technology in the business, the price they pay, because they're on center stage all the time.
Dekkers: Now how does this fit into them emerging kind of as a portfolio manager, and what are the core competencies that they need to start developing and fitting into kind of what is really a very hectic role right now?
Rubin: Yeah, and hectic's a great word, Carol, because going back to the portfolio management metaphor, I mean think about the financial advisors that you and your listeners have given personal responsibilities for their investments. These people are online all the time watching the behavior of the investments, making trades, and dealing with very fluid and very competitive markets as funds flow in and out of things, and the world of portfolio management and the CIO…what are the competencies your need? Well, you need the competency of being a portfolio manager number one, what does a portfolio manager do? A portfolio manager is used to managing the cost side and the benefit side and the yield side, the quality side, pieces like that, to make all that work, though, what does the CIO have to do, one other core competency in this thing is the overall portfolio management is also the product management and the process management. There's also the resource allocation management, so in terms of the core competencies in this new age, along with this notion of portfolio management which deal with, as I said, the pieces that you need to focus on from the different sides of the issue, is the ability to look at products, the ability to look at the resources, the ability to deal with the allocation, and the ability to deal with all this in real time while doing continuous benchmarking against competitors, continuous benchmarking against cross industry sources and continuous benchmarking against the external providers of other options that the customers have so there are a whole bunch of pieces of this everywhere, as I said the portfolio manager, which has subdisciplines of financial management and yield management and risk management and quality management out to the operational stuff with regard to everything from process management and then into the tactical aspects of who do you deploy to do what, which is the resource management...
Dekkers: Now do you think that the Capability Maturity Model that the Software Engineering Institute introduced will help, and has started to help in the process management area?
Rubin: Yeah, well clearly, I mean, one of the aspects of things that keep a CIO up at night has to do with the ability, you know, to fund what needs to be done. Businesses are pumping money into technology, but IT has to pump money into improving the whole structure of the cost of goods in their own processes, but actually we've learned from the CMM is companies that have made the important investments in improving their processes are doing a lot to manage risk and improve quality and this gets to the heart of the portfolio management, so without a focus on continuous process improvement and process benchmarking and increasing quality of investments and lowering the risk, you're nowhere in this game, and that's again going back to my earlier statement why QA and CMM like activities, process improvement become pivotal activities. There's another piece of it by the way, because when we talk about portfolio management we're talking about, you know, what is a portfolio, well the portfolio is the collection of IT assets, and the IT...what are the asset base of an IT department have to do with