During Q3 of 2024, Piccadilly One conducted a survey where we asked for feedback on the reporting lines of CIOs based in the UK. Over the coming weeks our Director, Simon Elkinson dissects the findings. Here is Part 5 of the series where the findings of the Cons of reporting to a CEO are revealed.
Cons of Reporting to a CEO
Findings
While reporting directly to the CEO offers numerous advantages, CIOs have also identified some challenges and drawbacks that come with this reporting structure. Here are the key concerns raised by CIOs about reporting to the CEO:
Limited Time and Attention from the CEO
One of the most common drawbacks is the CEO’s limited time and availability. CEOs have many competing priorities and often lack the bandwidth to engage deeply with IT initiatives. This scarcity of face-to-face time can make it difficult for CIOs to discuss the intricacies of technology strategies and digital transformation, leading to potential delays in decision-making and support.
CEO’s Lack of Technical Knowledge
Many CEOs, especially those without a strong digital or IT background, may not fully understand the complexity and nuances of technology. This can lead to oversimplification of IT challenges or unrealistic expectations for faster, cheaper solutions. CIOs may spend significant time educating the CEO on technology's importance and relevance, which can detract from focusing on strategic initiatives.
Focus on High-Level Outcomes Over Technical Detail
CEOs tend to focus on high-level business outcomes rather than the technical details. While this can be beneficial in some cases, it can also mean that IT initiatives are pushed aside if they are not directly linked to immediate business goals. This focus on high-level results can make it harder for CIOs to secure the necessary resources or attention for complex, long-term IT projects.
Increased Pressure and Accountability
Reporting directly to the CEO often comes with greater visibility and higher expectations. The CIO is under constant pressure to deliver results and meet the CEO’s often demanding timelines. Failure or delays in IT initiatives can lead to severe consequences, with the CIO being held directly accountable by the CEO. This increased pressure can be stressful and may not provide sufficient room for trial, error, or innovation.
Competing Priorities Across the C-Suite
CIOs may struggle to compete for attention and resources with other C-suite leaders, such as the CFO or COO. These leaders might have more direct influence over the financial or operational aspects of the business, making it harder for the CIO to secure funding or prioritisation for IT projects. A strong relationship with the CFO is often still necessary to get IT initiatives approved.
CEO’s Potential to Circumvent Processes
Some CIOs noted that CEOs, due to their entrepreneurial and results-driven nature, might circumvent established processes or overrule technical experts in pursuit of rapid outcomes. This can lead to decisions that may not be in the best long-term interest of the organisation, such as prioritising short-term goals over risk mitigation or detailed technical considerations.
Risk of IT Being Deprioritised
If the CEO does not see IT as a key enabler of business transformation, it may be deprioritised in favour of more immediate concerns. This is particularly problematic if the CEO views IT as a cost centre rather than a strategic asset. In these cases, the CIO may struggle to get IT initiatives the visibility and support they require.
Challenges with CEO’s Vision and Digital Dexterity
Not all CEOs are equally digitally savvy or future-focused. If a CEO holds a conservative attitude towards technology—preferring an "if it’s not broken, don’t fix it" approach—the CIO may face significant resistance in driving digital transformation. In such cases, CIOs have their work cut out for them in advocating for new investments and modernisation.
Micromanagement or IT Being Treated as a Support Function
Some CIOs noted the risk of being treated as the CEO’s personal IT support manager. If the CEO takes too active an interest in IT operations or believes themselves to be a technology expert, they might interfere in decision-making or focus too much on minutiae. This can distract the CIO from strategic activities and limit their ability to drive larger transformation projects.
Potential for Distraction and Overwork
Reporting to the CEO often comes with extra overhead, including more frequent meeting attendance and participation in board-level discussions. While this provides visibility, it can also consume valuable time and divert the CIO’s attention from managing their own teams or focusing on critical IT initiatives. Additionally, the high expectations placed on CIOs by CEOs can lead to burnout or distraction from core responsibilities.
Risk of IT Being Blamed for Broader Failures
In cases where digital transformation or organisational change initiatives fail, there is a risk that IT may be blamed, even if the root cause lies in broader organisational issues. CEOs may attribute failures to technology rather than acknowledging that successful transformation requires changes across people, processes, and culture.
Pressure from CEO’s Short-Term Focus
CEOs may have a short-term, results-driven approach, which can clash with the long-term nature of many IT projects. This "do it now" attitude may pressure CIOs to deliver immediate results, often at the expense of strategic, sustainable solutions. This short-term focus can hinder the CIO’s ability to implement lasting digital transformation initiatives.
Challenges with CEO-Driven Technical Preferences
If the CEO has strong personal preferences or "whims" regarding technology—especially without a clear business benefit—the CIO might be forced to pursue initiatives that are not aligned with the broader IT strategy. This can lead to wasted resources and efforts being spent on projects that do not significantly contribute to business outcomes.
Dependence on the Quality of the CEO Relationship
The success of the CIO’s reporting relationship to the CEO heavily depends on the strength of that relationship. If the CIO does not have the CEO’s trust and confidence, they may face greater scrutiny and be put under a microscope, which can hinder their ability to operate effectively. Conversely, a strong relationship can mitigate many of the potential downsides.
Need for CFO Support
Despite reporting to the CEO, CIOs still need the support of the CFO, especially when it comes to securing funding and investment for IT projects. If the CFO is not aligned with the CEO’s vision or does not fully support IT initiatives, it can be challenging for the CIO to execute their strategies effectively.
In conclusion, while reporting to the CEO offers numerous benefits, CIOs must navigate challenges such as limited CEO time, potential lack of technical understanding, and high-pressure expectations. Additionally, success depends heavily on the CEO’s digital dexterity, openness to innovation, and the CIO’s ability to maintain strong relationships with other C-suite leaders, particularly the CFO. Balancing these dynamics is essential for maximising the strategic impact of the CIO role in organisations where IT plays a critical role in business transformation.
Piccadilly One helps organisations hire CIOs. We Put People Above Technology placing the number one technology position within an organisation and that person's direct reports.
To discuss your next CIO hire or, if you're a CIO, your next direct report hire, contact our Director and Founder Simon Elkinson
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