[MUSIC] As we saw in the previous videos, IT should be managed as a business department. Therefore, the CIO is a business manager. As any business manager, his role will be to carry the tradeoffs he has at the right level. Where should he place the cursor between keeping the costs down and creating maximum value, between making the users happy and delivering a service that is stable and secure? To do that as any business manager, the CIO has to work with three categories of people, his boss, the corporate management, his colleagues, the business lines, his staff. So what does he do with corporate management? Corporate management, it's about incorporating the vision, the strategy for the company. It's not the same to deliver IT for a company that will manufacture shampoo or for a company that will design aircrafts. You don't expect the same from your IT. In return, the CIO should give corporate management some visibility of where he's heading, where he needs to invest, how he's going to decrease the costs, where he can create value. Then you have the business lines. For the business lines, of course, the CIO is a service provider. He has to run the operations for the day to day, the computer, the phone, the machines. At the same time the CIO should consider himself as a business partner. When the business does a business project that has some IT inside, they need the advice of the CIO to make the right choices. And this is about finding the fine line between who decides between IT and the business. What I would recommend, because I feel is very important, is that the CIO keeps aveda rights under norms and standards of architecture. He's the one who should say what's done and what's not done. It's the same for the head of real estate. We have rules for new construction, for fire exits, and there is no discussion. Then you have the staff. The staff is a bit tricky for IT. Labor costs is 60% of the total cost of IT. IT is very much labor intensive. One, you have your internal staff. It's a staff of technicians, highly skilled, computer savvy, sometimes with very sharp expertise. And it's a real challenge to be able to recruit, retain, develop, and motivate them. Indeed, when you manufacture shampoo, the main departments will be marketing, sales, manufacturing. How do you motivate IT guys to develop in a company where it's not a core activity but very critical? Then, because it's very much labor intensive, it's a function that tends to be very much outsourced. So, you don't only have your internal staff to manage. You have the external staff, and very often large outsourcing contracts with your service providers. The trick will be to find the win-win situation between this service provider that provides you a service but also is a business partner that you rely on to develop and grow your department towards more value for the business. Of course, the CIO will need to adapt constantly because the company context is changing, because the technology is changing, because the business needs are changing for all of this. So how to be successful? There is no one silver bullet as for any domain. I would say, what you should remember is one, be crystal clear about your strategy, road map. Give visibility of where you are heading, so that you will align corporate management, business lines, annual stuff, behind you to deliver what you want to do. Second, you have to be able to manage your costs and know your cost dynamics. And that's something that we will see later on. This is a domain where you have inflating cost dynamics and it's about keeping your hands on that. Third, and that will serve my first two points, measure what you do because what gets measured gets done and you can communicate on what you are doing. And four, build a team, because it's not the CIO himself who is going to manage one, 2,000 employees plus large outsourcing contract. You need leverage for that to manage the processes, to manage the delivery, to manage the service, to manage to govern this.
