CIO morale plummets as crunch hits

CIOs are restless due to lack of challenge

Chief information officers (CIOs) and IT directors feel they are being denied job satisfaction as an increasing number doubt that their role is becoming more strategic and economic concerns dampen transformation plans, according to research.

But dim prospects across the whole sector could provide a deterrent for senior IT staff who are thinking about moving jobs, as temptation lessens, according to recruitment firm Harvey Nash, which conducted the survey of more than 360 senior IT professionals.

Almost three quarters (73 per cent) of IT leaders think they should be board members, but only 34 per cent actually are, and 21 per cent have no opportunity for strategic input, according to the research.

Some 36 per cent of CIOs now report to their chief executive, compared with 58 per cent in 2002, and 45 per cent in 2005. Last year the figure was 35 per cent, down from 36 per cent in 2006. And only 57 per cent of respondents said they thought that the role of an IT leader was becoming more strategic, compared with 62 per cent in 2007 and 76 per cent in 2006.

This is to be expected under the current economic conditions, as ambitious transformation takes a backseat, said Matt Smith, director of UK regions at Harvey Nash.

“It is very much down to the economic climate, as the strategic importance of IT is linked to business,” he said.

“If business leaders are feeling bullish, they will invest in significant transformation projects. But directors and chief executives will not necessarily be shelling out on strategic transformation at the moment.”

Only seven per cent of respondents to the Harvey Nash survey said that they would not consider alternative roles, while 21 per cent are watching the market. Some 43 per cent would take a call from a head hunter and 29 per cent are actively making applications for other jobs.

Fewer than three quarters (74 per cent) of respondents said they find their job fulfilling, compared with 84 per cent two years ago, and a quarter said their role was not fulfilling, compared with only 17 per cent in 2006.

There remains a high business demand for innovation. This year 83 per cent of IT leaders said their business colleagues expected them to deliver innovation compared with 84 per cent last year.

However, the frequency of innovation and relative success has not improved. This year, 21 per cent of IT leaders claimed to be very successful, compared with 22 per cent last year. The percentage of those claiming to innovate frequently ­ – a key indicator of success ­ – has dropped from 32 per cent to 25 per cent.

How CIOs perceive IT’s relationship with business varies.

• Seventy one per cent of IT leaders said their business suffers from a skills shortage and 61 per cent said this causes some, or significant, impact.
  

• Seventy four per cent said communication was an essential skill for an IT leader to have, while 70 per cent cited leadership skills and 69 per cent chose influencing skills.
  

• IT skills did not make it into the top 10 and were cited as essential by only 22 per cent of respondents, ranking thirteenth out of 14 skills.
  

• More than half (54 per cent) said that their IT function did not effectively increase business revenue and 28 per cent do not believe that IT systems are regarded by the business as a value-added component.
  

But Smith said a lack of opportunity can offset the risk of high turnover of senior IT staff, as CIOs say the ability to make decisions is key to their job satisfaction.

According to the Harvey Nash survey, the top two factors to look for in an alternative role were greater involvement with overall strategy, and new challenges. These combined were cited by 63 per cent of survey respondents.

“Senior stakeholders are now less confident about making a move to another company,” said Smith.

“New challenges are not as thick on the ground now and there is less opportunity for finding a challenging role somewhere else.”

Key business issues

What are the key issues that company boards are looking for technology to address?

• Entry to new markets 40%
• Developing new products 41%
• Innovation 51%
• Improving price competitiveness 39%
• Enhancing operational efficiency 76%
• Responding to globalisation 23%