Crimson Blog

Why CIOs Can Make Great CEOs & Tips to Help Get You There

Written by Holly Burnett | Nov 27, 2024 3:57:53 PM

 

Technology is an essential priority for CEOs according to Gartner’s 2024 CEO Survey, second only to business growth.

Tech is now rightly recognised as the business enabler it truly is, so skilled CIOs and CTOs are an increasingly strategic asset to any organisation. It’s never been more important for tech leaders to have a seat at the boardroom table.

But what about a former CIO or CTO leading the board? Moves from CIO/CTO to CEO are still relatively unheard of, especially outside of the tech industry. By and large, the route to the top spot is still vastly dominated by former COOs, CFOs, and heads of division - with a few “leapfrog” transitions present too.

Yet the increasingly business-critical nature of CIO and CTO roles puts tech leaders in a unique position to potentially turn the tide in their favour.

So why do experts believe that CIOs and CTOs can make such great CEOs? Could we really see more CEOs coming from technical backgrounds in future? And how can tech leaders improve their chances of earning the coveted title of chief executive officer?

Why CIOs Can Make Great CEOs 

Though the move from tech leader to company head is still a relatively unusual one, there are a few reasons why CIOs and CTOs can make great CEOs.

Strong Data Skills 

CIO/CTOs have established, strong capabilities when it comes to digesting and communicating information. This can be crucial when it comes to making data-driven decisions, communicating pertinent information to the rest of the board, and using data to back up (potentially unpopular) decisions.

Healthy Approach to Transformation

CIOs and CTOs are often keen change-makers who lead crucial business and technology initiatives. This often gives them a “can-do” attitude to business transformation and change, and experience in steering the ship of technical, cultural, and behavioural change, organisation wide.

They are likely to carefully consider the interpersonal impacts of change and the importance of bringing people along for the journey.

Increasing Strategic Relevance

As the significance of tech has exponentially grown in the past few decades, tech leader roles have increased in strategic importance and involvement. This recent generation of tech leaders now have broad experience of swimming in top-level strategic and decision-making waters.

Experience with Risk & Regulation

Due to the nature of their roles, CTOs and CIOs are often highly experienced when it comes to juggling business risk, legislation, and regulatory requirements. They know that risk reduction is in no way a static target, and they’re used to navigating ever-moving legislative goalposts.

Future-Focused Tech Knowledge

As a technologist, a CIO/CTO already has a firm understanding of all things tech. They don’t need to be brought up to speed on emerging technologies like the Internet of Things (IoT), AI, Augmented Reality, Machine Learning, etc. They already grasp how the technology works and what potential it brings to the table.

Tips for CIOs Aiming to Become CEOs

Before we go any further, we need to point out a couple of caveats for tech leaders seeking to transition to CEO.

Caveat 1: This Move Is Not Compatible with All Employers 

Putting a tech leader in the top spot won’t make sense for every organisation. Especially if your current employer is in a particular professional vertical such as engineering, accounting, legal, medical, etc., it makes a lot more sense for a specialist in that field to take the top role.

Likewise, if your organisation isn’t particularly tech-focused, it may be more likely that a CFO or COO takes up the business’s reins.

At present, a CIO/CTO to CEO move would likely be far more viable within a tech-focused business - or maybe an organisation seeking to advance its tech maturity. So, if you are a tech leader with your eyes on the CEO spot, you may need to move to another, more tech-oriented organisation in order to do so.

Caveat 2: A Direct A-to-B Hop Isn’t Always Realistic

Sometimes a direct move from CIO/CTO to CEO just isn’t feasible. If you’re an IT leader with the CEO role in your sights, you may benefit from moving into a stepping stone position like COO to ease your path towards CEO.

With these two considerations out of the way, let’s get on with the advice!

  1. Broaden Your Business Skill Set

This one’s probably the most obvious, but also the most important. Seek out experience and training that broadens your business skill set around non-tech verticals like finance, operations, sales, marketing, and the other functions represented on the board. Grasp how each department or skill area comes together to create success - that’s at any business, not just your employer!

  1. Beef Up Your Financial Management Skills

Any good CEO needs to have a head for accounting and finances, which includes budgeting, financial planning, understanding finance metrics, and profit & loss management responsibility.

  1. Demonstrate & Develop Strategic Leadership Acumen

Where appropriate in your role as CIO/CTO, show your capability for considering overall business strategy, not limited to mere tech strategy and objectives. Work on developing your ability to make decisions that impact the whole business for the better.

If you’re able, you might want to create your own high-level vision for the business as it may stand you in good stead. It shows initiative, as well as an innate drive to strategise and lead.

  1. Work on Your Stakeholder Management

You’re likely already aware that C-Suite politics can come with its own culture shocks. It requires a very particular set of skills (and broad shoulders!) to navigate successfully.

Yet you can’t go far wrong by building relationships with leaders and teams throughout the business, and with key partners outside of the business. Get used to communicating with various professionals who may each require very different communication styles that you might be unfamiliar with.

But it’s not all hobnobbing with fellow executives. Great leaders make sure all individuals are heard throughout the organisation, embracing diversity and encouraging honest communication.

  1. Leave Your Ego at the Door!

This isn’t going to be an issue for many of our readers, but don’t let your ego get in the way of being a good captain.

The role of CEO is to be a generalist business leader who is informed by their fellow C-Suite subject matter experts. The CEO may lead the company, but it’s not their job to be the smartest person in the room!

  1. Deepen Your Knowledge of Your Industry & Market

Even as a company’s de facto tech lead, there are likely to be market, industry, and competitive factors at play that may have - thus far - been at arm’s length for you. Seek these out and become familiar with the organisation as a whole, outside of your tech-focused bubble.

Get to grips with customer trends, audience preferences, and the pros and cons of each major competing solution to your employer’s.

  1. Expand Your Comfort with Risk & Crises

As a head of tech function, you likely already have some experience with balancing risk and firefighting in times of crisis. But as CEO, the buck will stop with you in case of any business disaster - not just a techy one!

You will be the one that people look to for guidance and remediation through any crisis. You will be the individual bearing the most responsibility when the worst happens. Anyone with their eyes on the CEO’s chair needs to be comfortable with this. (Tips 10 and 11 may also help here.)

  1. Enrich Your Understanding of the Company’s Value

Become intimately familiar with what value means to the organisation as a whole. It might help you to think of this as achieving a bird’s eye view of “what everyone is getting out of” their interactions with the organisation - whether that’s by working for you, buying from you, or being present elsewhere in the food-chain.

  1. Seek Out Operational Experience

The role of CEO is much more practical than it often gets credit for. Granted, many CEOs don’t roll their sleeves up with the entry level teams but getting a strong grounding in how things work operationally can provide powerful experience in dealing with the multi-faceted, multi-layered stakeholder-juggling that the CEO needs to be capable of.

As mentioned above, many CEOs have previously served as COOs. Therefore a “stepping stone” move to COO (or even a move to interim CEO if the opportunity presents itself) can help embed this kind of cross-disciplinary working, thinking, and strategising!

  1. Work on Your Leadership Skills - and on Leading Yourself

Any budding CEO needs to get comfortable with making the biggest decisions in the organisation. As CEO, you will be making much bigger, more wide-reaching decisions than ever before; wherein business risk, reputation, people’s livelihoods, and the wellbeing of the whole business could hang in the balance.

Such vast responsibility is emotionally taxing. A lot of “inner work” is required to maintain a cool head under pressure, so consider using professional and/or personal executive coaching to help you lead with confidence and conviction - and to help others to do the same.

  1. Seize Networking Training and Mentorship Options

Embrace networking opportunities with CEOs and COOs who you know (and in the unlikely event that you don’t know any other than those you share a boardroom with, get networking!). The goal here is to move out of your tech-oriented shell and become an increasingly familiar face in operations and business leadership spaces.

Additionally, you might find it useful to find a mentor who sees your potential as a future CEO, and who is willing to serve as your guide and cheerleader along the way.

  1. Cultivate Your Personal Brand

Building a personal brand is essential to becoming a well-known thought-leader in your niche. Make yourself familiar with the marketing and branding practices at play in personal branding. Share unique, authoritative ideas through platforms like LinkedIn and build an audience.

The goal here is to build a reputation as an authoritative and reliable voice amongst business leaders, and to become a go-to person within your field. With this in mind, you might want to consider opportunities to speak to the press, appear on podcasts, or speak at more business-focused events.

Are you a C-Level technologist exploring options for your next role?

Find out more about our C-Suite Executive Search services, or book a confidential call with our CIO Search experts today.