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LEADERSHIP
The CIO’s Leadership Journey:
A promising start
Microsoft is committed to walk the leadership journey with the CIO. The
CIO ‘Board Readiness Survey’ is the first in a series of ‘peer surveys’ –
bringing insights, provoking thought and highlighting ‘best-in-class’ paths
to scale the next summit.
Table of contents
Executive Summary
3
Introduction
4
Methodology and the Survey Universe
5
The CIO and the Corporate Hierarchy: What is the global story?
6
The India Story: Are trends in India different from global trends?
7
Towards getting Board Ready
12
Appendix: Respondent companies list
13
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2
Executive Summary
"The function of
leadership is to
produce more
leaders, not more
followers."
The Microsoft ‘Board Readiness’ Survey examines whether CIOs are ready to
assume top management positions in organisations, epitomised by the
‘Board’.
- Ralph Nader
The complexity of organisations demands senior representation from different
functions to navigate the future. Specifically, the seminal role and impact of
technology within businesses and across business functions has meant that
CEOs are looking to CIOs as business partners. They are asked to make
strategic business contributions, provide inputs on corporate strategy, head
revenue-producing business units, and assume varied responsibilities outside
their traditional roles. By any stretch, this is a tall order on today’s CIO.
"Management is
efficiency in climbing
the ladder of success;
leadership determines
whether the ladder is
leaning against the
right wall."
In this context, the Board Readiness Survey sought answers to key questions
- Are organisations in India ready to accept CIOs for a senior leadership role?
Can they become CEOs? How ready are their companies? Are they
adequately represented in the highest decision making bodies? To facilitate a
fuller understanding of these issues, the evolution of the CIO in India was also
benchmarked against global trends.
- Stephen R. Covey
"If you do not know
where you are going,
every road will get
you nowhere."
- Henry Kissinger
"We must be the
change we wish to
see."
- Mahatma Gandhi
This survey records the ‘inside-out’ view of the CIO i.e. how the CIO views
his community and himself.
Our CIO ‘Board Readiness’ Survey revealed the following:
 CIOs are being considered for a senior leadership role; albeit in a
limited manner.
 A ‘CIO plus’ role in other functional positions and business units is
common in India, reflecting the global trend. But their presence on the
Board is, as yet, rare.
 The strategic nature and importance of IT today has created a
considerable advantage for CIOs, putting them in the right position to
drive business value as compared to their C-level peers.
 CIOs felt that their ability to leverage/align IT with business strategy,
the strategic role of IT for business and their enterprise-wide view - in
this order - were the most significant reasons for their rise in India’s
corporate hierarchy.
 CIOs rated themselves highly on certain top management
characteristics - having a global mindset, an acceptance of the fact
that business leads technology, and the ability to change and lead
business transformation.
 However, they gave themselves a 'below average' rating in terms of
leadership and management skills.
 The survey findings clearly indicate that 'leadership skills' and ‘team
management skills’ are areas where CIOs seem to be deficient. This
may well explain why CIOs are not yet considered universally ‘Board
ready’.
In conclusion. CIOs in India, like their global counterparts, are transcending
their traditional domains, and heading towards a position on the Board. But to
be truly ‘Board Ready’ they must hone ‘top management skills’. In addition to
the usual elements of leadership, the list includes: the ability to influence
peers and people management to begin with.
3
Introduction - The CIO ‘Board Readiness’ Survey
CIOs seek ‘leadership
positions’…
‘What next’ is a common refrain amongst successful people. And the
equally common answer is to move into a leadership position or
become a ‘good leader’. It is not surprising at all that CIOs, who have
grown in stature and importance in the last few years, now see the
‘Board’ or a top management position as their ‘next stop’, as revealed in
Microsoft’s recently concluded ‘Board Readiness Survey’.
Microsoft has always believed that CIOs must lead. Beginning with the
Leadership Conclave, Microsoft continues its commitment to exploring and
walking the leadership journey with CIOs. A recent survey, undertaken with
The CIO Institute, suggests that the CIO’s leadership journey has begun in
earnest. What does this path entail?
What is driving ‘CIO Leadership’?
CEOs need more
partners…
Organisational structures evolve over time to reflect the critical nature of
different functions. The CEO, who some decades ago was the end-all and beall of a business, feels the need for a ‘partners’ table’. The complexity of
organisations, today more than ever before, demands senior representation
from different functions to navigate the future. Beginning with the CFO and
the HR function – and a parallel presence of the Board – CEOs are looking
towards their CIOs for a strategic business partnership as well.
The strategic role of
technology in business
plays a role too…
The increasing role and impact of technology on businesses and business
functions in recent times, is largely responsible for this need. In India too,
much like the rest of the world, the journey for CIOs to join the ‘partners’ table’
has begun.
Is the CIO’s task a little tougher?
CIOs must cope with a
faster pace of change than
their counterparts…
The fact that technology changes rapidly has also meant that the role of the
CIO has had to evolve much faster than other business functions – i.e. the
CFO and Chief HR Officers. Moreover, to play the strategic business partner
to the CEO, CIOs must stay ahead of the already fast-paced demands on
their role. In some sense, they are coping with a faster pace of change
compared to their counterparts in other functions.
…and can’t refer to history
for answers
What makes this a bigger challenge than usual is the fact that the role of a
Chief Information Officer, in India, is less than 20 years old. Given the
relatively short period in which this role has emerged, CIOs cannot refer to
history for answers to their current problems and challenges. Best practices
must evolve and the powers of ‘collective wisdom’ must be harnessed to help
find the right response.
In keeping with the way businesses are run, CIOs have the unenviable task of
balancing the role of technology for growth and technology for governance –
the two pillars of sustainable growth. Is this similar to international trends?
4
The ‘Board Readiness’ Survey is an initiative to assess where CIOs are in
their journey to the top echelons of the corporate hierarchy in India. Like their
other C-level counterparts, CIOs are making their way to a seat at the Board,
Management Committee etc. But are organisations in India ready to accept
CIOs for a senior leadership role? Can they become CEOs? How ready are
their companies? Are they adequately represented in the highest decision
making bodies? These are some of the questions the survey seeks to
answer. To gain insights into these issues the survey also benchmarked the
path of the ‘new generation CIO’ in India against global trends to identify what
works and what doesn't, as well as how to replicate successes and avoid
mistakes.
Methodology and the Survey Universe
The survey was conducted by the CTO Forum magazine and The CIO Institute in partnership with
Microsoft. The results are based on 85 individual responses representing 77 companies.
(Please refer to the Appendix for the complete respondent companies list)
Respondent companies by sector
Respondent companies by size and origin
Pharma &
Engineerin Consulting
Healthcare
g&
5%
Chemicals
9%
Constructio
8%
Diversified
n
9%
6%
Consumer
goods &
Retail
5%
IT&ITES
13%
Mid-size Indian
Large Indian
Large MNC
36%
40%
Electronics
4%
BFSI
17%
Media
4%
Logistics
4%
24%
Paper &
PSU &
Others Textiles Telecom Packaging
3%
3%
7%
3%
5
The CIO and the Corporate Hierarchy: What is the
global story?
Globally, IT has evolved to
become a true strategic
enabler for businesses…
…and has led to the birth of a
new generation of CIOs who
significantly contribute to
business performance
Technology has rapidly
changed
the
global
competitive
landscape
across industries and
businesses. As a result,
IT has already evolved to
become a true strategic
enabler - as opposed to
a mere support function.
Attention shift amongst CIOs
(Amount of time spent on traditional IT)
Less than
20%
20% - 39%
40% - 59%
49%
10%
3%
Associated
with
this
60% - 79%
16%
evolution is the birth of a
new generation of CIOs
80% and
22%
that
significantly
more
contribute to business
performance.
Once
considered to be a
strictly independent position that was solely responsible for the running of IT,
this new breed of CIOs is often called upon to find ways for IT to transform
the company. They are asked to make strategic business contributions,
provide inputs on corporate strategy, head revenue-producing business units,
and assume responsibilities that vary from managing supply chains to
international expansions.
The rise of the ‘CIO plus’ role
The ‘CIO plus’ role is often in
IT-related domains…
...but has begun to go well
beyond it
According to a global survey by Gartner Executive Programmes, more than
50% of the 1500 CIOs surveyed reported having responsibilities outside of IT.
This confirms the emerging trend of the ‘CIO plus’ role around the world. But
unlike the 90s, when the ‘CIO plus’ role was mostly industry-specific or was IT
related, the ‘CIO plus’ roles today are different. They are more strategic,
enterprise-wide and revenue generating. The primary force driving this trend
is technology adoption and penetration, both within and across organisations.
Roles beyond, but related to IT
Most common additional responsibility
Informationa security
69%
Business process
improvement/transformation
Corporate website/online identity
Innovation/change management
Business continuity
The strategic role of
technology in businesses is
the key driver…
62%
40%
38%
34%
It is now the norm that technology permeates the organisation. This places
CIOs in an excellent position to understand core business processes and
drive value in different units. Cognisant of their growing importance, CIOs too
have worked hard to demystify IT and are choosing to speak business first.
6
…and CIOs are grabbing the
opportunity to play business
manager
Most of their additional roles are a ‘reward’ for success with an IT initiative.
This in turn depends on the level of technology penetration in their
organisation. The higher the technology penetration, the higher the chance for
additional responsibilities. The most common ‘CIO plus’ roles are related to
information security; but go beyond IT as well to include business process
improvement/transformation, corporate website/online identity, innovation/
change management and business continuity.
The India Story: Are trends in India different from
global trends?
CIOs in India too, like the rest of the world, are taking on responsibilities
beyond their traditional IT roles according to the Microsoft CIO ‘Board
Readiness Survey’.
‘CIO plus’ role is common in India, but CIOs are not quite ‘Board Ready’!
Additional responsibilities
include security, logistics,
and CRM...
Similar to trends at the global level, a ‘CIO plus’ role is becoming common in
India – however the additional responsibilities are almost always ITrelated/focussed. The most common additional responsibilities include
security, logistics, and customer relationship management. These are areas
where technology has played an important role – either as a supporting,
facilitating or strategic role.
...but go into strategic roles
in a few sectors where
technology penetration is
high
The presence of CIOs at the ‘Corporate High Table’ or the ‘CEO Partner’s
Table’ and management/ executive committee is growing. But, the CIO’s
presence on the Board is almost non-existent. The very first traces are
appearing in a few industries – such as BFSI, Telecom, IT&ITeS and
Retailing. As expected, these are sectors where technology penetration
defined as ‘ICT spends as a percentage of total turnovers’ is high and the
strategic or compliance related role is critical.
Areas where CIOs are present
Rating on a scale of 1 to 7 where 1=never; 4=sometimes and
7=very common
Other functional positions
4.4
BU heads
4.0
CEO positions
4.0
Management/ Executive Committee
Board of Directors
3.9
3.7
What comes in the way?
The organisations’ mindset
and the CIO’s own mindset
are the biggest hurdles...
While the emergence of a CIO with responsibilties in other business units is a
significant step forward, it is clearly not enough for a CIO’s transition to top
leadership positions i.e. to be considered ‘Board Ready’. And CIOs believe
that at least half the problem lies in the prevailing mindsets – not just that of
their companies’, their CEOs and other functional heads, but equally their
own! While top management needs to accept the fact that the CIO’s role in an
organisation has evolved from a mere support function to a true strategic
7
enabler that can drive value in different business units - CIOs, too, need to
recognise that keeping the IT utility running is no longer considered a
valuable job; it’s an expectation! Therefore they need to work hard, learn,
think and speak business first for a seat at the corporate high table.
How ready are organisations?
CIOs are considered for a
senior leadership role; but in
a limited manner...
Indian organisations lag
behind
their
global
counterparts in terms of
recognising and accepting
the
‘CIO’s
leadership
potential’. Only 37% of the
respondents felt that their
organisations are ready to
consider CIOs for a senior
leadership role.
Are organisations ready to consider
CIOs for a senior leadership role?
Yes
37%
To a
certain
extent
59%
No
4%
As with all emerging trends,
the jury is still out on the new
hybrid role of CIOs. Most companies accept the criticality of the CIO’s role for
business, but are still in the process of acknowledging their leadership
potential. A majority of the CIOs surveyed believe that organisations in India
are willing to consider CIOs for a senior leadership position, but only in a
limited manner.
What is driving ‘CIO Leadership’ in India?
CIOs believe that their
knowledge of the company’s
technology needs holds them
in good stead…
…as does their enterprisewide view
The majority of CIOs surveyed believe that their familiarity with technology
and the technology needs of the organisation differentiates them from their Clevel peers in understanding the cross functional needs/challenges of the
organisation. The fact that technology plays an important supporting/
facilitating role in core business functions – from finance to HR to logistics
and customer management – puts CIOs in an excellent position to gain
insights into all business unit processes and operations. This, they believe,
has endowed them with cross functional overviews and insights.
But leadership skills and the
ability to manage a large
team do not figure yet…
While CIOs are beginning to contribute in strategy meetings, the critical
reasons for their entry into senior leadership positions are on the basis of:
their ability to leverage/align IT with business strategy; strategic role of IT for
business; and CIO’s enterprise-wide view – in this order. A preliminary
analysis reveals that these are skill sets one acquires through a traditional
CIO role. Leadership skills and the ability to manage a large team, although
considered critical for ‘Board Readiness’ - did not figure prominently among
the reasons for the CIO’s rise in India’s corporate hierarchy.
...perhaps, the critical next
step for CIOs
‘Leadership’ and ‘managing teams’ are non-negotiable skills for the rise of an
individual to a ‘top management’ position. In our view, this is the single-most
important gap that CIOs must overcome to become ‘Board Ready’ i.e.
transcend the functional hat and move into top corporate hierarchies.
8
Reasons for considering CIOs for senior leadership positions
Rating on a scale of 1 to 7 where 1=not significant and 7=critical
reason
Experience of managing large teams
4.8
Bring a specialist perspective
4.9
Help preserve and secure information…
The Reds, Oranges and
Greens in a CIOs journey to
top leadership positions
5.0
Strong capabilities & leadership skills
5.1
Play an important role in managing risk
5.2
Help cope with dynamic environment
5.4
Have an enterprise-wide view
5.5
IT has strategic role for business
5.7
Can leverage/align IT with business …
5.9
Do CIOs in India believe they are ready for top leadership positions?
The ‘Readiness-Willingness’
Gap...
Research on the growth of corporate functions, over time, demonstrates a
‘readiness-willingness gap’. Often, individuals are keen/willing to take on a
more senior responsibility – but are not quite ‘ready’ for it. Specific self- and
professional- development measures are the answer!
The ‘Board Readiness’ survey sought to assess the willingness of a CIO as
opposed to his/her readiness for a ‘CIO plus’ role. This was gauged through
questions on ‘what CIOs are currently a part of’ (to indicate readiness) and
‘what senior leadership positions (in their judgment) they are ready for’.
Responses revealed significant ‘readiness-willingness gaps’ for four major
leadership positions.
The survey revealed
significant ‘readinesswillingness gaps’ in four
major positions
Readiness vs Willingness
Responsibilities CIOs are a part of (i.e. what CIOs currently are)
Responsibilities CIOs are ready for (i.e what CIOs want to be a part of)
58% Ready but not that keen!
27%
Management/
Executive Com
23%
12%
Other
functional
responsibility
14%12%
BU Head
Willing but not ready yet!
23%
18%
5%
Other top
management
responsibility
0%
Board of
Directors
0%
9%
CEO
Management committee
positions are an expectation
now…
The graph above suggests that CIOs are completely ready for the
Management Committee and other functional responsibilities (mostly ITrelated as they already occupy these positions). However, there is a
significant ‘willingness versus readiness’ gap in other top management
responsibilities i.e. the Board of Directors and CEO level positions.
…and CIOs’ presence at the
‘corporate high table’ will
continue to increase…
More than 58% of the CIOs surveyed are already a part of the
Management/Executive committee. The ‘CIO plus’ role - as demonstrated by
this role extension is common in India – and hence, more an expectation than
9
an ‘aspiration’. However, even for this presence – a significant 27% is ‘willing’
but has not got the opportunity yet!
But CIOs as a part of the
Board or with CEO-level
responsibilities are
negligible…
…and many CIOs don’t even
openly aspire for these
positions
Interestingly, almost no CIOs in the sample were a part of the Board or had a
CEO-level responsibility. But this is expected to change soon. 23% of the
CIOs surveyed expressed their keenness to be a Member of the Board.
However, only 9% felt they were equipped to take on the role of a CEO. 5% of
the respondents in their ‘CIO plus’ role have a top management responsibility
other than their traditional CIO role and 18% felt they were ready for other top
management responsibility. Although this 5% when compared to developed
countries like the US, Japan and Germany is marginal, it is expected to
increase in the foreseeable future. And this will largely be because CIOs
recognise where they can go. Some trend-setting CIOs are also clear about
what they must do to get there…
The ‘trend-setter’ CIOs and their ‘self-view’: shape of things to come
A new and confident ‘leader
CIO’...
The ‘Board Readiness’ survey revealed that there is a new and emerging
group of CIOs who rate themselves highly on several fronts – indicating their
readiness for ‘top management positions’. Forerunners amongst these were:



The ‘collective’ versus the
‘individual’
The self-view is flattering...
a global mindset,
acceptance of the fact that business leads technology and
ability to change and lead business transformation.
With these critical ‘strategic management’ characteristics, it is a surprise that
more CIOs do not occupy seats on key decision-making bodies in their
companies. A deeper dive into the CIO ‘viewpoint’ revealed some potential
answers.
Individual rating of CIOs
Rating on a scale of 1 to 7 where 1=poorand 7=excellent
Understand and participate in business
strategy
Are equipped to develop and manage senior
talent
5.3
5.5
Can influence peers/top management
5.8
Insights into your company's business
5.8
Can lead operations and execution
5.8
Can manage change and lead business
transformation
5.9
Accept that business leads technology
Have a global mindset
6.0
6.1
10
...their view of their
‘community’ is less so
CIO's rating of the CIO community's skill sets
Rating on a scale of 1 to 7 where 1=poorand 7=excellent
Ability to influence peers/top management
Have a global mindset
Are equipped to develop and manage senior…
Can manage change and lead business…
Understand and participate in business…
Can lead operations and execution
5.0
5.0
5.1
5.1
5.2
5.3
Insights into their company's business
Accept that business leads technolgy
Accepting that business
leads technology and
participating in the
company’s business are
universal skills...
5.4
5.6
Individual CIOs think lesser of the community than of themselves…! In fact, a
comparison of the charts above shows a difference in the entire scale – the
personal ratings are higher across most characteristics. (Other than the top 2
skills, for all others the rating for the community is lower than the lowest rating
for personal skills at 5.35).
The skills that are acknowledged universally are:



...some universal deficiencies
the CIOs ability to understand and accept that business leads
technology
the insight into their company’s business, and
lead operations and execution
There is some agreement on deficiencies too. For example:


the CIO’s ability to influence peers and have high personal impact,
and
the ability to develop and manage teams
are both rated quite low.
But some glaring differences
too...
Other than that, some sharp differences are evident in personal assessment
versus that of peers. For example:


Ideas for next ‘leadership’
steps...
Global mindsets: Individuals believe it is one of their strengths –
whereas for the community it is amongst the lowest rated skills
Managing change and leading business transformation is also rated
significantly higher for the individual as compared to the collective
rating
An examination of the ‘self-assessed’ skills suggests that the focus is still,
very much, on the CIO role and what it means for business. Most individuals
are gracious about accepting these skills in their peers too. But as a
community, there is significant inadequacy amongst CIOs on the ‘nonnegotiables’ required for becoming ‘Board Ready’.
Leadership and people skills are right on top. But equally important is their
hesitation to accept any role that has ‘business accountability’. As an
example, more CIOs are keen to be on the Board than handle a P&L
responsibility as a CEO!
The findings of the survey point clearly towards next steps in the CIO’s
quest to become ‘Board Ready’…
11
Towards Getting ‘Board Ready’
Preparing CIOs for ‘leadership roles’
Microsoft is committed to walk the leadership journey with the CIO. Based on our ‘Board
Readiness Survey’ findings, we outline key next steps, where we promise to partner you.
Next steps:

Programmes and coaching in leadership skills
According to Ralph Nadar “The function of leadership is to produce more leaders, not more
followers." Similarly, as CIOs in India take on hybrid roles they need to develop and train
their subordinates to become leaders so that they can take on new and bigger
responsibilities. Given the technical nature of their traditional duties, most CIOs do not
acquire these skills i.e. the skill to develop and execute a clear succession plan. Dedicated
training programmes and coaching on leadership are the need of the hour.

Team-building and people-management skills
Dual roles also means managing people from different functions, who have been trained and
developed under different leaders/executive styles. As revealed from our interviews, CIOs
who fail to respect others’ ways of working perform sub-optimally. Working with teams and
bringing the best out in your people is a skill that must be acquired. There are academic and
experiential programmes to facilitate this growth which must be incorporated into the CIO
annual calendar.

A pocket MBA to allow for ‘taking on P&L responsibilities’
The strategic role of IT has placed CIOs in an excellent position to understand core business
process across functions. This has enabled many CIOs to provide savvy ideas about new
business applications across functions. But this alone is not enough to drive business value.
CIOs need to be more accountable to their new add-on roles and responsibilities by
assuming P&L responsibilities. Basic ‘general management’ courses would be a valuable
add-on to your already impressive track records.

And learning how to influence peers/counterparts
As revealed from the subjective responses to the survey, CIOs who seek higher leadership
role face many challenges. They understand that they alone can’t drive changes in functions
under the control of other executives. They are also aware of the fact that more IT leadership
is demanded from them. To meet the new demands on their role, CIOs must be able to
‘negotiate and influence’ their way through large and complex organisational structures. A
focussed effort on ‘softer skills’ – communication, resolving conflicts and having tough
conversations’ – are important agenda items.
Given the collaborative nature of leadership positions, as a first step it is important to
determine how CEOs and other functional heads perceive the CIO. Might some answers
lie there?
The next edition of the ‘CIO Leadership Journey’ will examine perceptions of CIOs
amongst CEOs, COOs, CFOs and HR Heads; and explore optimal responses towards
‘Board Readiness’.
12
Appendix
List of respondent companies
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
AC Nielsen
AFL
Alstom Projects India
Amtek Group
Automated Data Processing
Bajaj Electricals
Ballarpur Industries
Bank of America
Bank of India
Carrier Airconditioning and Refrigeration
CESC
CFC India Services
Cognizant Technology
Consim Info
DCB
DLF Group
Eicher Motors
Elbee Express
Engineering Projects (India)
Evalueserve
Forbes and Company
Fortis Healthcare
Gati
GlaxoSmithKline Consumer
Glencore India
Godrej Industries
Gujarat Heavy Chemicals
HDFC Bank
Henkel CAC
Hindustan Construction Company
House of Pearl Fashions
HT Media
HTMT Global Solutions
Indian Oil Corporation
Intrex India (Essel Group)
Jindal Stainless
Jubilant Organosys
K Raheja Corp
KPMG
Landmark Group
41.
42.
43.
44.
45.
46.
47.
48.
49.
50.
51.
52.
53.
54.
55.
56.
57.
58.
59.
60.
61.
62.
63.
64.
65.
66.
67.
68.
69.
70.
71.
72.
73.
74.
75.
76.
77.
Mahindra & Mahindra Financial Services
Mahindra Special Services Group
Matrix Laboratories
Max New York Life Insurance
Moser Baer India
Motherson Sumi Systems
Nagarjuna Fertilizers & Chemicals
NH Securities
Pfizer India
Philips Electronics
Piramal Health Care
PMC
Raymond
Reliance General Insurance
Reliance Life Insurance
Repco Bank
RPG Enterprises
Sanofi-Aventis Group
Satyam Computers
Shoppers Stop
Sify Technologies
SMIFS Securities
Spanco Telesystems and Solutions
SpiceJet
SRF
SRL Ranbaxy / Fortis Health World
Star India
Tata Capital
Tata Chemicals
Tech Mahindra
Tulip Telecom
Unitech
VIP Industries
Walmart India
Web18 Securities
WM India
Yes Bank Ltd
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