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The Strategic CIO by Philip Weinzimer

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201
10
Key coMpetencIeS and
SKIllS of a StrategIc
It organIzatIon
People make us successful. ey need to exhibit the right skills if we are
to succeed at collaborating with the business to achieve our corporate
goals.
1
Ravi Naik
CIOSanDisk
When you speak to strategic CIOs, it is very clear why they succeed.
e conversation is all about business. Whether it is Randy Spratt
from McKesson, Filippo Passerini from Procter & Gamble (P&G),
or Rebecca Jacoby from Cisco, the message is loud and clear. Todays
CIOs need to focus on solving business outcomes. ey need to under-
stand how the business works, its nancial structure, and a focus on
achieving results that drive business success. However, CIOs cannot
do it alone. ey need an organization that can think, act, and behave
as business people. To accomplish this requires a clear understanding
of the organizational culture as well as the business competencies and
associated skills necessary for a strategic information technology (IT)
organization to be successful. We discussed organizational culture in
the previous chapter as a foundation to a discussion of key competen-
cies and skills required for a strategic IT organization. Following are
the objectives, key points, examples, and templates included in this
chapter.
202
the strategiC Cio
A. CHAPTER OBJECTIVE
1. Understand the dierence between competencies and
skills
2. Identify the competencies and skills required by a stra-
tegic IT organization
B. KEY POINTS
1. ere is a dierence between competencies and skills:
a. Competencies are the eective applications of skills.
It is more of an umbrella term that also includes
behavior and knowledge.
b. Skills are specic learned activities that may be part
of a broader context.
2. ere are 4 competencies and 12 associated skills
Business knowledge Market knowledge
Product knowledge
Industry insight
Competitive landscape
Communication
Organization
culture
Vision Leadership
Cross dimension
competencies
Technology prowess
Technology strategy/adaptability
Organization agility
Strategic project capability
(
Business awareness skills
)(
Strategic product/market skills
)
(Strategic technology skills)
Environment
Opportunities
Process centric
Strategic IT Organization
Competencies and Skills Framework
a. Business knowledge competency
a1. Business knowledge and environmental skill
a2. Opportunities and challenges skills
a3. Process-centric skills
203
key CompetenCies and skills
b. Market knowledge competency
b1. Product knowledge skills
b2. Industry knowledge skills
b3. Competitive landscape skills
c. Technology prowess competency
c1. Technology strategy/adaptability skills
c2. Organization agility skills
c3. Strategic project capability skills
d. Cross-dimensional competency
d1. Vision, leadership, and communication skills
C. EXAMPLES
1. CIO and IT executive examples for each competency
and associated skills
Randy Spratt—CIO/CTO, McKesson
Harry LukensCIO, Lehigh Valley Health
Network
Steve O’ConnorCIO, CSAA Insurance Group
Rosa Sibilsky—business process director, CSAA
Insurance Group
Debra Martucci—CIO, Synopsys
Ravi NaikCIO, SanDisk
Grace Liu—director of nance and human resource
(HR) IT, SanDisk
Calvin RhodesCIO, Georgia Technology
Authority (GTA)
Sanjib SahooCIO, OptionMonster Holdings
D. TEMPLATES
Strategic IT organization competencies and underlying skills
1. Strategic IT Organization Competency and Best
Practices Skills Matrix (Figure 10.1)
204
the strategiC Cio
STRATEGIC
COMPETENCY
ASSOCIATED SKILLS/BEST PRACTICE
CROSS COMPETENCY
SKILLS
BUSINESS
KNOWLEDGE
Business
Awareness Skills
1. Business
Environment
IT Personnel Understand and Articulate the Enterprise
Business Strategy, Objectives, Culture, and Internal
Environment
1. Vision
IT Vision that Aligns with
Corporate, Business Units, and
IT Organization
2. Leadership
CIO Guides the IT Organization
in Developing the Skills/
Competencies/Knowledge to
Enhance and Develop the IT
Services Aligned to Business
Needs and Effectively
Collaborates with Business
Peers to Achieve Business
Vision/Financial Objectives/
Market Strategies
3. Communication
IT Personnel Effectively
Communicate and Team with
Business Personnel to
Understand/Uncover
Opportunities to Drive Revenue
/Reduce Cost
2. Opportunities/
Challenges
IT Organization Understands the Enterprise Business
Opportunities to Enhance Customer Value, Revenue,
Profitability as Well as Challenges that Impact Enterprise
Growth.
3. Process Centric
IT Organization Understands How IT Services and
Underlying Technologies Align and Enable Enterprise
Business Processes that Create/Support Customer
Value
MARKET
KNOWLEDGE
Strategic
Product/Market
Skills
MARKET
1. Product
Knowledge
Knowledge of How Customer Value is Derived from
Enterprise Products/Services
2. Industry
Knowledge
Understanding of Industry Landscape and Upcoming
Trends and their Alignment to Enterprise Products and
Services
3. Competitive
Landscape
Insight into Competitive Environment and the Associated
Customer Value Gaps and Opportunities
TECHNOLOGY
PROWESS
Strategic
Technology Skills
TECHNOLOGY
1. Technology
Strategy/
Adaptability
Incorporates a Technology Strategy that Integrates
Emerging and Existing Technologies into New and/or
Enhanced Customer Value and Revenue Streams.
2. Organization
Agility
Combined IT/Business Teams Rapidly Respond to
Changing Business Needs Utilizing Enabling
Technologies to Develop/Enhance Customer Products
and Services
3. Strategic
Project Capability
Increase Capacity to Implement Strategic Project by
Reducing Run & Maintain/Enhancement Project
Costs/Execution time and Improving IT Personnel
Technology/Business Skills
2. Strategic IT Organization Competencies and Skills
Framework (Figure 10.1)
3. Transformation Path to Optimize IT Performance
(Figure 10.5)
High
Low
Business value
Maturity
Cost
Inefficient
spend
OptimizationControlVisibilityToday
Revenue
Innovation
spend
1. Transparency and control
2. Alignment and rationalization
3. Optimization
Project selection
Process consistency/transparency
Leverage learnings
Optimize IT investments
Increase innovation spend
Predictive analytics to mitigate risk
Efficient project execution
Resource allocation
Project status

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