By Steve Ranger, 24 August 2007 15:20
NEWS
CIOs stay in their job for just over three years, even though the complex technology projects they are in charge of can take far longer to deliver results.
According to research commissioned by EDS, UK tech chiefs stay in their posts for an average of 38 months. By comparison the CIO tenure in the US is only around two years, EDS said.
With such a fast turnover of top tech execs, any IT project needs to be commissioned within 100 days of an IT boss being appointed, the company said.
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The survey of CIOs at FTSE 350 companies also found the majority (41 out of 50) have a technology background and most (38 out of 50) are recruited from outside of the business.
Positions the CIOs held before their current jobs typically included other senior IT positions, management roles, management consultancy and posts in engineering and finance fields.
EDS warned CIOs are also caught in the "value trap", where 80 per cent of their budget goes to keeping legacy systems alive.
Comments
There are 4 comments. Join the discussion
1. anonymous
"80 per cent of budget, to keep legacy systems alive"…Seems like a bit of a waste to me. I understand that these things are cash cows, but all anyone does by updating or re-shaping their legacy system is to simply create another one. Another legacy Elephant that will sit under the table until the next year, when the need for further enterprise agility will once again demand a 'not-so-agile' 6-12 month re-engineering project. Clearly legacy is still a huge problem, regardless of the fact that people don't talk about it as much as they used to…or have learned how to hide it underneath some form of SOA implementation.
It frustrates me that many companies see this problem but refuse to believe there is a feasible solution. I wish the IT industry would stop thinking that legacy migration is costly, time consuming and unreliable. This is not the case anymore. For example, I work for Erudine, a company that uses a Behaviour Engine (not a rules engine mind!) to recreate the behaviour legacy systems in a short time scale and at an affordable rate. We've done it, it works, and it doesn't just create further legacy for another day. If the industry becomes more open minded about solutions to this issue then maybe we could help reduce one of the biggest pain points for CIOs - surely that would encourage them to stick around a bit longer!
2. Simon Allen
What a sad and sorry item of news this is.
So they can only stay long enough to do one project in full and that they have to instigate within 100 days. If promoted from outside, then this means they have no time to learn the department, or, even the business!
They can bring so favourite scheme with them that 'worked' for them once before and they have managed to convince the board that it will work again.
Sheesh, no wonder we're in trouble.
3. Joanna Sedley-Burke
CIOs can and will stay beyond the three year mark if their input into board decisions is considered and valued, and they are given the chance to create strong relationships with other board members. Equally however, there is an emphasis on the CIO to not be prohibitive in responses to IT demands and to ensure that all IT activity ties in with the business.
For years, IT departments have fought for a seat on the board and the chance to demonstrate the value that technology innovation can deliver to a business. Yet after a flurry of CIO appointments, the majority of organisations to have forgotten about technology as business enabler and now consider IT as little more than a necessary evil.
It cannot be avoided that by failing to involve the IT department up front in discussions about business change, organisations are persistently failing to realise key goals, while the IT department is in a state of permanent fire fighting. In such a situation, it is little wonder that the CIO leaves.
However, board members have been burnt too many times by IT departments whose role appears to be one of ‘sales preventer’ rather than business enabler. They have come to expect nothing more than a list of reasons from IT why the project is impossible, will take 18 months and cost far more than the business can warrant!
Senior managers need to set aside their prejudice – and poor experience – and actively embrace the IT provider, whether in-house or external, or risk driving them away. In return, that IT provider must stop prevaricating, lose the obsession with technology-led investment and deliver an IT strategy that maps exactly to business needs.
4. Ed Dodds
It is time that institutional shareholders (who have the only external power to steer the corporate agenda) be held accountable for not demanding that IT is properly resourced, both budgetarily and in terms of authority. Iddatarate C-Suites continue to view IT as a cost center rather than the basis of a business intelligence grid which can be utilized to help customers innovate. Stockholders in general need to voice loudly their displeasure with the complacency of these institutional shareholders.