The rationale behind the research
Over the past few decades IT has come to dominate both our working and personal lives. Few organisations of any size could survive today without the use of IT. Given the current importance of IT, it is surprising that we do not see more IT Directors or Chief Information Officers (CIOs) sitting on company boards. In some organisations the most senior IT person holds a main board position; however, it is far more common for the top IT person to report into a main board director, usually the Finance Director (FD). A recent study from Cranfield School of Management found that less than 20% of top IT people hold main board positions.
Why is it that senior IT people are frequently left out in the cold? They are often excluded from the business decision making process and told about the decision after the event. The IT function is commonly considered as a service function rather than a driver of business change. After all, who are better placed than IT professionals to have a broad overall knowledge of how organisations function and do business?
Since it appears to be a significant challenge for senior IT people to reach board positions, even in the capacity of CIO, it is an even greater challenge for an IT person to reach the lofty heights of Chief Executive Officer (CEO). Indeed, if one had aspirations to become a CEO, few would recommend a career in IT as a route to the top.
I postulated that there must be something very special about those rare individuals who had progressed through the ranks of IT and beyond to the position of CEO. Indeed, what could be a better measure of success in the role of IT Director or CIO?
To date I have interviewed thirty CEOs and Managing Directors (MDs) who have made it to the top from a career in IT. Although I do not claim this to be a full set, I believe it is a significant proportion of those residing in the UK. Each had a very different and unique story to tell but there did emerge six common themes. These are described below.
The six key themes
1 - Networking
All of the CEOs interviewed placed networking very high on their respective agendas. They created time for networking and actively sought opportunities. Many described their style as “management by walking about”. They looked for excuses to talk to people and treated everyone in the organisation as equals from the most junior to the most senior.
The CEOs when in the top IT job typically spent over 50% of their time communicating with non-IT people both within and outside their organisations. They made particular use of lunch times and the opportunity to build relationships in a less formal environment.
2 - Getting involved beyond one's immediate sphere of influence
They described stories where they had actively sought opportunities to extend their sphere of influence, i.e. to go beyond their job description. By way of example, one CEO, when in his former position of IT Director, had been tasked with the job of preparing an IT strategy. On looking for a business strategy on which to base his IT strategy he found that one did not exist. Not fazed by this situation he set out to ask the key business players to articulate their thoughts verbally. He subsequently wrote both the business and IT strategies for his organisation and gained a reputation for truly understanding the business. After this episode he was frequently asked to take on jobs and resolve issues outside his IT domain - these he took on willingly and confidently. Eighteen months later he was invited to become CEO. All of the CEOs said that when in the top IT job, they had not felt constrained to merely comment on or participate in technology matters.
3 - Visibly taking responsibility and demonstrating confidence in decision-making
The CEOs in the study all visibly took responsibility. They possessed significant amounts of self-confidence and a willingness to face the unknown. They had track records of taking on new challenges. They were courageous and prepared to take risks. In essence, they had all transcended the divide between “management” and true “corporate governance”.
The model above indicates the challenges associated with such leadership. It illustrates the difference between prescription - following orders or regulations laid down by systems, processes or a “rule book” - and discretion - making decisions based on internal values or considered judgement applied to a specific situation.
Most IT management takes place below the wavy line, firmly constrained by technological capabilities, budgets, best practice, the strategy and so on. For a CIO to gain the ear of his board he will need to transcend the wavy line and play a strategic rather than a service role, where there are no right answers or objective tests. Above the wavy line one is visible, but also exposed and vulnerable.
4 - Willingness to take risks, challenge accepted wisdom and trust “gut” instinct
All of the CEOs demonstrated comfort with autonomy and independence in their decision-making. They were self-starters who took the lead and operated on their own initiative. They were prepared to take chances and risks and made decisions based on intuition and hunch. One CEO summed it up: “if you don't take risks you don't get the rewards.” Another CEO suggested that there were two types of people in the world: “there's black and white people and there's grey people.” She continued: “Unfortunately I think that most technologists are black and white people. And to be an effective business leader you need to be more of a grey person, because you must be willing to deal with the messy stuff called customers and situations that aren't perfect and there is never a right answer. I think IT people like hiding behind the lingo and don't want to get involved in the mucky stuff out there.”
All the CEO's had a history of challenging their leadership as they progressed throughout their careers. They bent rules and they broke rules. Some described themselves as rebellious, others said that they had little time or respect for rules. One stated: “Very senior people are only too willing to listen to somebody who says 'wait a minute', this is actually ill conceived because‌.” He continued: “senior people, including the Chairman and Chief Executive, would regard it as hugely valuable to be told by someone who knows what they're talking about that something is a wrong move, that you're going to regret it if you do it.” Their philosophy was that it was better to ask for forgiveness than to seek permission.
5 - Being human and building rapport
All of the CEOs talked about the importance of interpersonal skills and the need to understand where people are coming from. The majority of the CEOs described themselves as good at reading people. Some, I believe, possessed such skills naturally. Others had actively sought to develop their own. One CEO had taken up amateur dramatics in order to enhance his ability to read other people, in particular their body language. Another had managed a pop band: this he believed had taught him the art of persuasion. Yet another had used his wife and daughters as role models as he felt they were better at the “soft skills” than him. Others had experienced some defining moment early in their careers which taught them the importance of empathy.
Another factor that became evident was the CEOs' preparedness to admit their mistakes and shortcomings. There was a degree of modesty; a number of the CEOs attributed their success largely to luck and timing, being in the right place at the right time. Teamwork and competence were of paramount importance to them: “there is no limit to what you can achieve if you don't mind who takes the credit.” They were all extremely open and honest and all came across as being at ease and comfortable with themselves. Their attitude was that it's OK not to be perfect! One CEO admitted that he liked being CEO because he was lazy. His role was about working with and through people to achieve his vision.
6 - Empathy towards others and bringing humour into the workplace
The CEOs demonstrated a genuine interest in other people. They listened actively, empathised with the views and opinions of others even though they did not necessarily agree with them. They took a personal interest in people and were skilled at getting others to open up to them. They all came across as sincere in their views and beliefs and emphasised the importance of humour. They said the job “had to be fun” and that “if you are too serious you come across as dull and boring - you won't make an impact and others will not want to associate with you.”
Recommendations - eight top tips from the CEOs themselves
The following eight points summarise the key messages and advice which the CEOs in the survey wished to pass on to current and aspiring CIOs and IT Directors. They said the messages were equally relevant to those content with the top IT job and those aspiring to higher office.
1 - Become a business person
They suggested that you should gain experience running other parts of the business. Become a generalist - a rounded business person who understands the “whole” of the business. Demonstrate enthusiasm for business matters; understand the psychology of the business and acquire knowledge of the outside world. Have an opinion about the business. Talk business language not technical jargon. And, don't forget you cannot network enough.
2 - Have a vision
They also suggested that you should develop your “right brain” - your creative and visionary side. Keep your curiosity alive; read, talk to suppliers and peers in other organisations, and know where technology is taking the world. Understand the trends in your own business and society in general. Be bringers of change and inspiration and make things interesting. Grab the attention of your CEO. Lift horizons and excite the board with possibilities rather than portraying problems.
3 - Become a “can do” person
Other key advice was to become a “can do” person. Having confidence in yourself, coupled with good intellect and imagination, means there is always a way forward. Think “out of the box”, look for alternatives, never sit back, hold that failure is not an option, and learn to trust your experience and to deal with uncertainty. Also remember that in today's world, speed is an imperative so learn to adopt the “80-20” rule and to make decisions quickly and shorten project life cycles. But, be sensitive about how you enforce IT governance: it is often restrictive and focuses on what one can't have or can't do, so ensure it is “fit for purpose”. And above all, remember that it is better to ask for forgiveness than to seek permission.
4 - Be prepared to take risks
Be prepared to take chances and risks, and make decisions based on intuition and hunch. The CEOs described themselves as “considered” and “thoughtful” risk takers - a combination of conservatism and outrageous risk-taking. As one succinctly put it: “if you are too cautious or conservative you will never achieve anything; you won't even get noticed.” However, they also said that the risks you take must respect the fabric of the organisation. You can bend the rules and make them up when it suits but you do need to play the corporate game. You must also be prepared to challenge accepted wisdom or authority. One CEO told the story of when he challenged Margaret Thatcher and told her she was wrong - he got his way and gained a huge amount of respect. A common opinion was that “IT people take huge risks by not embracing change and not doing anything.”
5 - Understand people
The CEOs could not stress the importance of people skills enough. They said that you really need to understand what makes people tick and how to get the best out of them on an individual basis. Before you can do this you need to truly understand yourself. Don't expect either yourself or others to be perfect, and learn to value diversity. Build teams with a mixture of skills and styles.
Weed out non-team players and ensure you place round pegs in round holes and square pegs in square holes. Praise rather than criticize, give credit and take the blame. Build relationships upwards, downwards and sideways and become “gossip central”. As one CEO said: “You've got to play the politics.”
6 - Learn to trust and delegate
Learn to use and value the team; to trust, delegate and let go. You do not have the time to get involved in the day-to-day stuff. Your focus should be on the strategic stuff so you can contribute at the business transformation level. As one CEO put it: “I don't do babysitting”.
Have the courage to hire people better than yourself, and to nurture and reward talent. Take account of other people's feelings, and learn how to influence and communicate openly and honestly.
7 - Get the ”right” boss
You need the support of your boss. If you are not getting it, the advice is to “stop beating your head against a brick wall and move on to more fertile ground; find a new job with a new boss who will support you.”
8 - Develop your sense of humour
Again, the CEOs could not stress the importance of humour enough. They said it was “an essential ingredient in the workplace”, it diffused tension, bonded people, aided creativity and understanding, oiled the wheels of conversation, increased the impact of your words and made you “clubbable". Remember we associate and consult with people we like being with!
Have you got what it takes?
Do you aspire to higher office or to be a more effective CIO? Test your own abilities by completing the questionnaire and compare yourself with the CEOs in this study.
