Clouds Of Change: Top Management Within Reach For CIO

CA Technologies has released a new global report; ‘The Future Role of the CIO 2011’ which reveals the extent to which cloud computing is transforming how CIOs view themselves and their role in their business. Of the Indian CIOs surveyed for the report, 60 percent agree that cloud computing has enabled them to spend more time on business strategy and innovation. In theory the more strategic focus increases the likelihood of CIOs making the transition to CEO, but in reality globally only 4 percent of CEOs have risen from the CIO ranks, illustrating the prevalence of a barrier to career progression.

The ‘Changing Role of the CIO’ survey by CA Technologies has uncovered that those CIOs who have adopted cloud computing are more ambitious than non-cloud adopting CIOs. Demonstrating the extent to which CIOs view their position as a route to more general roles, almost all those (93 percent) who have adopted cloud computing, see their position as an opportunity or stepping-stone to other management roles compared to only 30 percent of non-cloud adopting CIOs Of those surveyed, 46 percent of cloud adopting CIOs versus 13 percent of non-cloud adopting CIOs saw their current job as a stepping stone specifically to the CEO position. This illustrates the extent to which cloud computing drives CIO ambition.

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“We already know that cloud computing is ‘revolutionary’ in terms of what it can do for business, but it is also breeding a new type of technology leader, one that clearly understands what adopting cloud computing can do for the organisation, and one who believes that technology can empower them to become the business leaders of tomorrow,” Lionel Lim, President, Asia Pacific, CA Technologies.

More than half of the CIOs surveyed said they felt ideally positioned to move to the CEO role because cloud computing allows them to spend more time on innovation, business strategy and driving business effectiveness. However, they face fierce competition; 43 percent acknowledged that whilst they do have the necessary skills to step up to the CEO role, other job roles have greater experience of those skills. How do you marry this ambition with the stark reality today where only ‘4’ percent of current CEOs have risen from the CIO ranks, 29 percent have risen from the Chief Financial Officer position and a further 23 percent were previously Chief Operating Officers?

The CIO role today is still viewed as a technical role, according to 43 percent of CIOs and this is the reason why relatively few CIOs have successfully made the transition to the CEO role. A lack of ‘digital literacy’ in the boardroom is compounding this problem with 40 percent of CIOs stating that their board was ‘digitally illiterate’ and did not understand the impact of new and emerging technologies. A further 42 percent of CIOs said that the board did not understand the value that IT brings to the business causing a lack of responsiveness to the market and missed business opportunities.

“Today, CIOs with an aptitude for visualising the true potential of IT on the bottom line, can continue evolving far beyond the purely technical role profile still regularly associated with the job. The fact is, many CIOs have a greater strategic understanding of the challenges and opportunities their businesses should address than they’re given credit for. It really is a case of information is knowledge, and knowledge is power,” commented Sarah Greensmith, Managing Director – IT at Hudson, the executive search specialists.

The ambitious CIO cloud adopters are not complacent either, with 93 percent saying they need new skills to remain effective compared to 63 percent of ‘non-clouders’. ’Specifically, 48 percent of CIOs deemed skills in commercial procurement to be vital. Cloud CIOs also prioritised service performance skills and negotiation and sales skills compared to their non cloud adopting counterparts.

“When looking at the competencies of a CEO, the ability to communicate externally as well as internally is key. This is also now a component of the CIO’s role. The ability to take knowledge and the skills of communicating to and managing internal stakeholders, into the outside world, will see a new breed of CIOs who naturally adapt well into the CEO mould,” added Greensmith.

Perceptions are changing; since 54 percent of CIOs report that the C-level management team sees the role of the CIO as becoming increasingly important within the organisation which suggests that the board’s view of the CIO is already changing.