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

352 Pages·2008·4.37 MB·English
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The Effective CIO How to Achieve Outstanding Success through Strategic Alignment, Financial Management, and IT Governance http://avaxhome.ws/blogs/ChrisRedfield OTHER NEW BOOKS FROM AUERBACH The Business Value of IT: Managing Risks, Interpreting the CMMI®: A Process Optimizing Performance and Improvement Approach, Second Edition Measuring Results Margaret K. Kulpa and Kent A. Johnson Michael D. S. Harris, David Herron, ISBN: 1-4200-6052-X and Stasia Iwanicki ISBN: 1-4200-6474-6 Knowledge Management, Business Intelligence, and Content Management: CISO Leadership: Essential Principles The IT Practitioner's Guide for Success Jessica Keyes Todd Fitzgerald and Micki Krause ISBN: 0-8493-9385-X ISBN: 0-8493-7943-1 Manage Software Testing The Debugger's Handbook Peter Farrell-Vinay J.F. DiMarzio ISBN: 0-8493-9383-3 ISBN: 0-8493-8034-0 Managing Global Development Risk Effective Software Maintenance and James M. Hussey and Steven E. 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Tayntor ISBN: 0-8493-9275-6 ISBN: 1-4200-4426-5 The Insider's Guide to Outsourcing Risks Successful Packaged Software and Rewards Implementation Johann Rost Christine B. Tayntor ISBN: 0-8493-7017-5 ISBN: 0-8493-3410-1 AUERBACH PUBLICATIONS www.auerbach-publications.com To Order Call: 1-800-272-7737 • Fax: 1-800-374-3401 E-mail: [email protected] 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 Auerbach Publications Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2009 by Taylor & Francis Group, LLC Auerbach is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Printed in the United States of America on acid-free paper 10 9 8 7 6 5 4 3 2 1 International Standard Book Number-13: 978-1-4200-6460-5 (Hardcover) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher can- not assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, microfilming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copy- right.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that pro- vides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. 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 http://www.taylorandfrancis.com and the Auerbach Web site at http://www.auerbach-publications.com 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

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In a business world of uncertain budgets, relentless technology changes, scarce management talent, and intense production demands, theory is good, but practice sells. The Effective CIO: How to Achieve Outstanding Success through Strategic Alignment, Financial Management, and IT Governance is all ab
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