Recruiting the next generation of information technology leaders

the next generation

Todays chief information officers are challenged with a growing list of responsibilities, from managing transformation programs to negotiating smart outsourcing agreements to finding innovative ways for IT to advance the organizations business objectives. The increasingly complex business environment demands that organizations adopt a more coordinated, holistic approach to their information technology function. Long gone are the days when highly technical specialists operated in narrow silos. Rather, CIOs need direct reports and other key leaders who can work across the entire IT function and enterprise irrespective of their specific functional area to ensure seamless delivery and support for the companys business strategy. The need for greater flexibility, in turn, is transforming the makeup of the CIOs team of direct reports. While certain technical differences will continue to exist among the skill requirements for architecture, infrastructure and applications leaders, there are specific skills and experiences that all IT management executives should possess, or be capable of developing. When counseling CIOs, we strongly recommend they hire and retain senior technology leaders who embody the five critical competencies required for IT success: relationship management, the ability to execute and deliver, proven leadership, business acumen and global perspective.

the emerging profile

Todays (and tomorrows) senior-level IT executives must be equipped to translate the CIOs vision into a strategic plan that delivers value to the organization in both the short- and long-term. To accomplish this, the CIOs team must understand how each component of IT relates to one another and how it relates to the business as a whole. And while it is expected that a senior-level IT leader will have a strong technical underpinning, there are other skills that are equally as important. Relationship management The ability to effectively manage relationships across the enterprise has become an increasingly prized skill among todays senior-level IT executives. Yet while it is one of the most important skills to possess, CIOs tell us they have a hard time finding it among their direct reports and key team leaders. In fact, relationship management is becoming so central to the operations of the IT function that some CIOs are adding business relationship executives to their team: IT leaders solely responsible for aligning information technology with the companys strategic business needs. These executives serve as advocates for the business, yet sit on the CIOs leadership team. CIOs need their senior-level technology leaders to be skilled at developing relationships both within the IT function and throughout the organization. This requires executives who are not only an advocate for the business needs, but who also are
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adept at managing their expectations. For example, a CIOs direct reports need to build intimate knowledge about the business units and proactively offer solutions rather than wait to be approached. A good example is making the business leadership team aware of how they can cut and combine existing data to help them make better business decisions. Successful IT functional leaders also apply this same approach when working with their own IT colleagues both informally and through formal channels seeking ways to combine information to improve overall business performance. In addition to being knowledgeable about the business and adding value, relationship management hinges on the effectiveness of the technology executives influencing and communication skills. This is especially important in the management of outsourcing and off-shore resources, something that more direct reports are expected to lead. A CIOs leadership team must be able to negotiate and measure good deals, but also deliver successful results through resources that they do not own. The ability to effectively communicate has never been more important which involves actively listening to clients, colleagues and vendors, understanding their business drivers, articulating their needs, communicating expectations, building trust and being responsive. Execution and delivery skills Nothing builds trust in the IT function more than successful execution of technology projects and
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solutions. In fact, what ultimately separates the great IT leaders from the good especially those leading enterprise solutions and service delivery functions is the executives ability to deliver what he or she has promised, including at the agreed price point and deadline. To achieve optimal delivery, todays IT management executives must have well-honed project management skills. This includes strategic understanding of business goals, a detailed plan, regular communication, final product delivery and a measurement program. The increasing importance of effectively integrating the core business processes with technology is placing a spotlight on project management skills. We are witnessing an increase in the number of IT organizations that are establishing a project management office as a standalone IT unit. And while some organizations are creating standalone positions, it also is important to develop these skills on an individual basis. A consistent project management methodology and process are vital to an organizations ability to deliver consistently and accurately measure the performance and impact of IT initiatives. Strong leadership To successfully manage relationships and deliver value-added solutions in a complex environment, IT management executives must be proven leaders with an executive presence. Hiding behind the veil of technical know-how is no longer acceptable. CIOs need direct reports and key team leaders who are charismatic, courageous and inspire con4

fidence among their team, colleagues and business partners. As functional leaders, a CIOs team of direct reports is responsible for marshalling resources, organizing teams and instilling a strong, resultsoriented management style in their team. Also, because flawless execution depends on the caliber of people, IT talent is one of the differentiators between success and failure. Direct reports often have to manage, either directly or indirectly, hundreds of people. This requires them to build and manage the development of their own team, including the recruitment, development and retention process. Business acumen Most would agree that IT must support the organizations strategic business model and, ultimately, be embraced by the business leaders if it is to add value. All the more reason why a CIOs team of direct reports and key team leaders must understand how to run the business of IT, regardless of their function, and have a strong business orientation. Unfortunately, we have found that business acumen is not a skill easily found among todays IT talent. In-depth knowledge of the business is especially important for IT leaders in client-facing situations or work process roles. IT leaders cannot take advantage of future technologies if they do not understand the overall business direction, strategies and processes. This is why architecture
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leaders the function most often associated with identifying future frameworks must possess the proper balance of technical landscaping, a pragmatic view and an innate understanding of business in general. IT leaders should seek to understand the business to the point where they are respected equally for their technical contributions as for their ideas for helping achieve corporate goals. This requires that the CIOs direct reports have well-rounded financial management skills and understand the investment opportunity on IT costs measured against the value delivered. Global experience CIOs need their functional leaders to be thinking and acting globally if they hope to have the capacity to build a competitive advantage for the organization. And, while not every company has international operations, most are navigating through sourcing and off-shoring arrangements, and those that are not will do so soon. As globalization continues, todays IT leaders must work to understand different cultures and, subsequently, different clients. Over the next five to 10 years, global expertise within IT will be of increasing importance.

conclusion
Todays CIOs need their leadership teams to have the breadth of skills and experiences to provide integrated IT solutions. Functional IT leaders no longer can operate on their own, focused only on their particular area of technical expertise. Rather, they must look beyond their responsibilities and consider the needs and goals of the entire enterprise. As a result, IT management executives must possess the critical skill-sets and experiences, including relationship management, execution, leadership, business acumen and global insight. While most of these skills are not traditionally associated with those in IT, CIOs must make recruiting and retaining this type of talent a top priority. This can be achieved by rotating their direct reports through different IT leadership and customer-facing roles which also helps to spread the gospel of IT and then bringing them back into the organization. They also can encourage outside leadership development and training opportunities for their high-potential IT talent, and, lastly, look outside of the organization to recruit the skills and experiences needed to succeed in the ever-changing business environment.

about our information officer practice

Spencer Stuart is the market leader in chief information officer searches, conducting key assignments for Fortune 500 and FTSE companies across all industries. The consultants in our global Information Officer Practice conduct more than 200 searches annually for senior information officers. Our consultants also handle assignments for CTOs and infrastructure, architecture, application development and e-commerce executives. Our consultants search experience and sector knowledge give us unrivaled access to leading information technology executives around the world. As a result, we have unequalled insight into the changing role of the CIO and the skills and type of reporting structures required of this senior management role.

about spencer stuart

Spencer Stuart is one of the worlds leading executive search consulting firms. Privately held since 1956, Spencer Stuart applies its extensive knowledge of industries, functions and talent to advise select clients ranging from major multinationals to emerging companies to nonprofit organizations and address their leadership requirements. Through 50 offices in more than 25 countries and a broad range of practice groups, Spencer Stuart consultants focus on senior-level executive search, board director appointments, succession planning and in-depth senior executive management assessments. For more information on Spencer Stuart, please visit www.spencerstuart.com.

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