The Effective CIO: How to Achieve Outstanding Success through Strategic Alignment, Financial Management, and IT Governance

352 Pages·2008·4.37 MB·English

by  Eric J. Brown

The Effective
CIO
How to Achieve Outstanding Success through
Strategic Alignment, Financial Management,
and IT Governance
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The Effective
CIO
How to Achieve Outstanding Success through
Strategic Alignment, Financial Management,
and IT Governance
|
Eric J. Brown William A. Yarberry, Jr.
Boca Raton London New York
CRC Press is an imprint of the
Taylor & Francis Group, an informa business
AN AUERBACH BOOK
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Library of Congress Cataloging-in-Publication Data
Brown, Eric J.
The effective CIO: how to achieve outstanding success through strategic
alignment, financial management, and IT governance / Eric J. Brown, William A.
Yarberry, Jr.
p. cm.
Includes bibliographical references and index.
ISBN 978-1-4200-6460-5 (alk. paper)
1. Chief information officers. 2. Information technology--Management. 3.
Information resources management. I. Yarberry, William. II. Title.
HD30.2.B79 2009
658.4’038--dc22 2008044335
Visit the Taylor & Francis Web site at
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Dedication
To my lovely wife Anne, son Remington, daughter Kira-Nariese,
brothers Mark and Tate, and for my parents, Ko`u mau makua i ola
mau i ko makou pu`uwai. Mahalo no kou aloha me kou kako`o.
—EJB
To Carol, Will, Libby, and my parents.
Thank you for your love and support.
—WAY

Contents
Preface .........................................................................................................xiii
Acknowledgments .........................................................................................xv
The Authors ..................................................................................................xix
1 Core Skills and Career Development .....................................................1
CIO Roles — A Sampler. .............................................................................2
No One Is Planning Your Career .................................................................3
Strategic Planning ........................................................................................6
Technical Expertise ......................................................................................8
The Generations ...........................................................................................8
What Affects Compensation? ......................................................................9
CIO Viruses ...............................................................................................11
The Magic “AND” .....................................................................................12
References ..................................................................................................13
2 Information Technology Governance ..................................................15
CIO Success Pills — For Best Results, Take with Governance ..................15
Alignment — How to Avoid Growing Weeds ............................................16
First Step — Make Sure a Business Strategy Exists .....................................16
Prioritization ..............................................................................................19
Alignment Tools ........................................................................................19
Value Delivery...................................................................................22
IT Risk Management........................................................................23
Compliance ...............................................................................................24
Ten Steps to Sarbanes-Oxley Compliance ........................................25
Resource Management ...............................................................................31
Performance Management .........................................................................31
The Nut-and-Bolt Stuff — Managing Your Own Department with
Governance ................................................................................................32
References ..................................................................................................34
vii
viii n Contents
3 Information Technology Finance .........................................................37
Budgeting ..................................................................................................38
Constructing the Budget ..........................................................................40
Rational Buying .........................................................................................43
Managing the IT Investment ....................................................................46
SOP No. 98-1 ............................................................................................50
Cost Management .....................................................................................52
Gray Areas and the Tilt .............................................................................54
Chargeback ................................................................................................56
Looking Financially Smart ........................................................................57
Managing Contracts ..................................................................................59
Summary ...................................................................................................61
References ..................................................................................................62
4 Project Management .............................................................................63
Project Organization .................................................................................64
Systems Development Methodologies ........................................................65
Model #1: Informal Approach — Code First, Fix Later ....................65
Model #2: Traditional Approach — Waterfall ..................................67
Model #3: Rapid Prototyping/Rapid Application Development
(RAD) ..............................................................................................68
Model #4: Agile Methodologies ........................................................68
Model #5: Rational Unified Process (RUP) ......................................71
Model #6: Out of Scope/Embedded Project .....................................73
Project Dynamics ......................................................................................73
Why Do Projects Fail? ......................................................................73
Planning the Work ...........................................................................75
Project Risk Assessment ....................................................................76
Scope of the Job — The Program Management Office’s (PMO)
Dilemma ....................................................................................................81
A Practitioner’s Perspective ........................................................................83
The Future of Project Management ............................................................86
References ..................................................................................................86
5 Creating Good Enough Code ...............................................................89
How Do You Do Good Code? ...................................................................89
How Important Are Coding Standards? ...................................................90
Toolboxes Are Useful .................................................................................91
Some Example Guidelines .........................................................................91
Release Philosophy .....................................................................................91
Porting .......................................................................................................92
The Ultimate Answer — Hire Good Developers and Keep Them Happy ...93
References ..................................................................................................93
Contents n ix
6 Enterprise Architecture ........................................................................95
Develop the Business Model ......................................................................98
Business Drivers and Selling the Enterprise Architecture (EA) ................100
Information Architecture and Process Modeling Perspective ...................101
Technology Architecture Perspective .......................................................105
Road Map to an Effective Architecture ....................................................107
Business Architecture......................................................................107
IT Architecture ...............................................................................108
Pushing Out the EA — Communicating with Management and
Employees ................................................................................................109
The Outsourcing Alternative ...........................................................110
Tools ...............................................................................................111
Enforcement and Governance of the EA .........................................111
Architectural Maturity .............................................................................114
Putting It All Together ............................................................................116
References ................................................................................................118
7 Mergers and Acquisitions ...................................................................119
The CIO’s Golden Opportunity...............................................................120
The CIO’s Two Responsibilities ...............................................................120
Responsibility #1: Due Diligence ....................................................120
Staff Due Diligence ...............................................................123
Responsibility #2: IT Integration ....................................................124
One Approach to Integration .................................................126
Success Factors .........................................................................................128
References ................................................................................................128
8 Sourcing .............................................................................................129
The Pendulum of Opinion .......................................................................129
The Traditional Pros and Cons ................................................................130
Pro — From the Provider’s Perspective ...........................................130
Con — From the Customer’s Perspective .......................................131
To Outsource or Not to Outsource? ........................................................133
Xshoring ..................................................................................................134
The Proximity Factor ......................................................................135
Keeping Xshoring and Sourcing in Perspective ...............................136
Sourcing Is More Than IT Services .................................................137
References ................................................................................................137
9 Business Intelligence and Analytics ...................................................139
Getting Started — Selling Business Intelligence (BI) ...............................140
Value Proposition ............................................................................141
Core Components ....................................................................................145