Getting to know the CIO
Getting to know the CIO
Sep 15, 2005: Being the CIO of an organisation that deals primarily in taxation and legal issues, you know you are going to have your work cut out managing the mountains of data that comes with the territory, which is why IDM was all the more pleased that Stephen Arnold, CIO of Ernst & Young Australia - and pastry chef extraordinaire (see below) - took some time out of his schedule to share his thoughts on the demands of being a modern day CIO.
IDM-How long have you been in the CIO's chair at Ernst & Young?
SA-Longer than I expected. In 1991 I was working as an IT consultant based in the firm's Perth Office and was seconded to develop the firm's IT plan. By 1993, implementation of the plan was progressing slowly and I was asked to move to Sydney for two years to create the National IT function and speed up implementation of the plan. I'm still here.
IDM-Are there any demands particular to being CIO at Ernst & Young that may not exist elsewhere?
SA-I am sure the issues I face are similar to my counterparts in other large professional services organisations. Ernst & Young is a partnership which creates an interesting governance model. Seventy-five percent of the users are mobile workers, of which 1500 will be out of the office at any point in time, so our technology is geared around mobile workers. Finally, as a services organisation, knowledge and people are our core assets.
IDM-Have you held a CIO position elsewhere, and if so, for whom and for how long?
SA-No. I joined Ernst & Young's Perth Office in 1978 straight out of university as an Auditor. Subsequently, I became a Chartered Accountant and worked in most areas of the firm, including a three year transfer to the UK where I worked as a programmer in the firm's Cambridge computer bureau and then in the London Office as an Information Systems Auditor. As I mentioned before, I was working as an IT consultant when I took on the CIO role, so it was a good opportunity to put all the theory into practice.
IDM-Has your role changed since your appointment, and if so, how?
SA-It's changed enormously. Initially I was the sole national IT person. Each office in Australia ran IT semi-independently. We had no networks to speak of and word processors, photocopiers and calculators were the core business tools of the day. Now we operate as a national shared services function with some 75 IT professionals supporting 4000 Partners and staff in Australia. The Australian environment is an integral part of a global network which provides access to knowledge systems that enable us to seamlessly provide financial services to our clients anywhere in the world.
IDM-What wider industry changes have had the most impact on your position (both detrimental and positive changes)?
SA-Despite the stereotype image of an accounting firm, it does actually operate in a very dynamic industry. I have been through four mergers and the sale of the Consulting group to Cap Gemini while working with the firm. Each of them has created their own challenges and opportunities working through all of the technical and personnel issues associated with any structural change. If nothing else, they have kept life interesting.
The two big issues at present appear to be independence and security. While our firm made some early changes to address the independence issue through the sale of our Consulting group, we are still working through the full implications, particularly as various government bodies around the world clarify their position. Most people only think about the potential conflict of interest arising from providing overlapping services to a client, for example, consulting and auditing work. However, this also directly affects my group as many of the vendors we deal with are clients and we must overtly demonstrate that any dealings are also independent. With regards to security, it has always been an issue, but seems to have more profile and focus these days.
IDM-Do you harbour any ambition to be a CEO one day?
SA-Looking from the outside, it would seem that I have been doing the same job for 13 years. While there is an element of truth in this, it has been quite a ride and there are still lots of challenges, so no, not at the moment.
IDM-If you had a wish to change one thing about your position that would improve your job the most, what would it be?
SA-I am involved in several global committees and while this provides interesting opportunities to work on a broad scale with outstanding people from around the world, I could do without the travel and late night conference calls that are an integral part of this activity. I would swap a pillow for a passport any day.
IDM - What would your dream job be if you were not a CIO, and why?
SA-When I was 12, I made the choice between being a chef and an accountant. The rest is history. However, I still love cooking up a storm and occasionally make pastries for my staff.
IDM - What are the main attributes you feel are necessary to make a successful CIO?
SA-Today's CIO needs to be a complete business person. Not only do they need to understand technology and be able to operate at a technical level with staff and vendors, they also need to be able to interpret all of this from a business perspective in terms that management understand. CIO's have a significant budget to manage so must have appropriate financial management capabilities, and finally, they have staff to manage so must have appropriate HR and interpersonal skills.
IDM-What do you like to do outside the office?
SA-I have four children aged 8-19, so in between the usual taxi service carting them around to various sporting and social activities, I love to do practical things around the house. I get great pleasure from helping my son fix his car, building furniture and general handyman work, and of course, being of Perth heritage, love watching the AFL.
IDM-What is the most demanding aspect of your job, and what is the most satisfying aspect?
SA-Today, everyone has a PC at home. The most demanding aspect of my job is the ongoing process of helping people understand why the firm's systems can't be run with the freedom and flexibility of their home PC. On the positive side, I still love the challenge of balancing advances in technology with business need and budget.
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