Many less mature companies get by without a Chief Information Officer (CIO) for a time relying on Managed Service Providers (MSPs) or an internal IT Director to oversee the technology function.

But there comes a point where expert digital and technology leadership at the executive level is vital to lead the technology vision, drive competitive advantage and create value. So how do you know it’s the right time to bring a CIO on board?

Jean-Pierre Green, Partner & Head of Search in our Transformation, Digital & Technology Practice, identifies key signs that it may be time to consider creating a CIO role within your business and considers the significant benefits this can bring.

Signs that it could be time to consider a CIO

If technology is becoming a barrier rather than an enabler in your business, this is a clear indicator that a change may be needed. Key issues that you may be facing include:

• IT infrastructure problems
• Cyber security concerns leaving the business open to financial and reputational damage
• Data management challenges
• Lack of technology and digital expertise at leadership level
• Risk and opportunities relating to digital transformation
• Failure to capitalise on growth potential due to lack of technology and digital capability
• Uncertainty over where to invest in new technology
• Business expansion leading to geographical complexity of technology requirements

Ultimately,  businesses are reacting to technology issues on a day-to-day basis and patching things up, rather than taking a strategic approach and implementing a long-term plan.

Key questions to ask yourself are:

• Is technology really unlocking commercial value?
• Does it truly enable your business?
• Is it a cornerstone of your business strategy?

If the answer to these questions is no, then it may be time to look for a CIO who can provide technology leadership, a compelling vision and strategic direction to drive the business forward.

What a CIO brings: Leveraging technology to deliver strategy and drive returns

An IT Director might head up your technology function, ensure operational resilience and that business demand is met with technology solutions. But a CIO is a business leader first who is part of the executive team and capable of shaping business strategy and growth plans with the advantage of technical knowledge. In effect, they are a fully rounded and robust C-suite member with a ‘T-shape’ in digital and technology. In common with every other member of the executive, they help to formulate strategic growth, but they come with the added depth in digital to ensure the art of the possible translates into real returns.

Strategic leadership with a tech focus

A CIO views technology and digital through a commercial lens, driving tangible value and business outcomes. As we noted in the 2024 edition of our Chief Information Officer Pathways Report, CIOs are prominent in their interactions with boards, providing an expert view on the role of technology and playing a fundamental role in driving and delivering business objectives. A CIO provides strategic thought leadership and challenges the status quo. They are able to influence horizontally as an active member of the executive team, moulding growth plans and solving business problems. A CIO will ensure that the journey your technology is on is completely aligned with the company’s strategic objectives.

Steering digital transformation to maximise returns

As technology and corporate strategy intertwine and digital-first becomes embedded in almost every process, CIOs are at the forefront providing digital transformation leadership at the executive level. A CIO will help deliver shareholder value and meaningful customer benefits through the digitisation of your business operating model – an enterprise-wide effort straddling people, process and technology underpinned by digital solutions. According McKinsey’s study in 2024, an estimated 90% of organisations are now undergoing some form of digital transformation. A CIO can significantly improve the chances of a successful digital transformation by providing the necessary strong leadership and challenge to steer the transformation journey, safeguard risk and ensure return on investment.

A forward-looking, future-proofed digital roadmap

Reacting to events with sticking plasters over gaps in digital and technology capabilities is not a viable approach for the long-term. A CIO provides a forward view of the direction of travel with a growth perspective and drives digital and technology to support that roadmap. With the increasing prevalence of AI and other technology advances, companies must respond quickly to market disruptions led by cutting edge technology – this presents new challenges as well as opportunities.

A CIO identifies opportunities for technology to be a growth lever and provides clarity on where to direct technology investment in order to drive the top-line, identify operational efficiencies, improve the customer experience, protect against cybersecurity risk and leverage data. They will ensure that aspirations are grounded in pragmatic realism and that technology ambitions can be translated into fit-for-purpose outcomes that will have the desired commercial impact.

The presence of proactive, pragmatic and commercially minded CIOs in organisations is becoming increasingly vital to harness technology’s transformational potential.

Wherever you are on your technology journey, we are here to support – get in touch with Jean-Pierre to discuss your next steps in confidence.