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Wed, Aug 6, 2008 9:39 EDT

Are More CIOs Getting Fired?

Topic: Enterprise Management

Blog: Difference Engine

Current Rating: 5 Comments: 15

As long as there have been CIOs, there have been people claiming that IT executives get fired a lot more than any of their C level colleagues. In the early '90s, some sharp-witted observer quipped that CIO was coming to stand for "Career Is Over." Conventional wisdom held that the average tenure of a CIO was 2.5 years (it seems that Paul Strassmann may have been the originator of this data point); in fact, as little as a few years ago people were still citing that number, which hadn't been true since at least the mid-90s - if it ever was true at all. It began to feel like some overworked Rodney Dangerfield skit.

Tired of the stereotyping, we did a survey with HR Executive magazine in 1996 that looked at CIO turnover and compared it to that of executives in finance, HR, sales/marketing and manufacturing/operations. It showed that while IT execs did have a slightly lower tenure (4.9 years for the current position holder, whose tenure was not yet up, and 6.8 years for his or her predecessor), they weren't getting fired the most; they were leaving voluntarily to take other jobs (HR execs had the dubious distinction of being most often fired).

Today it appears that CIO turnover is increasing again. Meridith Levinson's Movers & Shakers mailbox is filling up with notices of executive moves. And I had an interesting conversation with Bruce Rogow the other day. Bruce, who's enjoyed a 40-year career in IT research and consulting, conducts what he calls the CIO Odyssey, traveling around the country to visit with hundreds of CIOs every year. He uses the insight he gains from these visits in research and writing he does for Gartner and Don Tapscott's New Paradigm (now nGenera), among others; he also facilitates high-level knowledge exchange programs for Rick Swanborg at ICEX.

Bruce said that a few months ago, it was as if the bottom fell out on the people in his network, with some 60 percent of them suddenly no longer at their companies (compared with a more typical 5 - 10 percent turnover in previous years). He figured this was partly demographics; Rogow likes to visit IT execs who have been in their jobs at least 5 years, and the law of averages says that after five years, a lot of CIOs are going to move on. Many were retiring, some were victims of restructuring or mergers. I checked this out with some recruiter friends, who said they were seeing some uptick, but not the kind of spike Rogow was talking about. He said that was because the majority were being replaced internally, so the head hunters wouldn't necessarily be seeing a dramatic increase in searches.

The most interesting reason some of the CIOs gave for why they were leaving their positions was that the CEO and/or the business direction had changed, and there was a new sets of expectations for IT. Seventeen or 18 that he talked to said they had been doing a great job (one even faxed over his performance review to prove it), and they didn't see it coming. They were told, simply, that the business needed a different kind of leadership.

So what's going on? According to Rogow, a lot. He said for the first time in five years, the CIOs he's been meeting with have more questions for him than answers. They know that the imperative is for growth, and they have CEOs who understand that IT is

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Wed, Aug 6, 2008 12:11 EDT
Anonymous user
Posted by: Tim (@Twalk) Walker
Rating: 70

Very interesting, Abbie. As a complete outsider to the CIO field, I wonder if this maps at all to the general state of the economy? I'm with you in thinking that the biggest driver of this turnover is the tsunami of changes washing over the enterprise IT realm . . . but I can't help but wonder if the economic downturn also plays a role.

 
Wed, Aug 6, 2008 14:03 EDT
Posted by: Abbie Lundberg
Rating: 70

Hi Tim - I think you're right. In fact, a CIO I met with yesterday said at his company the new CEO combined a number of executive roles in order to become more efficient, going from something like 11 down to 5 C level execs.

 
Wed, Aug 6, 2008 17:09 EDT
Posted by: MEK
Rating: 80

Interesting post Abbie,

I suspect that there is some truth here in what Rogow is seeing, however it may not be an overall accurate reading of the tea leaves.

As someone who is immediately below the CIO level, there is a strong sense of change in the air, and not just in the Enterprise I work in. Increasing numbers of Companies are on shaky financial ground, and the ones that are still in good financial shape are still pulling back and moving into generally more conservative operating modes. It would be interesting to see what the ties are here with recent CEO changes and or general financial health of the company. High level leadership changes and/or financial stress generally translate into (sometimes involuntary) leadership changes at the “cabinet” level.

Also for better or worse there is a history of IT being one of the key areas where Enterprises cut costs. This in and of itself doesn’t explain an increase in IT leadership turnover but I could see situation where there might be a leadership change if there were other “preexisting conditions” that were then combined with a cost-cutting initiative.

I’m personally seeing more unsolicited recruiting attempts going on and hearing about more in my personal network of peers and associates. The desire for Young Blood seems to be something of a factor there, but the feeling is not strong enough to form a firm opinion.

Perhaps we are seeing a perfect storm here? At the end of the day the churn in top IT leadership does seem to be rising but my suspicion is that there are multiple factors in play here that are combining to create this uptick. I’d personally be curious to see what information you or Meredith have as we get towards the end of this year. At that point it may be possible that more distinct patterns may emerge.

 
Fri, Aug 8, 2008 14:12 EDT
Posted by: Abbie Lundberg
Rating: 80

I agree there's something big going on, and that it probably can't be attributed to just one thing. We'll be doing some research on this trend, if indeed, trend it is. thanks for your comment!

 
Mon, Aug 18, 2008 14:01 EDT
Anonymous user
Posted by: Jack van Hoof
Rating: 70

I think the big thing that's going on CAN be attributed to just one thing, and that is the evolvement of the Internet. The Internet is turning the IT-world upside down. All other current IT-evolvements are more-or-less a consequence of that fact, imho.

Think of the Internet as the pervasive near no-cost medium to enable freedom of speech; the will be no secrets anymore. We are getting connected by social networks. I carry an IP-adress that is connected to the whole world in my pocket. That's the big enabler, the Internet.

-Jack van Hoof, IT-architect at Dutch Railways
http://soa-eda.blogspot.com

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The Difference Engine, invented in 1821, was an early precursor to the modern computer. Today, IT is making a difference in every aspect of work, play, politics and life. This blog reports on interesting new applications of technology and the people behind them. It comments on the changes taking place and what they mean for decision-making around and management of IT.

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