What kind of CIO’s will transform businesses?

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

In a previous post entitled, The Evolution of Today’s CIO, I discussed the increasing pressure on CIOs to deliver beyond traditional roles, and become more of a strategic asset for CEOs. Due in part to the market conditions I outlined in that post, today we see CIOs evolving well beyond the domain of strategic information systems.

More and more strategic business decisions these days are being made based upon direct input from CIOs. CIOs are being asked to think beyond IT value and TCO, and contribute directly to creating competitive advantage, strategic innovation, expansion of services, and bottom-line metrics.

 

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

This is not just speculation, or an isolated phenomenon. According to a report on CIOUpdate.com, 47% of CIOs indicated they have broadened their roles to absorb some form of business responsibility. Interestingly enough, 35% of those responding indicated that they come from a business background. This shows a fascinating trend that says CIOs are coming in with a business background, instead of trying to learn it on the job. That is certainly one strategy to acquire business acumen in IT. I would suspect that trend will continue.

With regards to how broad organization-wide decisions are made, we are seeing changes as well. Gartner states that 16% of CIOs are sitting on Boards of Directors. And McKinsey reports that nearly three-quarters of IT and business executives feel that IT should be tightly integrated with business strategy—but only 27% saw it happening in their own organizations.

As you can see in the following image, there are a number of elements supporting this hypothesis. In the middle of the image, you see that CIOs will continue to manage demands from an IT perspective, but that strategy, value drivers, and the operational and delivery models will be driven from a business perspective. Business demands will not replace the IT demands, but rather they will balance them. Certain characteristics (tiled across the top of the diagram) will manifest and drive the behavior of the CIO with respect to the business and IT demands. This evidence is borne out by industry analysis we see from sources like CIO Executive Counsel, IBM, Gartner, Corporate Executive Board, and McKinsey.

 

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

As shown above, this shows us that the CIO is now at the core of nearly everything that drives business. Clearly, the opportunity here is significant.

 

 

 

What kind of CIO do you want to be?

Based on market research, industry trends, and my own experiences with the Microsoft Enterprise Strategy program, I see that some common patterns are emerging. IT customers are expecting—not hoping—for more business acumen in IT.

Upon distilling information from a variety of sources, I came up with a set of common profiles that can be applied to current and future CIO aspirations. There are three main types of CIO, and the strategic goals of each are very different.

 

Which one are you? Below are the three core profiles that start emerge:

 

The Optimizer

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

  • Business and IT Alignment Focusing on alignment of IT priorities to business priorities
  • Operational Excellence – Determining what architectures will enable effective IT Services.
  • Reduce Complexity and Simplify – Implement/eliminate IT solutions that allows for reduction of unnecessary cost overruns
  • Reduction of Cost per Solution per User – Bring solutions and services to customers at a lower cost
  • Risk Management and Security Controls – Ensures proper controls are in place

The Transformer

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

  • Business Partner Advancing the business relationship to a true partnership.
  • Trusted Partner – The business will look at the CIO as an enabler and trusted with fundamental IT services.
  • Expert of Industry Solutions– Understand, rationalize and recommend industry solutions that meet the demands of the business.
  • Optimize Business Processes & Value Chain– Transform the business through optimizing the business process through the lens of the needs to the customer.

The Innovator

Mike Walker's Blog: What kind of CIO’s will transform businesses?

 

  • Innovation Center of Excellence Incubate, recommend and deliver innovative solutions to real business problems.
  • Understand Business Models – Understand how competition affects the company and find new sources of revenue through an innovative IT lens.
  • Strategic Big Bets – Understand, rationalize and recommend solutions based on emerging technologies that are directly in line with the business goals.
  • Transform Business Products & Services – Taking existing products & services innovate.

 

Looking at the Bigger Picture

So with the rapid evolution of traditional CIO roles to include more all-up business strategy, what kind of CIOs will make their marks in transforming businesses in the future? By nature, a CIO brings a specific set of skills to the boardroom, and to ensure that the high-level business decisions they are now fueling are the in the best interest of the overall strategy, a CIO must broaden their scope. But how best to accomplish this?

The challenge for CIOs that fit within the Optimizer profile is that it's very much business as usual. It's all about operational efficiency of the servers, networks, and applications. While this is still very important to all parties, the evidence shows that this isn't enough.

CIOs can only drive real change by thinking very differently in terms of overall strategic goals and business value. Moving forward, the CIOs that will make the most impact, which I call the Transformers, will be the ones who actively adapt the mindset of a CEO.

Building on being a Transformer, the next stage is the Innovator. This is the natural next stage after a successful partnership—actually being able to own key aspects of a company's strategy. Technology is only getting more ingrained into the daily lives of consumers and enterprises, and the need for strategies to be built by experts in this space will be critical for differentiation.

Does this mean that the CIO will replace the CEO? No. It does mean, however, that there is more opportunity for the CIO to be a pivotal role for companies in the digital information age. And after all, who else would be better to do it? Certainly not the CFO or CMO!

This will, of course, mean some fundamental changes in the hardwiring of the CIO. It means looking beyond the existing business relationship, and advancing it to a true partnership. With this model, the CIO must understand their new role as a business enabler, and be able to understand, rationalize, and promote solutions that meet the strategic goals of the business.


Key things to consider

Another critical shift for the CIO will be to transfer the focus from implementation to agility and time-to-market. While the traditional CIO is primarily interested in solutions that are “built to last”; the Transformative CIO must focus on establishing a business foundation that is able to scale and flex. This concept of “designed to change” will enable the Transformative CIO to see beyond static resources, and explore the outcomes that would be possible if these resources were deployed in alternative ways.

Finally, the CIO will also need to become more customer-centric, re-orienting business process to provide better value to the customer. This involves more than just optimizing customer service; Transformative CIOs must think about tailoring all business streams, from supply chain to demand generation, to focus on the cost, benefits, and value for the customer.

 

 

A Change in Headspace

There are a couple of primary ways that CIOs can start to get their heads into the CEO mindset:

 

#1 By redefining how they think about IT

· A complete overhaul of the IT strategy may be an overwhelming thought, but in the near-term, a number of incremental shifts can ease the transition for a Transformative CIO:

Embracing enterprise architecture – EA is one of the most important and effective tools a CIO can leverage to provide a business-centric, efficient environment

Basing IT operations on a utility model – By simplifying processes and streamlining costs, IT can better meet organizational expectations

Investing in cloud/mobile computing – Demand for availability, access, and interactivity with customers is high, and growing steadily; being prepared with strategies for virtualization, app development, and hand-held and tablet devices is critical

 

#2 By aligning with the CEO

A recent Gartner survey found that innovation and organizational flexibility are big concerns for today’s CEOs, and securing a seat in the boardroom will require literacy in a number of issues:

  • Maintaining existing customers, and attracting new ones
  • Drawing and retaining highly-skilled employees
  • Building a responsive, flexible, and efficient organization
  • Streamlining costs
  • Fostering innovation
  • Promoting collaboration and interactivity with customers
  • Designing both long-and short-term strategies

 

As I stated earlier, the opportunity here for the CIO is significant. Once the agenda of the CIO becomes better aligned with that of the CEO, the advances in innovation, growth, and strategy will be undeniable.

By revolutionizing the role of the CIO, we focus on closing the gap between IT and business strategy. Given the expanded role and responsibilities of this new breed of CIO, we have to wonder about how business priorities will shift as a result, Next up, I’ll examine the outlook for IT and business strategy in the coming years under the watch of the Transformative CIO.

 

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Open Group Webcast – Enterprise Architecture Certifications Distilled

Mike Walker's Blog: Open Group Webcast - Enterprise Architecture Certifications Distilled

Enterprise Architecture Certifications Distilled

An Open Group Webinar

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  • Date: Wednesday, May 02, 2012
  • Cost: Free; registration required
  • Time: 5:00 p.m. BST; 12:00 p.m. EDT; 9:00 a.m. PDT
  • Speakers: Mike Walker (Microsoft), James de Raeve (The Open Group), Steve Philp (The Open Group)

 

This free webinar looks at the wide range of Enterprise Architecture (EA) certifications that are available and why it is important to choose the right certification for your career. We will examine why skills and experience-based certifications are becoming increasingly important to both employers and employees as part of the professional development process.

Attendees will also find out more about the new ArchiMate® 2.0 certification along with details of a new Business Architecture stream in Open CA and new Security and Service Management streams in Open CITS.

To Register, and to view upcoming / archived webinars, visit: The Open Group Webinar site >


Also:
Register for The Open Group Conference, Cannes, France, April 23-27, 2012


British Computer Society to recognize The Open Group certifications towards CITP status

Mike Walker's Blog: British Computer Society to recognize The Open Group certifications towards CITP statusGood news for all of those Open CA and Open CITS architects who want to also pursue the British Computer Society Chartered IT Professional (CITP) status.   Last month Open Group and BCS announced that BCS will recognize The Open Group certifications towards CITP status.

 

Below you can find the details of the announcement from the Open Group site:

The agreement allows individuals who hold The Open Group Certified Architect (Open CA) and Certified IT Specialist (Open CITS) certifications at Level 2 (Master) and Level 3 (Distinguished) to be exempt from the initial review and interview elements of the BCS Charted IT Professional (CITP) process. Applicants will still need to take and pass the BCS breadth of knowledge test as well as be Professional members of BCS to achieve CITP status. The Open Group certifications complement CITP status as they are globally recognized, credible qualifications which demonstrate that IT professionals have the knowledge, skills and expertise required to complete certain jobs.

The CITP assessment process was developed by BCS in response to industry and government demands for deeper expertise and relevance from the IT profession.

Adam Thilthorpe, Director of Professionalism, BCS, The Chartered Institute for IT, explains: “We have assessed The Open Group’s Open CA and Open CITS certifications and are happy that the criteria and processes established by The Open Group meet the level of experience and competence demanded for CITP. Globally there are about almost 6,000 IT professionals who will be able to take advantage of this new agreement when it is launched supporting our objectives to champion global IT professionals and give practitioners the professional development and career support that they deserve. This is important as employers are increasingly demanding CITP recognition from candidates for key IT roles.”

James de Raeve, VP of Certification, The Open Group adds: “This agreement is great news for IT professionals who want to complete both a qualification from The Open Group and achieve CITP status without duplicating effort. The chartered status demonstrates the same degree of professionalism recognized in other chartered professions in the UK and provides independent validation that Level 2 and 3 of The Open Group’s professional programmes are at least equivalent to SFIA Level 5.”

CITP status shows that senior practitioners possess a broad technical knowledge and can demonstrate business experience, commercial accountability and competence in their individual IT specialism(s). Applicants need to have eight to ten years experience with at least three of the last five years in a complex IT role requiring business insight. Professionals also need to demonstrate competence in their chosen specialism(s) and interpersonal skills via an online interview with expert assessors.
Holders of The Open Group certifications forming part of this agreement can register their interest in achieving CITP status through the scheme at: www.bcs.org/citp-theopengroup

 

Full article can be found here: http://www3.opengroup.org/news/press/bcs-recognise-open-group-certifications-towards-citp-status

Predictions: Enterprise Architecture in 2020

Mike WalkerAt the Troux Worldwide Enterprise Architecture Conference I had the pleasure of being invited to an EA industry panel to answer and discuss questions from the conference attendees.

A question was posed to us panelists around the future of EA, specifically what EA looks like in 2020. I received such great feedback on my response that I thought I would share it with all of you.

In general, when this topic comes up there seems to be two very distinctive perspectives from folks I talk to. The first camp are the people that don’t understand the value proposition of EA and feel that it will be abandoned as a discipline soon. This is even seen to some degree in the analysts community. When I was talking at the conference I remembered an example of this from the article “Gartner predicts that by 2012 40% of today’s enterprise architecture programs will be stopped”. Obviously we are not seeing this prediction coming to true in 2012.

On the other side we see wild enthusiasm and grand predictions on how EA will change the world. There doesn’t seem to be too many people that I talk to that are in the middle of the road.

So what do I think? While there is a lot that can happen in the next seven years I do think EA is here to stay. However, I believe that it will look a bit different than it does today. I believe that there will be a natural evolution to its eventual state.

Many of the existing functions that EA performs today will be here however I think that there will be a pruning of the functions that don’t sense and additions to what does. The core charter will stay the same.

 

Orthogonal Drivers and IT Environmental Aspects

In a recent post titled The Evolution of Today’s CIO I discuss that IT and the CIO’s role is evolving to be more and more business centric. There is quite a bit of evidence here. Below is a chart that shows the CEO and CIO aligning priorities over the next 3 to 5 years. 

Mike Walker's Blog: CIO and CEO priorities aligning

Source: IBM, The Essential CIO 2011 Survey

While CIO’s are expected to uphold operational and technical excellence the data not only from IBM but from many others shows that the CIO is getting the unique opportunity to step into the business realm as well. Now that technology is so ubiquitous coupled with such deep business impact CIO’s are essential to business units.

As the CIO matures and becomes more business centric who will they turn to in their organization. The Enterprise Architecture function of course. This is the only function that has the charter of being at a business level and aspires to grow more and more into this area. This is emphasized by the desire of very many EA functions  to move out of IT entirely so they can easily be business focused.

If this is the trend, EA is essential for the CIO and the CIO is essential for the EA group. Whether it be staying within the IT or being a strong supporter that remains to be seen.

 

Macro themes for EA in 2020

  • Enterprise Architecture will business driven 
  • Increase EQ to balance better with IQ
  • There will be a separation of IT Architecture from Enterprise Architecture
  • Enterprise Architecture may move out of the IT organization while IT Architecture remains
  • Increased focus on corporate sustainability. Business capabilities with longevity.
  • Enterprise portfolio management will be a first class citizen

 

Predictions for 2020

I believe the following will be the key changes to EA in 2020:

  • Clear purpose
  • Understand & Operationalize EA Business
  • EA Activities
  • EA Competencies & Certifications
  • Lead through Emotional Intelligence

 

Clear Purpose

Thus far, EA has been a collection of many things without a perfectly clear, consistent & universally accepted purpose, definition and set of outcomes. You may ask, why is this important? It’s so important for so many reasons.

A few of the key reasons below:

  • From an overall industry perspective it is essential to have the purpose and clarity to have sustainability as a profession. This allows for common expectations from the professionals that make up the EA industry.
  • Without purpose for  individual EA teams within companies it can also be problematic. With loose or even random value propositions it will hinder credibility and ultimately results.

I am starting to see a great deal of changes in the industry to solidify this more. We see examples of this everyday with universities support, firmer standards, maturing enterprise architecture functions and a wealth of support from practitioners in communities like LinkedIn and others alike. To credit the discipline a little bit, for such a robust and complex as EA it is no doubt why it has taken so long.

At the current rate of change in EA by 202o the EA industry should have a clear and generally accepted answer on the purpose of EA. Whether that is fully adopted in EA organizations around world is a different story all together. Many other considerations are at play there.

For organizations today, it is essential to get to the root of the purpose of your EA function. Begin to think about why your EA function exists and what value does it bring to the company. Getting to the root of why is essential to be purpose driven. 

 

Understand & Operationalize EA Business

Today when I ask, “describe the business of EA?” I often receive puzzling looks and brief answers on charters and such. What is troubling is that we expect to partner with the business but we don’t act the business. Often times we have our own language for things that have existed in the business for a very long time. This doesn’t help our cause.

By 2020 the industry should have matured much in this area with a revised focus on business acumen versus purely on technical architecture.

We are already starting to see operational and services excellence in EA teams. I believe this trend will continue. As we begin to interact more and more directly with the business they are going to want predictable and repeatable results. To do this, service enablement is needed to have clear SLAs and OLAs. Below is an example of a service model that I had created a few years back.

Mike Walker's Blog: EA Services Model

In the example above, the business or customer is able to request services from the EA team. This sets precise  expectations on what they will get and more importantly what they will not get. With this comes metrics that can measure success or failure easily.

With this new focus and purpose, how EA operates will be different with a defined an Enterprise Architecture Operating and Service model that will aid in repeatable and predictable results for it’s customers.

 

EA Activities

With a business centric EA organization the first priority should be to focus on value management. EA’s in 2020 will think first about what value is to be derived from a potential solution to a problem. Value can be many things, it just depends on what it means to the specific customer. It could mean:

  • Cost reduction
  • Productivity
  • Risk reduction
  • etc.

By focusing on portfolios of capabilities the EA’s will be able to manage value in a quantitative and qualitative way. This will also aid the EA on focusing on what investments are important at any given time to allow for maximum returns for the business.

Instead of starting bottom up the standard mode of operation will be top down. Similar to what you see in popular frameworks like TOGAF.

Mike Walker's Blog: Architecture Domains

This isn’t to say that the EA will perform all of these aspects of architecture but rather a model to follow.

 

EA Competencies

EA’s are being asked not only to align but to partner with the business. To do this they need the competencies and skills to be able to act and speak accordingly with the business. This space is advancing year over year.

I have built out a framework on how to separate competencies from other aspects. This is in the context of certifications. Below is a way to think about the separation of the different certification aspects.

Mike Walker's Blog: EA Comptencies

Below is a description of each aspect:

  • Competency Based Certifications – These certifications are focused at evaluating your experience to validate that you are indeed an architect. Much like many other certifications in the industry (e.g., PMP). These are much different to others that determine what you know instead of how you applied the knowledge.
  • Industry / Specialized Certifications – Driven from a predetermined set of concerns such as the federal government or a specific industry is where these derive from. While these certifications are critical in that vertical, often times they do not transfer well across verticals given the difference in drivers and motivations of these very specific bodies of knowledge.
  • Foundational Certifications – Provides the essential skills for EA’s. These certifications are different from the other two in the respect that they validate that you’re an architect while foundational certifications validate that you know a specific methods, models and/or tools. These certifications are essential to EA’s as they populate the EA’s toolbox. For example, without an overall enterprise architecture framework how would we be truly effective as EA’s?
  • Applied – Divided into two primary areas, Academic and Vendor Tailored they either support a certification or provide a certification highly tailored. These are in a supporting function to Competency Based Certifications.
  • Supporting Certifications and Learning’s – These certifications make a well-rounded enterprise architect. These are often referred to or leveraged in the day in the life of an EA.

 

For more detail see the post entitled, Enterprise Architecture Certifications Distilled.

 

Additionally, I have written several posts on this topic over the past year.

 

Certifications

Today there is a focus on specific architecture or EA certifications. Year after year I am finding that Enterprise Architecture certifications are becoming more important to architects. Back in 2007, I remember reading an article from Gene Leganza called, “Is EA Certification Important?”. In that article he stated that 65% of the people he had surveyed stated that EA certification is not important but he also noted that a significant minority stated they were including EA certification criteria in their hiring processes.

I believe this has changed quite a bit.

We continue to see the very positive trends in terms of investment in EA skills throughout the industry and the world. Below is a snapshot of some of the trends in a presentation I gave on certifications internally at Microsoft.

Mike Walker's Blog: EA Certifications

 

But there is one small wrinkle in this. The hypothetical question I ask is,  “Does the business value your EA certification? Does that EA certification alone instill confidence in the business leaders?” To some degree. I would assert that alone it doesn’t because it doesn’t cover all the concerns of the business but does cover all the concerns of an EA.

Why do I say this? The reason for this is that the business expects you to have those certifications because you are an EA. That part is a given. However, if you want to be a true partner, they expect you to operate like the business and truly empathize with the business. Use their methods, models and tools. If that is the case, complement your EA certification with a MBA or equivalent is in order.

 

Lead through Emotional Intelligence (EQ)

Today we have some challenges here. Connecting with the business to facilitate, aid or participate in the decision making process is often a tricky task. It requires trust and credibility. While some EA’s are very good at this, there maybe some opportunity to get better at this. Culturally architects of all breeds tend to some common traits:

  • Academic or philosophical discussions
  • Going deep really quick
  • Get hung up on technical accuracy or purity

These are not necessarily bad things in moderation, but when abused, it can be disastrous for credibility.

In an article I wrote several months back titled IQ Isn’t Enough. Enterprise Architects Must Balance with EQ Driven Approaches, I discussed that it is vital to lead less with IQ and more with your EQ. Now that’s not to say that IQ doesn’t matter. Of course not, that’s what got you in the door but it doesn’t keep your job. EQ does.

For EA to succeed in the future, this skill will need to be honed. The EA’s audience  and customers expands greatly as it reaches into the business. Not only will they need to partner with IT but also with the business. This introduces a mixing pot of needs and wants that the EA must rationalize.

To get us there on that journey there is a great article from a close friend J.D. Meier on his blog Sources of Insight called, 101 of the Greatest Insights and Actions for Work and Life. In this article, he outlines both the everyday improvements you can do to your routine but also shows the shifts that you can do to be more in tune with EQ.

 

 

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