Strategic CIO // Executive Insights & Innovation
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2/24/2014
10:22 AM
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5 Skills CEOs Prize In CIOs

You want to be a CIO? The road to the top isn't about what you want. It's about fulfilling the expectations of your boss and peers.

and covering from vendors: bad idea, too, as you'll miss opportunities. Your boss expects you to find the sweet spot somewhere in the middle.

Required development: See customer management, plus negotiation skills. Vendor-phobes need not apply.

4. Financial management
IT is expensive. The CEO, CFO, and your business unit peers all know it, and they want someone at the helm who's financially literate, even savvy. You must avoid looking like a finance newb.

Some tips: Don't factor in soft cost savings such as reduced labor into your ROI estimates unless you plan to lay someone off. Understand the time value of money. Don't save $20,000 and create $20 million of risk or liability. Know the difference between a credit and a debit, and how accrual is different from cash. Be willing to say no to your staff when it's not clear how a proposed expense will serve the business.

Calculate operations versus capital expenses in the time frame that your finance office uses, and use their cost of capital for present value calculations. Realize that cash flow matters. Understand how the "fully burdened" cost of an employee at your organization compares to using contractors instead, including healthcare and other benefits. Vigorously and continuously cut expenses so that you can use savings to fund new initiatives instead of showing up to the budget office for each project with hat in hand.

Required development: Accounting, budgeting, and financial management skills. Those who can't balance a checkbook need not apply.

5. Internal reporting
I'll say it again: IT is a huge investment. You'd better tell the boss and your business unit peers what you've done for them lately or expect to join the ranks of "cost center" in their minds.

Report your accomplishments. To build credibility, be honest about your organization's challenges and screw-ups and how your team responded to them. Even if you're reporting on what FedEx CIO Rob Carter calls "the ugly picture," such honest assessments will help business partners decide whether additional investments are needed.

Celebrate successes, but include your partners in the celebrations. Keep track of how, exactly, your IT organization compares financially to other organizations in your industry. Either wow your boss and peers with how much less you're spending, or demonstrate that you're spending a bit more to get a higher level of service.

Absent thorough internal business reporting, your boss and peers will wonder what the heck you're doing all day with all that cool tech.

Required development: See financial management, plus writing, communications, and marketing. Liars need not apply.

Note that technology expertise isn't explicitly in any of these expectations of the CIO. It is, of course, buried in many of them: You can't call BS on vendors or your technical staff without being technically savvy yourself. You can't evaluate whether a customer request is reasonable without being technically savvy. And you can't assess a technology's risk without understanding it.

There is one job in IT that, if you do it right, does offer an opportunity to practice many of these skills, and I think it's the best possible preparation for the CIO role. I'll discuss it during my Interop "So You Want To Be A CIO" session on April 2 at Interop in Las Vegas. Meantime, see if you can guess what it is in the Comments field below. We'll send a small prize to the first person who guesses right.

Engage with Oracle president Mark Hurd, NFL CIO Michelle McKenna-Doyle, General Motors CIO Randy Mott, Box founder Aaron Levie, UPMC CIO Dan Drawbaugh, GE Power CIO Jim Fowler, and other leaders of the Digital Business movement at the InformationWeek Conference and Elite 100 Awards Ceremony, to be held in conjunction with Interop in Las Vegas, March 31 to April 1, 2014. See the full agenda here.

Jonathan Feldman is Chief Information Officer for the City of Asheville, North Carolina, where his business background and work as an InformationWeek columnist have helped him to innovate in government through better practices in business technology, process, and human ... View Full Bio

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gibbassett
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gibbassett,
User Rank: Apprentice
3/5/2014 | 9:14:54 PM
Marketing/External Customer-Facing Skills?
With Gartner saying marketing will control more IT budget than IT in coming years you'd expect CEOs to desire technology leaders with some skills or background in technology-enabled marketing to support those efforts and drive utilization of technology as a competitive asset.  Maybe it depends on the industry.

Gib Bassett, Global Program Director for Consumer Goods with Teradata Corp.
jfeldman
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jfeldman,
User Rank: Strategist
2/27/2014 | 8:01:36 PM
Re: A Few More
Totally agree! I tend to think marketing is in line with business reporting but I also agree that it is important enough to warrant its own section. As to political savvy - so many think that politics is a dirty word, yet the alternative to diplomacy is often "war", far worse!
J_Brandt
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J_Brandt,
User Rank: Ninja
2/27/2014 | 6:10:17 PM
A Few More
To those you can add 6) Internal customer education and expectation setting, 7) internal business knowledge and 8) Political savvy.
Paul_Travis
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Paul_Travis,
User Rank: Author
2/25/2014 | 11:24:20 AM
Re: The missing 4th skill
The missing skill is knowing how to count. It has been fixed. Thanks.

 

Paul Travis

InformationWeek.com Managing Editor
jfeldman
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jfeldman,
User Rank: Strategist
2/25/2014 | 6:38:40 AM
Re: The missing 4th skill
Apparently, I cannot claim the 4th skill as "attention to detail"! :-) I am not sure what happened there, but it does seem somewhat zen (or at least Pythonesque). Thanks for pointing it out!
Csharper
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Csharper,
User Rank: Apprentice
2/24/2014 | 8:55:16 PM
The missing 4th skill
Jonathan, would being able to count to 6 count as one of the 6 skills?

The article lists:

  1) Customer management

  2) Staff management

  3) Vendor management

  5) Financial management

  6) Internal reporting

But there's no #4... presumably just a paging issue on the site? (Although the text seems to flow.) Shame--basic detail kinda makes you question a really good article.
plarrieu1
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plarrieu1,
User Rank: Apprentice
2/24/2014 | 6:21:11 PM
Re: Project Management
I forgot to mention ethics. This would address Rob's question regarding where you draw the line with accepting venndor perks.
jfeldman
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jfeldman,
User Rank: Strategist
2/24/2014 | 6:15:36 PM
Re: Project Management
You make a good case.  Rob already knows what I think.  I will reveal what the answer is soon.  Thanks!
plarrieu1
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plarrieu1,
User Rank: Apprentice
2/24/2014 | 6:13:37 PM
Project Management
Project Management should be the launch pad for a career as a CIO. It covers all of the items that you listed and more (planning, scheduling, risk management, financial management, stakeholder management, and most importantly execution/delivery).
jfeldman
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jfeldman,
User Rank: Strategist
2/24/2014 | 5:56:52 PM
Re: Vendor Management
Another one of those razor's edges, Rob.  In gov, you're right, it's easy to know what to do.  A good rule is that if you or the organization gets something of any value, be willing to pay for it.  This helps to keep vendors in business and avoids hidden costs down the line. 
 
Big conflict of interest is easy to avoid.  If I need to go to a vendor site, surely my org can pony up for a plane ticket if it's that important.  If a vendor is sending me for "free", you can bet that my org will be paying for it eventually, most likely with a markup.  When I was on the vendor side, I'd frequently hear cackles of "we'll get that money back 10x over." So, ethical considerations aside, why not just pay for it in the first place?
 
The smaller conflict of interest stuff?  A lot harder, but just as important, because it leads to the bigger stuff.  Dishonesty flourishes because we enable it. Pay for your own darn lunch.  Go to lunch because you want to, not because there's a freebie attached. Free isn't really free, there will be hidden costs. TANSTAAFL: There ain't no such thing as a free lunch.  Make sure you know what the value exchange is.
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