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Cio Survey
Cio Survey
Cio Survey
CIO survey
Creating legacy
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providing career support, connections, insights, and services designed for CIOs and
their organizations. Email us at USCIOProgram@deloitte.com to learn more.
Creating legacy
Contents
1
2015 global CIO survey
Khalid Kark is a director with Deloitte Consulting LP, where he leads the development of research
and insights for the CIO Program. He has served as a trusted advisor to large, multinational clients,
and has decades of experience helping technology leaders anticipate and plan for the impacts of new
technology. Previously, Kark led CIO Research at Forrester Research. His research has been widely
featured in media outlets such as MSNBC, the Boston Globe, and CIO magazine.
Mark White
Product & Solutions Ideation and Strategy lead
Deloitte Consulting LLP
mawhite@deloitte.com
Mark White has served clients in federal, financial services, real estate, high tech, telecom, trans-
portation, and other industries. He focuses on delivering critical business solutions in areas
including architecture, IT service management, IT service architecture, operations engineering,
data center design and consolidation, and business intelligence. He is a frequent speaker at global
conferences and is regularly quoted in the media discussing the impact of technology on business
and government.
Bill Briggs
Chief Technology Officer
Deloitte Consulting LLP
wbriggs@deloitte.com
Bill Briggs is a strategist with deep implementation experience, helping clients anticipate the impact
that new and emerging technologies may have on their business in the future, and helping them get
there from the realities of today. As CTO, Briggs is responsible for helping to define the vision for
Deloitte Consulting LLP’s technology services, identifying and communicating technology trends
affecting clients’ businesses, and shaping the strategy for Deloitte Consulting LLP’s emerging ser-
vices and offerings.
2
Creating legacy
W E are pleased to share with you the findings from our 2015 global CIO survey, part of an
expansive conversation with and among leading CIOs throughout the world. The survey
was conducted by Deloitte’s CIO Program, representing our commitment to helping advance the
careers, contributions, and impact of CIOs worldwide. Deloitte’s CIO Program brings together a
multidisciplinary team of Deloitte leaders and experienced professionals with a commitment to
help CIOs tackle what’s next in the face of growing challenges and demands. One way we deliver
against that commitment is through research that seeks to understand distinctions in CIO roles and
approaches to creating value.
In preparing for the 2015 global CIO survey, our team examined CIO job descriptions to deter-
mine the role of a CIO, which tends to vary much more widely than job descriptions for other CxO
roles. We looked at the attributes, skills, and competencies that define the CIO role. Despite our
initial hypothesis, we found no significant differences across industries, geographies, and company
size in how CIOs delivered value. That said, that analysis did yield important insights about how
CIOs operate within the leadership ecosystems of the organizations they serve. We learned that
CIOs are laser-focused on understanding how they’re creating impact and value today—and where
their value proposition is headed in the future.
Since the familiar dimensions of industry, geography, and company size shed little light on CIO
roles, we turned instead to four elements we’ve used in more than 1000 executive Transition Labs
conducted by Deloitte’s Leadership Center for Clients: business priorities, leadership and talent,
relationships, and investment priorities. These four elements formed the framework for our 2015
global CIO survey, which engaged more than 1,200 CIOs and senior IT executives around the globe
through surveys and interviews.
The 2015 global CIO survey marks the beginning of a multiyear research effort exploring the
nature of the CIO role and legacy. It reveals three distinct clusters of how CIOs are delivering value
today—and how they are preparing for what comes next. We hope these findings prove interesting
and valuable as you think about your own legacy.
Best regards,
Khalid Kark
Research director
US CIO Program
Deloitte Services LP
3
Creating legacy
–– Business priorities
–– Leadership and talent
–– Relationships
–– Technology investment
5
2015 global CIO survey
Business priorities: Context and growth (figure 1). These top priorities were
shapes the CIO agenda consistent across industry, geography, and size
of organization. One understandable excep-
Business priorities refer to the priori- tion: Only CIOs involved in the public sector
ties forced on an organization by both the selected “cybersecurity” over “growth” as a top
marketplace and the individual company business priority.
strategy. It defines the boundaries of the CIO CIOs have moved from leading a sup-
playing field and sets high-level expectations porting function to managing a business
for performance. function—they reported that business lead-
Every company today is a technology ers expect them to not only contribute to
company; CIOs are involved not just in driving the bottom-line business priorities but also
efficiency, but also in reimagining customer to enable and even drive top-line initiatives.
experiences, reshaping how work gets done, Many CIO respondents described simulta-
and even rewiring business models. This is not neously juggling business performance and
just rhetoric. Our survey shows that across growth objectives with IT cost reduction and
organizations big and small, across industries, efficiency improvement.
and across geographies, CIOs have common The four priorities that did not make the
business priorities, all directly linked to the top five list are also significant. Regulations
heart of their businesses. and reconfiguration were important for some
but not for all CIOs. In addition, cybersecurity
Global results: Five business and talent were lower enterprise priorities, per-
priorities dominate the CIO agenda haps because they are fundamental for achiev-
ing other priorities, or because they don’t drive
CIOs around the globe were nearly unani- profitability, or maybe because responsibility
mous in identifying the top five business prior- for these are shared with other executives. But
ities: performance, cost, customers, innovation, both are critical building blocks that could
impact all five top priorities, so it could be
Figure 1. Business priorities risky to ignore or deprioritize them.
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Creating legacy
0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70%
0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70%
Technology and telecommunications Travel, media, and hospitality Education and non-profits
107 responses 70 responses 58 responses
Performance 42% Performance 49% Performance 45%
Innovation 58% Innovation 49% Innovation 45%
Customers 49% Customers 71% Customers 52%
0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70% 0% 20% 30% 40% 50% 60% 70%
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2015 global CIO survey
“
ensure that day-to-day operations are running
For a lot of companies, the CIO and effectively on the other. Most importantly,
CEO roles are going to start blurring; so CIOs need to have not only technology acu-
men but also the courage and conviction to
much of what we do today is technology- lead their organizations through change.
driven, CEOs will start to acquire
significant data skills or CIOs will be in a Global results: Only 9 percent
of CIOs say they have all the
position to lead transformation and lead
skills they need to succeed
the company.”
Anand Sahasram, CIO, McGraw-Hill Financial In this part of the survey, we asked CIOs to
select the top five competencies that a success-
ful technology leader needs. Then we asked
them to identify their own top five strengths.
That said, it’s essential to put first things The gaps between these responses highlight
first. One CIO had this advice for his peers: “If areas where CIOs need to improve to make a
you don’t fulfill basic performance expecta- lasting impact (figure 3).
tions, you’re a sitting duck.” Out of the 12 leadership capabilities, CIOs
Another CIO, who had come from out- overwhelmingly picked six as the most impor-
side his company’s industry, found he had an tant for success in their role: influence with
advantage in challenging the status quo. He internal stakeholders, communication skills,
said, “Being new to an industry gives you the understanding strategic business priorities,
license to challenge the norms. I often found talent management, technology vision and
myself asking the question, Why are we doing it leadership, and the ability to lead complex,
this way?” fast-changing environments.
Ninety-one percent of CIOs in our global
Leadership and talent: survey acknowledged lacking at least one key
skill. Three skills with the largest gaps were
Driving impact the ability to influence internal stakeholders,
Leadership and talent refer to the compe- talent management, and technology vision
tencies and strengths the CIO brings to the and leadership.
table, both personally and via the larger team. On the other hand, three areas identi-
This mix shapes the performance, value, and fied as significant current strengths were not
overall capabilities of the IT organization. considered differentiating skills for successful
It is rare to find business leaders who take technology leaders. These areas were opera-
big risks, have the ability to craft a long-term tions and execution, ability to run large-scale
vision, and possess the dedication needed to projects, and leverage with external partners.
manage the day-to-day operations. But that These gaps point to a general proficiency in
is exactly the expectation for today’s CIOs. “managerial” skills and a relative deficiency in
They have to be ambidextrous, contributing to “leadership” skills for CIOs.
business strategy on one hand while trying to
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Creating legacy
“
Other significant findings
If you are leading a large global
• Sixty percent of CIOs from larger orga-
nizations cited attracting, retaining, and organization, you need to be able to be
motivating talent as a defining success char- approachable. If you’re not an effective
acteristic—even though talent was not a top communicator and speaker, and you are
five enterprise priority. In contrast, only 43
not able to connect to people on multiple
percent of CIOs from small organizations
(<1,000 employees) cited the talent agenda levels, you can’t be a leader.”
as a top priority. Mike Brown, VP Information Technology, ExxonMobil
Technology operations
Ability to influence internal stakeholders
and execution
(CEO, CFO,CMO, business leaders, etc.)
79%
Comprehension of markets
and disruptive business forces Communication and
55% interpersonal skills
70%
29%
67%
8%
12% Understanding
Development of 18% 62% the organization’s
digital capabilities
strategic priorities
14%
19% ideal 58%
characteristic
Strength
31% 52%
19% Attracting,
Ability to 42%
deliver large-scale retaining,
23% and motivating
technology programs
20% 51% talent
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2015 global CIO survey
When asked which reporting relationship would most enhance their effectiveness, 47 percent of CIOs believed they
would be more effective in a different reporting relationship. CIOs that reported to the CEO were very satisfied (89%),
but only 18% of the CIOs that reported into the CFO thought that they were most effective in that reporting relationship.
Most of them (55%) thought that they would be more effective reporting into the CEO. (figure 4).
To whom do you think your role should report in order to be most effective?
Executive/ Other
Board Business management (please
CEO CFO COO of directors unit leaders committee specifiy)
Board
of directors
17.71% 77.08% 5.21%
Business
unit leaders
42.11% 5.26% 10.53% 5.26% 31.58% 5.26%
Executive/
management 26.56% 1.56% 20.31% 51.56%
committee
Other
(please 44.19% 1.16% 3.49% 4.65% 2.33% 4.65% 39.53%
specifiy)
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Creating legacy
Relationship Strength of
with relationship
Role with
business strategy
CEO Excellent development
CFO Initiator/
co-leader
COO
Not involved
Head of
sales Implementer
Poor
Very poor
CISO
N/A
Not involved
CHRO
Role with
mergers &
acquisitions
“
about their biggest obstacle, many responded
that they lacked staff to whom they could
You build relationships by offering
delegate. Those CIOs who do invest in their something of value—understanding
talent often rely on their lieutenants to aug- priorities and helping others be successful.
ment their own skill sets; they focus on build-
There is nothing better than shared success
ing a team that can deliver a balanced set of
IT capabilities. to build strong relationships.”
One CIO advises his counterparts in this Clark Golestani, EVP and CIO, Merck
way: “CIOs tend to create organizational
structure to support the areas where they don’t
spend their personal time. I created organiza-
tional structure to support all my work, so I
Relationships: Building
can spend my time where I want to or where it credibility and influence
needs to be spent.”
Relationships define a leader’s credibility
and impact. Establishing strong partnerships
and deep engagement with C-suite lead-
ers, employees, business peers, and external
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2015 global CIO survey
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Creating legacy
Frequency of interaction
Business 41.64%
41.16% 14.20% 2.77% .24%
leadership
CMO (chief
16.25% 47.93% 30.30% 5.23% .55%
marketing
officer)
Chief digital
officer/head 17.55% 50.16% 27.59% 4.39% .31%
of digital
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2015 global CIO survey
Global results: It’s all evolving our support and adding value to their
about business value practices and Ameriprise.”
When asked which technologies will have This lack of definition is often confusing
significant impact on the business within two for business leaders and can lead to misunder-
years, CIOs unsurprisingly named analytics, standings and conflicting goals. These tech-
business intelligence, and digital (figure 8). nologies are interdependent, and very often,
What was surprising was that the definition, a combination of platforms come together to
scope, and specific technology investments deliver business value. As CIOs communicate
for each of these technology initiatives varied about these technologies, they need to talk less
significantly from organization to organization. about technology itself and more about the
For example, digital investments could business solutions, impact, and value that the
mean anything from analyzing customer technology delivers.
data and developing new products and ser- Two-thirds of technology budgets are spent
vices to improving customer experience and on maintaining day-to-day business opera-
enabling the workforce to better collaborate tions, and often there is pressure on the CIO
or be more productive. For Randy Kupper, to invest more in business innovation. It is
CIO, Ameriprise Financial, Inc., “The biggest important to recognize that spending on inno-
emphasis for digital capabilities is driving effi- vation also has a long tail of operational spend
ciencies to our advisors to help them be more in subsequent years. Globally, 16 percent of the
productive. It’s a key component of how we’re respondents’ current budgets is allocated to
business innovation and growth (see figure 7).
Analytics and
77% 12% 40% 48%
business intelligence
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Creating legacy
“
Other significant findings
Based on their industry, CIOs expect differ- Legacy and core modernization is
ent technologies to have a significant impact critical given the combination of (1) very
on their business within the next two years.
robust, large-scale systems that have been
• Analytics: Seventy-seven percent of the doing things one way for a long time, and
CIOs selected analytics; industries with
(2) a rapid level of change that demands
large customer bases and complex value
chains such as manufacturing and con- things be done differently quickly. Agility
struction were more likely to pick analytics of scale and modernization is critical.”
as a disruptor.
Steve Betts, enterprise CIO, Health Care Service Corporation
• Digital: Seventy-five percent of the CIOs
picked digital, especially from industries
that provide products to end consumers Technology investments represent the basis
such as financial services, education, and of value and impact for a CIO. Business leaders
consumer business and retail. expect CIOs to provide the competitive or per-
formance edge to their organizations through
• Cloud: Sixty-four percent of the CIOs technology. Getting it right is table stakes—a
picked cloud. Adoption is upending tech- prerequisite for having a seat at any other table.
nology in many sectors, especially con-
sumer business and retail; technology and Key takeaway: Build a strong
telecom; and travel, media, and hospitality. foundation to benefit from
digital and analytics
• Cybersecurity: Fifty-eight percent of
the CIOs picked cybersecurity. It mat- Globally, three out of four CIOs picked ana-
ters especially where risks and trust col- lytics and digital as two technologies that will
lide, such as in financial services, energy, impact their business in the next two years. But
and government. many CIOs said that to take full advantage of
these technologies, they would need to revamp
• Legacy and core modernization: Even their existing legacy and core infrastructure.
though legacy and core modernization Many are finding it hard to get the funding to
was the highest in current spend, only do that.
28 percent of the CIOs said it will have a One CIO said that maintaining the reli-
significant impact on their business in the ability and performance of core operations was
next two years. As investments in digital, essential for them because these core systems
analytics, and cloud increasingly depend yield enormous amounts of transactional data
on core systems, there is an opportunity to that can fuel innovation.
shift core modernization from rote upkeep
to establishing the foundation for more
disruptive technologies.
Current investments in cybersecurity were
relatively low except for public sector respon-
dents globally and respondents from the
United States. This was surprising given that
underinvesting in cybersecurity could derail
investments in other technology areas.
15
Creating legacy
Chapter 2. Sculpting
your CIO legacy
ship capabilities, relationships, and investments are • Business co-creators spend most of their time
the key levers that CIOs use to drive performance. on driving business strategy and enabling change
As we explored the survey data more deeply, how- within their businesses to see that there is effec-
ever, we uncovered three different patterns that tive execution of the strategy.
describe how CIOs are delivering value today—and As you think about the three patterns and chart
how they are preparing for what comes next. These out a plan for how you need to evolve, consider
patterns (figure 9) provide a powerful approach for the following:
understanding how CIOs must adapt to meet the
dynamic requirements of their roles—and build a • One CIO legacy pattern is not better than the
lasting legacy. others. What matters is choosing the pattern that
matches the business context as framed by the
• Trusted operators deliver operational discipline four elements at any given time.
within their organizations by focusing on cost,
operational efficiency, and performance reli- • CIO legacies are works in process; patterns are
ability. They also provide enabling technologies, fluid. A different pattern may be needed when the
support business transformation efforts, and align business context changes. For example, when you
to business strategy. transition to a new organization or when a new
business strategy emerges, you may find yourself
• Change instigators take the lead on technology- needing to adopt a new pattern. Similarly, your
enabled business transformation and change pattern evolves as a result of the challenges and
initiatives. They allocate significant time to experiences you have as a leader.
17
2015 global CIO survey
Characteristic
Business co-creator
Strength
r
rato
pe
tedo
Trus
Change
instigato
r
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Creating legacy
Trusted operators’ top business priorities Figure 10. Trusted operator: Business priorities
are cost and performance (figure 10). More 47%
than half identified cost as a top-three busi-
Performance 48%
ness priority. An executive vice president and
CIO of a US health care company said, “One 56%
strategic aspect of what we’re doing is becom-
Cost 45%
ing more affordable. We’ve committed that we
aren’t going to increase health care costs, which 44%
is putting cost pressure on the organization as Customers 45%
a whole. So from a technology perspective, I
have two responsibilities: using technology to 41%
reduce costs and looking within my own orga- Innovation 45%
nization to reduce costs.”
Also, trusted operators identified attracting 38%
and retaining customers as their third-highest Growth 44%
business priority, with a focus on delivering
reliable back-end infrastructure. For this pro- Vertical bars represent the percentage of trusted operators who
selected each area as a business priority, and the percentages
file, the customer is almost always the internal indicated in white represent the percentage of all global
party, since they rarely engage directly with respondents who selected each area as a business priority.
external customers.
With their energies squarely focused on Their core competency is to drive down
cost and performance, trusted operators are costs by rationalizing, renewing, and consoli-
much less likely than CIOs of the other two dating technology. Not surprisingly, 44 percent
patterns to be in organizations that have inno- picked technology operations and execution as
vation and growth as their top priorities. Even one of their top strengths (figure 11). Trusted
in situations where they are asked to support operators are twice as likely as other CIOs to
such initiatives, trusted operators are likely to identify this as a top strength. “You need to
focus on providing enabling technologies and have a sense of how things are operating. If you
processes instead of leading these innovation can’t speak to that with a lot of knowledge, you
and growth initiatives. begin to lose your influencing capabilities. You
Trusted operators tend to be strong part- have to be ‘in the know’ to have the conver-
ners and enablers but will rarely lead business sations that matter,” said the CIO of a large
innovation and growth initiatives. financial services company.
Trusted operators have a knack for develop- Because of their cost mandate, trusted
ing clear governance and effective cost-control operators are most likely to report to the CFO.
mechanisms. They are able to gain the trust More than 60 percent report having an excel-
of their stakeholders by enabling and aligning lent or very good relationship with their CFO.
technology with business objectives. A major- They also have strong relationships with CEOs
ity rated influencing internal stakeholders because of their focus on bottom-line impact.
as a top strength, as the CIO of a European A CIO of a telecommunications company said,
government agency said, “I want to create “For me, it’s the CFO—he’s my boss, he gives
a foundation to deliver flexible technolo- me air cover, we have a great partnership, and I
gies that support the evolving needs of my respect him.”
business peers.
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2015 global CIO survey
Figure 11. Current CIO strengths versus ideal characteristics of a successful CIO:
Trusted operators versus all respondents
Technology operations
Ability to influence internal stakeholders
and execution
(CEO, CFO,CMO, business leaders, etc.)
79%
81%
Comprehension of markets 55%
and disruptive business forces
29% Communication and
8% 70% interpersonal skills
44% 49%
12% 71%
67%
18% 67%
11%
10% 62% Understanding
Development of
14% the organization’s
digital capabilities 14% 68% strategic priorities
14%
58%
21% Ideal
19% characteristic 61%
25% Strength 52%
31% 15% 47%
Ability to Attracting,
39% 42% retaining,
deliver large-scale 24%
technology programs 19% and motivating
19% talent
51%
23% 52%
38% 42%
20% 35% 44% 44%
Ability to analyze data
46% Technology vision
35% 49%
to drive insights 29% and leadership
50%
Trusted operators are least likely to have example, a CIO of a global consumer products
excellent relationships with heads of market- company said, “We have thousands of employ-
ing and sales; only a third reported excellent ees in the United States, and technology can
or very good relationships (figure 12). This is make their lives better. I have lofty aspirations
logical, since trusted operators are passionate to use technology to give them access
about managing the operations and execution to things they couldn’t get unless they
of technology but don’t typically get involved worked here.”
in customer-facing functions.
In our interviews, many trusted operators Technology investments: Improving
shared that their mission to actively engage enabling technologies
with their workforce helps them be more Trusted operators rank digital as the tech-
productive, collaborative, and motivated. For nology that will most impact their business in
20
Creating legacy
Relationship
with Strength of
relationship
CEO
Excellent
Role with
CFO business strategy
development
COO
Implementer
Good
CMO
Not involved
Head of
Initiator/
sales Poor co-leader
Very poor
CISO Implementer
N/A
Role with
mergers &
acquisitions
the next two years, closely followed by ana- architectures. For cloud, cost is a big
lytics and cloud (figure 13). Although their decision driver.
choices are similar to those of other patterns,
• Cybersecurity to deliver reliable and effec-
our interviews revealed that their investment
tive technology services (figure 14). Since
priorities are focused on enhancing technol-
regulatory compliance is often a business
ogy and enabling versus transforming business
priority, trusted operators are frequently
operations. They invest their energies in:
able to get the funding to enhance systems
• Digital and analytics investments to security while ensuring compliance. The
support workforce enablement, inter- CIO and senior vice president of a telecom-
nal collaboration, mobile solutions, and munications company said, “Over the past
other investments that improve efficiency three years, cybersecurity has become top
and productivity. of mind for everyone—board, audit com-
mittee, executives. We put together a frame-
• Cloud investments to deliver efficiency, work for approaching cyber as a program
agility, and simplicity and as a tool instead of willy-nilly. Security has matured
to migrate to simpler, more efficient significantly.”
21
2015 global CIO survey
45%
Enhancements
23%
36%
Business innovation
27%
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Creating legacy
This pattern primarily delivers operational discipline by focusing on cost, efficiency, and reliability.
They also provide enabling technologies and support business transformation efforts.
TOP BUSINESS
PRIORITIES
% represents respondents
that identified these
objectives as important Cost Communication
in the next year. 56% 67%
LEADERSHIP
SKILLS
% represents respondents
that identified these
Performance attributes as a key Execution
47% personal strength. 44%
KEY
RELATIONSHIPS
% represents respondents
that described these
relationships as excellent CFO Cyber
or very good. 60% 52%
TECH LEVERS
% represents respondents
that said these technologies
would have significant
COO business impact in the Cloud
41% next two years. 67%
23
2015 global CIO survey
“Some would say we have an engineer- Like their peers, communications and
ing mindset, that we engineer products for understanding business priorities are change
engineers. We’ve had situations where we took instigators’ top two strengths (figure 16). True
a jewel and over-engineered it. We’ve learned to their pattern, they also identified leading in
the lesson that the customer should be in the complex, fast-changing environments (54 per-
middle, with products and services surround- cent) among their top strengths, followed by
ing them,” said the VP and CIO of a global technology vision (51 percent) and influence
industrial manufacturing company. with stakeholders (50 percent). For example,
Change instigators are actively looking the global CIO of an energy and resources
for ways to enhance the role of technology in company said, “If I were to take you through
their organizations. They are often brought my career path, it wouldn’t make sense. I’m
in to change the status quo, and they natu- running operations for a few years, leading a
rally look outside the enterprise to get ideas. large global effort overseas, back to running
Compared to trusted operators and business operations, and then taking on another com-
co-creators, change instigators are more likely plex internal project. I finally figured it out:
to select growth and innovation as their top What I do is I manage large, complex prob-
business priorities. lems. That is the unique skill I’ve acquired over
Since their mandate is to drive change, cost the years. Now I’m applying it to IT.”
reduction is not high on the change instigator’s Change instigators have an unambiguous
agenda. They are less likely than others to have view of their destination. They are experts at
24
Creating legacy
Figure 16. Current CIO strengths versus ideal characteristics of a successful CIO:
Change instigators versus all respondents
Technology operations
Ability to influence internal stakeholders
and execution
(CEO, CFO,CMO, business leaders, etc.)
79%
79%
Comprehension of markets 55%
and disruptive business forces
29% Communication and
8% 70% interpersonal skills
50% 73%
12%
23% 67%
18% 68%
4%
62% Understanding
Development of 22% 10%
the organization’s
digital capabilities 14%
18% 54% strategic priorities
58%
21% Ideal
19% characteristic 55%
33% Strength 52%
31% 19% 50%
Ability to Attracting,
38% 42% retaining,
deliver large-scale 21%
technology programs 19% and motivating
19% talent
51%
23% 52%
40% 31% 51%
20% 44%
52%
Ability to analyze data 35% 54% 49% Technology vision
to drive insights 29% and leadership
50%
painting a picture of this destination and moti- outside their organizations to build partner-
vating others to follow and execute. Change ships and alliances that allow them to harness
instigators are 21 percent more likely than information and build capabilities. They are
other CIOs to call technology vision a strength. heavily involved in utilizing technology to
enhance customer experience. “It is a skillset
Relationships: Customers the CIO needs to develop: Listen more, and
and business partners listen with a business ear versus a technology
ear,” said the CIO of a consumer business and
Because of their mandate, change instiga- retail company.
tors typically report into the CEO. While only Equally important, change instigators are
50 percent see building internal relationships focused on leveraging data from external and
as a top strength, change instigators often reach internal sources to help their organizations
25
2015 global CIO survey
Gathering 38%
and analyzing
customer data 31%
26
Creating legacy
They ranked analytics as the technology that your business. They think you just flip a switch.
will most impact their business in the next two Let’s be clear—very few cloud applications in a
years, followed by digital and cloud (figure 18). Fortune 500 company stand alone. The integra-
A CIO of a high-tech company described his tion makes it a very difficult proposition.”
challenges of switching his applications into Change instigators’ investment priorities
the cloud: “There’s a naïveté at the executive tend to be customer-focused, with a priority on
level about cloud. People don’t understand flexibility and speed.
how difficult it is to integrate it with the rest of
This pattern takes the lead on technology-enabled business transformation and other change
initiatives. They allocate significant time to driving operational performance and reliability.
TOP BUSINESS
PRIORITIES
% represents respondents
that identified these
objectives as important Innovation Technology vision
in the next year. 50% 51%
LEADERSHIP
SKILLS
% represents respondents
that identified these
Customers attributes as a key Communication
48% personal strength. 68%
KEY
RELATIONSHIPS
% represents respondents
that described these
relationships as excellent Business unit Analytics
or very good. leader 62% 82%
TECH LEVERS
% represents respondents
that said these technologies
would have significant
Head of sales business impact in the Digital
48% next two years. 75%
27
2015 global CIO survey
Figure 19. Business co-creator: Business priorities The two secret weapons for business co-
45% creators are communication and influence
Performance 48% (figure 20). Although all CIOs claimed these as
strengths, co-creators typically excel at both.
45% Two out of three picked communication as a
Cost 45% strength, and they were 24 percent more likely
to cite ability to influence internal stakeholders
50% as a top-five strength. Talking about leadership,
Customers 45% the CIO of a global energy and resources com-
pany said, “I generate energy for where I need
53% to be, versus what I want to do. I don’t even
Innovation 45% think any more about what my natural wiring
wants me to do. In the big scheme of things,
39%
you just have to do it.”
Growth 44% Because business co-creators have influ-
ence and credibility within their organizations,
Vertical bars represent the percentage of business co-creators who
selected each area as a business priority, and the percentages
they generally have a seat at the table with
indicated in white represent the percentage of all global other leaders. They are also more likely than
respondents who selected each area as a business priority.
28
Creating legacy
Figure 20. Current CIO strengths versus ideal characteristics of a successful CIO:
Business co-creators versus all respondents
Technology operations
Ability to influence internal stakeholders
and execution
(CEO, CFO,CMO, business leaders, etc.)
79%
Comprehension of markets 74%
29% 55%
and disruptive business forces Communication and
8%
61% 70% interpersonal skills
12% 68%
19% 67%
18% 64%
6%
13% 62% Understanding
Development of 16% the organization’s
digital capabilities 14% 64% strategic priorities
17%
58%
21% Ideal
19% characteristic 58%
28% Strength 52%
31% 18% 50%
Ability to Attracting,
37% 42% retaining,
deliver large-scale
technology programs 19% 29% and motivating
25% talent
23% 50% 51%
37% 33% 43%
20% 47% 44%
Ability to analyze data 35% 48% Technology vision
29% 49%
to drive insights 50% and leadership
29
2015 global CIO survey
38%40% 50%
0% 10% 20% 30% 60% 70% 80% 90% 100%
31%
Initiator/co-leader Implementer Not involved
Relationship
with Strength of
relationship
Role with
business strategy
CEO
development
Excellent
CFO Initiator/
co-leader
Business
unit leader Very good
Implementer
COO
Not involved
Initiator/
CMO Good co-leader
Head of Implementer
sales Poor
Very poor
CISO
Role with
mergers &
acquisitions
30
Creating legacy
other CIOs to be involved in business strategy I’m of the Steve Jobs approach—the customer
conversations and M&A (figure 21). [business] doesn’t know what they want until
they see it—how are they going to come up
Relationships: Leverage with it? You have to help them come up with
for creating value it,” said the executive vice president and CIO of
a consumer retail company.
Building relationships comes naturally to In face-to-face interviews, many co-creator
business co-creators, and they take advantage CIOs described how they jointly own respon-
of their skills to build alliances and partner- sibilities for driving digital initiatives and how
ships, both inside and outside their organiza- they are collaborating with business leaders to
tions. Co-creators are more likely than their envision what technology could do for them.
peers to report stronger relationships across Business co-creators tend to make signifi-
almost all internal stakeholders, especially the cant investments in building talent so they can
CEO, the COO, and the CMO (chief marketing focus on their strategic roles. Almost all have
officer) (figure 22). “How do you serve without strong lieutenants to take care of operations
being subservient? We are as much a partner in and execution, so they can focus on strategy
business growth as anyone else in the organiza- and change.
tion, so we should not just be order takers. . . .
31
2015 global CIO survey
This pattern focuses their time on business strategy, while balancing their efforts to provide
enabling technologies and leading change initiatives.
TOP BUSINESS
PRIORITIES
% represents respondents
that identified these
objectives as important Innovation Communication
in the next year. 53% 64%
LEADERSHIP
SKILLS
% represents respondents
that identified these
Customers attributes as a key Influence
50% personal strength. 61%
KEY
RELATIONSHIPS
% represents respondents
that described these
relationships as excellent CEO Analytics
or very good. 70% 74%
TECH LEVERS
% represents respondents
that said these technologies
would have significant
COO business impact in the Emerging
51% next two years. 28%
32
Creating legacy
Chapter 3. Navigating
the legacy landscape
“
legacy patterns and how they are shaped
by the framing elements of business priori-
We went through an initial phase
ties, leadership and talent, relationships, and that focused on service reliability and
investments. These four elements define busi- operational excellence. Next we focused on
ness context at a particular time and place. As
overhauling talent, and then maturing the
circumstances change, so must the profile—the
legacy pattern—that CIOs are fulfilling. organization in terms of execution. Finally,
In this chapter, we challenge you to evalu- we focused on innovation. We couldn’t do
ate your current position against your current one without the other. Project execution
business frame and consider what might be
required when you need to move from one
is heavily dependent on talent; innovation
pattern to another (figure 24). A good way takes some time and was the hardest thing
to begin working through the challenge is to to do.”
focus on these questions:
Christopher Hjelm, CIO and senior vice president, Kroger
–– Which pattern do you identify with
based on your current business context?
–– Is that pattern what your organization
needs today?
–– What pattern is best aligned to your
organization’s future needs?
–– How are you preparing for that future
and positioning yourself for success?
35
2015 global CIO survey
▲
operator
21% (12%)
Trusted
▲
operator
(42%) 53% Change
instigator
▲
(22%)
▲
1%
▲
45%
Change
instigator 54%
(22%)
▲
▲ Business
1%
co-creator
▲
9% (66%)
90%
▲
Business
co-creator
(36%)
When the business needs the organization in the ways that the business
a trusted operator itself can see or understand,” said Ryan Smith,
Organizations facing foundational issues senior vice president and CIO, Banner Health
related to reliability and performance need and Subsidiaries.
trusted operators at the helm; the same is Trusted operators either have to roll up
true during cycles of cost reduction. When a their sleeves to focus on operating competency
company needs to stabilize its core business or or find talent with operations and execu-
shrink IT budgets, a trusted operator tends to tion strengths. More than likely, both will be
be the right profile for the job. required. Here are specific actions that lead-
A trusted operator is needed to lead tech- ers can take when they need to embrace the
nology integration efforts when two companies trusted operator pattern.
merge. Similarly, when a natural change insti-
gator moves into a company where technology • Prioritize stability and cost control
operations are a mess, he or she must become through strong governance. Look for
a trusted operator—or assemble a team that opportunities to reduce IT spending and
delivers that profile—to rebuild business trust create efficiencies in business processes.
and deliver a reliable, effective technology Build a strong governance process to
environment. “We sit at the table and help monitor performance—and get business
envision what technology can do to propel leaders involved in the governance process.
Communicate about performance and cost
36
Creating legacy
“
metrics frequently and consistently. Be
transparent to establish trust.
We always need to have a helicopter
• Build a strong partnership with your view to see the future potential impact.
CFO. The CFO should be your best friend This capability enables us to lead tech
and closest ally. You both want an efficient, through transformation.”
stable, and scalable technology environ-
ment. You both want business leaders to be Leandro Balbinot, CIO, H.J. Heinz Company
more accountable for technology spend-
ing. You both want a structure to prioritize
technology investments.
organizational mandate for growth and an
• Mind the IT balance sheet. Too many
appetite to change. The job goes well beyond
CIOs don’t have line-of-sight to the assets
technology and business processes. It’s also
under their control. Start by inventorying
about cultural change. “I am a change agent at
programs, projects, hardware, software,
the core; I love driving change and transforma-
data, partners, contracts, people, skills,
tion. I clearly know the type of leader I am and
interests, operating models, methods, tools,
am looking for the right opportunity to apply
and even political capital. But don’t stop
this skill,” said Dennis Self, senior vice presi-
there. Evaluate how stable, reliable, and
dent of delivery, Acxiom.
costly different classes of assets are—and
A change instigator may be needed when an
how well aligned they are to the needs of
organization has had a long-tenured CIO who
the business.
has been unwilling or unable to drive change,
or when the business wants to use technol-
• Look for opportunities to simplify,
ogy to better engage with end-user customers.
consolidate, and centralize technologies.
Also, any technology-enabled business trans-
This could mean modernizing your operat-
formation initiative could signal the need for a
ing environment through virtualization or
CIO change instigator. “I want to transform the
cloud platforms. Invest in DevOps to auto-
business to operate in a way which supports
mate and improve how your technology
our customers and drives sales,” said the CIO
assets are designed, built, and maintained.
of a European consumer business company.
Use efficiency gains and cost take-out to
The following actions can help you bring
explore innovation and growth initiatives.
your inner change instigator to the forefront.
• Make cybersecurity a priority. Use savings • Think “prototypes” and “pilots.” Change
from modernization to fund cybersecurity instigators should look for out-of-the-
investments to provide stability, protection, box ideas, invest in prototypes and
and compliance. A breach or disclosure of pilots, and experiment with multiple
data could derail all your other efforts. solutions simultaneously.
37
2015 global CIO survey
• Get deeply engaged in analytics and busi- robotics, additive manufacturing, quantum
ness intelligence initiatives. These are key computing, and industrial biology—and
to finding new ways to add value, whether they can have powerful transformative
through improved efficiency or through effects for organizations that have the capa-
creating new products, services, and lines bilities to exploit them. CIOs should invest
of business. in exponentials, but business co-creators
need to spend a higher percentage of time
• Invest in exponentials. Exponentials are and investments in this area because of
innovative technologies for which per- their mandate to enable and co-lead busi-
formance doubles rapidly. They include ness strategy.
39
Creating legacy
Making IT matter
Many of the CIOs we interviewed are exemplary champions for IT, with a strong desire for their
companies to understand and appreciate the contribution IT can make. They also described their
passion for developing and engaging their people—and for making work fun and exciting.
41
2015 global CIO survey
“ My job is to enable the business via technology to get better results and
to help the organization—people and teams—be their best.”
— Francesco Tinto, vice president and CIO, Kraft
42
Creating legacy
Giving back
For many CIOs, the idea of legacy has a very personal dimension. They want to use their posi-
tion as a platform to give back to their communities and companies. They spend a lot of their
personal time mentoring and developing business leaders.
“ I’ve led three people who went on to become CIOs, and there’ll be
more. I develop ‘tweeners’—hybrids of business people and IT people—
and help those people move into leadership.”
—Wayne Shurts, executive vice president and CIO, Sysco
43
2015 global CIO survey
“ I led a program called the Leadership Challenge for more than 500
people managers. People here would say I invest in their careers and
training within IT and outside IT.”
—Richard D. Daniels, executive vice president and CIO, Kaiser Permanente
Key takeaway
legacy. Examining these personal passions
The four elements that frame the CIO reveals real people with complex motivations.
legacy profiles are oriented toward the busi- Shaping your CIO legacy requires reflection,
ness, but our conversations also provided understanding, and intentional self-develop-
great insight into the personal side of the CIO ment that takes both perspectives into account.
44
Creating legacy
Conclusion: The
legacy mandate
45
2015 global CIO survey
46
2015 global CIO survey
Reporting lines
CEO CFO BOARD COO GLOBAL OTHER
CIO
33% 22% 14% 11% 9% 11%
Number of employees
<1,000 1,000-4,999 5,000-9,999 10,000- 20,000- >50,000
19,999 50,000
25% 27% 14% 11% 10% 12%
Company revenue
<$500M $501M-1B $1.1B-10B $11B-50B >$50B N/A
Europe 40%
North
America 27% Asia 5%
South Australia 2%
America 21%
Africa / Middle East 4%
48
Creating legacy
Question 1. Which one of these most clearly matches your current role?
30%
Division/business unit/
region/country CIO
or equivalent
49
2015 global CIO survey
19%
Financial services
18%
Construction and manufacturing
8%
10% 10%
Consumer
Technology and telecom
6%
Health care business Travel, media, and hospitality
5% 4%
Services and retail
12%
Energy and
resources
9%
Government and public sector Non-profits
Business and
Education and professional
services
Question 3.1. What was your organization’s worldwide revenue for the last
financial year?
Not Less than $501 million $1.1 billion $11 billion More than
available $500 million to $1 billion to $10 billion to $50 billion $50 billion
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
50
Creating legacy
Question 3.2. Over the past 12 months, how has your organization’s total worldwide
revenue changed?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Don't know/ Less than $26 million $101 million More than
prefer not to say $25 million to $100 million to $1 billion $1 billion
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
51
2015 global CIO survey
Question 6. How has this IT budget changed since the last financial year?
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Question 7. How is your overall IT budget allocated currently? (Must add to 100%)
To support
incremental
business change
or transformation
16%
52
Creating legacy
Question 9. What are your organization's top three business objectives for the next 12
months? (Please select up to 3)
Reconfiguration—Acquire/integrate/spin
off the business 19%
Cybersecurity—Strengthening cyber detection
and resilience capabilities 18%
53
2015 global CIO survey
Question 10. What will be your organization's top three technology priorities for the
next 12 months? (Please select up to 3)
54
Creating legacy
Question 11. What would enable you to create the biggest impact on your business?
(Please select up to 3)
55
2015 global CIO survey
Question 12. Where would you like your IT organization to focus in the ideal state?
(Please select up to 3)
Adjusting/redesigning current IT
operating model 12%
56
Creating legacy
Question 13. What is typically your role in each of the following types of decisions within
your organization?
Question 14. Which of the following statements is true about your involvement with the
end customer of your organization? (Select all that apply)
57
2015 global CIO survey
Question 15. How do you currently spend your time across the following? (Must add to 100%)
Strategist
40
35
30
25
20 Ideal
15
10
20 5 20 30
Technologist Catalyst
20
Current
35
Operator
Source: 2015 global CIO survey Graphic: Deloitte University Press | DUPress.com
Question 16. Have you held any non–IT/IT roles in which you held a leadership role, either
in your current organization or in previous jobs?
Business
No Held role/ (business unit/
leadership did not Marketing/ geographic
role answer Other sales Finance leader) Consulting Operations
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Yes No
78% 22%
Source: 2015 global CIO survey
Graphic: Deloitte University Press | DUPress.com
58
Creating legacy
59
2015 global CIO survey
Question 18. Which of the following are your current strengths? (Please select up to 5)
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Creating legacy
Ability to influence
Ideal characteristic 79%
internal stakeholders
(CEO, CFO, CMO, Current strength 55%
business leaders, etc.)
Development of 19%
digital capabilities
14%
Comprehension of
markets and 18%
disruptive business
forces 12%
Technology operations 8%
and execution
29%
0% 20% 40% 60% 80% 100%
Source: 2015 global CIO survey
Graphic: Deloitte University Press | DUPress.com
61
2015 global CIO survey
Board/executive Global
CEO CFO committee COO CIO Other
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Question 20. To whom do you think your role should report in order to be most effective?
Board/executive Global
CEO committee COO CIO CFO Other
55% 22% 6% 7% 4% 5%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
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Creating legacy
Question 21. Which of the following relationships are most important in order for someone
in your role to succeed? (Please select up to 5)
CEO 86%
CFO 72%
COO 53%
CHRO 14%
Other 20%
63
2015 global CIO survey
CMO (chief
10% 25% 27% 7% 30%
marketing officer)
CIO (e.g., group/
global/regional) 17% 19% 9% 2 53%
Chief information
security officer 19% 24% 14% 2 41%
64
Creating legacy
Question 23. How frequently do you currently interact with the following constituents?
65
2015 global CIO survey
Question 25. Which of the following areas of technology will have a significant impact
on your business in the next two years? (Select all that apply)
Question 26. Please rank your current level of investment in each of the following
technology areas.
1–highest 2 3 4 5 6–lowest
Legacy/core
modernization 36% 16% 14% 12% 12% 10%
Digital (mobile,
social, web) 19% 23% 21% 19% 15% 3
66
Contributors
Karen Mazer Global research and survey team
US CIO Program Executive
Sponsor Principal Anjali Shaikh*
Deloitte Consulting LLP Deepak Malhotra*
kmazer@deloitte.com Heidi Boyer
Elizabeth Mackey
Ted DeZabala Mingzhu Hu
US CIO Program, Principal Charlie Ball
Deloitte & Touche LLP Stephen Wilhelm
tdezabala@deloitte.com Alex Kampman
Danny Mortelmans
Mark Lillie Satish Nelanuthula
UK CIO Program, Partner Sanket Surve
Deloitte Consulting LLP Conor Fingleton
mlillie@deloitte.co.uk Kunal Gupta
Jackie Kirby
Simon Murphy Kristi Lamar
Partner Gareth Nicholls
Deloitte Consulting Ireland Stephanie Przbylski
smurphy@deloitte.ie Christoph Dillmann
Viktor Veith
Dave Tansley
Partner
Deloitte Consulting United Kingdom * Team leads
dtansley@deloitte.co.uk
Peter Vanderslice
US CIO Program, Principal
Deloitte Consulting LLP
pvanderslice@deloitte.com
2015 global CIO survey
Special thanks
Anjali Shaikh for being the backbone of the team. This report would not be possible without your
enduring passion, pursuit of excellence, and unwavering leadership. Alex Kampman for his data
wizardry and Mingzhu Hu for her willingness to take on any challenge thrown at her. Dana Kublin
for her unparalleled creativity that brought the story of the report to life with the design of the
infographics. This report is a result of all of your tireless efforts, dedication, and ability to juggle the
many moving parts of this project.
Heidi Boyer for leading and developing the intricate web of marketing, social media, and public
relationship initiatives with the global marketing team, and for helping us hone the messaging for
the report at every point in the process. Thank you for pushing the team to continually challenge
ourselves and for your expertise in collaborating with the wide array of Deloitte resources.
Scott Rosenberger, Ken Porrello, Irwin Goverman, and Jim Eckenrode for leading the inter-
views—and the diligent interview support staff, led by Elizabeth Mackey, who seamlessly coordi-
nated interviews with over 60 CIOs, organized a copious amount of input, and provided insights
to build the foundation of the report. Your work helped us add an enormous amount of color to
the research.
Tim Schuster, Markus Linke, Dan Henebery, Teaba Sedghi, and the rest of Deloitte’s VizStudio
team for helping us explore, analyze, and present the data in insightful and compelling ways. You
helped bring clarity and character to the report in ways we had not even thought of.
The Deloitte University Press team—Junko Kaji and Matt Lennert—for their editorial and design
skills. Your partnership helped us create a report and visual identity that we believe is truly unique.
Thank you for all that you do for our team and so many others.
Finally, a big thank you to the global research teams in 43 Deloitte practices around the globe who
facilitated the surveys and interviews to help us deliver the 2015 global survey and report.
68
Creating legacy
69
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