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CIO Presentation by Matt Aiello, Heidrick & Struggles, December 2012

Martha Heller
Martha Heller

The document summarizes trends in CIO recruiting nationally and provides advice for both candidates and hiring managers. Some key trends include an increase in "hybrid" CIO/CTO roles that combine functions like innovation/architecture and architecture/security. These hybrid roles are difficult to replace when vacated. There is also more focus on interim CIOs, leveraging internal recruiters, and candidates expanding responsibilities from within rather than switching companies. The presentation provides tips for candidates like gaining business experience and maintaining a strong personal brand, and for hiring managers to clarify roles and consider creative solutions around location.

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The Hybrid is More Than a Car Trends in CIO recruiting, nationally and locally, and what it means for you Presentation by: Matt Aiello (with a few extra notes by Martha Heller)
National Market Observations in CIO/CTO Searches 1
What Keeps Most CEOs Awake Related to IT Security data & security, privacy, controls, IT security, fraud Cost/Efficiency value, cost controls, benchmarks, ERP Strategic Leadership innovative CIO; succession, business acumen Innovation new revenue streams, disintermediation, workflow, exploit Customers / Data analytics, big data, BI, do we have a data strategy? Competitive Advantage does IT provide us one? Transformation Will it be successful? 2
Summary of National Trends Generally, search firms and CIO practices are busy but market has been down in 2012 Hybrid roles are popular also at C-level CIO & CTO especially in technology (software, hardware, services), professional services, media, BPO, financial services, but also other industries including CPG and manufacturing Hybrid roles are popular at C minus 1: innovation & architecture; architecture & security; product and back office. What Matt refers to as C minus 1 are the roles that report directly to the CIO. Hybrid roles are difficult to backfill need unusual combination of skills. Matts point is that you may have a great senior leader on your IT team, someone who can handle two whole functional areas. Thats great while you have that person, but when he or she moves on, it will be tough to hire the same hybrid skillset from the outside. Other trends: ERP upgrades/replacements; Insourcing / Outsourcing; product platform rationalization, application rationalization There are stronger internal candidates for CIO roles; also pressure to hire your successor for seemingly any C minus 1 role that is a search. In other words, CIOs who are looking to hire, say, a Chief Architect, will ask the recruiter to make sure candidates have CIO successor qualities. The challenge is that the Chief Architect role typically is NOT a feeder into the CIO role. Interim CIOs are more common; Some CIO roles not going to search firms leverage internal recruiting organization Unless there is a push, top talent is staying put moves generally perceived as risky Friends & Family are more likely to get interviewed fear of unknown 3
Takeaways Candidate Perspective If you can, get experience on the product / revenue side Personal Brand/Reputation Matters what would superiors & peers say about you Tenure Matters 3-4 years per role but dont stay too long! Know your strengths transformation, business enablement, technical depth, ERP Read the tea leaves Turnaround? Innovation? Status quo? New Role? Expand your responsibilities from the inside dont wait for search Be realistic about market demand hard to jump from manufacturing to services Low ego + high impact/influence is the perfect combination I couldnt agree more; humility is as trait that every IT executive should work on. Be interested in the role hard to get is not attractive. Be open to relocation. Network: other CIOs, business leaders, HR, decision makers Be in LinkedIn 4
Takeaways Hiring Manager Perspective Clarify the role / get internal buy in / hire consultants if needed before going to market Understand local talent pool and what is realistic Very high bar for relocation generally 2X value proposition. Exactly! If you want to get a candidate to relocate for your open position, the candidate has to perceive the new opportunity as twice as good as the one they have. Get creative on location commuting, Mon-Thursday, etc. Assume you will have to pay a premium for top talent. If using a search firm, think partner not vendor communicate and collaborate. Youve hired us to do more than throw bodies your way. Let us help you shape the search so that we can all be successful. Leverage all recruiting channels but have one process owner Be creative around skill set prioritize needs vs. nice to haves 5
Matt Aiello Matt Aiello is a Partner in Heidrick & Struggles Washington, DC office and specializes in the recruitment of senior-level technology and professional services executives. With over ten years of executive search experience, Matt has led numerous chief information officer and chief technology officer searches across industries to include technology, software, media, consumer, industrial/manufacturing, higher education/social enterprise, and retail. 2001 Pennsylvania Avenue, NW Matt also leads searches for senior-level professional and technology services Suite 800 executives, and has helped technology and services clients build or expand their Washington, DC 20006 business into the public sector (global, federal, state and local). He also has tel: +1 (202) 974 6052 expertise in building boards for distressed/Chapter 11 entities. fax: +1 (202) 331 4937 maiello@heidrick.com In addition, Matt has led executive assessments and succession planning projects for chief information officers and business services executives. Before beginning his career in executive search, Matt was a member of the startup team of a successful dot.com, a director of research for a distinguished Washington research group and a public school teacher. Matt received his BA in political science from Yale University. 6

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CIO Presentation by Matt Aiello, Heidrick & Struggles, December 2012

  • 1. The Hybrid is More Than a Car Trends in CIO recruiting, nationally and locally, and what it means for you Presentation by: Matt Aiello (with a few extra notes by Martha Heller)
  • 2. National Market Observations in CIO/CTO Searches 1
  • 3. What Keeps Most CEOs Awake Related to IT Security data & security, privacy, controls, IT security, fraud Cost/Efficiency value, cost controls, benchmarks, ERP Strategic Leadership innovative CIO; succession, business acumen Innovation new revenue streams, disintermediation, workflow, exploit Customers / Data analytics, big data, BI, do we have a data strategy? Competitive Advantage does IT provide us one? Transformation Will it be successful? 2
  • 4. Summary of National Trends Generally, search firms and CIO practices are busy but market has been down in 2012 Hybrid roles are popular also at C-level CIO & CTO especially in technology (software, hardware, services), professional services, media, BPO, financial services, but also other industries including CPG and manufacturing Hybrid roles are popular at C minus 1: innovation & architecture; architecture & security; product and back office. What Matt refers to as C minus 1 are the roles that report directly to the CIO. Hybrid roles are difficult to backfill need unusual combination of skills. Matts point is that you may have a great senior leader on your IT team, someone who can handle two whole functional areas. Thats great while you have that person, but when he or she moves on, it will be tough to hire the same hybrid skillset from the outside. Other trends: ERP upgrades/replacements; Insourcing / Outsourcing; product platform rationalization, application rationalization There are stronger internal candidates for CIO roles; also pressure to hire your successor for seemingly any C minus 1 role that is a search. In other words, CIOs who are looking to hire, say, a Chief Architect, will ask the recruiter to make sure candidates have CIO successor qualities. The challenge is that the Chief Architect role typically is NOT a feeder into the CIO role. Interim CIOs are more common; Some CIO roles not going to search firms leverage internal recruiting organization Unless there is a push, top talent is staying put moves generally perceived as risky Friends & Family are more likely to get interviewed fear of unknown 3
  • 5. Takeaways Candidate Perspective If you can, get experience on the product / revenue side Personal Brand/Reputation Matters what would superiors & peers say about you Tenure Matters 3-4 years per role but dont stay too long! Know your strengths transformation, business enablement, technical depth, ERP Read the tea leaves Turnaround? Innovation? Status quo? New Role? Expand your responsibilities from the inside dont wait for search Be realistic about market demand hard to jump from manufacturing to services Low ego + high impact/influence is the perfect combination I couldnt agree more; humility is as trait that every IT executive should work on. Be interested in the role hard to get is not attractive. Be open to relocation. Network: other CIOs, business leaders, HR, decision makers Be in LinkedIn 4
  • 6. Takeaways Hiring Manager Perspective Clarify the role / get internal buy in / hire consultants if needed before going to market Understand local talent pool and what is realistic Very high bar for relocation generally 2X value proposition. Exactly! If you want to get a candidate to relocate for your open position, the candidate has to perceive the new opportunity as twice as good as the one they have. Get creative on location commuting, Mon-Thursday, etc. Assume you will have to pay a premium for top talent. If using a search firm, think partner not vendor communicate and collaborate. Youve hired us to do more than throw bodies your way. Let us help you shape the search so that we can all be successful. Leverage all recruiting channels but have one process owner Be creative around skill set prioritize needs vs. nice to haves 5
  • 7. Matt Aiello Matt Aiello is a Partner in Heidrick & Struggles Washington, DC office and specializes in the recruitment of senior-level technology and professional services executives. With over ten years of executive search experience, Matt has led numerous chief information officer and chief technology officer searches across industries to include technology, software, media, consumer, industrial/manufacturing, higher education/social enterprise, and retail. 2001 Pennsylvania Avenue, NW Matt also leads searches for senior-level professional and technology services Suite 800 executives, and has helped technology and services clients build or expand their Washington, DC 20006 business into the public sector (global, federal, state and local). He also has tel: +1 (202) 974 6052 expertise in building boards for distressed/Chapter 11 entities. fax: +1 (202) 331 4937 maiello@heidrick.com In addition, Matt has led executive assessments and succession planning projects for chief information officers and business services executives. Before beginning his career in executive search, Matt was a member of the startup team of a successful dot.com, a director of research for a distinguished Washington research group and a public school teacher. Matt received his BA in political science from Yale University. 6