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Four and Done
CIO turnover isn't as frenetic as it once was, but it's still fairly frequent. According to recent data from Forrester Research Inc.'s CIO Group, the average CIO's tenure is 4.6 years; and another Forrester survey last year estimates it at 3.9 years. Many CIOs start mulling their next move around the time of their third or fourth anniversary and then spend the next few months securing a new position, analysts and recruiters agree. "If you're in there for five or more years" without considering a move, "you're breaking the metrics," says Gerry McNamara, a senior partner who specializes in recruiting CIOs for Heidrick & Struggles, an executive search firm based in Chicago.
That's not to say that every CIO has to contemplate a change so often. Making a career at one company is fine, as long as both the company and the CIO believe they are getting the most out of the relationship. But if a CIO becomes dissatisfied, it's important for him to leave fast; no one wins if he sticks around. A discontent CIO is less likely to perform well, which can damage his company and his career. When an unhappy CIO says to himself, "'Maybe I'll hang onto it longer,' that's when it starts to deteriorate," says Mark Lutchen, head of the IT effectiveness practice for PricewaterhouseCoopers, an accounting and consulting firm based in New York.
Generally speaking, there are two types of CIOs, and each gets dissatisfied with his current role for a different reason. The first are "transformational" CIOs, those who like to engineer massive change and "get bored after the changes have occurred," Lutchen says. "The time for them to go is when they recognize that they've done their piece, which fits their skills, and need to move on to the next transformation."
Lutchen is familiar with this scenario. That's what happened to him in the mid-1990s when he was CIO of accounting firm Price Waterhouse. When the firm agreed to merge with competitor Coopers & Lybrand, Lutchen was charged with merging the IT systems of both behemoths. And he was under a tight deadline: The new company needed to operate on the same system by day one of the merger.
To prepare, Lutchen led a team of 2,500 IT workers. They integrated technology used by 150,000 employees in 150 countries. Upon completion, Lutchen felt exhilarated. "The heavy-lifting part was over," he says. Then he wanted something just as challenging and exciting, so he moved to a role where he could work with clients as a "relationship partner," a more senior position than his pre-CIO role of senior practice partner.
The second type of CIO is a "maintainer," says Lutchen. This person likes to run or fine-tune systems that are already in place and to avoid change whenever possible. A maintainer is sometimes too slow to make major IT changes in a dynamic business environment where a company may shift its strategy. Lutchen says he has consulted for companies trying to figure out how to get these maintenance-oriented CIOs ready to make needed changes. Sometimes they will never be ready, he says, so they get pushed out.
Ideally, a CIO has a good reputation with fellow executives and has finished major projects before he starts prospecting for another gig. But the reality is, most CIOs don't start looking until they are discontent. The feeling can grow slowly, but more often it's the result of a sudden business change, like a slashed budget, a new executive team or a new boss who seems like an ogre. "He doesn't like the ties I wear," McNamara says he has heard from an unhappy CIO.
To get a better sense of how CIOs know it's time to move on, we talked to several with an array of experiences. Some bailed out after their companies suddenly changed course. Others came to realize over time that the job they initially loved had become less interesting or merely tolerable. Here are their stories.
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