Building strong social networks and coalitions within a firm is an essential task for those who aspire to be the CEO. When they are promoted to a firm’s CEO position, inside successors not only have the approval of outside directors but also the sup- port within the top management group (Shen & Cannella, 2002b). For a CIO who aspires to become the next CEO, he or she needs to manage relationships, develop coalitions, and understand power dynamics in top management.
The quality of the CEO-CIO relationship influences the CIO’s effectiveness and success as a business leader, and the value gained from information technology. CEOs are demanding and not always clear about their expectations. That can create a situation where their views are radically different from the CIO’s perceptions, a situation fraught with risk for both. CEOs and CIOs often see the relationship between business and information differently. CIOs tend to view their role and contribution optimistically. CEOs, by contrast, are more critical (Gartner, 2005).
The difference between how the CEO views the CEO-CIO relationship and how the CIO views this relationship creates the potential for a dangerous disconnect, limit- ing the value generated by information technology and the power of the executive team. Understanding the CEO’s expectations and view of the CIO helps create the right relationship based on personal style and enterprise need.
In the survey conducted by Gartner (2005), CIOs believed they are trusted and re- spected business leaders, and to a great extent they are right. But few CEOs share the same unqualified view. This is partly because CEOs have a broad span of con-
trol, with IT just one of many priorities. It is also because of CIOs’ technology and operations focus, which does not always allow them to show traditional business leadership styles and behaviors.
In the survey by Gartner (2005), responding CEOs found that healthy relationships with other executives (CXOs) are very important for the CIO. Furthermore, the CIO must oversee that IT objectives are aligned with the CEO’s objectives and overall business strategy. Survey results indicate that CIOs and CEOs are in agreement on the most important skills for the CIO’s success. They stress strategic thinking and planning, as well as understanding business processes and operations.
CEOs hire CIOs to fit with enterprise needs and the changing context. CIOs must understand the type of relationship they are in and the actions required to reach the right relationship type. Four relationship types describe how CIOs relate to CEOs: at-risk, transactional, partnering, and trusted-ally. These relationships are not set in stone. Sudden events — a change of CEO or a strategic IT initiative — can change the balance. And, if both CEO and CIO are open to the possibility, they can change the relationship.
The first step for the CIO is to understand where his or her relationship is now, through self-assessment and dialog with the CEO. Then, the CIO uses that informa- tion to decide the next step, and move one step at a time, cementing credibility and the enterprise’s appetite for change at each level.
According to Gartner (2005), CIO success stems from a four-step cycle — leading, shaping demand, setting expectations, and delivering. The CIO is recommended to build an action plan based on this cycle, tailored to personal relationship type. The plan might have tangible, time-bounded goals. Embedded in the plan might be six powerful and proven practices: get coaching and mentoring; make time for relationship building; take on non-IT responsibilities; build the strength of depu- ties; educate personally; and educate shareholders. This will increase the chances of achieving the right CEO-CIO relationship.
Gartner (2005) has the following note to CEOs: The.age.of.the.operational.CIO.is.almost.over
Your relationship with your CIO matters. The CIO can be a powerful and positive member of your executive team. A recent study by Burson and Marsteller shows that 5% of Fortune Global 500 companies have CIO skills on their board. And these companies’ stocks have outperformed the industry index by 6.4% per year since the CIO-skilled member was elected.
The Chief Information Officer 6
You set the tone of the relationship with your CIO. Successful CEOs are getting more from IT by building their CIO relationship. Getting CIO input into enterprise strategy has proved much more powerful than get- ting the CIO to execute a fixed strategy.
This trend is increasing, not decreasing, as enterprises become more reliant on IT to implement efficient processes and to drive sources of competitive advantage.
For an enterprise to be effective in using IT to drive innovation and growth, a good working relationship between the CEO and CIO is cru- cial. But there is still a lot of misunderstanding and suspicion amongst CEOs of CIOs and IT. To succeed, CIOs need to understand the CEO’s perspective on them and on IT’s role in the enterprise.
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Chapter.III
CIO...
.Leadership.Roles
Introduction
One approach to understanding the CIO position is to study managerial roles. In this chapter, 10 roles by Mintzberg, six roles by Grover et al. derived from Mintz- berg, and six CSC roles are presented to shed light on the various leadership roles for CIOs.
Mintzberg’s.Roles
Mintzberg (1994) notes a number of different and sometimes conflicting views of the manager’s role. He finds that it is a curiosity of the management literature that its best-known writers all seem to emphasize one particular part of the manager’s job to the exclusion of the others. Together, perhaps, they cover all the parts, but even that does not describe the whole job of managing. Based on an observational study of chief executives, Mintzberg (1994) concluded that a manager’s work could be described in terms of 10 job roles. As managers take on these roles, they perform management functions. These 10 roles consist of three interpersonal roles
CIO Leadership Roles
(figurehead, leader, and liaison), three informational roles (monitor, disseminator, and spokesman), and four decisional roles (entrepreneur, disturbance handler, re- source allocator, and negotiator):
• Figurehead: performs some duties of a ceremonial nature. Examples include greeting visitors, responding to journalists’ questions, and visiting customers and allies.
• Personnel: leader is responsible for motivation of subordinates and for staffing and training. Examples include most activities involving subordinates, such as settling disagreements between subordinates.
• Liaison: establishes a web of external relationships. Examples include attend- ing conferences and giving presentations.
• Monitor: seeks and receives information to understand and learn from the environment. Examples include reading journals and listening to external experts.
• Disseminator: transmits information to other organizational members. Ex- amples include forwarding reports and memos, making phone calls to present information, and holding informational meetings.
• Spokesman: involves the communication of information and ideas. Examples include speaking to the board of directors and top management and talking to users.
• Entrepreneur: acts as initiator and designer of much of the controlled change in the organization. Examples include user ideas converted to systems propos- als and management objectives transformed to infrastructure actions. • Disturbance.handler: is responsible for solving conflicts in the organiza-
tion.
• Resource.allocator: is responsible for allocation of human, financial, mate- rial, and other resources. Examples include working on budgets, developing project proposals, and monitoring information technology projects.
• Negotiator: is responsible for representing the organization in negotiations. Examples include negotiations with unions concerning wages and with vendors concerning procurements.
According to Mintzberg (1994), these 10 roles are common in all managerial jobs regardless of the functional or hierarchical level. However, differences do exist in the importance and effort dedicated to each managerial role based on job content, different skill levels, and expertise. Mintzberg (1994) states that managers are in fact specialists, required to perform a particular set of specialized managerial roles that
Grover’s.Roles
Grover, Jeong, Kettinger, and Lee (1993) used the Mintzberg framework to study CIO roles. They selected six of the 10 roles which they found relevant for CIOs: personnel leader, liaison, monitor, spokesman, entrepreneur, and resource allocator. The four other roles (figurehead, disseminator, disturbance handler, and negotiator) were not operationalized because Grover et al. (1993) found that the activities constituting these roles were correlated with the activities of the other six roles and because they found that the activities that comprised those four roles were consistently important only for certain functions and levels of management. The six selected roles were related to information technology management by rephrasing them:
• As the personnel.leader, the IS manager is responsible for supervising, hir- ing, training, and motivating a cadre of specialized personnel. Literature has emphasized the impact of this role on IS personnel. This role is mainly internal to the IS organization.
• The spokesman role incorporates activities that require the IS manager to extend organizational contacts outside the department to other areas of the organization. Frequently, he or she must cross traditional departmental bound- aries and become involved in affairs of production, distribution, marketing, and finance. This role is mainly external in relation to the intra-organizational environment.
• As the monitor, the IS manager must scan the external environment to keep up with technical changes and competition. In acting as the firm’s technical innovator, the IS manager uses many sources including vendor contacts, pro- fessional relationships, and a network of personal contacts. This role is mainly external in relation to the inter-organizational environment.
• As the liaison, the IS manager must communicate with the external environ- ment including exchanging information with IS suppliers, customers, buyers, market analysts, and the media. This role is mainly external in relation to the inter-organizational environment.
• As the entrepreneur, the IS manager identifies business needs and develops solutions that change business situations. A major responsibility of the IS man- ager is to ensure that rapidly evolving technical opportunities are understood, planned, implemented, and strategically exploited in the organization.
• As the resource.allocator, the IS manager must decide how to allocate hu-
man, financial, and information resources. The litany of past discussion on charge-back systems (users have to pay for IT services) and the importance of “fairness” in IS resource allocation decisions speak to the importance of this role. This role is mainly internal to the IS organization.
CIO Leadership Roles
Three.Leadership.Arenas
The selected six CIO roles are illustrated in Figure 3.1,. The roles of personnel leader and resource allocator are both internal to IT functions. The entrepreneur absorbs ideas from the intra-organizational environment, while the spokesman influences the intra-organizational environment. The liaison informs the external environment, while the monitor absorbs ideas from the external environment.
A survey was conducted in Norway to investigate CIO roles (Gottschalk, 2005). CIOs were asked questions about the importance of the different roles. Survey re- sults indicate some variation in the importance of roles. Responding CIOs found the role of entrepreneur most important and the role of liaison least important. This is indicated with numbers in Figure 3.1, where the scale went from 1 (not important) to 6 (very important).
CSC.Roles
Computer Science Corporation (CSC, 1996) has suggested an alternative set of leadership roles to Mintzberg (1994). These six leadership roles are specifically
Spokesman . Entrepreneur . Liaison 4.2 Montor 4. IT Function Intraorganizational Environment
(other departments in the firm) Interorganizational
Environment
(other business firms andpublic agencies) Figure 3.1. CIO roles on different arenas
• The chief.architect designs future possibilities for the business. The primary work of the chief architect is to design and evolve the IT infrastructure so that it will expand the range of future possibilities for the business, not define specific business outcomes. The infrastructure should provide not just today’s techni- cal services, such as networking, databases, and desktop operating systems, but an increasing range of business level services, such as workflow, portfolio management, scheduling, and specific business components or objects. • The change.leader orchestrates resources to achieve optimal implementation
of the future. The essential role of the change leader is to orchestrate all those resources that will be needed to execute the change program. This includes providing new IT tools, but it also involves putting in place teams of people who can redesign roles, jobs, and workflow, who can change beliefs about the company and the work people do, and who understand human nature and can develop incentive systems to coax people into new and different ways of acting.
• The product.developer helps define the company’s place in the emerging digital economy. For example, a product developer might recognize the potential for performing key business processes (perhaps order fulfillment, purchasing, or delivering customer support) over electronic linkages such as the Internet. The product developer must “sell” the idea to a business partner, and together they can set up and evaluate business experiments, which are initially operated out of IS. Whether the new methods are adopted or not, the company will learn from the experiments and thus move closer to commercial success in emerging digital markets.
• The technology. provocateur embeds IT into the business strategy. The technology provocateur works with senior business executives to bring IT and realities of the IT marketplace to bear on the formation of strategy for the business. The technology provocateur is a senior business executive who understands both the business and IT at a deep enough level to integrate the two perspectives in discussions about the future course of the business. Tech- nology provocateurs have a wealth of experience in IS disciplines, so they understand at a fundamental level the capabilities of IT and how IT impacts the business.
• The coach teaches people to acquire the skills they will need for the future. Coaches have two basic responsibilities: teaching people how to learn, so that they can become self-sufficient; and providing team leaders with staff able to do the IT-related work of the business. A mechanism that assists both is the center of excellence — a small group of people with a particular competence or skill, with a coach responsible for their growth and development. Coaches are solid practitioners of the competence that they will be coaching, but need not be the best at it in the company.
CIO Leadership Roles
• The chief.operating strategist invents the future with senior management.
The chief operating strategist is the top IS executive who is focused on the future agenda of the IS organization. The strategist has parallel responsibilities related to helping the business design the future, and then delivering it. The most important, and least understood, parts of the role have to do with the interpretation of new technologies and the IT marketplace, and the bringing of this understanding into the development of the digital business strategy for the organization.
These roles were applied in a survey in Norway (Gottschalk, 2005). CIOs were asked to rate the importance of each leadership role. The roles were rated on a scale from 1 (not important) to 6 (very important). The role of change leader received the highest score of 4.6, while the role of product developer received the lowest score of 3.3.
The Harvard Business Review invited leading scholars to answer the question: Are CIOs obsolete? They all responded with a no answer. Rockart found that all good CIOs today are business executives first, and technologists second (Maruca, 2000). Earl paid attention to recruiting new CIOs. His scenario suggests an acid test for selecting the new CIO. Does he or she have the potential to become CEO? If we