ModernITLeadership

SurvivingChaosandDeliveringValue

byJurgenAppelo,StephenJ.Andriole,RobertD.Austin,
JasonBates,MartinBauer,RonBlitstein,EricD.Brown,
RobertN.Charette,MosheCohen,ChristineDavis,GeneDeLibero,
LynneEllyn,BobFurniss,BobGariano,PamHager,VinceKellen,
DorothyE.Leidner,MarthaJ.Lindeman,TimLister,ThorntonMay,
PatrickE.Moroney,ThomasH.Murphy,KenOrr,GabrielePiccoli,
JohannaRothman,RobertD.Scott,BorysStokalski,andMarkWoodman

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CHAPTER4

BacktotheFuture:TheFutureRole
of theCIO
byRobertN.Charette,Fellow,CutterConsortium

OneofthefirstmoderneraCIOs,ifnotthe first,wasBankofAmericas
legendaryA.R.Zipf.Togetherwithhiscolleagues,Zipfdevelopedtheelectronic
recordingmethodofaccountingintheearly1950s,andinsodoing,notonly
revolutionizedbankingbuttheITindustryitself.Zipf srolesandresponsibilities
atBofAcenteredontheautomationoflaborintensive,jobspecific,functional
tasks,whichsoonbecamethesameobjectiveofotherCIOsacrossall
industriesthatfollowedinhisfootsteps.
Inthelate1970sandintotheearly1980s,corporationshadcompletedmost
functionaltasksthatcouldeasilybeautomated.TheroleoftheCIOshifted
towardautomatingcrossfunctionaltasks,aswellasreplacingorupdating
legacysystemstothenextgenerationofinformationtechnology.Thisproved
a muchharderandcostlierendeavorthanmanyClevelexecutivesexpected
orCIOstoldthemtoexpect.CEOsandboardsofdirectors(BoDs)werenot
pleasedasaresult.
Bythebeginningofthe1990s,thefocusofcorporateITeffortsshiftedonce
more,butthistimetointerconnectingtheislandsofautomationthatprevious
automationeffortshadcreated.Thestepincreaseintechnologicaland
managerialcomplexityagainincreasedthecostsinvolvedaswellasthe
likelihoodofITfailure,whichinturnescalatedCEOsandBoDsdiscontent
withCIOperformance.
DissatisfactionwithCIOperformancegrewsointensethatsomesuggested
the acronymCIOshouldstandforCareerIsOver.Atthefinancialcompany
PaineWeber,forexample,therewereeightCIOshiredandfiredbetween
1985 and1991alone.Asevererecessionatthetimeonlyintensifiedexecutives
demandsonCIOstodelivervaluefromITinvestments.Industryandacademic
observersopinedthatifCIOswantedtosurvive,theyneededtorapidly
becomebusinessmanagersratherthanmerelytechnologyexperts.Asone
economistsaidin1991,IftheCIOcannotreducehisowncoststructure,then
heisdestinedtoextinction.Informationtechnologyhastobedirected,bottom
line,toproductivityenhancement.1

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MODERNITLEADERSHIP:SURVIVINGCHAOSANDDELIVERINGVALUE

CIOsgotthemessage,atleastintellectually.A1992surveyofCIOsbyCSC
IndexshowedthataligningITandcorporategoalswasratedastheirnumber
onemissionandsomethingthatCEOsandtheBoDsdemanded.2
Letsfastforwardtotoday.
ThecurrentperiodoffinancialdistresshasagainplacedCIOsunderthe
spotlight,andtheyarebeingaskedthesamequestionthattheirpredecessors
fromtheearly1990swereasked:Whatvalueisourcompanygettingforits
IT investments?Inabitmoredjvu,thealignmentofITwiththeneedsof
thebusinessremainsthenumberonepriorityofCIOs,CEOs,andBoDs.3 Why
isit,CEOsandBoDsareaskingtheirCIOs,thatafter20yearsyoustillcant
solvethisproblem?
Andtotopoffthishistoricalsymmetry,thisisaperiodliketheearly1990s
inwhichthereisafundamentalshiftoccurringinITthatisaspotentially
wrenchingaswasthaterasmovetonetworkedsystemsandoutsourced
systems.Theriseofcloudcomputing,softwareasaservice,socialmedia,
and soonraisesthequestionofwhoshouldberesponsibleforacorporations
IT:itselforathirdparty?
AllofthishasputtheCIObackinthehotseatandpromptsustoask,What,
if any,isthefutureoftheCIO?
IfCIOsaretohaveanyfuture,theywillneedtofundamentallyrethinkwhat
theirrolesandresponsibilitiesare.Infact,IcontendthatmoderneraCIOs
havenever correctlyframedwhattheirrolesandresponsibilitiesshouldbe,
whichisoneofthereasonsthatITbusinessalignmentremainssuchahigh
priorityissueforCEOsandBoDs20yearsafteritwasfirstraised.Ifurther
argue thatamajorreasonforthisframingerrorliesindecisionsthatwere
mademorethan50yearsagoandcontinuetohauntCIOstoday.

GoingaStepBackinTime:WhatIsAutomation?
TobetterunderstandthepredicamentCIOsfacetoday,weneedtobooka
journeybacktoaperiodofmostlyforgottenbutimportantcomputinghistory.
Thetermautomationasweuseitnowisrelativelynew,etymologically
speaking.Thetermwascoinedin1946byDelHarder,aVPofproductionat
FordMotorCompanyinDetroit.4 Atthetime,Fordwantedtorapidlyincrease
itsautomobileproductiontomeetthehuge,pentupdemandforcarsthat
arosewiththeendofWorldWarII.Tomeetthedemand,Fordengineers
developedforitshugeRougePlantanadvancedmethodofmechanizingthe

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CHAPTER4BACKTOTHEFUTURE:THEFUTUREROLEOFTHECIO

materialshandlingprocessusedonitsautomotiveassemblyandproduction
linethroughtheapplicationofconveyorsandwhatHardercalledautomation
devices.5 Thisnewapproachprovedhugelysuccessfulfrombothcostand
timeperspectives.Forexample,whereitusedtotake400Fordworkers40
minutestomachineanengineblock,thenewlyautomatedproductionline
requiredjust48workersandfewerthan20minutes.6 Detroitautomation,
as itsoonbecameknown,alsobecamesynonymouswithanyoperationthat
removedahumandecisionmakerfromtheproductionprocess.7
Theconceptofautomationfireduptheimaginationsofengineerseverywhere.
Itrapidlybecameclearthatthefledglingcomputersofthetimemightbeable
toautomaticallycontroltheautomationprocess.Thiswasincontrasttothe
mechanicallybaseddevicesusedinDetroitautomation.Inaddition,advances
incomputerautomationtechnology,especiallyintheareaofprocesscontrol
sensorssuchaselectroopticalreadingdevices,wereexpandingthepotential
pooloflaborintensivetasksforwhichcomputerautomationcouldbeused.
Amajortippingpointintheapplicationofcomputerautomationcameinthe
early1950sintheUSbankingindustry,whichwasthenincrisis.Americans
useofcheckingaccountshadexplodedafterWorldWarII,withsome8billion
personalandcommercialchecksbeingwrittenin1952alone.Bankswere
findingthemselvesswampedbythesheermagnitudeofthetaskofmanually
processingallthesechecks.Forexample,atypicalcheckneededtopass
throughtwoormorebanksandbereviewedatleastsixtimesbeforeit
was clearedforpayment.Insomecases,bankswerebeingalmostliterally
physicallyoverwhelmedwithpapercheckstoprocess,and,asaresult,were
afraidtoexpand.Makingmattersworse,thebankpersonnelwhodidthe
checkprocessingwerelowwageclerkswhodislikedtheworkapersonnel
turnoverrateof100%wasnotuncommonatmanybanks.
SeniormanagersatBankofAmerica,thenthelargestbankintheworld
and theonewiththebiggestproblemtosolve,werethefirsttorealizethat
computerautomationmightbeasolution.8 Beginningin1950,BofAembarked
onaprojecttoautomatecheckprocessing,calledelectronicrecording
machineaccounting,orERMA.Toautomatethemanualprocessofcheck
processing,BofAhadtodevelopnewhardware,newsoftware,andnew
businessprocesses.
On22September1955,orERMADay,BofAannouncedtotheworld
what it haddone,therebychangingthebankingandITindustriesforever.
BofA demonstratedhowcomputerautomationcouldbeusedtotransform
whitecollarwork,asDetroitautomationwasdoingforbluecollarassembly,
production,andmanufacturingwork.9

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ThepersoncreditedwithERMAssuccesswasA.R.Zipf.10 WhatZipfhad
done atBofAandequallyimportant,how hediditwasseenasthe
prototypeforautomationofotherindustries.ZipfwasBofAschiefcomputer
technologyenabler;hisjobwastoenableBofAtomakeuseofthenew
computertechnologytoincreaseefficiencyandreduceitsmanpowercosts.
BofAcompetitors,whoallwishedtheyhadthoughtaboutusingautomation
first,soonbeganhiringtechnologiststofulfillaZipflikeCIOroleintheir
banks,andtheideaoftheCIOalsoquicklyspreadacrossotherindustries.11
Consequently,theexpectation(ofseniormanagementandothers)thatthe
CIOsprimaryroleisthatofchiefcomputertechnologyenabler wassetearly
onandhasneverleft.AndresFortinoofNYUsPolytechnicInstitutesuggests
thatwhiletheCIOsrolemayhaveexpandedsinceZipf stimetoinclude
the functionsofstrategist,relationshiparchitect,informationsteward,and
integrator,attheendoftheday,ifthefirstandforemostresponsibilityofbeing
thetechnologyenablerisnotmet,thedaysofaCIOarequicklynumbered.
AnotherZipflegacyisthattheCIOsviewisstillprimarilyaimed(anddictated
byexecutivemanagement)notatimprovingthecustomersexperienceso
muchasreducinginternalbusinesscosts.Thisinwardfocus,asIwillshortly
argue,isanotherreasonfortheshortemploymentlongevityofmostCIOs.
ThefinalZipflegacywasthatthesuccessofautomationwas,andstillis,
judgedonitsabilitytoreducebusinessoperationalcoststhroughpersonnel
elimination.Again,aswewillshortlysee,thisisafalseeconomy.
Thesethreeexpectations,whichareallrootedinthelegacyofZipfandBoA,
arethecriteriaagainstwhichcorporateexecutivesstillprimarilyjudgethe
valueofITandCIOstothedetrimentofeveryone.

Risk,Profit,andIT
Forthepast20years,seniorexecutiveshavecomplainedthatITintheir
organizationsdoesnotproperlysupportoralignwithbusinessstrategies
and goals,andthatthissituationismainlytheCIOsfault.Thisviewdisplays
a surprisinglackofunderstandingbybothseniorexecutivesand CIOsabout
whatautomationactuallydoes.
EvenbeforeBofAcompletedERMA,thelatemanagementtheoristand
economistPeterDruckerwasdefiningwhatautomationtrulymeant,as
opposedtothecolorfuldescriptionsinpopularnewspapersandmagazines
of thetimethatdepictedautomationaspushbuttonfactoriesrunbygiant
electronicbrains.AccordingtoDrucker:12

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CHAPTER4BACKTOTHEFUTURE:THEFUTUREROLEOFTHECIO

n Automationisnotaboutcomputers(oranymachineforthatmatter);itisa
conceptofhowtoorganize work.
n Automationdoesnotrequirecomputerstowork;itcanworkperfectly
wellwithoutthem.Computersarearesultoftheprocessofautomation,
notitscause.
n Automationisaboutinformationandhowitisusedtomakedecisions
(by humansorothercomputers).
n Automationaddsvaluetoinformation,whichmeansthatwhatever
(or whoever)isusingthatinformationmustpossessthe(increased)skills
to makeuseofit.
n Automationdoesnoteliminatepeople;itjustshiftsthemtoother
informationintensiverelatedwork.BofAmayhavereducedthenumber
of lowskilledcheckprocessingclerksithad,butitalsohadtoincrease
the numberofhighlyskilledprogrammersithired.
Havingthisconceptualunderstandingofautomationwasimportantif
computerautomationwasgoingtobeusedtoitsfullbusinesspotential,
Druckerwrote.Butreachingthatpotentialmeantanumberofmisconceptions
aboutbusinessalsoneededcorrection.Firstandforemost,hesaid,theonly
validpurposeofabusinessistocreateacustomer,whichisdonebyoffering
somethingofvaluethatsomeonedesires.13 Butwhatdoesvaluemean?

ExchangingRiskandOpportunity
HereweneedtoconsulttheseminalworkofeconomistFrankKnight,found
in hispathbreaking1921book,Risk,Uncertainty,andProfit.14 WhatKnight
showedwasthatallexchangesofgoodsandservicesareexchangesofrisk
andopportunitybetweenpartiestotheexchange.Forinstance,asupplierof
a goodtakesontherisk(i.e.,makestheinvestmentintime,money,people)
to offerthatgoodforsale.Customerswillbuythatgoodifitrepresentsalower
riskthanmakingthatgoodthemselves(i.e.,makingtheinvestmentintime,
money,andskillneededtoduplicatethegoodbeingoffered).Inotherwords,
asupplierofagoodorserviceeliminatesormitigatestheriskofitscustomers.
Profit,therefore,isthepaymentreceivedfortakingonthecustomersrisk.
The greatertheriskreduction,thegreaterthepotentialprofittobemade.
Wecantakethisnotionabitfurtherandcategorizewhatisexchangedas
beinginvestmentsininformation,control,and/ortime.15 Forexample,lets
say Ineedtounderstandthefeedinghabitsofthegreatapes.Icouldtravel

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MODERNITLEADERSHIP:SURVIVINGCHAOSANDDELIVERINGVALUE

to Africa,thenjourneytowherethegreatapeslive,setupcamp,anddomy
research.Ofcourse,thispresupposesIactuallyknowsomethingaboutgreat
apesandtheirfeedinghabits.Ontheotherhand,Icould,say,buyabookby
JaneGoodallandreadaboutit.Shehastakenontheriskcausedbymylack
of information,control,andtimeallforapotentialcostof$19.95tome.On
the otherhand,ifIaminterestedinthefeedinghabitsofAmazonianparrots,
JaneGoodallcanthelpme.Inthisinstance,herriskwillnotberewarded.
Returningtoautomationagain,ifthefundamentalpurposeofabusinessis
to createacustomer,whichitdoesbyreducingitscustomersrisks,thenITs
ultimatepurposemustbe tohelpabusinesscreateacustomerbyreducing
thosecustomersrisks.InBofAscase,automationwasusedtoreduceBofAs
internalstrategic,operational,andfinancialrisks.However,itdidlittledirectly
toloweritscustomersrisksthoserisksthatweremitigatedweremoreof
anafterthought.
Ifweweretotakealookathowautomationhasgenerallybeenappliedin
businessand,especially,government,wecanseethatitsfocuswithafew
notableexceptionshasbeenonreducinginternalorganizationalrisks.16
OnlywiththeadventoftheInternetarecustomerriskscomingmoretothe
foreintermsofwhatautomationshouldbeusedfor.Iwilldiscussthisabit
morelater.
Thisfocusonusingautomationtosupportonlypartoftheexchangeofrisk
and opportunitynamely,thesuppliersideriskshelpsexplainwhythe
ITbusinessalignmentdisconnectstillpersistsincorporations.Byfocusing
primarilyonreducinginternalorganizationalrisks(primarilyfinancialones),
CIOsaremissingtheotherhalfoftheirjobusingautomationtoreduce
their customersrisks.
Clevelexecutivescontributetothedisconnectbecausetheydontexplicitly
focustheircorporationsIToperationsonreducingtheircustomersrisks
either.Onecanseethiswhenevercorporationsgetintotrouble;thefirst
thing theydoiscallforinternalcostcutting,usuallybytheITdepartment,
not investmentinthecreationofnewproducts.17
Somecompaniesdo understand.Applehassuchinnovativeproductsand
servicesastheiPod,iTunesstore,andiPhone.Whatmakestheminnovative?
Eachreducesandcontinuestoreducetheircustomersrisks.Notice
how eachproductindividuallyaswellascollectivelygivesApplecustomers
theinformationtheywant,undertheircontrol,quickly,andatapricetheyfind
acceptable.Appleisverygoodatreducingthethreerootcausesofcustomer
risk:thelackofinformation,control,andtime.

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CHAPTER4BACKTOTHEFUTURE:THEFUTUREROLEOFTHECIO

MayoClinicsDr.HenryPlummer:TheModeloftheFutureCIO
Anotherorganizationthatfocusesrelentlesslyonreducingitscustomersrisks,
inDruckerssense,istheworldfamousMayoClinicinRochester,Minnesota,
USA.Ithasbeendoingsosince1892,andithasbeenusingautomationfor
that purposealmostaslong.
TheMayoClinicwasfoundedbythebrothersDr.WilliamJ.MayoandDr.
CharlesH.Mayowithaphilosophythatwasuniqueforitstime:
n Theinterestsofthepatientalwayscomefirst.
n Apatientssymptomsordiseasehastobetreatedasawhole.
n Onlythecombinedwisdomofonespeerscanmakethefirsttwo
objectives cometrue.
OneofthefirstdoctorstobehiredintotheMayoClinicwasayoungman
by thenameofHenryPlummer.Inmyopinion,Plummerwasthefirstreal
CIO of the20thcentury.Why?PlummerrecognizedthatiftheMayobrothers
dictumsweregoingtobecarriedout,thenthemedicalhistoryofeachMayo
Clinicpatientneededtoberecorded,stored,andretrievedinadifferent
mannerthanwasthecurrentpractice.
Forexample,whenapatientfirstvisitedtheclinic,aMayodoctorwouldwrite
uphismedicalnotesinthecurrentlyactivepatientledgerbook.Onapatients
latervisit,thetreatingphysicianwouldneedtounearththeledgerbookin
whichthepatientsfirstvisitnoteswereentered,findwhere intheledgerbook
thenoteswerewritten,andthenappendnewinformationunderneaththefirst
entry.Iftherewasntenoughroom,thedoctorwrotehisnotesinthemargins
ofthepage.
Addingtotheproblemwasthatdifferentmedicaldepartmentshadtheirown
ledgerbookstorecordtheirinteractionswiththepatient.Naturally,creating
andespeciallyretrievingamedicalrecordwasanawkwardprocessthat
keptadoctorfromhavingtheinformationnecessaryforthecomplete
understandingofapatientsmedicalhistory.
Toaddresstheseissues,Plummerdevelopedanewmethodoforganizing
patientrecordscalledapatientdossier.Now,insteadofaledger,each
Mayo doctorwouldrecordallaspectsofaMayopatientsvisitinasingle,
comprehensivefilethatwasforeverlinkedtothepatientthroughaunique
registrationnumber.Wheneverapatientlefttheclinic,thepatientsfilewas
storedinacentralfilerepositoryuntilthepatientreturned,whereuponit

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MODERNITLEADERSHIP:SURVIVINGCHAOSANDDELIVERINGVALUE

wouldberetrieved,possiblyyearslater.Thissystemprovidedameansfor
maintainingcontinuityofapatientscare.
ThebenefitsofPlummerssystemweresoevidentthatsoonhisapproachto
maintainingmedicalrecordsbecametheworldwidestandardofthemedical
profession.Hisinnovationsworkedverywellinlargehospitalsandsmall
doctorofficesalike,givingdoctorsnearlyacompletelongitudinalrecordof
a patientsmedicalhistory.
Toincreasethevalueofpatientinformationfurther,Plummerhelpeddesign
a buildinginwhichallclinicalmedicinedepartments,laboratories,andthe
businessofficewerebroughttogetherinoneplace.Plummerdevisedan
informationnetworkinsidethebuildingconsistingofconveyorsand
pneumatictubestomorequicklyretrievepatientinformationfromthe
central repository.Themechanicalnetworktransportedpatientandother
administrativeinformationthroughouttheMayoClinicsvariousofficesand
medicaldepartments.Plummerlaterdevisedamedicalsearchindexing
methodsothattheinformationcontainedwithinapatientsfilecould,with
permission,beusedtoassistinadvancingdiagnosticresearch.
ItiseasytoseethatwhatPlummerdidwastoautomate(inDruckerssense)
theMayoClinic.Plummerorganizedtheclinicsworkdifferently,didso
withoutcomputers,increasedthevalueofinformationfordecisionmakers,
optimizedtheskillsoftheclinicsdoctors,andallowedthemtoenhancetheir
skillsandknowledgebyenablingthemtoconductbreakthroughresearch.
Eacheffortwasaimedatreducingtheinformation,control,andtimerisks
of Mayopatientsaswellasthoseoftheirdoctors.
ThroughoutPlummerslifetime,heandtheotherdoctorsattheclinicworked
diligentlytotrytoreducethemedicalriskfacedbyMayoClinicpatients.Mayo
continuestopioneermedicalresearch,education,and theuseofautomation
tothisday.Forinstance,MayoClinicwasoneofthefirsttoembraceelectronic
medicalrecordsaswaytoincreasethequalityofpatientcarebyreducingthe
problemsassociatedwithpaperbasedmedicalrecords.Interestingly,the
CIOwhoisinchargeoftheelectronichealthrecordssystemisapracticing
Mayodoctor.TheMayoClinicbelievesthatthoseapplyingthetechnology
shouldbesignificantlyinvolvedindevelopingitasawayto,again,reducea
patientsriskandincreasetheirqualityofcare.
FollowingPlummerslegacyofinnovation,theMayoClinicin1994began
implementingitsMayoIntegratedClinicalSystems(MICS)electronicmedical
recordsystem,whichbecamefullyoperationalin2004.Mayossystem
supportsover1.5millionoutpatientvisitsand60,000hospitaladmissionsevery
year;some15,000careprovidersandsupportstaffusethesystem.MICSalso

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CHAPTER4BACKTOTHEFUTURE:THEFUTUREROLEOFTHECIO

containsmorethan14millionelectronicallyaccessiblenotesand200million
laboratoryresults.Anadditional55,000clinicalnotesareaddedtothesystem,
and125,000outpatientordersaremadeelectronicallyfordiagnostictests,
medications,orconsultationseveryweek.
ThereislittletalkattheMayoClinicoftheproblemofITbusinessalignment
or aboutwhetherITcreatesvaluefortheclinic.IdontbelievethattheMayo
ClinichaseverhadtofireaCIO.

TheFutureIsActivelyCreatingtheNextCIONow
Itwouldhavebeenveryinterestingtoseehowthehistoryofcomputing
unfoldedifthemodelofthemodernCIOhadbeenbasedonPlummer
rather thanZipf.WouldwestillbediscussingITbusinessmisalignment
or the continualneedtoproveITsvalue?Itendtothinknot.
IfCIOswanttosurviveintothefuture,theywillneedtothinkoftheirjob
in termsofreducingtheinformation,control,and/ortimerelatedrisksof
their organizationscustomers,andwherevernecessary,toremindsenior
managementthatthisistheirprimaryjobaswell.
LuckilyforCIOs,thisislikelytohappennaturally.CutterFellowStephen
Andriole persuasivelyarguesthattechnologyhasbeencommoditized,
consumerizedand[has]leftthebuilding,ashecleverlystatesit.18 In
other words,informationthatusedtobeunderthepurviewofcorporations
andgovernmentshasbeendemocratized,andasaresult,consumersare
now abletomanagetherootcausesoftheirrisksbetterthaneverbefore
withouttheneedofcorporationsorgovernments.Overcomingthelackof
informationtomakeintelligentriskdecisions,forinstance,ismucheasier
todaybecauseof theInternetand,morerecently,thegrowthofsocialgroups.
Thismeansthatcorporationseverywherewillneedtoworkharderthan
ever toachieveDruckersobjectiveofcreatingacustomer.Theywillhaveto
providemuchmorevalueaddedinformationtocustomersand/orfocustheir
effortsonreducingtheircustomerscontrolortimedrivenrisks.Profit
which,remember,isthepaymentformitigatingacustomersrisksisgoing
tobeincreasinglydifficulttogenerate.
Andriolealsopointsoutthatthenewbusinesstechnologyalignment
opportunityisthroughsharedorparticipatorygovernance,whichentails
negotiatingsharedriskandrewardsbetweencorporationsandtheir
customers.Thisconcept,interestinglyenough,underliestheMayoClinic
model.ItisoneofthereasonswhytheClinicispushinghardforanational

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MODERNITLEADERSHIP:SURVIVINGCHAOSANDDELIVERINGVALUE

electronichealthrecordsystembasedonitsfoundersoperatingprinciple
that increasingthequalityofpatientcarewilltakeallofthenationshealth
professionalsactingtogetherasone.Themoreinformationthereisavailable,
themorecontroloverhealthcaretherewillbe,andthuslesstime(andmoney)
willbespentontreatmentsthatarenteffective.
CIOswouldbewisetotaketheadviceofDr.EmmettBrown,thetimetraveling
scientistfromthemovieBacktotheFuture,whosaid,Yourfuturehasntbeen
writtenyet.Nooneshas.Yourfutureiswhateveryoumakeit.Beginningby
studyingthepastandunderstandinghowithashandcuffedthepresentwould
beagoodplacetostart.

Endnotes
1Rifkin,Glenn.HeadsThatRollifComputersFail.NewYorkTimes,

14 May 1991.
2Champy,James.Mission:Critical.CIO,January1992,p.18.
3EconomistBusinessUnit.ITTransformation:CreatingaStrategyforSuccess.

Economist,August2008.
4ThefirstpersonnowgenerallycreditedwiththeactualtermwasNikolaTesla,

whocoinedthewordteleautomaton,orremotelycontrolledautomatic
figureorobject,in1893.Itnevercaughton.
5Myer,Steven.AnEconomicFrankenstein:UAWWorkersResponsesto

AutomationattheFordBrookParkPlantinthe1950s.MichiganHistorical
Review,Vol.28,2002,pp.6389.
6Cabadas,Joseph.RiverRouge:FordsIndustrialColossus.Motorbooks

International,2004.
7IshouldnotethatthemechanizationthatoccurredduringtheIndustrial

Revolution100yearsearliersubstitutedmechanicalpowerforhuman
and/or animalpower.Automationwascoinedasawaytodistinguish
it from mechanization;automationremovedahumancompletelyfroma
part of theprocessanditscontrol.Thecurrentroboticsmovementtoward
autonomouscontrolaimsatremovingthehumancompletelyfromthe
processaswellassubstitutingcomputercontrolforhumancontrol.
8Fisher,Amy,andJamesMcKenney.TheDevelopmentoftheERMABanking

System:LessonsfromHistory.IEEEAnnalsoftheHistoryofComputing,
Vol. 15,No.1,1993,pp.4457.

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CHAPTER4BACKTOTHEFUTURE:THEFUTUREROLEOFTHECIO

9Itdidnttakelongforbluecollarautomationtoswitchovertotheuseof

computers.
10S.ClarkBeise,seniorVPofBofA,thoughtoftheideaofautomatingcheck

processing.
11Itisunclearwhenthetermchiefinformationofficercametohaveits

presentmeaning.InZipf sday,theCIOwasatermusedtodescribethe
companysspokesperson.
12Drucker,PeterF.ThePracticeofManagement.Harper&Row,1954.
13Drucker.See12.
14Knight,FrankH.Risk,Uncertainty,andProfit.Hart,Schaffner&Marx,1921.
15Charette,Robert.SoftwareEngineeringRiskAnalysisandManagement.

McGrawHill,1989.
16Howoftendoesoneencounterasituationwherethecustomeristreated

by anautomatedsystemasthoughheorshewasincidental?Theattitude
of theITsystemsdesignerseemstobethateverythingwouldworkwellifit
wasntforthepeskycustomers.Thishappenswithincorporationsaswell.
17Unfortunately,governmenthasthishabit,too.IntheUK,forexample,the

governmentiscountingonITtoreducethecostofgovernment,whileat
the sametime,itisreducingtheITfundingnecessarytoaccomplishthis.
See Mari,Angelica,GovernmentLookstoITforCostCutting,Computing,
9 December2009.
18Andriole,Steve.BusinessTechnologyGovernanceNowandForever:

Why thePendulumFinallyStopsSwinging.CutterConsortiumEnterprise
RiskManagement&GovernanceExecutiveUpdate,Vol.6,No.10,2009.

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