ITProjectManager

Costs Benefits

1a 1bUnused projectfunds returnedto the business




Project Cycle Time and Cost Reduction

One of the challenges commonly cited by new CIOs is determining the tactical levers that they can use to improve cycle time and contain costs of ongoinglarge IT projects, such as ERP implementation. Project-management exemplars increase project throughput by defining a set of execution strategies thatfocus on priorities such as project-team efficiency, quality assurance, and business process change management across the stages of a project’s life cycle.

On Time and on BudgetDisciplined implementation strategies during the project life cycle provide improved cycle time

Source: Applications Executive Council research.

Visit Project Execution Resource Center at www.cio.executiveboard.com

Stage of Life Cycle

1

Cost Savings

Typical Life Cycle

Improved Life Cycle

Cycle Compression

Launch andOngoingSupport

Installationand Test

Planning andArchitecture

2

3

4

56 7

9

8

10

4 Quantify the seven critical cost drivers: 1) number of customizations, 2) complexity of legacy

systems environment, 3) number of interfaces, 4) participation level of sponsors,5) language and country versions, 6) number of users, and 7) forms and reports.

5 Identify the ways business processes are interconnected, on an enterprise level, to managedownstream effects of process change.

6 Test a day in the life of a system using production data.

7 Test integrated complete business cycles (semimonthly payroll, monthly reporting)and transaction-based cycles (sales orders).

1 Invest in a business case around the value of unified business processes.

2 Physically relocate members of the core process team to have them work together.

3 Middle management backing is the hardest and most crucial support to get. Make thisa priority of local area teams.

8 Move people around proactively, prior to go-live, to reflect the new workload distributionfrom new processes.

9 Addressing the user’s grasp of new (and sophisticated) concepts should be the key changemanagement focus.

10 Build sustainable power user cohort with substantial influence over training and utilizationenhancement to “step up” in the go-live environment and mitigate any productivitydisruptions.



Scorecard Development and Life-Cycle Management Compendium

In order to gauge IT’s performance and track the progress of operational objectives against strategic initiatives, new CIOs need to establish appropriate ITperformance metrics. The CIO Executive Board offers the following key differentiations between dashboards and scorecards. Although both dashboardsand balanced scorecards measure IT performance, the tools differ fundamentally across several key dimensions. As dashboards primari ly monitoroperational indicators, scorecards reflect business priorities as dictated during IT strategy planning.

Differentiating Dashboards and Scorecards Migrating from “in-the-moment” operational oversight to influencing strategic management decisions

IT Operational Dashboards IT Balanced Scorecards

PurposeOperational —Real-time performancetracking and alerting

Analytical —Trend analysis and trackingof strategy execution

AudienceAccess generally limited to ITmanagement

Executive-level audience, both withinIT and the business

Metrics Tracked Operational performance data abouta particular system or process

Performance against organizational goals

Data CollectionProcess

Automated data collection, in manycases integrated into monitored systems

Portions of required data collected,aggregated manually

Frequency of Data Update

ContinuousAt set intervals (quarterly, annually, etc.), withindividual metrics updated at differing frequencies

Sample Metrics

• Percentage of projectsdelivering new businessfunctionality

• Global desktop availability• Percentage of applications

meeting security standards



Address:

StopForwardBack Refresh !

Sample Metrics

• Web server uptime• SAP availability• Help-desk first-call

resolution rate

Order Relevant Published Research: IT Balanced Scorecards (pp. 90–91)




Scorecard Development and Life-Cycle Management Compendium (Continued)

To ensure utility and support user adoption, executives should select optimal metrics to ref lect business priorities and tailor reports to the needs of thespecific audience. Based on the CIO Executive Board’s review of IT balanced scorecards collected from corporate exemplars, incoming CIOs shouldconsider the following six key attributes when designing an IT balanced scorecard.

Structural Attributes of the IT Balanced Scorecard IdealSix design principles of world-class IT balanced scorecards

Simplicity of Presentation

• Single page of key performancecategories and metrics

• Nontechnical language for easyconsumption by business sponsors

• Limited number of metrics (10 to 20)

Informed by Goals of Annual Plan

• Categories and metrics directlylinked to strategies articulated inannual IT strategic plan

• Provides insight into ongoingprogress of strategy execution bytracking performance against goals

Broad Senior-Level Ownership

• Representative cross-sectionof senior IT and business leadersinvolved in scorecard creationand metrics selection

• Scorecard results are regularlyreviewed by CIO and IT andbusiness management

Clearly Defined Metrics

• Each metric has a clear definition,agreed on by IT and the business

• Companion scorecard documentoutlines metric definitions,assumptions, and collectionmethods

Drill-Down Capability and Metric Context

• Scorecard allows for drill downinto more granular data underlyingmetrics

• Metrics annotated with sourceinformation and contextualexplanation of variance or trends

Links to Individual Compensation

• Achievement of balanced scorecardtargets linked to individualcompensation of IT leadership team

$

1

2

3

4

5

6






Scorecard Rollout

Transitioning CIOs should view the use of IT balanced scorecards as an ongoing process rather than a discrete event. To ensure that the IT balancedscorecard is a useful decision-making tool, exemplars regularly refresh the scorecard to 1) maintain its a lignment with IT strategy, 2) take steps to helpensure the timeliness and accuracy of scorecard data, and 3) facilitate scorecard adoption by codifying data collection roles and responsibilities andcreating template and incentives to encourage scorecard use. Bowne’s balanced scorecard implementation, part of a corporate-wide scorecard initiative,involves seven key steps.

The IT Balanced Scorecard Life CycleScorecard rollout: Bowne creates a “closed-loop” IT balanced scorecard process

Bowne’s IT Balanced Scorecard Adoption Process

Illustrative

Source: Bowne; CIO Executive Board research.

2. Ongoing Strategy Mapping

• Annual IT strategy devolved from corporatestrategy

5. Assigning Metric Ownership

• Owners assigned to each metric areresponsible for scorecard completion

• Owners report to CTO and their bonuses

are linked to their scorecard-related duties

4. Metrics Definition

• CTO-led team creates standard definitionsfor all metrics, defines measurementtechnique and data collection processes, andoutlines initiatives that must be completed toallow tracking of metrics

3. Metrics Selection

• Team of CTO and direct reports creates listof metrics

• List refined by using analysis of each potentialmetric’s strengths and weaknesses

• Final approval by CIO

MetricBrainstorming

Metric Brainstorming

¸

¸

6. Data Collection and Quality Assurance

• Data collection frequency varies by metricbased on cost of collection, the corporate

financial reporting cycle, and volatility of thebusiness climate

7. Scorecard Review and Revision

• CIO, CTO, and corporate officers reviewscorecard every six months• Metrics revisited annually by CTO-led group

1. Kick Off Training for IT Staff

• Balanced Scorecard 101 for divisional and

functional senior managers• Initial strategy alignment and metricsselection exercise

Process Costs

Initial consulting fees

$10,000 license fee forsoftware and $3,500 per yearmaintenance and support costs

120 person-days per year forongoing process management




Data Collection and Quality Assurance

While establishing and continually updating categories and metrics are critical for the success of an IT balanced scorecard, those metrics are useless if theunderlying data are outdated or inaccurate. Exemplars define a clear collection process, designating an owner for each metric, and in some cases basing aportion of the owner’s compensation on timely, accurate delivery of data. To help ensure scorecard data are aggregated in a timely, accurate fashion fromacross its distr ibuted operations, Cemex’s IT organization developed an eight-step process for scorecard data collection.

Routinizing Scorecard Data AggregationCemex’s IT organization clearly defines roles and data collection process to ensure timely, accurate scorecard data

Cemex’s IT Balanced Scorecard Data Collection Process

Illustrative

Source: Cemex; CIO Executive Board research.

Data Request Data Collection Data Proofing

• Collection coordinator (a direct report to directorlevel) requests data from regional collection agents

• Four regional collection agents coordinate with localmetric experts to collect requested data

• Collection coordinator receives data from regional

collection agent and conducts initial accuracy check • In case of data inaccuracies, data are sent back to

local metric experts for verification

Data Verification

Quarterly Scorecard Presentation

• IT’s balanced scorecard is presented to CIO and ITmanagement quarterly by objective owners

• After presentation, scorecard is made available to IT

department

• Local metric experts verify data and communicatethem back to collection coordinator

Scorecard Creation Data Analysis Data Finalization

• Collection coordinator aggregates data and populatesbalanced scorecard template

• Objective owner receives and analyzes data forassigned objective

• Collection coordinator receives final data and passesthem to objective owner

4

567

8Where the Going Gets Tough

“It is easy to define a great modelon paper for a balanced scorecard.However, a consistent and reliableprocess for data collection and analysisis key in order to make it work.”

Sergio J. EscobedoIT Planning, Cemex

321


S R R



Scorecard Review and Revision

While offering a snapshot of IT’s current performance, the IT balanced scorecard can also help CIOs and business decision makers track IT performanceover time. This requires a sustained commitment by IT management, including the review of the scorecard on an ongoing basis to align scorecard metricswith changing business goals and strategies, and the creation of a process to help drive adoption of the scorecard to al l levels of the IT organization. Tomaintain the continued viability of its IT balanced scorecard, Corning adapts it to keep pace with shifting business and IT strategies through an annualseries of three senior IT leader meetings.

Ensuring Continued ScorecardComparability and Relevance

Corning adjusts its IT strategy and metrics to respond to the changing business environment…

Objectives and Metrics for Financial Performance Category of Corning’s IT Balanced Scorecard

2000–2003

…while migrating from lagging to leading measures at the level of individual metricsOperational Performance Metrics of Corning’s IT Balanced Scorecard

2000–2003

Source: Corning; CIO Executive Board research.

2000 2001 2002 2003

OperationalPerformanceMetrics

• Application availability (100)• Percentage core infrastructure

offerings achieving commitments(100)

• Applic ation availability (100)• Per centage core infrastructure offerings achieving

commitments (75)• IT expectations established for Corning employees (75)

• Percentage of service commitmentsmet (150)

• Implement customer feedbackprocess and system (100)

• Strengthen and expandprocesses to plan andcoordinate work (250)

Metrics focus on performance of systemsthat have already been deployed.

Forward-looking operational expectationsare added to existing metrics.

Measures of customer feedback are addedto proactively improve service offering.

Metrics focus on pre-deployment systemsplanning to avoid potential future problems.

2000 2001 2002 2003

Objective Maximize the value of dollars investedin IT

Complete, commit to, and communicate acomprehensive IT strategy for identified organization

Today’s reality—conserve cash, returnto profitability, protect the future

Support the company’s strategy at asignificantly lower cost

Metrics • Contribution to business costand revenue objectives (100)

• Per centage core service offeringsat benchmark (50)

• Percentage IT spend in applicationdevelopment (50)

• Variance to global IT budget (50)

• Identified business/functional units have an ITstrategy (125)

• Contributions to business profit objectives(75)

• Percentage IT planned spending in applicationdevelopment (50)

• Performance to spendingtargets (90)

• Strengthen IT strategies (160)

• Meet commitments for worldwideIT cost (150)

• U pdated and integrate unit ITstrategies (100)

As corporate business strategies change inresponse to external economic factors…

…and new metrics are added to reflect new demands on IT.

…metrics that are retained in the scorecard changeweighting based on changing business priorities…




Facilitating Scorecard Adoption

Corning ensures a sustainable IT balanced scorecard by creating a customizable template and linking scorecard use to individual compensation, thusdriving scorecard adoption throughout all levels of the IT organization. The corporate scorecard’s four categories are evenly weighted for purposes of incentive compensation, and while each functional or business unit–based IT organization must use the corporate-standard balanced scorecard template,they are free to alter the category weightings as they see fit to determine their functional or business unit–level incentive payouts.

Making the Scorecard Relevant to All of ITTo facilitate scorecard adoption, Corning createsa tiered system of customizable scorecards

for each functional and business unit IT group…

…and makes a substantial portion of bonus compensationcontingent on achievement of scorecard goals

2003 Scorecard Performance “Odometer” for Talent Management

Illustrative

Source: Corning; CIO Executive Board research.

Talent Management

Objective: Effectively transition the workforce to new model Max. = 100 miles

By the end of February 2002, each unit CIO and the IT shared

services leader will have a transition plan for their employees.

All units meet their plan, some late 60 miles

All unit meet their plan 80 miles

All units meet their plan, some early 100 miles

These measures will be confirmed by a random surveyof employees taken Q2, Q3, and Q4

Objective: Meet employees’ learning plans Max. = 150 miles

Each unit CIO will count the total number of learning plan items

on 2003 Learning Plans and measure achievement of thoseplans. All will use the following definitions of success:

a. 8 8% of learning plan items met

b. 94% of learning plan items met

c. 100% of learning plan items met

90 miles

120 miles

150 miles

Total Actual/Possible 230/250 miles

Clearly defined

performancetargets arelinked with valueto individual.

Bonus

compensationof 200 ITemployees isdependent tovarying degreeson “odometermileage” of corporatebalancedscorecard.

Enterprise-Level ITBalanced Scorecard

Financial Per formance 25 %

Project Performance 25%

Operational Performance 25%

Talent Management 25%

Display TechnologiesScorecard

Financial Per formance 25%




Infrastructure ServicesScorecard

Financial Per formance 30 %




Enterprise-level ITscorecard is fed byfunctional and businessunit IT scorecards.

The corporatescorecard weights allcategories equally.

Business unitsand functions usecorporate templatesbut can weighteach category as

they see fit.

A set of core metricsis required at businessunit/functional level,but units/functionscan add supplemental

metrics.





Appendix IIT Budget Benchmarks

Recent IT Spending Trends (p. 63)

IT Spending by Industry (p. 64)

IT Budget Allocations (p. 65)

Cost-Containment Checklists (p. 66)




Appendix I: IT Budget Benchmarks 63© 2005 Corporate Executive Board

2002 2004 2006

50%

88%95%

2003 2004 2005

2.50%3.00%

4.25%

CIOs in transition are charged with direct ly supporting the corporate growth strategy—aspirations to increase top-line revenue while driving downoperational costs. As CIOs increase control over IT spend and architecture, newly appointed senior IT executives must very quick ly uncover the innerworkings of the typically complex IT budget to ensure responsible investment and cost-cutting decisions. By reviewing industry benchmarking data on ITbudgets, new CIOs can obtain a quick gauge on industry spending priorities.

Recent IT Spending TrendsPercentage of IT Spend Controlled Centrally by the Group CIO 2003–2005 Increase in IT Spending

Percentage of Growth from Previous Year

Innovative Technologies Driving Increases in 2005 IT spending

Percentage of Respondents Who Intend to Increase Spend on Each Technology

Source: Author unknown, “InformationWeek 500 ,” InformationWeek (20 September 2004); Togut, Davidand Evan Bloomberg, “Morgan Stanley CIO Sur vey Series: Release 5.0,” Morgan Stanley Equity Research (15 December 2004); CIO Executive Board survey, 2003.

= 225 CIOs.

Wireless WorkforceCollaboration Tools

StorageVirtualization

CorporatePerformance/

Business Intelligence

BladeServers

Voiceover IP

RFIDTechnologies

UnifiedMessaging

Web Services/Component

Architecture foApplications

49%

38%32%

28%27% 27% 25% 22% 19%

= 45 CIOs.

= 225 CIOs.

VoiceOver IP

2006(E)




Overall

Consulting & Business Services

Hospitality & Travel

Metals & Natural ResourcesRetail: General

Construction & Energineering

Logistics & Transportation

Consumer Goods

Manufacturing

Retail: Speciality

Media & Entertainment

Health Care & Medical

Information Technology

Electronics

Automotive

Distribution

Chemical

Telecommunications

Energy & Utilities

Biotech & Pharmaceuticals

InsuranceBanking & Financial Services $44.6

$28.0

$21.6

$15.9

$13.6

$7.9

$7.5

$7.3

$6.3

$6.2

$5.8

$5.5

$4.8

$4.7

$4.6

$4.3

$4.0

$3.2$2.7

$1.4

$1.0

$9.6

IT Spending by Industry2004 IT Spending by Industry

As a Percentage of Revenue

2004 IT Spending per FTE by Industry

In Thousands of U.S. Dollars

Source: Author unknown, “InformationWeek 500,” InformationWeek (20 September 2004); CIO Executive Board research.

= 500 companies.

Overall

Construction & Energineering

Distribution

Metals & Natural ResourcesRetail: General

Automotive

Chemicals

Consumer Goods

Energy & Utilities

Hospitality & Travel

Manufacturing

Retail: Speciality

Electronics

Health Care & Medical

Insurance

Logistics & Transportation

Media & Entertainment

Consulting & Business Services

Information Technology

Telecommunications

Biotech & PharmaceuticalsBanking & Financial Services 9%

6%

5%

4%

4%

3%

3%

3%

3%

3%

2%

2%

2%

2%

2%

2%

2%

1%1%

1%

1%

3%

= 500 companies.



Appendix I: IT Budget Benchmarks 65© 2005 Corporate Executive Board

IT Budget Allocations

2003–2004 IT Budget Categories

As a Percentage of IT Budget

2004 IT Budget Allocations by Industry

As a Percentage of Total IT Budget

Source: Author unknown, “InformationWeek 500,” InformationWeek (20 September 2004); CIO Executive Board research.

Industry Salaries Apps Hardware Services Other R&D

Automotive 32% 18% 16% 19% 12% 3%

Banking & Financial Services 30% 22% 18% 15% 13% 2%

Biotech & Pharmaceuticals 34% 10% 10% 24% 16% 6%

Chemicals 28% 17% 20% 18% 14% 3%

Construction & Engineering 34% 21% 18% 13% 9% 5%

Consulting & Business Services 31% 23% 15% 11% 17% 3%

Consumer Goods 37% 19% 14% 14% 14% 2%

Distribution 44% 15% 17% 7% 14% 3%

Electronics 35% 22% 14% 13% 13% 3%

Energy & Utilities 36% 17% 15% 18% 12% 2%

Health Care & Medical 31% 21% 19% 14% 11% 4%

Hospitality & Travel 36% 19% 15% 15% 11% 4%

Information Technology 33% 20% 19% 13% 11% 4%

Insurance 39% 20% 13% 12% 13% 3%

Logistics & Transportation 31% 22% 16% 13% 15% 3%

Manufacturing 36% 18% 17% 13% 13% 3%

Media & Entertainment 28% 21% 13% 15% 21% 2%Metals & Natural Resources 36% 21% 16% 10% 15% 2%

Retail: General 27% 22% 21% 12% 11% 7%

Retail: Speciality 30% 23% 23% 11% 10% 3%

Telecommunications 27% 25% 13% 22% 11% 2%

= 500 companies.

R&D

Other

IT Consulting & Outsourcing

New Product & Technology Purchases, e.g Hadrware

Applications

Salaries & Benefits33%

32%

20%

21%

16%16%

15%

14%

13%

13%

3%

3% 2004

2003

Salaries and Benefits

New Product and Technology Purchases, e.g., Hardware

IT Consulting andOutsourcing




Nondiscretionary Discretionary

Administration/Overhead

End-UserSupport

ApplicationsMaintenance

MandatoryCompliance

New DevelopmentEnhancement and

Testing/QAVendor Management

S u p p l y L e v e r s Process Standardization

Strategic Sourcing

Systems Retirement

IT Asset Management

D e m a n d L e v e r s

Chargebacks

Portfolio Prioritization

Demand Forecasting

Project/Resource Planning

Needs-Based Segmentation

Recognizing that the nature and magnitude of cost-savings opportunity will vary greatly depending on the circumstances and cost structure of eachorganization, the Infrastructure Executive Council and the Applications Executive Council sought to provide the new CIO with a structured l ist of cost-savings tactics that cover the primary expenditures in the infrastructure and applications functions. These checklists can be used by the CIO in his/herfirst 100 days to engage direct reports in identifying cost-cutting opportunities.

Cost-Containment ChecklistTaxonomy of Infrastructure Cost-Containment Activities

Taxonomy of Applications Cost-Containment Activities*

Capital Expenses Operating Expenses

End-User Computing Data Centers Network and Telecom Internal Staff Leases and Licenses External Services Basic Services

S u p p l y L e v e r s

Platform Standardization,Commoditization, and Consolidation

Process Standardization

Technology-Driven Efficiencies

Vendor Management

Strategic Sourcing

D e m a n d

L e v e r

sUsage Visibility

Needs-Based Segmentation

Procurement Controls

Budget ItemCost-Savings Lever

Budget Item

Cost-Savings Lever

Twenty percentof overallinfrastructurebudget*

Source: Infrastructure Executive Council research;Application Executive Council research.

* Using survey data collected by the Corporate Executive Board and other research organizations, this checklist illustrates a prototypical IT budget. While substantial variations exist among IT bud gets, the IT budget breakdown provides a useful framework for baseline comparison and prioritization.

Sixty percentof overallapplicationsbudget*

Eighty percentof overallinfrastructurebudget*

Forty percentof overallapplicationsbudget*




Appendix IIVendor Management and Outsourcing

Coordinate Asset-Management and Vendor-Management Strategies: Practice asset management to control IT costs, maximize the useof existing IT equipment, and improve the maintenance of IT assets.

End-to-End Asset Management (p. 69)

Establish Prioriti zed Vendor-Management Program : Define segmentation practices and vendor oversight processes to maximize negotiationleverage and minimize ongoing coordination costs.

Value-Based Vendor Segmentation (p. 70)

Monitor Vendor Performance : Define objective performance metrics to ensure continuous vendor improvement.

Metrics-Based Performance Scorecards (p. 71)

Evaluate Sourcing Strategy: Determine the benefits and risks for externalizing work.

Global Sourcing Feasibility Matrix (p. 72)*

* Pseudonym.




End-to-End Asset Management Diagnostic Questionnaire on p 88



Appendix II: Vendor Management and Outsourcing 69© 2005 Corporate Executive Board

Desktop Inventory

Address:


Source: Wyeth; CIO Executive Board research.

Desktop Standards

Deskpro EN 866$810, Available

Warehoused

In Use

1 BU Request

BU manager reviews IT asset databasefor item availability and standards

Purchase order issued for standarditems not in inventory

Existing equipment is reassigned by IT

Operations3

PO

Procurement

2 Redeployment

New standard used as basis for enterprisedeal

Enterprise Negotiation4b

Gaps in architecture prompts duediligence for new standard

Web

EDI/XMLHub

MROB2 BInfrastructure N-Tie rMiddleware e CRM Database

ERP

Sales

Store

Fulfillment

Strategic CustomerCampaign Management

DataMarts

Content

Supplier

Marketplace

Knowledge Management

L e g a c y

S e c u r i t y

B u s i n e s s L o gi c

M e s s a gi n g

Warehouse

CallCenter

4a New Standard Development

Item tagged, delivered, and databases

updated

5

3 0 4 2 0 9 1 2 7

Tagging and Delivery

End-to-End Asset Management

As most large organizations find themselves with a legacy of decentralized purchasing, new CIOs grapple with identifying effective asset-managementpractices to control IT costs, maximizing the use of existing IT equipment and improving the maintenance of IT assets. Wyeth addresses this issueby maintaining an enterprise portal that provides a real-time view of the firm’s asset inventory, assisting with IT–asset procurement decisions.

A Real-Time ViewWyeth follows a comprehensive, cross-functional process to optimize asset life cycles


Order Relevant Published Research: Strategic Vendor Management and Outsourcing (pp. 90–91)


Value Based Vendor Segmentation



Address:


Corning differentiates vendors by value and closely

monitors the performance of its largest contracts…

IT Vendor Segmentation Matrix

Illustrative

…managing vendor underperformance based

on difficulty of finding alternative suppliers

Source: Corning; CIO Executive Board research.* All vendor names are fictional and for illustrative purposes only.

Decentralized Specialty Sourcing

• Local contracting

• Example: PC supportfor Beijing office

Enterprise Specialty Sourcingand Vendor Management

• Large-scale purchasesof customized goodsand services

• Example: Systemsintegration consultants

Decentralized Commodity Sourcing

• One-off purchases

• Example: Palm PDAs

Enterprise Commodity Sourcing

• Large-scale purchasesof undifferentiatedgoods and services

• Example: PC hardwareand wireless services

Low

LowTotal Contract Value by Vendor

Difficultyof Vendor

Replacement

Must propose performanceimprovements

Corrective

Action Pla

n

Replacements identifiedand contracts terminated

E M I NA T

UnderperformingSpecialty Vendors

UnderperformingCommodity Vendors

High

High

IT VendorPerformance Review*

Qualysis

Infostat

Linnogy

Superior

Acceptable

Probationary

Value-Based Vendor Segmentation

Increased reliance on externally provided IT products and services has led to a consequent rise in vendor-based dependency risks. New CIOs are thereforeresponsible for overseeing a multisourcing environment, defining practices and processes to maximize the organization’s negotiation leverage andminimizing ongoing coordination costs. Exemplars such as Corning have launched a strategic vendor-management program to segment vendors andmonitor their performance. Corning identifies a subset of suppliers for activist management based on contract size and avai lability of substitutes.

Maximize Your Leverage

Frank Wang

Education

Experience

Metrics-Based Performance Scorecards



Appendix II: Vendor Management and Outsourcing 71© 2005 Corporate Executive Board

Address:


Metrics Based Performance Scorecards

FedEx monitors the vendor performance using a semiannual scorecard of standard evaluation criteria. The scorecards faci litate clear performancemetrics, with both objective and subjective metrics. The IT Sourcing Group force-ranks vendors by category and publishes the rankings to the corporateprocurement intranet site. Results from the scorecards are also incorporated into future contract negotiations.

What Gets Measured Gets DoneFedEx uses a semiannual scorecard to evaluate vendors… …based on objective criteria

and documented incidents…

* All vendor names are fictional and for illustrative purposes only. Source: FedEx; CIO Executive Board research.

…ranking their scores to identify underperformers

IT Vendor Performance Ranking

Illustrative

Strategic Sourcing Scorecard

Quality of Vendor Personnel

Flexibility—Ability to react to changes 1 2 3 4

Training—Independence and thoroughness 1 2 3 4

Post-Sales Support— Responsiveness to post-sales needs 1 2 3 4

Innovation Contributions

Frequency of continuous improvement suggestions 1 2 3 4

Resulting savings from continuous improvement suggestions 1 2 3 4

Share of savings given to FedEx 1 2 3 4

Price Competitiveness

Relative prices versus comparable vendors 1 2 3 4

Service Quality

Compla int s per Product Invo ice Accuracy < 1% 1–3% 4–6% > 6%

100–99% 98–94% 93–88% < 88%

On Time Delivery Cycle Time Improvement 100–90% 89–80% 79–70% < 70%

> 50% 30–49% 10–29% < 10%

Operational Efficiency

Mean Time Before Failure Warranty Claims per Lot 2 x planned rate 1 x planned rate Met plan Less than planned rate

0–2% 3–5% 6–10% > 10%

Rewards ability toshare cost-savingsideas

Objective criteriacreate indisputable

justification forscores

Vendor* Score Rank

Hyperient 450 Platinum

DataCom 400 Gold

InfoQuest 350 Silver

Xilinex 300 Bronze

Vivient 250 Unacceptable

Requirescorrectiveaction plan

Web Site Designer’s Performance Report

1 = Poor 4 = Excellent

Explanation Form

Flexibility = 1, Poor

On 10, 17, and 28March, Vivient wasunable to make

requested changesand still deliveron time.


Global Sourcing Feasibility Matrix



Source: Iverson Financial; Applications Executive Council research.* Pseudonym.

Global Sourcing Feasibility Matrix

After building an enterprise competency model to identify needed skills, CIOs must determine the most cost-efficient and effective source for talent.Iverson Financial’s* role-based sourcing strategy provides a powerful alternative to the traditional applications-focused decision criteria used at many organizations. Iverson built the offshore program as a component of a new holistic skills master plan to ensure that offshore goals support overall businessand HR strategy.

Choosing a Sourcing Strategy A global sourcing feasibility matrix aligns specific roles to business need

Externalization Suitability Framework

*




Appendix IIIDiagnostic Questionnaires

Balancing Flexibility with Efficiency (p. 75)

Benchmarking Organizational Preparedness for

IT Centralization (p. 76)

Strengthening the IT Leadership Bench (pp. 77–78)

Assessing Organizational Planning Capabilities (pp. 79–80)

Creating an Agile IT Organization (pp. 81–82)

Disciplines for Enabling ROI Transparency and Accountability (pp. 83–84)

Assessing the Need for an IT Balanced Scorecard (p. 85)

Designing and Maintaining a World-Class ITBalanced Scorecard (pp. 86–87)

Enabling Strategic Management of External Suppliers (pp. 88–89)




Appendix III: Diagnostic Questionnaires 75© 2005 Corporate Executive Board

Diagnostic Scores

Balancing Flexibility with EfficiencyThe CIO Executive Board offers the following diagnostic questions to help its member CIOs improve central IT’s alignment with businesspartners while maintaining operational efficiency across the IT value chain.

Needs Analysis1. Does the IT organization play a role in “managing demand”for IT investments by collaborating with business partners toidentify potential needs and project opportunities?

2. Does the CIO have credible senior IT “liaisons” who cancollaborate with business partners to develop solutionalternatives and maximize ROI for new projects?

3. Is IT actively involved in the process of documenting andoptimizing business processes across the enterprise?

Implementation and Operations

4. Has the organization created cross-enterprise standards topromote systems integration and development asset reusability across business units?

5. Are there formal processes in the project management life cycleto identify and facilitate opportunities for development assetreuse?

6. Does IT employ virtual teams to encourage horizontalcollaboration across geographically dispersed IT staff?

7. Has IT created local management positionsto maximize the effectiveness and professional developmentof IT staff in remote locations?

Yes No User Absorption

8. Does IT have formal methodologies to assess and mitigaterisks to user adoption in the earliest stages of the project lifecycle?

9. Does IT have formal roles to determine necessary change-management investments needed for small and mediumprojects (not simply large enterprise system rollouts)?

10. Does IT segment user populations and create targetedcommunications and engagement strategies accordingly toensure absorptionof new functionality?


11. Are the structure and role of central IT designedto capture scale efficiencies while maintaining anacceptable level of responsiveness to local/business needs?

12. Are the structure and role of central IT aligned with corebusiness objectives, such as M&A growth, acceleratedproduct rollout, or end-to-endprocess integration?

Yes No

Total “Yes”

Number of “Yes” Answers

Assessment

9–12 IT Has Achieved a Balance of Scale and Responsiveness to the Business

5–8 Progress Is Needed to Balance Organizational Scale and Responsiveness

0–4 IT Should Revisit Its Organizational Structure to Improve Responsiveness




Benchmarking Organizational Preparedness for IT Centralization

The CIO Executive Board offers the following diagnostic questionnaire to help its member CIOs design, win support, and manage migrationtoward a more centralized IT organization.

Optimizing the Balance Between Central and Local 1. Does the company have a clear view of all exis ting business unit

IT spend and resources?

2. Does the company use objective criteria around skill and scalerequirements to determine which IT activities are best deliveredlocally, centrally, and externally?

3. Are business unit managers involved in the design and roledefinition of central IT?

Winning Business Support for Centralization

4. Does IT employ a dedicated communications professionalto help win support for IT consolidation?

5. Has IT identified and segmented potential championsand resisters to centralization?

6. Has the CIO clearly communicated the costs, benefits,and risks of centralization to business unit peers?

7. Has IT developed a campaign plan that maps key messages

to specific constituencies and events related to centralization?

8. Has IT clearly communicated its centralization agendato vendors?

Yes No Yes No

Managing Stakeholder Transition9. Has IT mapped clear transition steps designed

to build IT staff loyalty to the organization?

10. Has the CIO personally communicated the benefits and costsof centralization to IT staff?

11. Does IT assign to each business unit a liaison who has suff icientbusiness context to support business unit technology strategy and the seniority and credibility to manage demand?

12. Has IT baselined performance and user satisfact ion priorto centralization to use as a benchmark for the centralizedorganization?

Diagnostic ScoresNumber of

“Yes” Answers Assessment

10–12 IT Is Well Prepared for Transition

6–9 Significant Gaps in IT Preparedness for Transition

0–5 IT Is Ill Prepared for Transition, Serious Risk of Failure

Total “Yes”




Strengthening the IT Leadership BenchThe following questions are intended to facilitate discussion between senior IT, line IT, and HR decision makers about the IT organization’sefforts to create a continuous pipeline of business-focused IT leaders.

Transparent Development Road Maps1. Has the IT organization conducted a formal skil ls assessment

and forecasting exercise to identify the most critical staff leadership characteristics?

2. Has the IT organization identified the development activitiesmost effective at closing skills gaps?

3. Has the IT organization recalibrated the allocationof resources toward activities with the highest yieldin leadership and skills development?

Personalized Leadership Development Planning

4. Has the IT organization formally defined a key setof competencies that will be critical to employee andorganizational success?

5. Has the organization integrated the IT and corporatecompetency models to provide staff with a comprehensiveset of required skills and behaviors?

6. Has the organization linked competencies and levels of maturity to specific IT job titles to provide staff transparency into the competencies that are required for each?

7. Has the organization linked competencies and job titlesto recommended development curricula that are best suited

to build required competencies?

8. Does the IT organization communicate competency requirements and available career-management resourcesto IT staff across multiple channels?

9. Does the IT organization provide insight into the skil ls andexperience of existing IT leaders through face-to-face or“virtual” mentoring?

10. Does the IT organization create personalized developmentplans for at least a subset of all IT staf f?

11. Does the IT organization provide staff with a suite of self-service developmental planning tools to alleviate managers’

administrative burden and drive employee ownership of career-pathing activities?

12. Does the IT organization conduct regular employeesegmentation exercises to prescribe development strategy at the individual level and gauge overall IT bench strength?

13. Does the IT organization help high-potential leaders strengthenbusiness relationships and build peer networks by assigningthem to cross-functional teams tasked with enterprise-levelassignments?

14. Does the IT organization instil l organizational and company process knowledge via rotational assignments through IT groups

serving various lines of business?

Subtotal “Yes”

Yes No Yes No




Development Opportunity Brokering

15. Does the IT organization utilize flexible staff ing protocolsto reduce the “lag time” between classroom-based trainingand experiential work, driving on-the-job reinforcement

of key skills?

16. Does the IT organization task-specialize employee careermanagement to balance skills development with effectiveproject execution?

17. Does the organization employ customized training moduleswith company-specific case studies to build a “commonvocabulary” around subjects such as IT architecture, projectand business case methodologies, and key business processes?

18. Does the IT organization mainta in an employee skil ls inventory to track individual and organizational skills gaps?

19. Does the IT organization maintain a project skil ls databaseto provide a holistic view of experiential developmentopportunities?

20. Does the IT organization identify “best fit” developmentopportunities that remediate employee skills gaps whileensuring successful project delivery?

Strengthening the IT Leadership Bench (Continued)

Subtotal “Yes”

Total “Yes”

Yes No Yes No



15–20 Leadership Development Exemplar

8–14 Progressive Leadership Development Practitioner

0–7 Baseline Leadership Development Capability




Assessing Organizational Planning CapabilitiesThe CIO Executive Board offers the following diagnostic questionnaires to help its member CIOs assess organizational planning capabilities.

Expanding Planning Inputs

1. Do we systematica lly require senior thinkers at strategic vendorsto critique our IT strategic planning assumptions?

2. Do we have early-warning systems for line customers andinfrastructure managers of changes in vendor product strategy that may affect existing technology services and capabilities?

3. Do we have ongoing staff resources and planning activ itiesdevoted to exploring the impact of emerging technologieson industry structure?

4. Do we systematically consult with organizations in thecompany’s value chain web to identify opportunities forcollaborative IT strategic planning, standards-setting,and infrastructure investments?

Educating Business Decision Makers

5. Do we provide senior executives and business unit leaders withexperiential learning activities prior to funding discussions?

6. Do we have a network of contacts at frontier academic andcommercial research organizations who can host off-sitelearning experiences for senior executives?

7. Is the CIO perceived internal ly as an “educator” rather thana “salesperson” for emerging technology investments?

Subtotal “Yes” _______

Yes No Yes No




Assessing Organizational Planning Capabilities (Continued)

Hardwiring Strategic Alignment

8. Do we set objective criteria for evaluating the importanceand effectiveness of individual IT projects?

9. Do we have an objective basis for reprioritizing projects basedon changes in external market conditions?

10. Have we separated reprioriti zation of internal or supply chainIT projects from customer-facing projects?

11. Do we reprioritize internal projects at least quarterly andcustomer-facing projects at least monthly?

12. Can we promise less than a one-week lag betweencommunication of changes in senior executive strategicpriorities, reprioritization of the IT queue, and reassignmentof IT staff and funding resources?

13. Is the governing body responsible for project reprioritizationseparate from the body responsible for resource allocation?

14. Is at least 25–50% of the discret ionary IT budget unassignedto accommodate unanticipated additions to the IT queue?

15. Is the IT portfolio completely free from projects that do notdirectly map to current strategic opportunities?

16. Is the focus of discretionary IT spending proportionalto the most current corporate strategic priorities?

Multichannel Broadcasting

17. Does the CIO make regula r presentations of IT strategy to line managers and end users?

18. Are at least 75% of employees able to name the key IT strategic initiatives going on in the corporation?

19. Does the IT department produce annual reports, newsletters ,and intranet banner ad campaigns recording the evolutionand accomplishments of its IT strategy?

20. Does the company maintain an IT strategy intranet site thatmonitors strategic assumptions and provides useful informationto line customers regarding competitors’ IT capabilities andchanges in consumer use of IT?


Yes No Yes No

Diagnostic Scores

15–20 Highly Aligned and Responsive IT Planning

10–14 Somewhat Aligned and Responsive Planning

5–9 Constrained to Resource Calendars

0–4 Inflexible , Unaligned Planning

Total “Yes” _______




Creating an Agile IT Organization

Responsive IT Portfolio Prioritization

1. Has the IT organization developed an enterprise-standard

business case template, including a set of standard cost andbenefit assumptions, to facilitate comparison of projects acrossall business units/regions/functions?

2. Does the business case require an estimation of total project costs,

moving beyond initial purchase and implementation expenses to

encompass future support, maintenance, and retirement costs?

3. Is the IT organization able to provide prioritization decision

makers with detailed IT budget information, including the“keep-the-lights-on” costs of IT operations and the costs of ongoing project work?

4. Has the IT organization created a dedicated project-managementoffice to oversee the implementation of a standard project-

management methodology and coordinate the collection andconsolidation of project data?

5. Does the project-management office manage the IT projectportfolio in addition to disseminating project-management

expertise?

6. Has the IT organization identified a subset of all projects, eitheron the basis of project cost, project size, or project impact acrossorganizational silos, that will be subjected to greater project

and portfolio management scrutiny?

7. Has the IT organization created a set of weighted project criteriato allow the objective comparison of projects with divergentbusiness cases?

8. Does the IT organization provide regular (monthly or more

frequent) reports on the status of critical project metrics, suchas project scope, schedule, and cost?

9. Has the IT organization segmented the IT project portfolio,creating categories of projects with like business drivers and

differentiating the metrics used to assess the value of projects in each?

10. Does the IT organization conduct a comprehensive project

risk assessment, including project interdependencies andtechnological and organizational risks ?

11. Does the IT organization supplement sponsor-generatedbusiness cases for major projects with a portfolio category–specific estimate of each project’s strategic value, including

alignment with short- and long-term business strategy,reusability, and simplification of end-user workflow?

12. Does the company audit IT projects for business caserealization—comparing actual costs and business results

with the original estimates included in the project proposal—to identify the root causes of variance and improve the accuracy of future estimates?

13. Are prioritization decisions made by a steering committee

or board that includes senior-level representatives from ITand all affected business constituencies?

14. Has the IT organization consciously cal ibrated the frequency of prioritization activities to the pace of change in the

company’s business environment?


The following questions are intended to facilitate discussion between senior IT, line IT, and corporate business decision makers about the corporation’sprogress toward creating an IT organization that is responsive to the business’s evolving needs.

Yes No Yes No


( )



Creating an Agile IT Organization (Continued)

Rapid Resource Redeployment

15. Has the IT organization created an enterprise-wide IT skillsdirectory to facilitate rapid identification of staff and skills in the event project priorities change?

16. Has the IT organization put into place a flexible staffingmechanism, e.g., a staffing pool, to facilitate rapid redeploymentof staff toward new projects when priorities shift?

17. Has the IT organization put into place a dedicated group of resource managers to ensure the continued career developmentof staff who reside in the staffing pool?

18. Does the IT organization maintain standing relationshipswith a small set of strategic vendors in order to quickly source

necessary staff and skills if they are not available within thecompany?

19. Has the IT organization created a mechanism, e.g., a fundingpool, to fund off-cycle project demand in response to changingbusiness strategies?

20. Has the IT organization developed a set of weighted, objectivecriteria to facilitate the dispersal of funds from this pool?

21. Are projects that receive funding through this mechanismsubject to strict project-management discipline, includingtime-boxed project deliverables, project accounting, and processcompliance audits?

22. Has the IT function put into place a project life-cycle process,included stage-gated funding for major projects and clear

criteria for project cancellation at each life-cycle stage?



Yes No Yes No



16–22 Agility Exemplar

11–15 Maturing IT Agility

7–10 Nascent IT Agility

1–6 Unresponsive IT Organization




Disciplines for Enabling ROI Transparency and Accountability

Perfecting Large Project Execution

Full Life-Cycle Cost Estimation

1. Do all IT projects above a given cost threshold follow a standardbusiness case justification process that includes estimates of allproject life-cycle costs and benefits?

2. Does the company regularly revisit the business caseassumptions of large ongoing IT projects and require businesssponsors to attest to their continued validity across the projectdevelopment cycle?

Project Sponsor ROI Contracts

3. Do we incorporate business case assumptions of large IT

projects into the budgets, performance targets, and bonusincentives of their business sponsors?

4. Are project business sponsors empowered and encouragedto proactively terminate projects for which there no longerremains a sound business case?

Ongoing Risk Scoring for Large Projects

5. Does the IT organization use objective criteria to periodica lly assess risks facing large IT projects to provide early warningfor threats to benefits realization?

6. Do we have a mechanism for flagging the risks to IT projectsarising from low engagement of business sponsors?

7. Do we have a mechanism for identifying the risks to IT projectsarising from lack of clarity in the definition of businessrequirements?

Continuous Improvement Through Postmortem Assessments

8. Does the IT organization conduct post-implementation reviewsmeasuring IT project execution success?

9. Are lessons from those IT project post-implementation reviewscodified in a central “lessons-learned” database to improve futureestimate accuracy and process execution?

“Rightsizing” Applications Maintenance Costs

Alternative Cost/Functionality Scenarios

10. Does the IT organization proactively provide the businesswith IT project cost/functionality scenarios to help it choosebetween project alternatives?

Legacy Maintenance Cost-Reduction Campaigns

11. Has the IT organization conducted an applications inventory to determine potential opportunities for retiring redundantlegacy systems?

12. Do project budgets for new systems development take intoaccount the costs of replacing redundant systems slated for

retirement?13. Are maintenance resources prioritized based on an application’s

business value, revenue impact, and geographic scope?

Objective Risk Segmentation for Applications Outsourcing

14. Has the organization explored opportunit ies to reducemaintenance expenses by shifting labor-intensive commodity maintenance work to lower-cost geographies?

15. Has the IT organization sequenced its outsourcing strategy tofocus its initial efforts on the lowest-risk applications while itdevelops offshore management capabilities?

16. Has the company developed objective criteria to assess the risksand feasibility of outsourcing candidates?

Subtotal “Yes”

The CIO Executive Board offers the following diagnostic questionnaires to help its member CIOs assess the disciplines for enabling ROI transparency and accountability.

Yes No Yes No


D E ROI T



Achieving Infrastructure Cost Transparency

Customer-Focused IT Product Catalogs17. Are we able to calculate the unit costs of infrastructure

products delivered so as to determine how consumptionbehaviors drive total costs?

18. Does the IT organization conduct periodic benchmarkingof costs in order to determine competitive market prices forits services?

19. Do we have an IT product and service cata log that providesend users with plain-English descriptions of specific IT servicesand their cost drivers?

Collaborative Consumption Reviews20.Has the organization created dedicated infrastructure “product

managers” who help define and manage unit products tooptimize consumption and spending levels?

21. Do IT representatives regularly meet with business unitmanagement to spotlight variances in IT consumption and costtrends to identify potential avenues for optimization?

Disciplines for Enabling ROI Transparency

and Accountability (Continued)

Subtotal “Yes”

Total “Yes”

Yes No Yes No

Diagnostic Scores


Assessment

15–21 Culture of Continuous Cost Improvement

7–14 Developing Ethic of Cost Efficiency

0–7 Uncoordinated Approach to Cost Efficiency




Diagnostic Scores

If four or more “No” answers, then adoption of an IT balanced scorecardmay facilitate IT performance management at your organization.

Assessing the Need for an IT Balanced ScorecardThe following questions are intended to assist CIOs in diagnosing whether an IT balanced scorecard would be a useful addition to theircurrent IT performance-management framework.

1. Can I clearly articulate the link between IT operationaland project activities and the organization’s stated strategicbusiness goals?

2. Is there a process or mechanism in place to track the impacton service levels and satisfaction of ongoing cost-efficiency efforts?

3. Can I describe the performance of the IT function in aconcise, nontechnical, business-friendly fashion?

4. Can I effectively communicate the value that IT creates forthe business?

5. Can I communicate a holistic perspective of IT performanceconsistently across various geographies and business units?

6. Can I easily compare the performance of my IT functionto that of industry competitors or companies with similargeographic dispersion or scale?

7. Do IT performance-management meetings focus almostsolely on discussions of metric comparability and validity rather than on making resource allocation decisions?

8. Do I have a sufficient understanding of the progress andstatus of ongoing IT project work to allow for correctiveaction if major projects are at risk for scope creep, budgetoverruns, or schedule delays?

Total “No” _______

Yes NoYes No


D M W C IT B S



Structuring the Scorecard

1. Does the IT balanced scorecard fit onto a single page(or screen)?

2. Are the IT balanced scorecard’s metrics devolved from the goalsarticulated in the IT strategic plan?

3. Are these metrics expressed in nontechnical language, allowingbusiness decision makers to easily understand IT performance?

Selecting Scorecard Categories4. Does the IT balanced scorecard supplement financial

and operational metrics with categories that track projectperformance, user satisfaction, and talent management?

5. Does the IT balanced scorecard also include categoriesfor information security?

6. Does the scorecard outline target levels for each metricthat have been agreed upon by both senior IT and businessleadership?

7. Are scorecard categories, metrics, and weightings revisitedon an annual cycle to ensure continued relevance to changingbusiness needs?

Selecting Scorecard Metrics

8. Do financial metrics move beyond simple reporting of total ITspend to help decision makers reallocate IT funding betweenfunctional areas, business units, and portfolio categories?

9. Are operational metrics aggregated to provide decision makerswith a “user’s perspective” of IT performance?

10. Does the balanced scorecard’s project performance category include an assessment of compliance with enterprise architecturegoals and contribution to corporate business strategies?

11. Do measures of customer satisfaction incorporate both end-userand executive perspectives on IT performance?

12. Do talent-management metrics focus on gauging staff satisfaction, external reputation of the IT organization,and other organizational attributes likely to make the company a destination for high-potential IT talent?

13. Does the balanced scorecard build awareness of informationsecurity issues by providing senior decision makers with anassessment of the organization’s vulnerability?

14. Are metrics designed to track IT’s contribution to majorenterprise initiatives aggregated in a single scorecard category,allowing business sponsors to quickly assess IT’s level of support?

Designing and Maintaining a World-Class IT Balanced ScorecardTo assist member companies in the initial design and implementation of IT balanced scorecards, as well as the reevaluation of existing scorecards,

the CIO Executive Board has created the following diagnostic questionnaire.


Yes No Yes No




Ensuring Data Accuracy and Relevance 15. Do all metrics have clear, well-documented definitions,

agreed upon by senior IT and business leadership?

16. Does each IT balanced scorecard metric have a definedcollection frequency (e.g., monthly, quarterly, annually)based on the volatility of the business strategy it helps enable?

17. Have all scorecard metrics been assigned to a metric ownerwhose compensation is based on his or her timely delivery of required data?

18. Is data accuracy verified by local metrics experts before dataare published to the scorecard?

19. Does the IT balanced scorecard provide readers with the ability to drill down into the data underlying scorecard metrics?

20. Does the IT balanced scorecard provide readers with contextfor changes in performance (for example, historical referencedata, external benchmarks, or metric owner comments)?

Facilitating Management Decision Making 21. Have business decision makers, metrics owners, and IT leaders

received training on the basic concepts and uses of balancedscorecards?

22.Is the IT balanced scorecard reviewed on a regular basisby IT and business executives senior enough to make decisionsbased on scorecard information?



Designing and Maintaining a World-Class

IT Balanced Scorecard (Continued)

Yes No Yes No

Diagnostic Scores


Assessment

17–22 Balanced Scorecard Exemplar

9–16 Developing IT Balanced Scorecard Competency

1–8 IT Balanced Scorecard Novice


E S M E S



Enabling Strategic Management of External Suppliers

Part 1. Vendor Management

Centralized Strategic Sourcing

1. Does the company have a central ized procurementand vendor-management team capable of creating enterprise-wide contracts to take advantage of purchasing and volume-based discounts?

2. Does the centrali zed procurement utilit y handle at least 70%of purchasing volume?

3. Has the company identified a subset of its largest vendors as“preferred” providers that together represent at least 60%of enterprise-wide procurement spending?

4. Does the company have an intranet to communicateprocurement information to internal buyers suchas contracting processes and approved technology standards?

Standardized Contracting Templates

5. Has the company created standardized contract templatesincluding a list of terms and risk-mitigation clauses that itconsistently tries to incorporate into all of its contracts?

6. Do at least 75% of deals rely on these standardizedtemplates?

End-to-End Asset Management

7. Has the company inventoried and incorporated all

of its existing IT assets into a central database (includingitems such as servers, desktops, printers, cell phones,software licenses, etc.)?

8. Does the company have processes in place to ensure thatthe asset inventory remains current and reflects changesfor Install, Move, Add, or Change of systems?

9. Does the company use the asset inventory to track thetotal cost of ownership of assets over their life cycle(including maintenance and integration) to informdecisions about retirement and replacement?

10. Does the company have the capability to identify andredeploy existing assets when a purchase request couldbe fulfil led out of existing inventory?

Vendor Solvency Scanning 11. Are staff dedicated to performing ongoing due diligence (after

the RFP process is finished) on vendors’ continued solvency toprovide early-warning signs of potential financial d istress?

12. Does the company use this information to engage in“opportunistic renegotiation” with solvent vendorsfacing short-term financial pressure?

13. Does the company have a process in place to “watchlist” at-riskvendors and develop proactive contingency plans and identify alternative providers?

Value-Based Vendor Segmentation

14. Has the company establi shed objective criteria to determinewhich vendors are “strategic” based on measures of contractvalue or switching costs?

15. Does the company attempt to segment its vendor baseto focus ongoing relationship-management resourceson vendors that provide the most strategic value?

The CIO Executive Board offers the following diagnostic questionnaires to help its member CIOs assess the strategic management of external suppliers.

Yes No Yes No





Metrics-Based Performance Scorecards

16. Has the company established predetermined metricsand service levels against which supplier performancewill be assessed on a regular schedule?

17. Do business unit and field representatives provideregular feedback on vendor performance against thesemeasures to ensure that service quality is consistentand transparent across the organization?

18. Are the results of this “scorecard” communicatedinternally to buyers and externally to vendors to create acompetitive internal market and direct future spending towardthe top performers?

Part 2. Outsourcing RelationshipsReverse-Engineering Negotiation Targets

19. Has the company outlined clear cost-savings targets withwhich to measure the success or failure of an outsourcing deal?

20. Has the company retained standards setting and capabilit iesthat provide competitive advantage?

21. Has the company achieved internal cost transparency of its current IT cost structure and spending drivers priorto consideration of an outsourcing partnership?

22. Does the company evaluate outsourcing bids based on

informed negotiation targets by reverse-engineeringactual supplier costs and comparing them with in-housealternatives?

Utility-Based Pricing Structures

23. Is the outsourcing contract denominated in terms of unit-based prices that can be externally benchmarked,allowing continued comparison with competitive marketprices?

24. Does the outsourcing contract stipulate that total fees wil lfluctuate to directly reflect the unit volume of servicesconsumed?

Activist Oversight and Issue Resolution

25. Has the company created a dedicated team for vendorgovernance and performance management?

26. Are these relationship managers’ incentives tied to maximizingthe outsourcer’s performance and minimizing relationship

disputes?27. When outsourcers underperform, do predetermined escalation

procedures exist to correct that performance?

Closed-Loop Performance Improvement

28. Has the company identified a subset of key service-levelagreements to monitor on a monthly basis?

29. Does underperformance against one of these indicators launcha corrective action plan to solve underlying problems?

30. Are recommended performance improvements hardwiredinto the vendor’s de facto SLAs?

Enabling Strategic Management of External Suppliers (Continued)



Yes No Yes No



21–30 Sourc ing Management Exemplar

11–20 Sourc ing Management Leader

1–10 Sourcing Management Laggard




ORDER FORM

The CIO’s First 100 Days and the following l ist of books referenced in this study are intended for broad dissemination among senior executives and management.Members are welcome to unlimited copies without charge. Onl ine ordering is available at www.cio.executiveboard.com. Alternatively, you may call the Publications

Department at +1-202-777-5921, e-mail your order to [email protected], or fax in the order form on these pages. Additionally, members interestedin reviewing any of the CIO Executive Board’s past strategic research are encouraged to request a complete listing of our work by v isiting our Web site atwww.cio.executiveboard.com.

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The CIO’s First 100 Days

Accelerating the Onboarding of Transitioning

IT PrincipalsCATALOG NO.: CIO1387OQD

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unlimited number of copies withoutadditional charge.

Charting the Course for Principled IT Centralization

Organizational Migration Paths to Responsive Scale

in Corporate IT CATALOG NO.: CIO11U1M4X

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Achieving Responsive Scale

Balancing Efficiency with Responsivenessin Corporate IT CATALOG NO.: CIO11V7A7P

Emerging Management Strategy for IT Infrastructure

A Briefing for Chief Information OfficersCATALOG NO.: IEC12TE7SR

Calibrating the Partnership

A Quantitative Analysis of the Drivers of IT–Business

Alignment CATALOG NO.: CIO12XCLET

Institutionalizing IT Cost Efficiency

Disciplines for Embedding ROI Transparency

and Accountability CATALOG NO.: CIO113BL47

Case Studies in Enterprise Architecture Migration

Self-Funding Architectures to Advance Corporate

Strategy CATALOG NO.: CIO1DKGVL

IT Balanced Scorecards

End-to-End Performance Measurement for the

Corporate IT FunctionCATALOG NO.: CIO1L9VDH

Governance and Prioritization for Agile IT

Organizations

Practices to Inform Business Prioritization and

Mobilization of IT Resources in Volatile Business

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Key Attributes of the World-Class IT Organization

A Competency Diagnostic—Benchmark Results

and User’s GuideCATALOG NO.: CIO12L397T




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2004 Update for Chief Information Officers

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Strategic Vendor Management and Outsourcing

Pioneering Practices to Maximize Value and Service

Quality from External IT Partners

CATALOG NO.: CIO1SU1IT ____________

Strengthening the IT Leadership BenchPractices and Processes for Developing Next-Generation IT Leaders

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In-Person Research Presentations

Frequently Requested Presentations

1. Structural IT Cost Efficiency: What tools and processes are CIOsusing to achieve structural IT cost efficiency?

2. Strategic Vendor Management: How are pioneering organizationsmanaging IT vendor performance to maximize value and flexibility?

3. Responsive IT Portfolio Prioritization: How are leading companiesstructuring and reprioritizing IT portfolios to ensure continuedalignment with changing business strategies?

4. End-to-End Data Visibility: What technical and organizationalinnovations are exemplars using to enable end-to-end datavisibility?

5. Rapid Resource Redeployment: How are CIOs enabling rapidresource redeployment in response to changing priorities?

6. Aligning IT with Corporate Strategy—Case Studies in Enterprise Architecture Migration:How are premier companies creating self-funding IT architectures that mirror and advance corporate strategy?

7. IT-Enabled Collaboration: What are the most effective uses of IT-enabled collaboration? How are exemplars deploying these toolsto ensure efficiency and maximize collaboration?

8. Deploying Enterprise Portals: What are the functional capabilities andIT requirements of “world-class” portals and enterprise informationsystems?

9. IT Strategic Planning Excellence: What are the leading practicesfor aligning corporate and IT priorities?

10. Customer Relationship Management: How are exemplars rescopingCRM initiatives for high-impact management of internal andexternal customers?

Formal ResearchPresentation

Facilitated ResearchDiscussion

Interactive WorkingSession

One-to-OneBriefing

An in-person research briefing is an interactive session that members can use to spark internal discussion and debate around strategic issuesthe CIO Executive Board has researched. A senior research director will travel to a member’s location to present and discuss research findingsthat are most relevant to member issues and challenges. This in-person research briefing service allows member CIOs to share CIO Executive

Board case studies, practices, and insights with their staff and larger audiences within their organization.

Common Formats

Photo Credits: Digital Imagery ® copyright 1999 PhotoDisc, Inc.

In-Person Research Presentations 93






• Research resource for strategicIT staff, available free of charge

• Customized, member-initiatedresearch projects

• Fast turnaround (overnight to

three weeks)• For ideation in strategic planning,

data support, and qualitativebenchmarking for business casesand budgets

• Not intended for technologyassessment, benchmarking,or competitive research

To request a project, contactyour relationship manager, send ane-mail to [email protected],or visit www.cio.executiveboard.com

Custom research for strategic IT staff, available (free) for the asking

As a complement to our ongoing research, members are encouraged to take advantage of the Project Support Desk. A free resource to assistsenior IT staff with “work in the moment,” the Project Support Desk offers fast-turnaround research for business case preparation, strategicplanning exercises, and budgeting. Members describe their project goals and time constraints and then decide what combination of literaturesearch, fact retrieval, and networking contacts best suits their needs. In keeping with the CIO Executive Board’s charter, the Project SupportDesk does not conduct competitive research, benchmarking, or vendor assessments.

What are job descriptionsand career paths for “ITCenters of Excellence?”

What are the featuresof world-class, IT finance– reporting intranet sites?

What are the key vendorcontracting trends impactingmy peers?

What is the typical payback period for call centertechnology investments?


• Research resource for strategicIT staff, available free of charge

• Customized, member-initiatedresearch projects

• Fast turnaround (overnight to

three weeks)• For ideation in strategic planning,

data support, and qualitativebenchmarking for business casesand budgets

• Not intended for technologyassessment, benchmarking,or competitive research

To request a project, contactyour relationship manager, send ane-mail to [email protected],or visit www.cio.executiveboard.com.

CIO Executive Board Project Support Desk

IT HR

IT Finance

IT Procurement

BU CIO

CIO Executive Board Project Support Desk 95

CIO1387OQD



CIO1387OQD

CIO Executive Board

Corporate Executive Board2000 Pennsylvania Avenue NW

Washington, DC 20006Telephone: +1-202-777-5000

Fax: +1-202-777-5100

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Fourth Floor37–63 Southampton Row

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Ceb - Cio - First 100 Days

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