Are CIOs Losing Their Luster?
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Sometimes the numbers just don't add up. As IT has become ever more vital to a company's success, the role of the CIO has become more strategic, not less so--or so you'd think. |
Yet, the number of CIOs who report directly to the CEO has been steadily declining over the past four years, according to CIO Insight's annual surveys on the CIO Role. This year, for the first time since we began polling CIOs on this topic, fewer than half--48 percent--say they report to their CEOs. That's down from 62 percent in 2003. Nearly as many--45 percent--of respondents say they report either to their organizations' top financial or operations executives, up from 25 percent four years ago.
Why the switch? In his analysis of the April research report conducted by CIO Insight, my colleague Allan Alter notes that, in recent years, companies have given more weight to compliance and process improvements. Thus, one could conclude, the CIO's primary job involves ensuring that all things IT get done properly and efficiently.
Helping develop strategy, though a growing CIO responsibility, is subordinate to keeping the IT lights on. If that's the case, it does makes sense to have CIOs report to a growing cadre of tech-aware CFOs and COOs.
But who says tech leaders can't do both with equal ability and passion? CIOs are a smart bunch who can walk and chew gum at the same time; they can strategize and think tactically simultaneously. Just ask them. Among our respondents, two-thirds see themselves helping set company strategy. Fifty-seven percent say improving business processes is a core CIO responsibility.
Veteran insurance industry CIO June Drewry knows that, as do the uppermost executives at insurer Chubb, who persuaded her to come out of retirement to be its global CIO. Her main assignment? Groom a successor. She's mentoring some of Chubb's top business technologists, one of whom will be its next global CIO.
With a looming shortage of qualified CIOs, many companies will find their next business technology leader from within--but these executives will need coaching to develop the necessary tools to be a strategic leader. "Nowadays, IT is so critical, so strategic, that you can't afford to have someone who's not at the top of their game partnering with the head of a business," Drewry says. "CIOs have a seat at the table; there isn't time to go backward to the kids' table while learning how to operate at that senior level."
Let's take a walk. Here's a stick of gum.
