IGlobal. Intelligence for the CIO. BP Group CIO Dana Deasy on developing the next generation of global IT leaders

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1 IGlobal Intelligence for the CIO Special Report Cloud, social, mobile The megatrends reshaping the role of the CIO Top of My Agenda Mike Goodwin, CIO of Hallmark Cards, on the lure of retail-as-a-service Strategic Focus Using social media to drive effective customer service ISSUE 15 OCT DEC 2012 BP Group CIO Dana Deasy on developing the next generation of global IT leaders

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3 Global Intelligence for the CIO Oct - Dec THE QUARTER l Windows 8: How Microsoft is transforming the world s most popular OS. l Events: Experts discuss the networks of the future. l Essential reading: Cloud adoption, internal collaboration, team management. l Appointments: The major global CIO moves this quarter. 12 INTERVIEW The right stuff Dana Deasy, group CIO at oil and gas multinational BP, on what it takes to reach the highest levels of business SPECIAL REPORT The megatrends reshaping the role of the CIO l Analysis: Thanks to cloud, mobile, social, big data and consumerization, CIOs jobs are changing rapidly. l Case Study: IT leadership at US agribusiness Land O Lakes. l Boardroom View: Geoff Mulgan of UK innovation group Nesta on why CIOs may eventually outrank CFOs. l Data Feed: Sizing up the megatrends of IT. l Barometer: Four technology leaders consider how the CIO function is being transformed. 28 TOP OF MY AGENDA Mike Goodwin, CIO at Hallmark Cards, on how a move to the cloud will boost flexibility and efficiency and deliver cost savings INNOVATION Silicon Valley rediscovers the enterprise; faster big data; turning CDs into laptops; the store of the future; EU cloud strategy; advanced social networking; innovating in the cloud; Evernote for business; IT hacks the C-suite; enterprise collaboration. 40 STRATEGIC FOCUS l Social media beyond marketing: Case studies from KLM, Ford, Deutsche Post DHL and Zappos highlight the way forward-thinking organizations are embedding social media throughout the business. l The power of social listening: Frank Eliason, head of social media at US bank Citi, on the immense value of knowing what your customers are saying online about your business THIS WAY UP David Gee, CIO, Credit Union Australia explains how his broad international and multi-sector experience is helping him drive IT-powered business transformation. 50 OUT OF OFFICE Denis Edwards, CIO, ManpowerGroup on his lifelong love of astronomy and the importance of maintaining a good work/life balance. 47

4 Editor s letter Editor: Kenny MacIver Deputy editor: James Lawrence Senior art director: Finnie Finn Senior account director: Lisa Marie Mills Account manager: Emma Childs Managing director: Sara Cremer Executive creative director: Paul Kurzeja Fujitsu I Publication is published on behalf of Fujitsu by Redwood, 7 St Martin s Place, London, WC2N 4HA. Tel +44 (0) redwoodgroup.net. Copyright Redwood Publishing Ltd All rights reserved. Reproduction in whole or in part is prohibited without prior permission of the editor. Fujitsu and Redwood Publishing Ltd accept no responsibility for the views expressed by contributors to the publication. Fujitsu I Publication cannot take responsibility for unsolicited manuscripts, photographs or illustrations, or for errors in articles or advertisements in the publication. Welcome to the latest edition of I: Global Intelligence for the CIO, the exclusive publication for group CIOs, brought to you by global ICT company Fujitsu. The main theme running through this issue is the changing role of the CIO from the new skillsets that determine IT leaders professional prospects to the huge shifts in digital technology that are remolding their jobs. The people side of this evolving story is provided in our cover interview with Dana Deasy, group CIO at oil and gas multinational BP, about what it takes to run IT at the very highest levels of the profession. Having held CIO roles at three $100 billion-plus companies, Deasy is passionate about sharing his insight, both as a mentor to up-and-coming CIOs, and also within BP, where he has pioneered a comprehensive IT talent development program. The status of the CIO is also under the spotlight in our Special Report, which looks at how the megatrends of IT cloud, mobile, social, big data and consumerization are re-shaping the role. In some instances, that means CIOs are extending their influence and being redefined as chief digital officers. But in any case, as our interviews reveal, many CIOs are now being presented with career-defining opportunities that are emerging as digital technology takes hold of the business agenda. One example of where cloud computing is set to change the nature of the CIO function is at Hallmark Cards, where Mike Goodwin is leading a shift to a retail-as-a-service model for tens of thousands of US greeting card outlets. As he highlights in our Top of My Agenda interview, the move to a service-based model will enable his organization to be far more responsive to the fastchanging retail environment. Flexibility is also on the minds of the companies we feature in our Strategic Focus article on the use of social media as an active customer service tool. Across all four of our case studies from Deutsche Post DHL, KLM, Ford and Zappos a clear message resounds: Ignore customers online social activity at your peril. That means CIOs need a deep understanding of their organization s social media strategy and how they can help ensure it is executed successfully. As ever, you ll find further discussion of these and other issues at our website, i-cio.com, where you can access video interviews, case studies, CIO appointments news and more. And you can also follow us on Twitter where the role of the CIO is never off the agenda! Editor 04 Oct Dec 2012

5 Contributors VIVEK KUNDRA EVP of emerging markets Salesforce.com Barometer, p27 FRANK ELIASON SVP of consumer social media Citi Strategic Focus, p44 MARIA TERESA CRUZ CIO Insular Life Barometer, p27 DAVID GEE CIO Credit Union Australia This Way Up, p47 Illustrations: Joe McKendry Former I cover star Vivek Kundra revolutionized the delivery of public-sector IT during his tenure as the US Government s first federal CIO from Among his stand-out strategies as Barack Obama s head of digital technology was the introduction of a cloud first policy, under which he stated: Every [government] agency must first evaluate a viable cloud solution before they make investments or procure infrastructure. Small wonder, then, that when Kundra left the White House, he was recruited by leading SaaS vendor Salesforce.com, where he is now one of the company s highest-profile cloud evangelists. In this issue of I, he shares his views on the way in which cloud computing is having a permanent impact on the role of the CIO and where they sit within the wider organization. Few other business leaders in the world understand better than Frank Eliason the power of social media to transform a brand s reputation. Only days after he joined US cable company Comcast in 2007 as executive customer support manager, an influential American journalist, infuriated by the company s (at the time) questionable customer service, launched the blog, Comcast Must Die. Eliason s reaction, rather than run and hide, was to engage: he launched the Twitter which, above all, listened to customers and used their experiences to improve the company s service. The result: a greatly enhanced brand image for Comcast. Now, as head of external social media at banking giant Citi, Eliason has turned his attention to another industry sector with an image problem. In this issue, he explains how genuinely listening to customers via social media can be a huge force for business transformation. As CIO of the Philippines oldest insurance group, Tisha Cruz faces challenges that are unique to IT leaders in the developing world. Under pressure to reduce costs and increase flexibility, she is enthusiastic about cloud, but knows that its introduction at Insular Life brings a range of problems primarily centered around unreliable infrastructure. As she explains in our Barometer section, Insular Life is a nationwide company, and in a nation that comprises 7,000 islands many without fixed-line connections to the outside world accessing bandwidth-hogging cloud services is not always a viable proposition. How IT leaders such as Cruz address this type of challenge can serve as a lesson for all global CIOs in an era where multinational enterprises are increasingly aiming to establish a presence in potentially lucrative emerging markets. If you re looking for someone who s going to help transform this business for you, I m absolutely the right person for the job. That was the killer line David Gee delivered to his future employers at CUA, Australia s largest customerowned financial institution, when he was interviewed for the role of CIO last year. And, as he makes clear in this issue s This Way Up interview, he has already delivered on his promise. His journey towards becoming a truly transformational IT leader has involved spells as both a national and regional CIO in key markets all around the Pacific Rim, in particular for pharmaceutical giant Eli Lilly in China, Japan and the US. And a major ingredient in his success, he points out, is his ability to adapt quickly to and manage change in a wide variety of different cultures. In short, a skillset necessary for any global CIO who wants to be a truly effective business leader. Oct Dec

6 Fujitsu Forum 2012 November 7 8 ICM Munich Largest European IT event More than 10,000 participants Visionary keynotes Compelling breakout sessions Comprehensive exhibition Great evening show Details and registration:

7 EVENTS. RESEARCH. PEOPLE. The Quarter Windows re-imagined The uniqueness of consumer devices and their user interfaces have grabbed a lot of the technology and consumer press headlines over the past few months. But while most of the attention has been focused on the launch of the iphone 5 and Samsung and Apple s courtroom disputes, a more impactful shift in user experience is only just beginning. With the launch of Windows 8 on October 25, Microsoft and its desktop, laptop, tablet and smartphone partner community will usher in a huge transformation in the world s most familiar user interface. CIOs will be looking closely at the value its features could bring to their organizations. Full Windows on a tablet A big differentiator will be that Windows 8 delivers the same user experience on PC and tablet. That means the same Windows apps, including Office, security, and any other Metro features will function on desktop and mobile devices. But the OS will still support the classic desktop interface for cases where apps are more mouse-and-keyboard driven. Windows 95 was certainly the biggest thing in the last 20 years until now. Windows 8 certainly surpasses it. Steve Ballmer CEO, Microsoft Fast start Basic productivity and usability will be enhanced by a much faster boot-up time, which, according to early reviews, takes 8 seconds. Active tiles The user interface is laid out as a series of tiles, designed to be touch friendly. These can be images showing the users recent activity or status, for instance, or feeds showing stock prices or tweets. Microsoft is also providing enterprise application developers with tools to build custom Metro apps for their companies. Windows on a stick A new Windows To Go feature promises greater productivity, especially for mobile users. It enables users to carry a full Windows 8 desktop, including apps, settings and files, on a bootable USB stick (32GB or higher), allowing them to work anywhere, on any device. Particularly useful for businesses with telecommuters, consultants and contractors. Runs on existing hardware Windows 8 will run on existing kit, so businesses should be able to use their Windows 7-era (or even earlier) devices. Oct Dec

8 FUJITSU LABS OF AMERICA TECHNOLOGY SYMPOSIUM 2012 Bandwidth without bounds The prospect of delivering unlimited network performance and the major benefits that could have for business, society and individuals captivated the audience at the latest Fujitsu Laboratories of America Technology Symposium. The challenge we face is not just about increasing bandwidth dramatically but about putting intelligence into the network of the future: it needs a brain. That was the warning from Howard Liu, manager of smart grid communications for US utility Southern California Edison, at the recent Fujitsu Laboratories of America Technology Symposium. Speakers and delegates at the Silicon Valley event wrestled with the prospects for delivering unlimited bandwidth and the technologies, applications and market opportunities that will usher in a fully connected age. As Liu and others highlighted to the audience of senior technologists and business executives, the amount of R&D still needed to realize that dream should not be underestimated. But the prospect of removing bandwidth limitations from business, society and individual lives is as compelling as its impact will be positive particularly in areas such as medical care, education, transportation, entertainment and energy/utilities, they argued. Putting that into context, Yasunori Kimura, president and CEO of Fujitsu Laboratories of America, characterized the mission that faces technologists, network builders, regulators and political leaders as the need to deliver a truly human-centric network. And the pointers to such a future are already there, Makoto Hamada, president and CEO of Fujitsu Network Communications, argued: namely, the huge growth in mobile services, content delivery and cloud computing, which together are forcing hardware, software and networking technologies to change at the speed of light. The result of all that change will be a human-centric network where any From top: Yasunori Kimura, Fujitsu Laboratories of America; Roger Melen, Toyota; Howard Liu (second from left), Southern California Edison, and other event speakers; Blair Levin, the Aspen Institute; Peter O Neil, National LambdaRail; Makoto Hamada, Fujitsu Network Communications. 08 Oct Dec 2012

9 EVENTS. RESEARCH. PEOPLE. amount of content and services is delivered to people anywhere, any time via a universally available, flexible and converged network. But to get there, he warned, we won t just need a bigger network but more fundamental changes in the way bandwidth is scaled up and deployed. This was a theme taken up by speakers throughout the event, and best captured in the session on Energy systems of the future, which revealed that utility companies already expect to work with response times as low as 8 milliseconds on internal networks a rate that Internet-based smart grids of the future will need to match. Big data driver There were widespread concerns about whether near-term broadband performance targets are adequate. For instance, speakers worried if the wireless communications industry s current expansion plans for Long Term Evolution (LTE) will deliver the kind of mobile broadband capability they now regard as crucial to their plans. Roger Melen, senior adviser at Toyota s Silicon Valley-based InfoTechnology Center USA, pointed out that the average in-car GPS map is already close to a terabyte in size something LTE would seriously struggle with. If we have to have [remote] engine and database tune-ups every 3,000 miles in a couple of years, he wondered, would LTE cope? But it was not just builders of the potential energy Internets or intelligent transportation systems who said there is a pressing need to crack some tough bandwidth and intelligent network problems. In healthcare R&D, ambitions to employ smart genetic medicine can only be fulfilled by the ability to manipulate gigantic datasets, said Peter O Neil, VP at National LambdaRail, the ultra-high speed network used by US universities and research organizations. To develop truly predictive biological models, you have to track lots of individuals who have had their entire genome sequenced, he said and moving such quantities of data would take a major uplift in performance. As challenges are addressed, however, there will be enormous economic and cultural benefits, speakers at the symposium stressed. This was clearly laid out by former policy-maker Blair Levin, co-creator of the US s National Broadband Plan, and communication and society fellow at the Aspen Institute. He told delegates: We need to create a psychology of bandwidth abundance to drive the high-performance knowledge exchange that will be key to fostering the innovation, job-creation and national prosperity not achievable otherwise. Central to this mission, he said, is to give big data the big bandwidth it needs to be effective. This potent combination, he suggested, would stimulate radical new approaches in industry and society from cancer-fighting treatment to the use of next-generation immersive gaming in education and the re-skilling of workers for truly UPCOMING EVENTS l Fujitsu Forum 2012 November 7-8, Munich, Germany Thought-leader keynotes, customer case studies, and product innovation showcases. For more details and registration see: ts.fujitsu.com/rl/ff2012 THE PRIMARY MISSION OF A COUNTRY S COMMS POLICY SHOULD BE TO ELIMINATE BROADBAND AS A CONSTRAINT ON INNOVATION AND PRODUCTIVITY. 21st-century jobs. There s a big cost to delaying the move to unlimited bandwidth even if we can t see it or the economists haven t figured out a way to measure it yet, he warned. This should send out an alert to the leaders of all economies, he added: The primary mission of any country s communications policy should be to eliminate broadband as a constraint on their nation s innovation and productivity, just as it should be looking to replace inputs to its economy from atoms to bits, chips and bandwidth. Such a big statement raised a big question: does the change require an all-new Internet to support it? That s the view of former Cisco chief scientist Van Jacobson. Now a research fellow at Xerox s PARC R&D center, he argued that there isn t much of a gap, architecturally, between the topology of Alexander Graham Bell s telephone network and the one the Internet uses now. Download a YouTube video and the network still thinks you re dialing a person called YouTube and making a call to them, he said, warning that if we do not re-engineer the way the Net works, inefficiency and chaos lie ahead. Such high-level thinking drove event chairman Dave Marvit, VP of data-driven healthcare at Fujitsu Laboratories of America, to sum up the discussion as both exciting and truly humbling. We ve seen a glimpse of what the human-centric network could do in terms of human progress, he said. But we also know that to meet the need for a possible 12-fold growth in bandwidth in the next five years, much work needs to be done. Oct Dec

10 Essential reading Advice on cloud adoption, internal collaboration and team management. ON TOP OF THE CLOUD How CIOs leverage new technologies to drive change and build value across the enterprise By Hunter Muller THE COLLABORATIVE ORGANIZATION A strategic guide to solving your internal business challenges using emerging social and collaborative tools By Jacob Morgan THERE IS AN I IN TEAM What elite athletes and coaches really know about high performance By Mark de Rond Cloud changes the way people consume IT; it is revolutionary, not so much as a technology shift, but in its potential to transform businesses and society. That is the bold proposition presented by Hunter Muller, head of CIO networking and events firm HMG Strategy, in his latest book. But he doesn t rely on his own arguments to back up such statements. Rather, he lets his network do the talking. And it s some network: he draws on interviews with CIOs and CTOs at Siemens, Levi Strauss, Chevron, Avon, FedEx, and dozens of other leading companies, all of whom are figuring out the best ways to take advantage of cloud for their organizations. Appropriately, the discussion expands into many related areas, among them the opportunities and challenges presented by the parallel rise of mobile IT, the CIO as a driver of the business innovation agenda, and the transition of the CIO s role from technology provider to value-enabler. The book s structure (based on a series of transcribed interviews) may mean it lacks much coherent vision. Nonetheless, it delivers powerful insight into cloud s application at some of the world s largest companies making it a valuable resource for CIOs at any stage of adoption. Most organizations are aware of the importance of using social media to engage externally with customers, and many excel at it. Far fewer, however, understand the value or, indeed, necessity of using these technologies to enhance collaboration within the enterprise, argues Jacob Morgan. After making a compelling case in favor of such internal collaboration and the benefits it can bring, Morgan walks the reader through a clear roadmap for creating, implementing and sustaining a successful collaboration strategy. He gives sound advice on crucial matters such as obtaining buy-in from the business, the role of the IT team, addressing security issues, and not being fixated on delivering a measurable ROI (using collaboration to solve a business problem is far more valuable, he proposes). Wherever your organization is on its internal collaboration journey, this book will prove an invaluable guide. Plus, there s an insightful bonus interview with Andrew McAfee, the acclaimed author of Enterprise 2.0, and a thoughtful afterword from Web 2.0 guru Don Tapscott. Despite Morgan s youthfulness (he is only 28), it may not be long before he ranks alongside such renowned thought-leaders. Any sports fan will know that a team of individually talented, high-performers doesn t always add up to a high-performing team. How often have we all seen squads packed with star players crumble in the face of mediocre, but well organized, opposition? And, of course, the same can be true for business teams. But, argues Mark de Rond, the received wisdom that a group of selfless team-players is more effective than one featuring stars who are more individually talented but also more egotistical thus harder to manage is nothing but a myth. The leader s skill, he believes, lies in finding a balance between these two kinds of player, both on the sports field and at work. Based on extensive academic research, close observation of teams in action (including the Cambridge University rowing team and military surgeons in Afghanistan), and evidence from elite sports coaches, this book seeks to explode this, and other, management myths. Successful sports coaches have always understood that, for example, a lack of conflict in teams is not always a good thing, and a belief in luck can be a powerful performance-enhancing tool. Now, argues de Rond, it is high time business managers realized the same thing. Photos: pixelate.com 10 Oct Dec 2012

11 EVENTS. RESEARCH. PEOPLE. Who s moving where... New roles for IT leaders around the world. CIO status updates AUSTRALIA Sarv Girn has taken over as CIO at the Reserve Bank of Australia l Sydney Water has appointed Qantas s former CTO, Stephen Wilson, as its CIO. CANADA David Wallace has been appointed CIO at the University of Waterloo. FRANCE Etienne Bertin is taking over as group CIO of electrical equipment distributor Rexel l Philippe Merville is the new CIO at agricultural sector insurance manager Groupe Agrica. GERMANY Energy and ICT utility company EWE has appointed Nicholas Behr as CIO and HR director l Martin Stein will head up IT at private hospital group Asklepios l Dr. Thomas Stüger has assumed responsibility for IT at Lufthansa Technik, the airline s maintenance division. NETHERLANDS Christian Herrlich is now in charge of IT services at parcel and express delivery company GLS. SINGAPORE Wu Choy Peng is the new group CIO at telecoms group SingTel. SOUTH AFRICA The Department of Labour has appointed Thabo Sefali as its new CIO l Richard Wingfield is taking over as CIO at tech group Altech. SWITZERLAND Supply chain logistics services group Panalpina has hired Rod Angwin as CIO. UK Mike Young has become CIO of media and digital communications company Aegis Group l Martin Taylor has been promoted to CIO at pub and restaurant group Mitchells & Butlers. USA Hilton Worldwide has named Bill Murphy as CIO l Ron Anderson- Lehman has left Continental Airlines to become CIO at Hawaiian Airlines l Jens Kessler is now CIO at Universal Music Group l Brent Cryder is the new CTO at apparel and home furnishings retailer Dillard s l Bill Eismont has taken on the CTO s position at brewer MillerCoors l Dave DeLaus is Wegmans Food Markets new CIO l Fashion accessories company Fossil has hired Ed Robben as CIO l Donut and ice-cream maker Dunkin Brands Group has named Jack Clare as CIO l State Compensation Insurance Fund has appointed Marjorie Hutchings as its new CIO l First Citizens Bank has appointed Dede Ramoneda as CIO l Phil Griffin is First National Bank Alaska s new CIO l The Federal Home Loan Bank of Boston has named Michael Clifton as CIO l Chris Tonjes is the new CIO for the City of Baltimore l Credit card processor North American Bancard has appointed Tracy Metzger as CIO. Five US companies that paid their CIOs over $2m last year: Avon, UPS, Home Depot, FedEx and Norfolk Southern. (Janco Associates survey of SEC filings) Global 500 movements l Randy Fox has been appointed CIO of GE Healthcare. l Paul Stewart has joined Australia s BHP Billiton as CIO for its petroleum business. l American Express has made Marc Gordon its new CIO. FOR MONTHLY UPDATES ON CIO APPOINTMENTS: Oct Dec

12 INTERVIEW Dana Deasy, group CIO at oil and gas multinational BP, and mentor to aspiring global IT leaders, shares his unique perspective on what it takes to reach the highest levels of business and build a pipeline of future CIOs. Words: Kenny MacIver Photography: Nick Ballon THE RIGHT

13 STUFF...

14 It was a defining moment in the career of Dana Deasy, and one that set in motion a rise to the highest levels of the IT profession. Deasy, the CIO at oil and gas giant BP, was at the time working as IT director for Rockwell s highest-profile division, the unit of the aerospace company that built the Space Shuttle. Deasy s boss and his informal mentor took him aside and laid down a provocative challenge: You re in your early 30s, you re talented, and you can certainly aspire to be the top IT person at Rockwell. But after 13 years here you re in danger of having a label on your forehead that reads aerospace IT-only. And soon it s going to be hard for people to consider you for jobs in other industries. The alternative career path he spelled out: with the right blend of career development, direction and experience, Deasy could aim higher much higher. It was a wake-up call for Deasy, whose career, in the build-up to the top IT position at BP, went on to span industrial distribution (Invetech Co), vehicle manufacturing (General Motors), electronics and healthcare (Tyco) and electronics and electrical engineering (Siemens). For others at that crossroads there s a valuable lesson, he says: It s easy to get comfortable when you re in the early part of your career and see it beginning to accelerate. You get respected inside your company and you get lulled into the sense that this is as good as it gets. I was just fortunate enough that the guy that hired me for my first job in management was old school, developing me by being really tough, telling me every day what I was doing wrong. He d say, I m putting you on a track and I m going to run you around so you develop mental toughness. In this job you re going to deal with all kinds of issues and a lot of conflict, and the sooner you develop some tactics for dealing with them, the better. Years later he told Deasy that the reason for that approach was he saw the right mix of skills and capabilities. Of course, I ultimately realized he was doing it to help me, but at the time I remember going home in the evening thinking, Why do I have to get the mean boss? Leadership masterclass That appreciation of the value created by a great mentor value for the individual, for the organization, for the profession has informed Deasy s thinking ever since. It was reinforced by the guidance from several other key figures as his career progressed towards the IT leadership role at one of the world s largest companies. And in recognition of that he is today not just a champion of IT leadership development (see Creating a talent pipeline at BP, page 17), but he s also deeply involved in mentoring and inspiring the next generation of world-class CIOs leaders who will ultimately run IT at the very highest level of global business and government, where IT budgets of $1 billion-plus are far from unknown and the number of end-users can stretch to six figures. Just part of that passion is centered on Columbia University. Deasy was instrumental in the founding of the New York college s prestigious program for hothousing aspirant CIOs. Its Executive Master of Science in Technology Management took shape when Deasy (newly installed at Siemens Americas operation in 2000) was approached by Dr. Art Langer, a professor who was researching what distinguishes CIO careers that just seem to rise and rise from those that plateau. After much discussion about some of the frustrations of cultivating talent and the scarcity of some fundamental skills in potentially top-flight CIOs, Langer asked Deasy to help construct a CIO masters course. What resulted was a 16-month program, only open to those with 10+ years experience in using technology to further business goals and already with a strong record of professional achievement and clear leadership potential. The program today focuses on the strategic application of technology to enhance business performance and how CIOs sell that vision to their boards (on the course that s represented by a group of CIOs). Fittingly, a key ingredient of the program is the assigning of a full-time mentor to each participant usually a CIO who provides them with real-world insight and a highly critical eye. Deasy was mentor number one, and today around 150 others support the program, including the CIOs and former- CIOs of Ogilvy & Mather, JetBlue, Campbell Soup Co, HSBC and Pernod Ricard. To date, 315 prospective CIOs have emerged from the Columbia course. For the ambitious among them there is one burning question: What attributes do CIOs who lead the IT function at the world s largest companies possess? Today, as the CIO of 14 Oct Dec 2012

15 INTERVIEW a global corporation with $386 billion in revenues, the former regional CIO of a $100 billion German corporation, and the ex-divisional CIO of a $150 billion US company, Deasy is not short of insight on what those characteristics are. DNA of a global CIO As his stellar résumé suggests, one of the most important aspects Deasy values is the cultivation of a truly global perspective. Getting international experience early on in your career is really key because inevitably as a big-company CIO you ll need to be well-versed in how to manage an internationally dispersed workforce. At BP, his team of over 3,000 is concentrated in the UK and the US but ultimately extends across 50-plus countries worldwide. In dealing with a global workforce you come face-to-face with all kinds of facets of different cultures, different ways of thinking and the challenges that come along with that. Deasy, originally from Southern California, says he encountered that most abruptly when he took on the Americas CIO job at Munich-headquartered Siemens in the early years of the last decade. Until that point he had only worked for US-based companies, and, by his own admission, had a US to their standard approach. But the lessons were not just that one-size doesn t always fit all; the international CIO s role requires the development of a depth of cultural affinity too. At Siemens, as well as his CIO s job, Deasy was responsible for the company s early ebusiness initiatives. We were getting ready to roll out a global strategy, which I was due to present to the board. So naturally, I wanted to get feedback from my colleagues around the world. After presenting the strategy for two hours to the US team in Atlanta he was met, as anticipated, with a barrage of challenging feedback. The next day he flew to Munich and showed the same PowerPoints, only to see his colleagues sit cross-armed and silent throughout and then declare that they couldn t possibly make any kind of decision or give any real insight without a lot more information and dialogue. IT S CRITICAL TO GET INTERNATIONAL EXPERIENCE EARLY ON IN YOUR CAREER. limited world view. I remember working at General Motors and people coming to see me from GM s Asia or European operations, trying to explain to me why the IT policy or processes that we were trying to apply from the US didn t quite fit with the things they needed to get done. Whatever your culture, you can get a kind of tunnel vision if you only work in a certain geography or role as a CIO. You think, Come on, it s just IT, why can t we just do things in exactly the same way all around the world? The boot shifted to the other foot when he arrived at Siemens. I was now spending weeks of my life asking the people in Germany why we couldn t do things differently in the In contrast, the following day, in Singapore, the Far Eastern group seemed to affirm approval of his strategy but in that case they were telling me what they thought I wanted to hear. It suddenly dawned on me that I was presenting to people who simply go about their job and think about the world in very different ways, says Deasy. In the end I didn t actually know which of those three groups I had on board. That experience was a really big wake-up call on learning how to think and act when engaging with different cultures. Just as international exposure needs to be part of a bigcompany CIO s DNA, so does cross-industry experience. I m sometimes asked what it was that made BP consider me versus Oct Dec

16 other candidates and the thing I d highlight is the combination of working for large-scale companies, international experience and also a breadth of background, Deasy explains. If you have learned how to work in the aerospace industry, in automotive, in high-tech, in a conglomerate environment, there is confidence you have transferable skills that will also apply in oil and gas. Networked leader Breadth and variety provide the basis for another reinforcing feature of the global CIO s career: an extended social network. To be a successful CIO you need to spend time early in your career developing an external network, building relationships with other CIOs, with technology firms, with thought-leaders, says Deasy. In a global CIO s job you re always going to be asking about industry best practice: how other companies are solving a particular business problem or if your organization is working as intelligently as it can. You are going to be challenged by your board for an understanding of what s going on elsewhere. And if you haven t built that network along the way it can be very difficult for you to reach out when you have a real problem or when you have a crisis. The capacity to be highly professional in a real crisis is another litmus test of a high-end CIO, Deasy argues. In IT, it is inevitable that projects aren t always going to turn out right, operations will sometimes go bad, areas of even the best security may be attacked, and events occur that cause you to be under enormous stress, he says. It is how the IT organization and the CIO respond that counts. Deasy should know: in January 1986, his organization was responsible for supporting launch-day activities for NASA mission control when the Challenger Space Shuttle exploded shortly after take-off, with the tragic loss of all seven crew members. Being able to deal with the heavy demands on the IT organization as colleagues sought an immediate, and then a deeper understanding of what went wrong and how it could be prevented in the future was a formative experience and one that showed the strength of the capability both organizationally and personally he had built. Deasy expounds on numerous other facets of the top CIO s skillset. One is the challenge of dealing with senior IT people often divisional or regional CIOs within a very large organization, where many would be Global100 CIOs in their own right and where they are effectively serving two masters their business leader and the global CIO. You have to know when to let them manage in their own effective way, and when you need to get involved, he says. He also points to the importance of developing expertise in regulatory compliance, governance and legal issues that have a bearing on IT elements that get even more critical when a CIO is running IT for a larger organization. And he puts a high value on gaining wide exposure to the different operating models of IT in use at different companies centralized, decentralized, federated and the importance of applying the best, and knowing the pitfalls, of each. Whatever the type of model, CIOs need to be able to have influence over both the groups they work with internally and their external partner network, says Deasy. And, with the increased use of IT service providers, there is a premium on those who can manage such relationships effectively. Suppliers are such a key part of the CIO s life. The CIOs that will be most successful going forward are not necessarily those who are managing the largest workforce or who ve got to own everything, but those who can manage the skills they control both those they have direct control over and those they can influence to get things done. You really have got to bring suppliers in and engage them in a way that they become just an extension of your organization. Passion for people Notwithstanding the depth of understanding of big-company IT, that isn t where Deasy sees his lasting contribution. As the custodian of this IT organization one of the most fundamental things that I need to do as its leader is to leave it in a better place than when I inherited it. And the number one thing I can do there is people. Yes, I can put in great processes, build great relationships for the business, give it great technology. But what will sustain the organization over the long haul is going to be the people skills, their development and the principles that we put in place around capability. 16 Oct Dec 2012

17 INTERVIEW CREATING A TALENT PIPELINE AT BP Photographs shot at Spring Studios, London. Styling Tanja Martin, with shirts from Matches Fittingly for someone whose career has been shaped by the insight and guidance of others mentors, business leaders, fellow CIOs and academics BP s CIO Dana Deasy is passionate about ensuring his 3,000+ IT professionals reach their full potential. Over his five years as head of the global IT function at the oil and gas industry giant, he has championed the creation of a comprehensive talent development structure that runs from early stage career development through to an executive CIO of the Future program with mentoring and coaching throughout. The catalyst for this was his vision for futureproofing the IT function a vision that needed to be backed by the right people with the right skills. Global CIOs are about creating vision and purpose. But it doesn t matter how great those are if you don t have an organization around you that can then execute. So early on in my career I learned that if I m going to get the things done that we need to, it s going to take an organization that has the ability to deliver, says Deasy. Back in , BP spent a full year defining the IT skills profile it was going to need, benchmarking the whole organization s strengths and weaknesses. We mapped that against the crucial things we had to do over the next two to three years, and what jumped out was we had some gaps, says Deasy. And he set about addressing those in a comprehensive fashion. Over the next three years, BP created the IT&S Academy, a virtual learning and development center structured around eight core IT professions including architecture, project & program management, information security, service delivery, and business analysis with every employee formally aligned to one area for their professional development. The Academy is highly valued among BP s IT&S team. Today if you survey people about different aspects of their job, the Academy is rated highest, says Deasy. Moreover, accreditation through the Academy, coupled with a commitment to spend time mentoring others, gives individuals a Licence to Work and helps them grow in their particular profession. But, for Deasy, the Academy was just the foundation for an even wider talent development agenda. After three years, our heat map of skills was getting greener. So we started to think about the future leaders of BP s IT organization, and we realized we didn t have a way to sustain the pipeline. The solution implemented progressively over the past two years was a talent development program, with three distinct strands: 1) Early Career As a first stage, this four-year program brings in high-potential people with a postgraduate qualification who have already worked in industry and have shown they have the talent to move into future leadership roles. 2) Aspire Aspire takes high-performing first level managers and readies them for senior leadership roles by giving them broader experience through stretch projects and exposure to senior leaders. 3) CIO of the Future The 18-month program centered on strategy, performance, future trends, and people and change takes cadres of current or potential CIOs and current IT leaders at BP s smaller business units and develops their potential for the highest levels of IT leadership. l Alongside real-world experience across BP operations, the handpicked group spends a month in total in bespoke classes at Boston University School of Management and the Haas School of Business, University of California, Berkeley. The weeks in Boston are designed to provide the leaders with access to world-class professors and thought-leadership; Berkeley, on the other hand, was chosen because of its proximity to Silicon Valley, with its culture of innovation and entrepreneurship, and presence of venture capitalists and start-ups. l Each budding global CIO is assigned three different types of mentor over the 18 months: an executive drawn directly from Deasy s leadership team who knows what it takes to become a successful global IT leader; a professor from Boston management school who works with them on core IT leadership competencies and supports intermodule project work; and an outside industry CIO who offers a different perspective. The whole talent development program is clearly a major undertaking, agrees Deasy. We feel it s the only way to develop robust future leaders. It s a long wavelength approach but we know that something so important takes considerable time and commitment. l

18

19 SPECIAL REPORT The megatrends reshaping the role of the CIO Cloud, social, mobile and the universal march of digital are having a dramatic effect on the job and prospects of the modern CIO. Words: Jessica Twentyman Photographs: Nato Welton IN THIS FEATURE Ben Haines, CIO, Pabst Brewing Co James Hallahan, managing director, CIO Practice, Harvey Nash Hunter Muller, IT strategy consultant and business author Barry Libenson, CIO, Land O Lakes Adam Gerrard, CTO, LateRooms.com Shawn Banerji, head of CIO/CTO recruitment, Russell Reynolds In this 10-page report: 19 Analysis: How CIOs roles are changing as fast as the IT they manage 23 Case Study: The transformational CIO of agribusiness Land O Lakes 24 Boardroom View: An innovation guru on the tech chiefs of the future 25 Data Feed: The revolution in IT leadership, in numbers 26 Barometer: Four CIOs on how technology is impacting their jobs When Ben Haines joined US-based Pabst Brewing Company as CIO in November 2011, the Australian was quick to fire a warning shot to let employees know that big changes were ahead. Proving he meant business, his first action was to shut down the company s Microsoft Exchange server and shift all 300 users to Google Apps. It was a bold move from the newcomer. If you ever want to annoy someone, just take their Outlook away, he laughs. It shook everyone up and there s still a few haters, but they re all getting on with it. They needed to know that things are changing. After all, Haines didn t come to Pabst to wage a charm offensive or win any popularity contests: he was hired by the company s owners to use cloud, mobile and social technologies to transform its aging IT infrastructure. His appointment by the Metropoulos family, who acquired Pabst for $250 million in June 2010 and moved company HQ from suburban Chicago to Los Angeles a year later, was preceded by a three-month review of that infrastructure, which Haines conducted as Oct Dec

20 an independent consultant. During that review, he found a stack of problems, not least a sprawl of creaky legacy systems in the company s San Antonio, Texas data center that sapped IT s time and resources, and a workforce of frustrated mobile employees struggling to be productive on an aging fleet of company-owned BlackBerrys and VPN-connected laptops. What struck me at once was that 80% of staff didn t even sit in the company s offices, he says. His conclusion? Mobility had to be a focus. A bring your own device [BYOD] program was required. We needed to put information where our people work, using cloud, and we had to remove the legacy applications that IT spent so much time on, but which weren t delivering any business value. Since his appointment, Haines has been busy administering Pabst a hefty dose of cloud, mobile and social technologies. He has implemented Box s cloud-based file sharing and content management technology for all employees. He has deployed an enterprise social network using Yammer. Cloud-based helpdesk software is in place (Zendesk), as are cloud-based expense management tools (Concur). Users have access to all applications hosted in the cloud using a cloud-based single sign-on product, Okta. A vast swathe of legacy apps, meanwhile, has been shifted to private and public cloud infrastructures. He s also replaced all BlackBerrys with iphones and introduced that BYOD program, using MaaS360 mobile device management software from Fiberlink to ensure that corporate information held on employee-owned devices can be centrally controlled and if necessary, wiped by his IT team. Over time, he says, companyowned devices will be phased out completely. Nexus of Forces Not every CIO is fortunate enough to have the same license for transformation that Haines enjoys at Pabst. But few can be oblivious to the megatrends of cloud, social and mobile technologies that, along with information, IT industry-watcher Gartner describes as a Nexus of Forces. When this convergence occurs, write Gartner analysts in a June 2012 report on the subject, information is the context for delivering enhanced social and mobile experiences. Mobile devices are a platform for effective social networking and new ways of working. Social links people to their work and [to] each other in new and unexpected ways. Cloud enables delivery of information and functionality to users and systems. The forces of the Nexus are intertwined to create a user-driven ecosystem of modern computing. Whether [they] be vendors, end-users, private companies, governments, hospitals or universities, all organizations that produce or consume IT are affected by the Nexus of Forces, and they need to A track record of speed-tomarket in new technologies and new projects is the new benchmark of a CIO. choose how they will respond, the report continues. Enter the CIOs and their teams. How prepared are they to deliver what the sophisticated, creative and sometimes circumventive user requires? ask Gartner s analysts, before warning: IT departments are faced with legacy architectures, processes and skills, designed for an increasingly obsolescent way of working. Along with those legacy architectures come legacy mindsets and habits, all of which must be changed to deal with the Nexus of Forces. A legacy mindset is exactly what most companies don t want to see from candidates when they re recruiting a new CIO, according to James Hallahan, managing director of CIO Practice and head of CIO recruitment at global recruitment company Harvey Nash. All candidates for top CIO jobs are judged on four competencies: influencing, communications, leadership and change management skills, he says. But, above all, the role has evolved from the efficient running of an internal IT function, to using technology to grow the enterprise, so a proven track record of speed-to-market in new technologies and new projects is the new benchmark. That need for speed is echoed by Hunter Muller, IT strategy consultant and author, who interviewed leading CIOs from more than 60 large companies for his new book, On Top of the Cloud: How CIOs leverage new technologies to drive change and build value across the enterprise (see review, page 10). Despite the title, the focus is on the impact of cloud, social and mobile technologies, or as Muller calls them, CloSoMo. Successful CIOs today are the ones able to deal with an accelerated cycle of innovation, like nothing we ve ever seen before, he says. They must be open to looking outside of their own organization for inspiration, he continues, and be willing for their teams to try things and fail without recourse. That idea of risk-taking may strike many 20 Oct Dec 2012

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