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March 5, 2009
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When troubled IT organizations need help, then Transition Partners can provide the perfect solution. This IT consultancy specializes in turning around ineffective IT organizations by providing them with experienced IT leaders and established business processes. The company's client base includes Aramark, Bates Advertising, Hilton Hotels, and Ingersoll Rand.
 
Transition Partners specializes in handling the one problem most CIOs don't like to talk about -- dealing with the politics of IT.  Thomas L. Pettibone, Transition Partners' founder, has waded through a lot of political muck in his 18-year IT career.  In fact, after working as a CIO for several Fortune 50 companies, he concluded that he often found himself in a no-win position and that he'd be happier being on his own as part of an interim team, parting friends with the organization at the end of the day.
 
He says, "When it comes to allocating funds and delivering services, the CIO has to be the judge and the jury. The demand always exceeds the supply. The CIO often winds either saying No to the end-user executive or trying to deliver something on a shoestring. Either way, the CIO loses politically."
 
Pettibone and his Transition Partners staff have a good track record helping some wounded IT organizations, as well as wounded companies, achieve real business value from IT. In fact, the bankrupt TransWorld Airways, now part of American Airlines, was one of Transition Partners' first clients. Pettibone says, "TWA was a mess. Most of the top IT management had left. Things ran poorly. The company was close to signing a terrible outsourcing deal." The Transition Partner's team took over the IT department, and within 12 months had created a high-performance IT organization, delivering high reliability and good end-user satisfaction. Pettibone says, "IT was one of the bright spots when American Airlines acquired TWA."
 
Several years later, Transition Partners worked with Tsumura Consumer Products. He says, "The new CIO was being held hostage by several of his IT lieutenants. They wanted hefty bonuses or else they would disrupt operations. We parachuted in, fired the offenders, and took over the IT operational responsibility with no business interruption. Within six months, we rebuilt the IT organization. The parting comment from the CIO was great. He said that we took the gun away from his head."
 
People within an IT organization usually know what's going on. Computer systems don't breakdown by themselves. The problems that arise between IT and the business often relate to management issues. After signing on with a new client, the Transition Partners' team immediately sits down with the IT organization and lays out what it plans to do as turnaround people. Pettibone says, "We tell them that we seek their support with our processes and methods to correct the situation. We emphasize that within a year or shorter, we'll leave and they'll be the recipients of the benefits we can create together. Of course, someone has to be appointed to lead IT. It's a chance for someone to move up in the organization."
 
In this podcast, Pettibone talks about how CIOs can help their organizations cope with the economic downturn; how CIOs can improve the IT governance process; what challenges interim CIOs face stepping into the former CIOs' shoes; and how membership in an organization, such as the Society of Information Management, can better prepare CIOs to do their job.

Bio

Before starting Transition Partners based in Reston, Virginia, an IT management consultancy, Thomas L. Pettibone held corporate CIO positions at the following companies: Philip Morris, New York Life, Richardson Vicks (Procter & Gamble), Emery Airfreight, and BMW. He is the past chairman of the New York Chapter of the Society of Information Management, a former director of SIM, and an active member of the Fairfield-Westchester chapter of SIM. He is a contributing editor to Chief Executive magazine, a past member of The Research Board, and The Conference Board. He has an MBA from The Wharton Business School, and a BS in Mechanical Engineering from Drexel University.

 

Resources
ResourcesCIO Insight Inteview with Tom Pettibone
Hired Guns: Temporary CIOs - InformationWeek
IT Leaders are Made, Not Borns, Says Tech Veterans - Computerworld

 

Production Credits
Elizabeth Ferrarini, Executive Producer
Tom Parish, Host and Audio Producer
Audio Editing by Doug Marcis

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2,148 Views 0 Comments Permalink Tags: it_management, politics_of_it, podcast, governance

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Part 1

 

Part 2

Being a CIO is a tough job. No one knows that better than Hank Leingang, the former global CIO for the Bechtel Group, Inc., and the former CIO for Viacom. As CEO of ITM Software, which BMC Software recently acquired, Leingang worked with both CIOs and their executive teams to maximize the business impact of IT. His IT consulting firm, ThinkLift, also helped CIOs and their IT teams to achieve business impact. Leingang continues to pursue hs passion for building and developing high-impact executive teams as a senior member of Korn/Ferry's IT Officers Center of Expertise.

So what's the business impact of IT? It's really about running IT as a true business that makes growth opportunities happen. Leingang says that achieving business impact means that the IT organization has evolved through five stages beginning with a stable applications portfolio, developing automated support for processes and functions, carrying out an ERP implementation, enabling a business transformation, and delivering business products and services developed by IT or that containing IT components. He says, "Customers benefit from the results of these IT activities."

 

Where can you see visible proof of the business impact of IT across the organization and how do you measure the outcome? Leingang lists four areas where you can see it: enabling of individual productivity, enhancing group productivity, enabling a function or a process, and delivering products and services to customers of the enterprise. He says that you can measure it by profit and loss cost reductions, improvements in revenues, and an increase in shareholder value. He says, "At the end of the day, whatever business case that is developed from the associated IT activities has to contribute to all of these."

 

In this podcast, Leingang talks about what his teams did in order to maximize the business impact of IT, what hurdles CIOs face in achieving business impact of IT, and how they can overcome them.  For example, Leingang's first task as the global CIO at Bechtel was to turn a highly disjointed group into a highly coordinated service function, which could deliver products and services to 13 business lines around the world. His team stabilized the infrastructure and the core applications that enabled the company's delivery capabilities. His team also enabled Bechtel employees to operate as a virtual team wherever they were in the world. He says, "The longer it took for Bechtel to turn the keys to a project over to its owner, the more risk of liquidated manages we could incur. Because our virtual teams could quickly pull in expertise from other parts of the company, we could lower our risk and speed up the delivery time."

 

Leingang says that the real business impact of IT came from the company's move from a little understanding of what IT did to a clear understanding of all the Bechtel product and services delivered from the IT organization.  He says, "They also knew, not only the full inventory of services and the costs drivers, but also the strategic and operational impact of IT. We moved from being a purely technology group to running IT as a business. We actually identified new growth opportunities from IT products and services."

 

Bio

Hank (Henry) Leingang  is a senior consultant with Korn/Ferry International, a premier global provider of talent management solutions. He is based in San Francisco and is the firm's IT Officers Practice leader in the West. He is a senior member of Korn/Ferry's IT Officers Center of Expertise. Leingang was president, CEO, and a board member of ITM Software, before BMC Software acquired it. Before ITM Software, Leingang was president and CEO of ThinkLift, a business and IT strategy consulting firm. He spent five years as the global CIO of Bechtel Group, Inc. and seven years as the global CIO of Viacom. He also had held IT leadership positions at Triangle Industries, Interpace, and Touche Ross. Leingang has a B.S. from the University of Illinois and an MBA from Southern Illinois University. He serves on the board of directors of New York Eye and Ear Infirmary.

 

Resources
CIO 2.0: The Chief Impact Officer - CIO Update

 

Production Credits
Elizabeth Ferrarini, Executive Producer
Tom Parish, Host and Audio Producer
Doug Marcis - Audio Editing

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2,218 Views 0 Comments Permalink Tags: best_practices, business_impact, podcast

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