201212 The changing role of the CIO

THE CHANGING ROLE OF THE CIO
at banque internationale à luxembourg
December 17, 2012 - Prepared by Raphaël Henry

WE ARE CIONET LUXEMBOURG
CIONET’s mission is to feed and develop top-level
IT executives with the resources they need to realise their full
potential.
CIONET Launch event, October 4, 2013, Hotel Simoncini

The
Changing
Role
of
the
CIO

CIONET LUXEMBOURG

Welcome
address

by Thierry Delroisse, COO and Board Member of BIL
What
the
CEO
expect
from
its
CIO

by
Lázaro
Campos,
former
CEO
of
Swi0

CIO
Tes:monials
:
The
Changing
Role
of
the
CIO

•
From
a
full
local
CIO
to
a
Group
head
of
IT
systems
&

The
CIO,
a
major
actor
of
the
company
strategy

by
Christophe
Pierron,
CIO
of
Caceis
Luxembourg

•
Bob
Kneip,
CEO
of
Kneip

•
Francisco
García
Morán,
European
Commission,
Director
of
Digit

The
new
breed
of
CIO

by
Pierre
CaEoir,
CIO
pracFce
Leader
at
Egon
Zehnder

Agenda
:
‘THE
CHANGING
ROLE
OF

THE
CIO’
EVENT

CIO’s communication
with CEO and Board
Lázaro Campos
CIONet Event – 17 December 2012

Evolution of CIO role
From To
Keeping the business
running
Driving business
transformation
Enabling business
innovation
Keeping the
lights on
Delivering IT-
centric change
Aligning IT and
organisational
strategies

Expectations
Keeping the business running
• Availability, Security, Confidentiality, Integrity
• Manage risk profile: technology and operations
• Technology management (obsolescence vs opportunity)
• No surprises
Driving business transformation
• Optimise quality/cost ratios
• Encourage efficiency and continuous improvement
• Act in context
Enabling business innovation
• Driver of relevant innovation
• Military precision vs Innovation from within

Communication
Ü  « The truth, and nothing but the truth »
Ü  High level heads-up in advance, then just in
time detail
Ü  Framework for control and completeness
Ü  External references and benchmarks
Ü  Approximately useful vs precisely irrelevant
Ü  Link to the business. Always

Other potential Questions
Ü  What direction should CEO/Board give to the CIO relative to te governance
and management of IT and why would they do it?
Ü  What does the CEO expect from the CIO?
Ü  What does the Board expect from the CIO?
Ü  How and about what should CIOs communicate to CEO and Board?
Ü  Should CIOs spend more time communicating with CEO/Board? Have you
experienced that after the fact the information from the CIO was not
complete enough or not sufficiently to the point?
Ü  Is there a role for the CEO as intermediary between CIO and Board?
Ü  What can a CEO do to improve the communication to the Board about often
complex IT project, technology or IT risk issues?
Ü  Experiences and examples of good communication and collaboration
between CIO/CEO/Board

Main drivers of change
Ü  From physical to virtual IT depts
Ü  Cloud ‘everything’
Ü  Less humans
Ü  Cyberwarfare will militarise IT
Ü  BYOD will be the norm
Ü  CIO’s expected to impact business direction
Ü  Analytics will be key

CIOnet Luxembourg
December 17th, 2012
From a full local CIO to a Group head of IT systems
&
The CIO, a major actor of the company strategy
Christophe Pierron – CIO Caceis Bank Luxembourg

17.12.12 > 2> CIOnet Luxembourg
Agenda
1.  A few words about CACEIS and myself
2.  IT department of CACEIS, and what has changed in 3 years
3.  Some IT trends within CACEIS
4.  My vision of the CIO role
and IT as a transformation force for the company

3
A Banking Group dedicated to Asset Servicing
PROFILE
CACEIS is Europe's premier depositary and
fund administrator, and is focused exclusively
on providing innovative asset servicing
solutions that generate a competitive
advantage for its clients’ business
CACEIS has delivered strong and sustainable
financials since its creation. As a result, its two
global shareholders grant us the independence
to define the most effective strategy to support
our clients
CACEIS is among the world's most
experienced asset servicing banks when it
comes to undertaking seamless operational
migrations and successful insourcing of
complex functions with related staff
CACEIS has the business agility to give clients
a first-starter advantage in today's changing
regulatory environment. And by handling
clients’ non-core functions in an effective and
efficient manner, it helps them focus on
generating investor value
Focus Stability
ExpertiseExperience

4
Key figures
PROFILE
• CACEIS ranks
among the top tier of
asset servicing
providers.
• CACEIS has a strong
yet steady growth
rate in terms of
assets, clients and
geographical
coverage.
Total
headcount
3,300
50% at head office, 50% abroad
Geographical
coverage
Presence in 10 countries
80 markets covered
No. 1 Depository Bank
in Europe
€650bn
No. 1 Fund Administrator
in Europe
€1.1tr
No. 9 Custodian
worldwide
€2.3tr As at 31 December 2011

5
Backed by two of the European largest retail banking groups
SHAREHOLDERS
•  No.1 retail banking group in France
•  11,600 branches in Europe
•  Asset Management, Insurance, Asset
Servicing, Corporate & Investment
Banking, Private Banking, Consumer
Finance
•  No.2 retail banking group in France
•  8,000 branches in Europe
•  Insurance, Corporate & Investment
Banking, Asset Management, Private
Banking, Private Equity and Specialised
Financial Services
Crédit Agricole S.A.
S&P Moody's Fitch
A/A-1 A2/Prime-1 A+/F1+
BPCE
S&P Moody's Fitch
A/A-1 A2/Prime-1 A+/F1+
€35.1 bn Net Banking Income
€70.7 bn Shareholder Equity, Group Share
10.2% Core Tier One Ratio
€23.1 bn Net Banking Income
€35.4 bn Shareholder Equity, Group Share
9.1% Core Tier One Ratio
As at 31 December 2011 As at 31 December 2011

6
An extensive product offer for international clients
CLIENTS AND PRODUCTS
• Clients benefit from
our fully-integrated
product offer and
high service levels
which are
standardised across
our entities.
Our Clients Our Products
•  Asset managers
•  Insurance Companies
•  Pension Funds
•  Broker-Dealers
•  Banks
•  Central Banks/Sovereign Funds
•  Corporates
•  Middle-Office Services
•  Private Equity, Real Estate
& Hedge Funds Services
•  Fund Distribution Services
•  Custody
•  Capital Markets Services
•  Depositary-Trustee
•  Fund Administration
•  Fund Structuring
•  Fund Promotership
•  Risk Analytics
•  Clearing Services
•  Cash Management
•  Issuer Services
•  Online Reporting

A few words about myself…
Christophe Pierron
CIO of CACEIS Bank Luxembourg
■ Christophe Pierron, 46 years old, is a software engineer (SupInfo -
Paris)
■ He starts his career in 1989 as a consultant within Arthur Andersen.
n  In 1992, he joins the Société Générale Group where he will occupy 4
positions : IT manager of Fimat Tokyo (now NewEdge), group project
manager within Fimat Facilities Mgt (Chicago), CIO of Fimatex (now
Boursorama) and IT manager of ‘open’ developments for SGSS
(Nantes).
■ After a short but intense period with an ‘online banking’ startup, he
joins in 2001 Natexis Asset Management and became in 2002 the
CIO. In 2005, he’s part of the of the creation of Natixis Investor
Servicing (fund administration) as CIO.
■ He joins Caceis early 2008 as CIO of CACEIS Fastnet Paris, and
since Sept. 2009 as CIO of Caceis Luxembourg.
■ From 2011, the Quality / Efficiency is under the responsibility of the
CIO.

CACEIS IT
>  IT includes business analysts, developers, project managers, architects and
application / functional help desk
>  CACEIS has outsourced its IT production and infrastructure
>  About 550 internal / external people, 240 in France and 180 in Luxembourg
>  Around 75 000 man days of projects, about a third in Luxembourg
Around 35 000 man days of maintenance / support / enhancement (third in Lux)
>  2 big IT teams (Fr / Lu) that manage the Group information system
>  Germany has a local IT (especially for Custody) due to the HVB takeover
>  Luxembourg is in charge of the small entities (US, Canada, Belgium, Netherland,
HK)

A lot of changes in 3 years…
In 2009, the local CIO was in charge of the full IT of its country with few usage of other systems
2010
>  From a « MOA - MOE » organization to a « Business lines » organization
n  7 business lines (custody, fund administration, customers, …)
n  Same organization in France, Luxembourg and Germany
>  Appointment of Group heads of IT business lines (for coordination)
2011
>  Appointment of Group heads of Operational business lines
n  Start of the cooperation for each ‘pair’
2012
>  Reinforcement of the IT Architecture team for the Group (functional & technical)
2010-11-12-13
>  More and more IT expertise centers centralized in France & Luxembourg
>  More and more applications convergence to build progressively a Group information system
Now, the local CIO is in charge of a part of the Group information system, he’s a main actor of
the Group strategy and represents the local entity (regulators, clients, …)

Current Group Organization
Banking
Dealing
Fund
administration
Investment
Mgt Services
Clients
Architecture
& support
Administration
PISM
LuxembourgGermany France
IT
Infrastructure
Production IT
Cash accounts, accounting,
risks, payments, reconcil
Treasury, forex, securities
lending
Fund administration
Middle Office, pricing, financial
reporting, master data, OTC
Client reporting and portal,
billing, CRM
Functional and technical
architecture, devlopment
environment and tools
IT contracts, Budget
Management of the production
and infrastructure providers
Workstation, network, mail,
file server, …
Production
Distribution
Transfer agent, fund execution
CustodySecurities custody &
depositary

Some IT trends within CACEIS
>  2015 IT strategy
n  Cost reduction (IT & Ops), but (try to) keep the same projects budget
n  Spend less on the core business (and streamline it), and spend more on new
products / new clients / innovation
n  A strategy per IT business line
>  A new development framework – Case or ‘AGL’ (Palmyra from Vermeg)
UML modeling – JAVA code generation – technology is mostly hidden
à  Caceis IT must be specialized on the business, not on the technology
à  Use of common components / master data – Standardize the developments
à  Build progressively the application with the users
>  Agile methodology strongly linked to the process
à Collaborative & Interactive : associate from the beginning of the project the different
actors (IT, users, efficiency team)
à Iterative & Agile : splits in phases and prototypes
à Based on the process and business needs : start from the process, review / adapt
the process at the same time (if opportunity), and facilitate the change management.

My vision of the CIO role
and IT as a transformation force for the company (1/2)
>  More « IT fusion » with the business, than « IT alignement »
and it must be true at all levels (CIO with ExCo, IT business line leader with Ops leader,
…). The CIO has an important role to make it possible and working.
>  The CIO must be part of the company strategy, in terms of product development
and cost reduction.
>  The CIO and IT must be closed to the business and final customers. IT must be a
business thinker / innovator.
>  IT must bring value through the technology, its knowledge of the Information System
of the company and the business. IT must help the business to innovate and to
make it feasible.
>  The CIO must not be afraid of SaaS solutions, and must play an important role to
manage the project, integrate the solution and have the right data available.
>  The CIO must take risks in solutions and HR

My vision of the CIO role
and IT as a transformation force for the company (2/2)
>  The successful companies are agile : deliver quickly a new product (time to market),
win a client, reduce costs quickly and the right ones,… IT is fully part of it and must
then also be agile :
n  Develop quickly a new application, and in most cases don’t look for 100% perfection
(time to market is more important)
n  Design applications to change / evolve
n  Innovate (in technology, process)
n  Be flexible, and have resources work on the company priorities
n  Deliver cheaper
>  The IT department must also be efficient (not only the Ops)
>  IT alone doesn’t generate enough cost saving. The Ops process must be
simplified / reviewed, especially when it comes to a new application development or
big changes. Once again IT-Business fusion is a must, together we make the best
savings and create the best products.

BUSINESS
DRIVES
IT
Bob KNEIP – CEO KNEIP

With offices in Belgium, France, Germany,
Luxembourg, Switzerland and the UK,
KNEIP serves more than 420 global fund
management companies.
We help our clients meet their regulatory
reporting obligations, while enabling them to
provide consistent and accurate fund data
and documents to their regulators, clients
and data vendors.

THE BLACKBOX
BECOMES
TRANSPARENT

BIG DATA
LEADS TO
ENDLESS OPPORTUNITIES

SERIAL INNOVATION
&
SHORT TIME TO MARKET

IT BUDGET
IS ABOUT
DOING MORE WITH LESS

TOMORROW’S CIO
Business driven
Customer oriented
End-user focused

Informatics

e-

The
changing
role
of
the
CIO

A
perspective
from
the
European
Institutions

CIONET
Luxembourg
17/12/2012

Francisco
GARCÍA
MORÁN

Director
General
of
Informatics

Informatics

Agenda
•  1. Your business/your sector, your company,
your organisation
•  2. About you, your career, your experience as CIO
•  3. What happened the last couple of years at the CIO
seat in your organisation ?
•  4. Your cook book: the things and the thoughts that
work... your recent experience and vision
•  5. now, how do you see the CIO position evolve ?
•  6. the Tomorrow's CIO

Informatics

The European Union
•  The result of a number of international Treaties
since the ’50s (end of World War II) (primary
legislation)
•  A unique economic and political partnership
between 27 democratic European countries
aimed at:
Creating an ever closer union among the peoples of Europe, with
decisions taken as closely as possible to the citizens
Achieving peace, prosperity and freedom for the citizens in a fairer
and safer world
Through its competences in a large number of areas, exercised
through secondary legislation (which prevails over national law)

Informatics

EU institutions: achieving the aims
The
Trea'es
set
up
a
number
of
EU
Ins'tu'ons,
Agencies
and

Other
Bodies
(EUIs):

A
“core”
of
7
Ins'tu'ons
(European
Council/GSC,
European

Commission,
EP,
CoJ,
CoA,
ECB)
based
in
Brussels
/

Luxembourg
/
Strasbourg
/
Frankfurt

Various
layers
of
other
types
of
EUIs
(40-‐80
depending
on

how
they
are
counted
!)
scaUered
throughout
the
27

Member
States

Suprana'onal
character
of
the
EU:
the
European

Commission
is
the
“engine”
behind
European
integra5on.

Informatics

Customs
Union

Compe55on

Monetary

Marine

ressources

Commercial

policy

Interna5onal

agreements

(AETR)

Human
Health

Industry

Culture

Tourism

Educa5on,

voca5onal

training,
youth

and
sport

Civil
protec5on

Administra5ve

coopera5on

internal
market

social

cohesion

agriculture
and
ﬁsheries

(except
where
exclusive)

environment

consumer
protec'on

transport

trans-‐European
networks

energy

freedom,
security
and
jus'ce

public
health

research
and
technological

development

space

development
coopera'on

humanitarian
aid

SUPPORT
ACTIONS
EXCLUSIVE
COMPETENCES
SHARED
COMPETENCES

Informatics

The
2020
Challenges

The
2020
Challenges
Economical
recovery

Transport
eﬃciency

Jobs,
……

Climate
change

Ageing
society

Energy
consumption

Inclusion

Empowering
patients

Security

Europe

2020

Innovatio
n
Union

Youth
on

the
move

Digital

agenda

for
Europe

Resource

eﬃcient

Europe

Industrial

policy
for

the

globalizati
on
era

An

agenda

for
new

skills
&

jobs

European

Platform

against

poverty

Informatics

• own
IT
team
&
organisation

• Responsible
for
the
delivery
of
their
IT
services
and
the

development
of
their
information
systems
they
need

• Varying
degrees
of
IT
maturity

• Shared
services
on
a
voluntary
basis

Each

Institution

• "Comité
Informatique
Interinstitutionnel"
ensures
global

coordination
on:

• ITC
infrastructure

• Common
IT
services
(e.g.
product
management,

IT

architecture,
Calls
for
Tenders
&
Contracts,
etc.)

• Information
Systems
Hosting

• Shared
Applications

CII

ICT
in
the
EU

•  Corporate
IT
services

•  IT
Strategy
and
Coherence

•  Development
of
Corporate
Information
Systems
(IS)

•  IT
Support
(2nd
level),
Corporate
Logistic
Services,
Corporate
Contracts
and

Budget
Management

•  Development
of
policy
oriented
IS
on
request

•  (approx.
450
officials
and
850
external
staff)

DIGIT

•  Management
of
local
IT
infrastructure

•  IT
User
Support
(1st
level)
(except
those
in
ITIC)

•  Development
of
Information
Systems
in
support
of
EU
operational
policies

•  (approximately
650
staff)

Local

Org.

ICT
@EC:
Hybrid
model

•  We
deliver
digital
services
to
enable

EU
policies
and
to
support
the

Commission's
internal

administration

DIGIT

Informatics

Agenda
your organisation
•  2. About you, your career, your experience as
CIO
•  3. What happened the last couple of years at the CIO
seat in your organisation ?

Informatics

Agenda
your organisation
CIO
•  3. What happened the last couple of years at the
CIO seat in your organisation ?

Informatics

and
2.
EC
–
IT
Rationalisation
1.
The
new
world
out
there…

New
IT
corporate
governance

structure
with
more
involvement
of

business

IT
Rationalisation
@EC

A
new
«
diﬀerentiated
IT
Strategy
»

taking
into
account
value,
risk
and
cost

è
economies
of
scale.

IT
rationalisation
(absorb,
integrate,
do

nothing,
best
practices)

17
domains
started

What
has
changed
in
the
last

years?

Informatics
Informatics

2007

Complexity

Level
1:

Simple

website

Level
2:

On-‐line

government

Level
3:

Integrated

government

E-‐Commission

2001-‐2005

2008

Level
3:

Integrated

government

2009
2010

3
2015

Lead
by

example

-‐  EU
Policies

-‐  Internal

Admin.

E-‐Commission
2012-‐2015

New
paradigm

E-‐Commission

2006-‐2010

New
strategy

Level
2:

On-‐line

government

Informatics

Action
plan

• Break
barriers
between
EU
PA

&converging
systems

• Strengthen
operational

effectiveness
and
efficiency

• Improve
transparency
and

accessibility
of
information

• Reduce
admin
burdens
&

streamline
processes

• Enhance
IT
Security

• Exploit
innovative
technologies

• Convergence
of
IT
systems

Goals

• reduce
costs
and
create

value

• effectiveness
&
efficiency

• business
continuity

• streamlining
administrative

processes

• improve
transparency

• eliminate
digital
barriers

Deliver
user-‐
centric
digital

services
for
EU

policies
and

COM's
internal

admin.

To
Europe

2020

Guiding
principles

User-‐centricity

Effectiveness
and
efficiency

Simplification
and
proportionality

Security
and
privacy

Transparency
and
accessibility

Openness

Reusability

Governance

Focus
on
corporate
priorities

Monitor
key
investments

Transparency
and
visibility

Accountability

Informatics

Agenda
your organisation
CIO
•  4. Your cook book: the things and the thoughts
that work... your recent experience and vision

Informatics

IF YOU ALWAYS DO
WHAT YOU ALWAYS DID,
YOU ALWAYS GET
WHAT YOU ALWAYS GOT.
I'M POSSIBLE

Informatics

Agenda
your organisation
CIO
•  5. How do you see the CIO position evolve ?
•  6. The Tomorrow's CIO

Informatics

Un professionnel capable de gérer un boîte IT qui a
une très bonne connaissance du business combiné
avec une excellente expertise technique afin de
pouvoir jouer un rôle stratégique permettant à
l'organisation de développer des solutions innovatrices
facilités par la technologie.

Informatics

e-

Thank
You

Egon
Zehnder
International
Egon
Zehnder
International
Egon
Zehnder
International
CIONET Luxembourg
17 December 2012
Pierre Cattoir

2
Objective
This presentation shares our perspective based on our
client work.
Its real purpose is to serve as a thought starter to
exchange ideas & points of views afterwards.

© 2012 Egon Zehnder International 3© 2011 Egon Zehnder International 3
We have defined a set of core competencies to describe
positions and appraise management (1/2)
Core Competencies
Business
Leadership
Thought
Leadership
People &
Organisation
Leadership
•  Strategic Orientation
•  Market Knowledge
•  Results Orientation
•  Customer Focus
•  Collaboration & Influencing
•  People Development
•  Team Leadership
•  Change Leadership

© 2012 Egon Zehnder International 4© 2011 Egon Zehnder International 4
We have defined a set of core competencies to describe
positions and appraise management (2/2)
Logic of the Competency Scales
1
2
3
4
5
6
7
Basic
management
competence
Increasing stretch –
building towards
world class
competence
Transformational,
step change,
visionary
competence
Level 3 Level 2 Level 1
•  understand
•  try
•  interact
•  willing
•  make no
mistakes
•  respond
•  apply
•  meet
•  collaborate
•  doing
•  take on
ownership
•  be involved
•  improve
•  exceed
•  inspire
•  delegating
•  take risks
•  pro active

© 2012 Egon Zehnder International 5
CIO roles
Staff Level C-level
Functional
Head CIO
Transformation
CIO
Business
Strategist CIO
Focus on
IT operations
excellence
Focus on
partnering with
the business
and
process
transformation
Focused on
enterprise
strategy
innovation &
differentiation
IT Staff
IT Managers

Staff Level C-level
Functional
Head CIO
Transformation
CIO
Business
Strategist CIO
Evolution of critical CIO competencies

Strategy
OrientationChange
LeadershipCollaboration &
Influencing
Team
Leadership
Functional
Competence
Results
Orientation
Market
Knowledge
Staff Level C-level
Functional
Head CIO
Transformation
CIO
Business
Strategist CIO
Evolution of critical CIO competencies

8
HR people who have worked in line roles score higher
on each individual leadership competency

The real science of executive search
“Of course, all the successful people I
have met are highly intelligent. They
are also hard workers. They believe in
preparation. They relate very well to
others…
But if you ask me to point to the most
important reason for their success, I
believe it is… … “
Dr. Egon P.S. Zehnder

201212 The changing role of the CIO

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