For most of the existence of the role of Chief Information Officer, CIOs have primarily reported to the CFO. Over the past twenty years, as technology has become central to business, CIOs have started to report directly to the CEO. The shift has been gradual, and it’s a change that CIOs across industries are pushing for.
The National CIO Review polled CIO Professional Network members on their organizations’ reporting structure and found that most CIOs report to the CEO.
Just three years ago, only 56% of CIOs said they reported to the CEO. Since then, that number has grown to 74%. The pandemic accelerated digital transformation as most organizations moved their operations online and to the cloud nearly overnight. As organizations continue to adopt and improve digital strategy, CIOs will have a more important role requiring a direct line to the CEO.
“In the past, CIOs were seen as just tech gurus and held responsible for tactical deliverables,” says James Donley, Chief Technology Officer at One Call Concepts. “As digital transformation started highlighting the need for business understanding aligned with technical solutions, and CIOs straddling between the two, CEOs wanted them ‘in the adjoining office’ to drive those initiatives. Before, CIOs ended up in those roles just because everyone stepped backward and they were the only ones still standing forward.”
According to a survey by Deloitte, organizations with a digital strategy are more likely to have the CIO report to the CEO, even if there is also a CDO.
“CIOs reporting to CEOs ensures an equal vote with the other leadership and allows them to participate in the leadership meetings where so many important conversations and decisions occur,” says Donely.
While the percentage of CIOs reporting to CFOs has decreased since 2020, CIOs are stressing that relationships, over reporting structure, are the focus. CFOs and CIOs share common goals, and strong CIO/CFO partnerships must exist regardless of reporting structure.
The percentage of CIOs reporting to COOs has also decreased over the past three years, although not as sharply as CFOs. Most organizations see a CIO’s role less as an operations function and more as a strategic function, so reporting to the COO can seem out of place.
Overall, as more and more businesses see CIOs as central to digital strategy and success, more and more CIOs are reporting to the CEO, increasing their importance and voice within the organization. CIOs across industries and organization sizes encourage this shift since it often guarantees them a seat at the table.
