(Copyright 1991 by Mary Eisenhart and MicroTimes. All rights reserved. This interview first appeared in MicroTimes #83. The book excerpt to which the intro alludes is NOT reproduced here because we don't have electronic publishing rights for it...) Computers And The CEO By Mary Eisenhart Photo: NDMA Inc. "Computers increase an executive's ability to think and create--that is, to do their work, not their staff's work. By using computers, executives are able to accomplish more." --Mary E. Boone, "Leadership And The Computer" According to Mary Boone, a partner in the management consulting firm NDMA Inc. of Ridgefield, Connecticut, "executive computing"is all too often seen as being as much of an oxymoron as "airline cuisine."This perception, she says, results in a huge, unnecessary reduction in what CEO-level and other other executives are able to accomplish for their companies. By falling into the "administrative mindset,"thinking that computers are something for their secretaries, clerks, and MIS departments, top-level management misses out on a key competitive advantage. "They're usually astonished when I tell them about what some of their peers are doing with computers in other organizations,"Boone comments. In her recently-published book Leadership And The Computer (Prima, 1991, ISBN 1-55958-080-1), she interviews the CEOs of sixteen large corporations and discusses with them the different ways in which their personal use of computers has made a crucial difference to their companies. The tools differ--some swear by their spreadsheets, word processors, or electronic mail, while others don't use them at all--but in every case, they're using tools for far more sophisticated and versatile purposes than mere reading of the latest report from MIS. Boone's a strong advocate of the work of Dr. Douglas Engelbart, whose research at Stanford Research Institute (later SRI International) during the 1960s led to the invention of the mouse, hypertext, windowing interfaces, workgroup computing, and electronic publishing. Engelbart pioneered the notion of computers as intellect-enhancing tools at a time when they were generally perceived as mere number-crunchers, and (like a lot of his other visions) this notion is only now beginning to find acceptance. For this month's cover story, we interviewed Mary Boone about her book and executive use of computers. Following the interview, we've reproduced a chapter from Leadership And The Computer, detailing how William Esrey, CEO of US Sprint, used the computer to give his fledgling company an edge in the highly competitive long-distance market. How did you come to write this book? It was an outgrowth of our previous book, The Information Edge (1989). In that I had written a chapter about executive use of computing tools. I got such a good response to that chapter that I decided that it would be good to expand it into an entire book. I found, in the course of doing that research, that there were a lot of myths associated with why executives did or did not use computers, and so I felt it was really important to explore those in more detail and get rid of some of them--because there certainly are a lot of misperceptions out there about why executives do or don't use computers. For example? For example, there are a lot of excuses that are given, such as "executives won't type." There are also myths about what constitutes an executive information system--a lot of people truly believe that "executive information system" equals "access to MIS data," when in fact executives are using a whole range of tools. I could give you a list of about 20-25 different tools that executives are using apart from access to data. While that's an important tool in the toolkit, unfortunately we've really been limiting ourselves by perceiving EIS to be only access to data. In what sense is that limiting? It's very limiting because it's true that executives need to find and access certain information, but they also need to manipulate and communicate information. Those are two parts of the equation that have been left out before, because if we limit the concept to "access to data," then there are numerous ways in which we could be helping executives that we're going to be overlooking if we are biased toward one particular type of tool. So if an executive tells you that he wants to change corporate culture, or if an executive tells you that she wants to establish a better relationship with more of her employees, then what are you going to do? Is establishing a better relationship and communicating more directly with employees going to lead you to "access to data"? Well, maybe or maybe not. And if we're biased going into it, again, we're not going to be open to a whole broad range. Likewise, we can't be biased against access to data. It's one tool in a very broad toolkit that we have available to help executives. What did you find were the most significant non-access-to-data tools that executives were using? Definitely electronic mail is very important. It did seem to be a recurring theme in the book. It comes up quite frequently. I don't know if you noticed the notion of asynchronous workI Yes. I use email a lot too; it's the main way I communicate with my writers, some of whom I've never met and have been working with for years. Right. There's a wonderful quote by Robert Wallace [former president of Phillips 66] about how he initially did not want to use electronic mail, because he didn't type, and how he overcame that barrier of typing. He discusses the fact that he didn't want electronic mail, but he consented to it because it had scheduling on it. He used to dictate his responses to his secretary, but finally he got so dependent on the functionality that he started typing with two fingers and punching out replies, because he found that the value of being able to work asynchronously and get things accomplished in his own time frame far made up for the inconvenience of typing. Asynchronous work is a really big part of why executives like to access a computer themselves, and electronic mail plays a big role in that, because these are people that are usually all over the world, or at least all over the country. To be able to maintain contact with the people that report to them, and with other people at other levels of the organization--that's another mention that they make, of being able to flatten the hierarchy by more people having access to them directly. They really find electronic mail to be useful. As for other tools, it really varies a lot according to the executive--some of them will say "I just love the word processor; it really helps me to be clear and direct in my thinking,"and others will say, "I don't use it at all." Some will say "The outline editor really helps me develop a hierarchy of ideas," and others don't even know what an outline editor is. So when I say "electronic mail," I don't want to give the impression that every executive needs electronic mail, either. It's a highly individual type of approach, which is why I think both vendors and IS poeple need to be aware that we need to have the broadest toolkit we possibly can have in order to be able to be flexible for those kinds of individual needs and applications. There's also a tendency in some quarters to see computers as a panacea. Exactly. I think that's a very big problem. I think there's been a lot of overselling of computers and strategic value. I believe that people equate strategic value with extremely large, complicated, expensive systems, and see it only as connections between customers and suppliers, and in fact that's been one of the problems in the industry. This whole panacea problem comes up due to a lack of focus. This gets back to what I said before about the unique needs of executives. We can't go in promising, with an executive information system, that we're going to be able to solve all an executive's problems. That's just absolutely not true, and it would be ridiculous for us to put ourselves in that bind. But we can go in and use the kind of structured interview approach that I describe in the book, which is a highly focused way of finding a very highly leveraged application for an executive that can be implemented in the near term. There are ways in which we can help executives have tremendous leverage by biting off a smaller chunk of change, if you will--not trying to change everything at once, but trying to set priorities at every level in the interview and make sure that we are helping the executive with his or her most important and most vital objectives and goals. What I say, going into the interview with an executive--I'm very clear on this point- is, "I'm not here, or able, to solve all your problems like a magician. What I'm here to do is really try to understand what it is you're trying to get accomplished and see if there's some ways in which we can help leverage your effort to get what you want to get done." Are you yourselves systems providers? No, not at all. We provide no software and we do no vendor recommendations. We only focus on the management issues, as opposed to any technological issues. Do you see any particular breakdown as to who's using mainframes, who's using minis, who's using PCs? It's hard to extrapolate because I had such a small sample. Working with sixteen case studies, I'm trying to be very careful about not making projections. But there is a lot of use of personal computers among my sample. Very few terminals to the mainframe; I would say probably less than a quarter of them had that kind of setup. Can you speculate as to why that might be? It would be hard to speculate. It wouldn't be interface issues, for instance? No, I don't think that's it. I think it's probably more popular press, and seeing what's going on, and wanting to be able to do some of the kinds of things that they've read about. Are there situations where the computer is not an appropriate tool? Absolutely. One of the things that I mention to executives when I do interviews with them is that I say, "We may or may not come up with a computer tool, and you have to be absolutely willing to walk away from it if a computing tool is not appropriate to solve the particular problem." If what you need is a fax machine, what you need is a fax machine. Right. Exactly. And I'm always looking for that least common denominator. I'm always looking for how we can do the most with the least amount of investment. That's what we're always looking for, for that cost/benefit equation to be very heavy on the benefit side and very low on the cost side. There are many problems that executives have that computers won't solve, or won't help with, but I think executives to this point have believed that the computer is an administrative tool, as opposed to an intellectual tool, and therefore they focus too much on that side of the equation. They focus too much on saying, "Computers aren't for me. They're for my secretaries and clerks." It's because theyt simply have no idea of what a computer can do. They're usually astonished when I tell them about what some of their peers are doing with computers in other organizations. A lot of what are called strategic applications and EDI and those sorts of things, while they're very important and good for corporations, are still focused in large measure on that administrative side. There's been very little intensive focus on how computers help grow the human mind. I noticed that you quoted Doug Engelbart early on, and said "Aha! this is going to be a smart bookI" (laughs)That's right. I'm definitely a Doug Engelbart fan, a diehard Engelbart fan, because I really believe he had these ideas I'm talking about a long time ago. Dean Meyer, my partner, worked with Doug; he was at SRI with Doug back in the early '70s. Dean's ties to Doug are very strong, and it's had a tremendous influence on my own ideas and beliefs. Have you found that MIS departments are apprehensive about executives getting independent-minded with their computers? I think they're worried about the whole notion of executive computing for several reasons, one of which is they're concerned about failing, which is a legitimate concern in the executive suite, because of course it is a very high-visibility, and politically it's kind of a hot potato. So they have a lot of concerns about doing it right, which I think are good. I also think, though, that they've been a little reluctant to get started and have kind of used the fact that they're looking for the perfect system as an excuse to stall. Or used something like "We've got to get all our data correct before we do something" as a reason to stall, because of those fears and concerns about helping in the executive suite. I think the tide is turning, though. I think they're now recognizing that there are a lot of ways that this can be extremely critical and important to the corporation, as well as helping them to establish a better relationship with their CEOs, because the CEO will come to understand computers in a different way if they do have a success in the executive suite. So while I would say that yes, maybe there was some hesitancy before, I find that that is really changing into much more curiosity and much more of a desire to be proactive at this point. Because if they're not proactive, I think they're starting to see that the executive may get out ahead of them, and they may lose a real opportunity. One recurring theme in the book seems to be that the computer is a particularly useful tool for growing companies. You start in the garage, and everything's fine because you can walk down the hall and know everybody. You have a level of control there that you don't have when you have three regional offices. What issues arise as a company grows that make the computer more crucial? It helps them stay connected, even though they're gaining in terms of numbers of locations and numbers of employees. But I also think, with executives who have experience using computers themselves, that as their companies grow, they start to see how computers could be applied to help their companies grow in even faster and better ways. In other words, they gain more sophistication and knowledge and understanding of what the computer can do, and therefore they can apply that to helping their companies grow in more positive ways. I do want to get back to something about electronic mail. Even at our site--we're a very small company, one location--we find electronic mail critical. It goes back to the whole asynchronous work issue. It's too hard to get everybody together in a room. Right. Also, it takes it out of your mental scratch pad, if you will. You can only hold something there so long, and you either remember to tell somebody about it or you don't. I find that having electronic mail is so wonderful, because if I just think of something off the top of my head, or have a flash or an idea or an insight, I can just pop it right into electornic mail and know that I'm not going to forget to tell that person. Whereas if I had to get up, write a note, go down the hall, or go next door to do it, I might tend to put it off, and there would be a higher probability that I would lose that thought. So it has other implications that are less apparent. The flip side of the computer-using executive is the computer-using staff, some of whom are every bit as phobic about it as some of the executives are. How much of a problem is computer phobia in the workforce? Obviously, if the executive is sending email, it's only useful to the people who can send him email back. Right. That's definitely true. I think people are becoming less phobic and more frustrated. I don't think now that people's lack of use of computers is so much based on their fears as it is on their lack of understanding of what the computer can do for them. There's so much out there now. If you pick up PC Magazine, you think, "My God, what am I supposed to do with a computer?" It's very hard to pick just what software or what applications are right for what you're doing. It's a big investment of time, they've got to learn how to use it. And they are really frustrated about not knowing what's appropriate for them. That's why I feel that this translation process, this establishment of a connection between work and computing, is so critical. That's what I feel IS people need to be doing, working really hard to help people start to make those connections. Through an interview process, to help them do that connecting, and to pass on that type of knowledge, so that people can really selectively learn how to use a computer. I think it's not fear of failure, it's just information overload. They don't know what tools will help which of their business problems, that will make their use of their time leveraged and beneficial. Have you noticed any particular geographical distinction? Obviously out here in Silicon Valley there's probably a pretty high percentage of executives who use computers.I Probably so, but it was a real shock to me how many don't. When I first started doing this research, I had a list of 100 CEOs who purportedly use computers. When I started calling them, I found out that indeed they had computers, but they didn't turn them on. Or they were looking up a stock here and there. Something really, really trivial. I do think there's probably a higher preponderance of use somewhere like the Silicon Valley, or Cambridge and Boston. I think that while there are geographical differences, there are always the exceptions to the rule that are kind of shocking--some people that are information systems vendors aren't even using computers. So while there may be some geographical distiction, I think, again, it's like some of the other things we assume--we assume maybe it's because of age, or whatever differences there are. It really varies from individual to individual, how intellectually curious they are. I think that has more to do with it than either geography or chronological age. If an executive's sitting there reading some computer magazine and thinking that the world is passing his company by, and that he better get his company online but isn't sure how to proceed, what should he be asking? If I were a CEO, and I were curious about all of this and wondering how to get started, the first thing that I would do is discuss my concerns and interests with the person who's head of the information systems area, and explain to them exactly what I'm curious about and how I want to approach it. It's very important that the person the executives get to help them has two kinds of expertise: expertise in the business, and expertise in translating those business objectives into a whole variety of potential tools. So what that person needs to be, essentially, is a technology generalist. They don't need to be a specialist, they need to be a generalist. And then that person can help them set priorities, understand what their priorities are at each level, and ultimately help them determine whether or not a particular tool will be appropirate. Because if they don't go through that needs assessment process up front very carefully, they're likely to become extremely frustrated. They may just serendipitously drop into the right applications, but I would suggest that they take a look at that needs assessment process, and at least understand it, to know what they should be expecting of the person who's coming in to ask them about their computing needs. Is this necessarily going to be a big expensive proposition? Because some companies are small, and they're looking at this as a major expenditure. But while some of the companies you discuss in the book are quite large, some of them didn't necessarily have huge budgets for this sort of thing initially. No, it does not necessarily have to be an expensive proposition, and that's one of the things that the person from information systems, or the executive support consultant, should be able to do--work within the kind of budget that you have. There are ways that you can bite off a piece of a problem. If you can't solve the whole problem, you can learn how to take a critical part of it and solve that part of it. The old 80/20 rule applies, where you can get 80% of the benefit for 20% of the cost. While there are some solutions that may necessarily be larger problems and might require larger solutions, there's absolutely no reason why a person who's working with you can't learn to work within your budget and still deliver significant value to you, even if you don't have the budget of a mega-corporation. In your opinion, does interface make a difference? Is a Windows or Macintosh environment more conducive to getting a lot done? It's a myth that the user interface has to be extremely easy to use. Again, as Engelbart says, there's a tradeoff between functionality and ease of use. There necessarily is a tradeoff, there's just no question about it. I like to make the analogy of "Are you going to ask a Formula 1 driver to take a Chevrolet Caprice out on the track because it's easier to drive?" No. But that doesn't mean that ease of use is not an issue. I think that what we need to do is find the easiest interface that's possible for the level of performance that you're expecting. Executives will overcome unbelievable interface problems if they see that it's going to really deliver some value to them. That's no reason to put obstacles in their way; if there are ways to deliver the same functionality with an easier interface, certainly we want to do that. But let's not get too focused on the ease-of-use issue and lose sight of the funcitonality issue, because I think a lot of research money and a lot of vendor effort has been put into making things easier to use, and they've lost some opportunities to come up with applications that are focused more on extending people's thinking abilities. So I'd like to see us continue to make it as easy as possible without sacrificing the functionality. One of the things that executives said to me was that they were less concerned about whether it was easy to use in the sense that it was easy to learn than they were that it be easy to remember. Because what's frustrating to them is if they use a tool, and then don't use it for two weeks, and then come back and can't remember how to use it. They don't mind making the up-front investment, as long as it's intuitive enough, once they've learned it and incorporated it, that down the road they can remember it. A perfect example is something like Augment, software that Doug Engelbart developed. I use that myself all the time, and I was just furious at how hard it was to learn at first. Now I won't switch to any other computer that I can't run Augment on. What does it run on? Actually it's not commercially available. We've been using it on our local area network on IBM PCs--we've got a mini-version of it. It was not easy to learn, but it's incredibly easy to use once you know how to use it. Then you can move at the speed of thought. You move so quickly that you can't imagine going back. I can't even think of using anything else as an outline editor or a word processor. It's just impossible--I can work three or four times faster than most people. I think that's what executives are trying to get to. They don't mind investing up front to learn how to use it, as long as, once they've made that initial up-front investment, it is easy to remember and intuitive from that point on. How significant at this point are non-text tools,like video and multimedia? I found that a lot of these people had video tape recorders in their offices, and they were using videotape as a means of getting some objectives accomplished. In terms of "multimedia systems," I didn't find a lot of use of that. That doesn't mean that there won't be applications. Again, it's another issue of being like a kid in a candy store, and you don't know what really matches your budget or your taste. That's why it's so important to take those objectives up front and then do that translation process. Somebody who understands that process can say, "Hey! If this is what your objective is, and this is what you've got to do to get it accomplished, I've got an idea that this multimedia tool might be able to help you get that objective accomplished." We tend, as an industry, to be very technology-driven and come up with all these wonderful tools, but we don't do our homework on the other end. It's great to have the creativity and have the new technologies, and I hope the people that develop them continue to do that, but we need those translation people to help us understand how the tools will be critical to expanding our minds and accomplishing our objectives.z .