Helen Fleming

Becoming a CIO isn't easy. Nor should it be. But for the right person the role of CIO is one of the most valued and rewarding jobs you can have. So, what skills do you need? And what roles should you consider pursuing to get you to the top? This article first appeared on computerweekly.com Skills – it’s all about the business A Chief Information Officer in the fullest sense is someone who sits on the executive committee or board, reports to the CEO, and is responsible for contributing to and implementing the business strategy, through technology. Not all CIOs we come across meet these criteria – some, for example, don’t actually sit on the Exco or board. Our latest Nash SquaredDigital Leadership Reportfound that around 30% do not - the fact they are not Exco roles means that their value is in operational, rather than strategic, matters. It’s the leap to influencing strategy that is where the real transition to executive seniority is made. When it comes to the key attributes of a CIO, it’s really all about qualities and attributes that help the individual contribute to strategic business value through technology: Strategic Vision: The ability to align IT strategy with business objectives, and a vision of how technology can be leveraged to deliver real commercial and competitive advantage. Leadership and Management:Experience in leading large teams and managing complex projects. For this, strong communication skills are a must. Technical Expertise: A solid foundation in IT, including infrastructure, cybersecurity, and emerging technologies. Business Acumen: Understanding of business processes, finance, and how technology impacts the bottom line. Change Management:Experience in leading organisational change, particularly in the context of digital transformation. Eight roles to take you to the top For anyone with their sights on becoming a future CIO, there are a number of senior IT leadership roles that naturally improve an individual’s chances as and when the opportunity arises. Here are four ‘clear and obvious’ IT leadership positions that may provide a route to the technology summit: 1. Chief Technology Officer (CTO) Overview: CTOs focus on the technological strategy and innovation within a company. They lead efforts in technology adoption, product development, and R&D. Relevance: The CTO role is closely related to the CIO, with a focus on external-facing technology, making it a natural pathway to the CIO role, especially in tech-driven companies. To make the jump to CIO: A CTO will be a prime candidate for CIO and it will be a logical, even lateral step in some cases. 2. IT Director/Head of IT Overview: IT Managers or Directors oversee the day-to-day operations of the IT department, including infrastructure management, software development, and IT support services. Relevance: This role builds a deep understanding of the organisation's IT landscape and the ability to manage teams and budgets, which are critical for a CIO. To make the jump CIO: For a Head of IT, becoming a CIO could be the next step up, most likely at a similar organisation in the same sector where they have the experience and knowledge needed. 3. Chief Data Officer (CDO) Overview: CDOs manage data governance, data management, and analytics initiatives. Relevance: In data-driven organisations, managing and leveraging data effectively is key, making the CDO role a strong precursor to the CIO position. To make the jump to CIO: A CDO is more likely to become a CTO next, rather than stepping directly up to CIO (although it could happen). Any data-driven business would naturally be an environment where they could flourish – and potentially take the top role. 4. Head of IT Security/CISO (Chief Information Security Officer) Overview: The CISO is responsible for the security of the organization's information systems and data. Relevance: With the increasing importance of cybersecurity, experience in this area is becoming more valuable for aspiring CIOs. To make the jump to CIO: It’s unlikely for a CISO to become CIO as their next role – they need to hold a senior position with a broader strategic remit first. But that deep knowledge of security could be a great positive for them further down the track. Other high-potential roles There are other positions too that are a little less senior and may come earlier in an individual’s career, which in my experience can be high-potential development roles towards the top. 5. Director of Digital Transformation/Innovation Overview: This is in itself a fairly senior role that focuses on driving digital transformation initiatives within the organisation, including the adoption of new technologies and digital processes. Relevance: Leading digital transformation efforts helps build the strategic vision needed for a CIO role. To make the jump to CIO: Transformation is a great grounding because it brings in so many aspects of systems, IT and business performance. It may just be a case of the individual broadening their experience where they can and looking for an organisation with a CIO vacancy that has also undergone a transformation. 6. IT Program/Project Manager Overview: These professionals manage large-scale IT projects, ensuring they are delivered on time, within budget, and meet business requirements. Relevance: Project management experience is valuable for a CIO, who needs to oversee multiple large initiatives and ensure alignment with business goals. To make the jump to CIO: The path to CIO is likely to involve the individual building their career up through the transformation/programme management route to director level, gaining more years of experience, and then looking out for a suitable opportunity. 7. Enterprise Architect Overview: Enterprise Architects design and implement the IT infrastructure and systems that support the organisation's business strategy. Relevance: This role requires strategic thinking and a comprehensive understanding of both business and technology, key skills for a CIO. To make the jump to CIO: The most likely route for a technical expert like an Enterprise Architect is to move up through the technical side, setting their sights on becoming a CTO. From there, a CIO role could follow. 8. Office of the CIO Overview: Office of the CIO acts as a liaison between the IT department and other business units, ensuring that IT services align with business needs. Relevance: This role builds the ability to bridge the gap between technology and business, a crucial skill for a CIO. To make the jump to CIO: These teams are already well engaged with the role of CIO and the business, and for the right person it could be a natural step to the CIO role itself further down the line. A more open field Our research at Harvey Nash shows that routes into technology are changing - more people are coming into it from non-technical backgrounds, and many don’t have a university degree, entering in other ways including through apprenticeships and self-learning. The field is opening up and there is more flexibility in career paths. A love of technology, a drive and determination to succeed, and the ability to inspire and motivate people and teams are the pre-requisites. So, if you aspire to become a CIO, take heart that there are multiple different routes through which this could happen. Yes, you’ll need to work hard and build a track record of success – and it may also be worth thinking about additional qualifications like an MBA or relevant certifications (e.g. ITIL, PMP, CISM) – but the ways in which you could fulfil your dream are growing in number as the modern business and IT landscape continues to evolve. About the author: Helen Fleming With nearly two decades of experience within recruitment and technology,Helenis the Executive Director of our Search and Specialisms solution at Harvey Nash, and is responsible for managing our technology specialisms and C-suite community from both a candidate and client perspective. To find out more about Helen, view her profilehere. Or if you would like to get in touch about technology roles and hiring, pleaseget in touch here.

The last few years have seen a boom in demand for technology services as businesses digitised and transformed following the pandemic. But last year, this began to level out in a tough economic climate. As evidenced in the2023 Digital Leadership Report, technology budget and headcount growth expectations dropped back from the highs of 2021 and 2022. Pay growth Despite this backdrop, we did see senior-level pay growth, in fact 65% of CIOs reported a boost to their earnings. That said, the typical increase was 5-10% which kept pay broadly in line with inflation. Above inflation, rises were focused in areas where technology is having a particularly strong impact on business performance. So salary-wise it was a good year to be leading transformation in the manufacturing / automotive sector, less good to be leading tech in advertising / PR. We’ve included this data, as well as salary benchmarks at the end of this article. Tech leader pay trends Technology is a well-paid discipline. As part of the Digital Leadership Report research, we collected information from respondents about their levels of pay. What is very clear is that there is a wide range of environments in which you can be a technology leader – and a similarly wide range of compensation. We found that, unsurprisingly, rates of reward increase the larger the organisation’s technology budget is. Amongst the smallest businesses (budgets of less than $1m), average total packages are $157,000 and upper quartile $200,000+. This rises to $456,000 average and upper quartile $700,000+ packages at businesses with tech spends in excess of $250m. It is important to understand both averages and upper quartiles. The average will include everyone in the sector, including all overperformers, all underperformers, people being paid too little and – whisper it quietly - people who are being paid too much. The upper quartile is more reflective of the salary that would attract someone into a new role, so is often the benchmark head-hunters use. Clearly, there is a lot of subjectivity here, and setting salaries rarely comes down to simply looking up benchmarks on tables. In fact when you do, as is sometimes the case in the public sector, the resulting salary might do a good job of keeping HR happy, but can do a less good job of putting a smile of the face of a high calibre candidate. That said, comprehensively sampled data is always a good place to start, and we’re pleased to share it here. One trend that comes through clearly in our data is that the larger the organisation’s technology budget (and the higher the compensation), the greater the proportion of reward in benefits or bonuses. Whereas at the smaller end of businesses with budgets below $1m, benefits are worth about a quarter of the total package, this climbs to approaching two-thirds at the top end. There are also marked differences and variations by sector. The lowest paying sectors (in terms of base salary) according to our research are Government (21% below the average), Charity/Non-Profit (-19%) and Education (-18%). The highest paying are Financial Services (+17%), Construction/Engineering (+17%) and Transport/Logistics (+13%). Interestingly, Technology itself sits broadly in the middle (-5%). The outlook for 2024 So, where does this leave expectations for 2024 – and what can individuals do to maximise their chances of securing higher rates of reward? The signs are that the recruitment market will strengthen as 2024 goes on, holding out the likelihood of rising reward packages. At Harvey Nash, we saw an encouraging pick-up in senior recruitment activity in the last quarter of 2023 which continued through the normally quiet month of December. On the current trajectory, I would expect this to build through 2024 with a consequent uplift in tech leader packages despite falling rates of inflation. A trend we saw emerging last year, which I expect to continue in 2024, is that businesses are prepared to pay a premium for candidates who combine leadership and business change experience (a hygiene factor) with deep technical expertise in specific priority areas such as data, security and cloud, along with outstanding soft skills. Engineers and developers who can lead complex projects, inspire teams and successfully get the best out of people are in huge demand. Last year, I worked with a VP-level candidate with a superb track record in product and engineering who also had impeccable people skills – this combination of skills meant he could have walked into any one of a number of roles and received five attractive job offers. Maximising your value How can individuals maximise their potential reward? Here are five tips based on what I’m seeing in the market. 1. Technical skills making a comeback.A few years ago, it was transformation and business change experience that really held sway. While these are still crucial, the rapid emergence of new technologies relating to data and automation means digital leaders need deep technical skills to lead or advise on their implementation in the business. Otherwise, what is the difference between the CIO and, for example, the CMO who is also a major user of technology platforms? That is why we’ve been seeing a renewed emphasis on securing technology leaders who really understand the technology, not just how it can be used. However, it is worth noting here that, while AI and in particular generative AI are hot topics that everyone is talking about, relatively few businesses are actually making large scale implementations of them as yet – so it may be another year or two before AI experience translates into a pay premium. 2. Good career moves favour the patient.It is likely to take anywhere from 3-6 months to find a suitable senior role in most cases, so be prepared to wait. Timing is important too. The market will move when it moves and this will dictate when rates really start to rise. So, know your sector and align your efforts when demand will be highest. 3. To go up, sometimes you need to move across.Astute career builders often look several moves ahead – they can see where they want to get to, but know they won’t get there all at once. Be prepared to consider a sideways move that will bring new experience, knowledge and skills. Develop a track record of successful project and people management. It’s the practical achievements that you can show that will ultimately help you reach a leadership or C-suite position. 4. Some sectors can favour their own.Remember that some sectors generally ‘favour their own’ and it’s hard to break into them without prior experience. Financial Services and Oil & Gas, for example, tend to look for individuals with an existing track record in their sector. Other sectors might be more open, particularly where there is a natural degree of overlap (Construction/Engineering and Transport/Logistics or Manufacturing for example). 5. Practical experience trumps qualifications.Qualifications, accreditations and certifications are certainly important – but practical experience and achievements generally carry more weight. In my experience, many employers show little interest in the technical qualifications a candidate has amassed. A certain level of technical rigour is regarded as a hygiene factor, after all. That said, other businesses will pore over a candidate’s professional qualifications very closely. My advice would be – if you’re passionate about gaining new qualifications and certifications, do it. It can’t hold you back and sometimes will work in your favour. A field of possibility One of the great strengths of working in technology is that it’s an exciting sector where new things come along all the time. It’s a sector that “comes to you” in terms of developments and opportunities. So, for many, there may be no need to move jobs as their role will naturally expand and evolve, with the reward package growing with it. However, if you’re in a role without much exposure to areas like AI and data which are evolving so rapidly, then it may especially be worth considering your options and exploring a move. Now is a good time to do so – the tech market in 2024 is set to be more positive than in 2023, something that we’re already seeing evidence of. Remuneration by budget Upper quartile* Average basic Average benefits % Less than $1m $ 137,000.00 $ 126,841.46 24% $1m-$9m $ 187,000.00 $ 161,739.13 31% $10m-$24m $ 224,500.00 $ 193,411.11 35% $25m-$49m $ 274,500.00 $ 235,310.81 48% $50m-$99m $ 300,000.00 $ 249,198.89 47% $100m-$249m $ 350,000.00 $ 263,086.96 65% More than $250m $ 424,500.00 $ 281,531.25 62% *includes supplementary research from Harvey Nash assignments Effect Sector has on base salary Government -21% Healthcare -19% Education -18% Advertising / PR -17% Healthcare -13% Telecommunications -11% Broadcast / Media -9% Technology -5% Business / Professional Services -5% Manufacturing / Automotive -2% Retail 0% Power & utilities 6% Pharmaceuticals 9% Leisure 10% Transport / Logistics 13% Construction / Engineering 17% Financial Services 17% CIOs who received pay increase in 2023, by sector Advertising / PR 34% Healthcare 48% Leisure 50% Technology 52% Financial Services 53% Business / Professional Services 54% Charity / Non Profit 61% Retail 63% Power & utilities 64% Global average 65% Broadcast / Media 66% Telecommunications 66% Government 68% Transport / Logistics 69% Education 73% Pharmaceuticals 78% Construction / Engineering 79% Manufacturing / Automotive 82% About the author Helen Flemingis the Executive Director for our UK South Specialisms, Search and Interim teams. With nearly two decades of experience under her belt, Helen is extremely knowledgable on the technology search space and is responsible for managing our technology specialisms and C-suite community from both a candidate and client perspective.