CEO – Chief Executive Officer

• Handle exceptional circumstances and develop a high level of tacit knowledge and
expertise
• Is fully responsible for the company’s success or failure
• The principal architect of corporate strategy and catalyst of organizational change
Two dimension of CEO’s impact on a company
• Resource availability – is dependent upon an organization’s level of dept and slack
Dept – higher debt means less cash available to direct toward investment and
acquisition
Slack – the amount of assets that CEO can easily redeploy to take advantage
of an opportunity
• Opportunity availability – determined by independence, concentration, and growth
NOTE: CEOs at the helm of companies with low debt and high slack will result to
high resource availability thus exert more powerful impact on their organizations,
and CEO impact increases as opportunities become scarcer

Two types o CEO succession

• Inside ( consist of relay and non-relay)
Relay (consist of 2 phase)
Phase 1(designation): the firm decide whether or not to designate an
heir
Phase 2(promotion): the firm decide whether the firm will be promoted
or not
Non-Relay
No designation of heir
Direct appointment
Does not differ with post-succession firm performance of an outside
succession
• Outside – are prized for their new skills, perspective and willingness to initiate change
NOTE: Outside succession will most likely lead to poor post-succession firm
performance

Three Categories of Origin

• Intra-firm – an executive with firm tenure of at least 2 years
• Intra-industry – firm tenure of less than 2 years but had industry tenure of at least 2
years in same industry
 • Outside-industry – industry tenure o at least 2 years in same industry
Three Theoretical Perspectives of Intra-firm
• Executive Human Capital – requirements of the CEOs job is sustainably different
• Power Perspective – established power base
• Agency theory Perspective – the board has relevant information of the candidate

Six Steps for Succession Decision

• Establish the goals and objectives of the search
• Carefully select the search committee
• Separate the rules and responsibilities of the search firm and search committee
• Define the candidate pool broadly
• Analyze the multiple factors affecting company performance
• Choose the candidate in the basis of the goals and objectives of the search
Three Types o CEO Successor
• Followers
- Are inside executives who are promoted to CEO positions following the
ordinary retirement of their predecessors
- As insiders, they possess firm-specific knowledge

- The risk of adverse selection is relatively low because of their frequent

exposure to their firm’s boards of directors and other senior executives

- They have significant limitations in their ability to initiate strategic change

because they are often selected and groomed by the outgoing CEOs
• Contenders
- Are inside executive who are promoted to CEO after the dismissals of their
predecessors
- Contender successors’ work experiences give them firm-specific
knowledge

- Their exposure to directors and other senior executives reduces the risk of
adverse selection

- Because power contestation and CEO dismissal often occur in periods of

poor firm performance, contender successors will be charged to initiate
strategic change and improve firm performance
 • Outsiders
- Are most often selected in periods of poor firm performance and when
directors cannot locate a competent successor within their firm

- Although the objective of outsider succession is improved firm

performance, three factors (firm-specific knowledge, change
initiatives, and the risk of adverse selection) work against

- Outsider successors lack firm-specific knowledge

- It is more difficult for directors to fully and accurately evaluate the

capabilities of outside candidates because directors usually do not have a
deep familiarity with them This leads to a higher risk of adverse selection

- Outsider successors often face the challenge of finding competent and

supportive senior executives within their new firms

Reasons for Constant Planning for new CEO

• CEO long term tenures:
- Increase risk averseness
- Lack of openness to new information
- Increase complacency
• Constant CEO Succession:
- New Business Strategy
- Updated Information
CEO Planning Criteria
• Look first inside the company for exceptional skills
• Ensures candidate gain experience in all aspect o the business
• Help them develop skills they need in the top job
• Companies must bolster leadership development
• Focus on the very rare people and personally get to know the rising stars
COO – Chief Operating Officer
• The senior manager who is responsible for managing the company's day-to-day
operations and reporting them to the CEO
• Represent and heir apparent in training for the CEO position.
• Represent a co-leader delegated with internal operating authority.
 • The relationship of a CEO and a COO/president (as a co-leader or an heir apparent)
can involve rivalry
Two Type of Authority
• Authorized Power
- is granted by those superior to the power holder
• Endorsed Power
- is granted by those subordinate to the power holder

CIO – Chief Information Officer

• A CIO can be define as the highest ranking I.T. executive who typically exhibits
managerial roles requiring effective communication with top management.
• The CIO typically reports to the chief executive officer, chief operations
officer or chief financial officer

• The CIO is generally responsible for processes and practices supporting the flow of
information

Empirical observation – gaining information thru means of observation, experiment, etc...

End User Computing (EUC) is a group of approaches to computing that aim at better
integrating end users into the computing environment or that attempt to realize the
potential for high-end computing to perform in a trustworthy manner in problem solving of
the highest order.

Businessmen – they know how to deal with business matters

Managers - manages and delegates decisions to employees more with details

Technologist - generally responsible for processes and practices supporting the flow of
information

Information System Manager Posses:

• blend of technical knowledge

• sound – business related skills

Kaarst-Brown Suggests Reasons for a CIO’s Disregard

• Personality conflicts
 • Lack of corporate technology vision

• Poorly aligned I.T. goals

• Lack of business knowledge

• Lack o I.T. awareness among the business executives

• Incorrect formal structure and reporting relationship

CIO Can Be View As:

• Manager of people

- Recruiting

- Staff training, and retention, and financial roles of budget determination

- Forecasting

- Authorization

• Provider of technological services to user departments

- Publicity

- Promotion

- Internal relationship with management remains

• Manager of an often-virtual information organization

- Coordinate sources of information services spread throughout and beyond

the boundaries of the firm.

NOTE: The CIO is not only more concerned with a wider group of issues than most
managers, but also, as the chief information systems strategist, he has a set of
responsibilities that must constantly evolve with the corporate information needs
and with information technology itself.

Creation of the CIO role was driven in part by two organizational needs:

• Accountability
 • Closing of the gap between organizational and IT strategies

NOTE: Accountability is increased when a single executive is responsible for the

organization’s processing needs.

NOTE: Creation of the CIO position facilitates the closing of the gap between
organizational and IT strategies which has long been cited as a primary business
concern.

Karimi, Somers, and Gupta (2001) found that successful CIOs characterized
themselves in the following way:

• I see myself to be a corporate officer.

• In my organization, I am seen by others as a corporate officer.

• I am a general business manager, not an IT specialist.

• I am a candidate for top-line management positions.

• I have a high-profile image in the organization.

• I have political as well as rational perspectives of my firm.

• I spend most of my time outside the IT department focusing on the strategic and
organizational aspects of IT.

Hybrid - A person with strong technical skills and adequate business knowledge or vice
versa

Astuteness – smartness

NOTE: What the IT world calls “Hybrid People” are people who have the technical
knowledge and experience in running a line and machinery, but can also adapt to
work in a digitized/computer orientated environment, or simply people that have
hardware knowledge and skills, and also software capabilities. A Hybrid Manager
simply does that at a higher level.
Gartner Suggests Four Alternative Office Models:
• A semiformal office of the CIO provides a flexible tool for responding to IT
issues.
• A collaborative office of the CIO provides agility to address issues, and
resources to follow them through.
• A coordinating office of the CIO connects IS across business units.
• A directional office of the CIO extends the CIO’s leadership reach.

Engineering – ability to apply principles of logic, science, and mathematics to the

understanding of systems and processes to improve them.

Lecturing – ability to expound on an important subject delivered before audience members

to inform/instruct them and convince or persuade them to further action.

Arbitrating – ability to reconcile the differences in components of networked resources or

assets to achieve a common objective.

Coaching – ability and willingness to transfer knowledge about a subject to individuals,

enabling them to succeed at a given task, and (if necessary) to identify their weaknesses
and aid them in correcting those weaknesses.

Organizing – ability to put things together in an orderly, functioning, and structure whole.
Work experience of CIOs can be captured using three measures:

1. Quantitative

- Quantitative measures are time based and amount measures. Time-based

measures are the traditional measurement of the length of time spent
work in a task, job, or organization and are operational in terms of tenure.

2. Qualitative

- Work experiences are associated with learning when they challenge the
individual, and challenge is mostly likely to occur when there is a lack of
congruence between the individual’s knowledge, skills, and abilities and
the demands of the assignment.

3. Interaction
- Is the interaction between the qualitative and quantitative dimensions and
includes the experience’s density, placement within the career, and
criticality of the work experience.
Dawson and Watson (2005) present six distinct CIO roles:

• IT educator: concerned with ensuring that the human foundations for innovation are
in place.

• IT contract oversight: concerned with ensuring that strategic partnerships with

external vendors are optimized.

• IT support/utility provider: focuses on classic IT support ensuring that the IT unit

is operationally efficient and effective.

• Integrator: concerned with developing value-added integration among and between

business units as well as with external partners

• Informaticist/IT strategist: concerned with developing sound data management

and IT plans and processes.

• 6. Business partner/strategist: concerned with issues relating to the greater

organization outside of the IT unit.