Propeo Executive Search

Isn't it interesting to think that just a short while back, few business executives knew what a CIO was?  Now of course, gone are the tired old jokes about CIO standing for 'Career Is Over', and the role has come to be firmly established in the corporate structure.  Or so we think. 

As information management has moved from the periphery of the organization to a central position, the number of CIOs has increased dramatically.  Most articles about current CIO issues feature the need to align the IS function with business, the necessity of relationship building across the organization, and the challenges of recruiting and retaining scarce talent.  But there is also frequent mention of the way in which the CIO role has evolved into a more strategic contributor at executive level, and perhaps to the point, according to some observers, where the overlap with the CEO role puts the future of the position in jeopardy. 

Certainly, the accelerated pace of change is putting hugely increased pressure on the CIO.  Business is under pressure to leverage new more advanced technological developments, more IT-savvy business users are raising the performance bar for the IS function, and users have new options to source solutions elsewhere.  Simultaneously, the CIO often faces a shortage of staff - especially with certain skill sets, substantial funds have been consumed by heavy investments in Y2K and ERP legacy systems, and technologies are evolving rapidly.   

At the same time as the markets move to make a correction in valuations of Internet stocks, it becomes clear that the second eBusiness wave has hit the shore.  A realization dawns that a great web presence is of limited value without a functioning eBusiness model behind it.  The CIO role will be critical in linking technology to the myriad of challenges associated with this fundamental business transformation.   This reality expands the role of CIO far beyond the technical brief that once defined the boundaries of the position.  

A recent Financial Times survey uncovered a number of trends in the evolution of the CIO role that are worth noting.  For instance, the focus of the role is moving from technical to strategic planning.  This is quite a shift, and it has implications ranging from the way in which the IS function is viewed, through to the selection of CIOs.  Recommendations for harnessing the CIO role and extracting maximum value from it include (1) incorporating CIO perspectives into the strategic planning process at an earlier stage, (2) looking beyond ROI and separating out running costs, extraordinary costs and IT contribution to business growth, and (3) re-examining required skills and competencies, and reviewing  compensation incentives.  

When speaking to clients seeking to appoint a CIO, we in Propeo Executive Search advise that the role profile be reviewed to ensure it meets the requirements of the business model of the future rather than appointing what some see as a high-level technical expert.  Of course, this makes the search more difficult, as the blend of skills required in this new role are in extremely short supply.  But successfully transforming this role is a vital component in business transformation, and we believe it delivers significant competitive advantage for first-movers.  

For further reading on this subject, we would recommend the excellent Harvard Business Review article 'Are CIOs Obsolete?'

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