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INFORMATION TECHNOLOGY

Lance B. Eliot, Feature Editor, Eliot & Associates


When the CIO Moves on: Issues of CIO Succession

by Lance Eliot, Feature Editor

The turnover of CIOs has recently received much attention in the press. Whether CIOs are changing jobs every two to three years (a rather dizzyingly rapid pace), or changing every four to five years (rapid but close to the norm of other executive categories), the end result is a lot of CIOs leaving one place and arriving at another.

In previous columns I have discussed various issues involving CIO turnover, including such topics as whether a CEO could be the CIO (a form of replacement for a vacated CIO slot), tips on what a CIO should do when they get canned, more tips on what to do when a CIO gets hired into an Information System executive slot, and so on.

I take a slightly different approach in this column, namely, focusing on the overall issue of CIO succession from the perspective of the impact on the organization, the impact on the Information Systems function, and the impact on the CIO who is selected as the replacement for the exiting CIO.

Musical Chairs for CIOs

As a consultant who is often asked to assist organizations during their CIO transition, I have had many opportunities to discuss the CIO succession issue with a number of top-level executives. Out of all of the various executive categories, Human Resource executives have special concern for CIO succession issues since the H.R. function is usually asked to help select and ensure the safe entry of a new CIO into a firm.

However, it would be myopic to only focus on the H.R. aspects of the succession issue. A new CIO will ultimately have an impact on all areas of the business, and the C.F.O., C.O.O., C.E.O., and other executives and functions will need to be aware of the likely impacts that can occur.

A new CIO is bound to have a number of preconceived notions about how an Information Systems function should be structured and provide service to the organization. A new CIO may have certain biases about the kinds of systems that a given business really needs or can develop. A new CIO will generally not have a relationship with the other functions of the business as yet, and will therefore need to gradually build up such a relationship.

The preceding points are important highlights of the complexity involved in the CIO succession topic. Most organizations believe that they want a new CIO to "hit the ground running" and immediately take charge of the Information Systems function. Unfortunately, an excessively rapid take-charge can lead to misfires, and frequently leads to the early exit of the CIO in question.

Though I have limited space here to recite all of the issues related to CIO succession, I would like to introduce a model for understanding some of the underlying dynamics of the CIO succession topic.

CIO Succession Model

My model consists of two rows by two columns, whereby the rows represent the manner in which the previous CIO was released, and the columns represent the nature of the incoming CIO.

First, let's consider the two rows. A CIO can be "let go" or pushed out of an organization. The action of firing or discharging a CIO is usually a sign that the CIO was not well valued by the organization. Reasons for letting a CIO go range from being a rotten CIO to being a great CIO, but one who doesn't fit in the organization at the current time.

The CIO might not be wanted because the organization has changed and perceives that the CIO cannot adequately change to meet the organization's current needs. For example, an organization that needs a highly technical CIO to build up the computer infrastructure may discover that it now needs a business savvy CIO to help exploit the infrastructure. If the CIO cannot shift to meet the changed need, the organization may decide that its best option is to find a different CIO.

In contrast to a push, the CIO might be pulled out of an organization (the second of our two rows). In this case, another organization values the CIO and draws the CIO away from his or her present employer. Industries where information technology is a crucial element of the industry are known to start bidding wars to get a CIO from one company to jump to another company.

Of course, there are circumstances where a CIO who might have been pushed was actually pulled. In such an instance, the CIO frequently gets early word that the organization wants him/her to move on. As a result, the CIO searches for another job while continuing to work at his/her present place of employment (sometimes with the quiet help of the organization).

In any case, for the moment, let's simplify matters and allow a general classification of CIO pushed (row 1) and CIO pulled (row 2).

For the columns of our model, let's consider how the incoming CIO is selected. The first column will represent a replacement CIO that is an insider of the organization, while the second column will represent an outside selection. Thus, we have four cells to consider.

CIO Pushed/New CIO Insider

In this cell, the previous CIO was discharged and the organization decided to replace the CIO with an internal candidate. This scenario is often confusing to observers within the organizationțwhy would the organization replace a CIO with similar "old blood" already found within the organization?

Generally, a CIO has shaped the rest of the Information Systems function in their own image. Thus, whatever flaws the organization perceived in the previous CIO are likely to be present, or at least perceived to be present, in the internal replacement. The internal candidate may find himself or herself immediately on the defensive, especially since they are likely to have contributed to whatever ill will had been generated that led to the firing of the prior CIO. In rare instances, the "new blood" has managed to escape being tied to the previous administration's evils. This sometimes occurs when the new CIO comes from another part of the organization or has been in the organization such a short period of time that they cannot be readily blamed for other past sins.

CIO Pushed/New CIO Outsider

In the cell representing the situation whereby the CIO was pushed and the new CIO is an outsider, a whole new ball game is usually initiated. In essence, the organization has said that they want to start with something entirely new. Typically, the new CIO will want to quickly overhaul systems that were poorly done or reshape the staff and skills of the Information Systems function. With the push of the prior CIO there is usually a known agenda that the organization wants the new CIO to pursue. And, if the new CIO doesn't pursue the agenda, they know that the organization is obviously willing to take action and replace a CIO if they want to.

CIO Pulled/New CIO Insider

In the cell representing the situation of a CIO that was pulled out of the organization, lured to some other place, and the new CIO is an insider, the tone of the succession is often "same old, same old." The organization has signaled that the path of the prior CIO was satisfactory, and furthermore, that the grooming of a replacement was apparently on target. From the perspective of the impact on the organization, the notion of a kind of "status quo" is appropriate. Systems that were underway will likely continue in their current development plan. Sure, the new CIO will gradually put their imprint on the organization, but the odds are that this type of succession means that the organization values continuity in the current order of things.

CIO Pulled/New CIO Outsider

In this last of the four cells, namely the CIO was pulled and the new CIO is an outsider, the impact is a roll of the dice. Apparently, the prior CIO did not adequately groom a replacement. But, at the same time, the prior CIO was not discharged. Therefore we cannot adequately speculate on the internal status. If the new CIO is similar to the previous CIO then the organization is signaling a general continuation of the prior path. If the new CIO is dissimilar, the organization might be indicating that the exit of the CIO has offered an opportunity to take a fresh approach. The opportunity arose in a subtle way, rather than a more abrupt fashion (such as firing the prior CIO).

Dealing with CIO Succession

The preceding model should be helpful to organizations that are in midst of dealing with a CIO succession situation.

Should your organization push the CIO or consider helping the CIO to be pulled? Should you give due consideration to internal replacement candidates, or should you exclusively look outside the organization? The combination that is chosen tends to say quite a bit about why the organization is involved in a CIO succession process to begin with, and simultaneously sets the tone for the future of the Information Systems function and for the future CIOs at the firm.

If an organization has already undergone a recent CIO succession, you can get a quick reading on the nature of the organization and the likely mission of the new CIO based upon the placement within the cells of the model.

Conclusion

I suspect that some readers, especially recently pushed or pulled CIOs, will be disturbed to see their own situation characterized in a simple, four square model. I sympathize with such readersțeach instance should be looked at on a case-by-case basis.

Researchers may want to explore the CIO succession topic further. For example, a comparison between CIO succession and CFO succession would be insightful. As would some form of statistical validation for the "ad hoc" model that I proposed in this column.

Remember that your input is welcomed. If you have projects addressing the information technology area, and you would like to share this with the readers of "Information Technology," please contact me.



from Decision Line, March 1997, 28(2)