67% of CIOs see themselves as potential CEOs

CIOs now see themselves as business leaders, with most believing they have the skills necessary to take the top job within companies, according to a recent survey.

Two-thirds of CIOs aspire to become CEOs at some point, with many saying they possess the proven leadership skills and the ability to drive the innovation that’s needed to lead organizations, according to a survey by Deloitte’s CIO Program.

Moreover, IT appears to have hit a tipping point as well, with 52% of CIOs now saying their IT teams are viewed as a revenue generator rather than a service center for the business.

Overall, the survey results underscore the CIO’s emergence as a business strategist trusted to fuel growth and reimagine enterprise competitiveness, Deloitte experts say.

“It’s never been a better time to be a CIO,” says Anjali Shaikh, leader of Deloitte’s CIO and CDAO Programs US. “Technology is no longer an advisory function, and CIOs are very much showing up as strategic catalysts for their organizations and less of the operator role of the past.”

Managing P&L

In addition to gaining the attention of business colleagues, CIOs are also showing signs of renewed views about themselves, Shaikh says. Thirty-six percent of the CIOs report they now manage a profit-and-loss (P&L) statement, which may be fueling new career ambitions.

The 67% of CIOs who said they’re interested in pursuing a CEO role in the future pointed to three key skillsets that they believe make them qualified for advancement. Nearly four in 10 separately identified their proven leadership and management skills, their ability to drive innovation and growth, and their track record of building high-performing teams.

By contrast, only about a third of CTOs and chief digital officers surveyed by Deloitte see themselves as CEOs in the future, and less than a sixth of CISOs and chief data and analytics officers envision the move.

Amit Shingala, CEO and co-founder of IT service management vendor Motadata, says the CIO role’s shift from primarily running IT operations to becoming a key driver of business growth has become increasingly more evident across the industry.

“Technology now influences everything from customer experience to revenue models, so CIOs are being expected to contribute directly to business outcomes, not just infrastructure stability,” says Shingala, who works closely with several CIOs.

As a result, Shingala isn’t surprised that many CIOs aspire to become CEOs, and he believes that the position is a steppingstone now more than ever before.

“CIOs now have visibility into the entire business — operations, risk, finance, cybersecurity, and how customers interact with digital services,” he says. “That broad understanding combined with experience leading major transformation efforts puts them in a strong position for the CEO role.”

Innovation before revenue

Shingala also understands why many CIOs now see their role as a revenue generator. But while driving revenue growth is important, delivering business value should be the ultimate goal, he says.

“When a CIO introduces new digital capabilities or enables automation that improves customer experience, the result often shows up as new revenue or cost efficiency,” he explains. “Innovation comes first. Revenue is usually the reward for getting innovation right.”

Scott Bretschneider, vice president of client delivery and operations at Cowen Partners Executive Search, agrees that innovation should be the top priority for CIOs. Modern CIOs should act as both innovation catalysts and business operators, he says.

“Innovation involves rethinking business processes, enabling data-driven decisions, and creating platforms for growth,” Bretschneider adds. “Revenue is the result of effectively executing those innovations. A great CIO emphasizes innovation that leads to results, striking a balance between experimentation and measurable returns.”

Like Shingala, Bretschneider also sees CIOs as emerging candidates to become CEOs. In recent years, a growing number of CIOs and chief digital officers have transitioned into president, COO, and CEO roles, he says, particularly in industries where IT is at the forefront, including financial services, retail, and manufacturing.

“CIOs today have many of the qualities boards and investors look for in CEOs,” he adds. “They understand enterprise-wide operations, encompassing finance, supply chain, customer experience, and risk management. They’re used to leading diverse teams and managing large budgets.”

Shifting the narrative

While the survey shows growing expectations and responsibilities for CIOs, the bad news is that nearly half of the organizations represented still see the role as more focused on maintenance and service than on innovation and revenue, notes Deloitte’s Shaikh.

CIOs stuck at enterprises focused on this older view of the position can push to evolve their roles, she says. CIOs should work hard to keep up with emerging technologies as they push to make their positions more focused on innovation, she recommends.

“The hardest part of their job is staying ahead of all the emerging technology, and you can’t find yourself on the back foot,” Shaikh says. “How are you creating the space in your in your schedule and creating the capacity through your teams and the energy?”

CIOs should lean on universities, peers, and other resources to help them keep up, she adds.

“You have all the responsibilities of your traditional role to help guide your team and your organization through the emerging technology, and that requires you to have to stay ahead of it,” she says. “So how are you doing that?”