In this podcast, Bruce Ash talks about Dollar General's leveraging of technology to fly under Wal-Mart's radar screen, the political challenges he faced as CIO for a rapidly growing retailer, and his takeaways CIOs can use to create business impact.
If you're a CIO for a rapidly growing retail chain, you had better make sure you can deliver the business impact of IT to the organization. Bruce Ash has done just that repeatedly. He spent about 20 years developing IT infrastructures to support two major retailers --Talbots and Dollar General. During Ash's 10-year stint as CIO with Talbots, the company grew from 175 stores to 900 stores in four countries. On the other hand, Dollar General's explosive growth was like nothing Ash had ever experienced before at Talbots. Ash's nine-year tenure as CIO coincided with the company's expansion from 4,000 stores to 8,000 stores in 35 states. He said, "One year we opened 700 stores and three distribution centers to support the additional stores. Some retailers don't even have 700 stores."
Some retail analysts say that Sam Walton's original vision for Wal-Mart resembled that of today's Dollar General. This modern version of the neighborhood general store sells everything from apparel to toys from electronics to household goods, all at prices most people can afford to pay. Each Dollar General stores carries more than 5,400 core products from America's most trust brands and manufacturers.
As CIO of Dollar General, Ash became the linchpin between the business community, the corporate leadership team, the company's strategy, and the deployment of IT. He says, "The business impact of IT came from building the infrastructure to support the company's fast-paced growth strategy. It included bringing in a point of sale system that improved both our customer experience and our supply chain. We could process a variety of alternative payment methods. As a result, customers could get through the checkout line faster. The merchandise information this system captured enabled us to have perpetual inventory in the stores, including automatic stock replenishment."
Bio Before becoming CIO for Dollar General, Bruce Ash spent 10 with Talbots as senior vice president and CIO. He also was vice president of information systems at Filenes in Boston. He also has held senior IT at Foley's in Houston, Texas, and Federated (Macy's) Department Stores' corporate offices. He is currently doing retail IT consulting for 1010data, an emerging company that provides an analytics software as a service for business intelligence.
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.