How to Become the CEO

By Courtney Macavinta

Michael Capellas made the jump. He advanced from Compaq's CIO to a brief stint as CEO and then was tapped for the same slot at MCI. Former FedEx CIO Dennis Jones went on to become CEO of Commerce One. Before he retired from Farmers Insurance Group this March, former CIO Martin Feinstein had a long stretch as chairman and CEO. And after 20 years at Wal-Mart in various roles including sales clerk, CIO and CEO of its Sam's Club division, Kevin Turner is slated to take his post as COO of Microsoft this month.

The bottom line: More and more, CIOs are candidates for the corner office. And if Turner and the others' career paths are any indication, today's Fortune 500 CIOs need more than tech know-how. They also need to have the right stuff to be a future CEO.

CIOs are already expanding their jobs beyond technology alone. Whereas in the past CIOs were viewed as technologists who oversaw many companies' biggest cost centers, now the role increasingly requires business management and corporate governance chops along with CEO-like charisma and leadership abilities. In fact, by 2008 most CIOs will report directly to the CEO, according to a report released last year by META Group. It's no wonder; CIOs are often at the center of regulatory compliance efforts and building the business through increased efficiency and IT-enabled services.

With the CEO talent pool increasingly being drained, experts say that now more than ever the opportunity is there for CIOs to move up if they want to. "CIOs who demonstrate their business prowess, accumulate political capital, and communicate their value are perceived as potential leaders suitable to occupy the corner office," says Al Passori, vice president and program director for Gartner Executive Programs, who coaches and advises Fortune 500 C-level executives.

So how does a CIO build the track record, skills, and relationships to gain the top spot? Experts say CEO hopefuls need to have the following notches in their resume:

Garner CIO success
 
Even though CIOs no longer need to come up through the programming ranks or be ground-breaking technologists themselves, they still need to demonstrate an ability to manage the CIO group well before setting their sites elsewhere.

"It's a misstep when CIOs abandon their responsibilities to pursue higher objectives such as trying to make it more of a COO role," says Paul Groce, a partner with executive search firm Christian & Timbers, who has created a "CIO 2010" model. "Focus on success, success, success. Prove and demonstrate you can deliver as CIO and you'll gain greater responsibility."

Develop a strong business acumen
 
One-third of the 250 IT directors surveyed in June by silicon.com said that it was more difficult for IT executives to progress up the ladder than, for example, finance or sales directors. It's true. A CIO does need well-rounded business experience to ascend the ranks -- from serving in finance to marketing to being responsible for P&L reports and knowing the ins and outs of human resources and the supply chain. 

For this reason, Groce says the more logical progression in many cases is from CIO to COO and then onward and upward.

"CIOs are not made into CEOs," Groce says. "Business managers are made into CEOs." For example, former Compaq CIO Capellas is better known for his two decades of business management experience that groomed him for his CEO appointments.

"There are a lot of CIOs who are less tech savvy and more leadership savvy," says Jason Corsello, a senior analyst for the Yankee Group's Human Capital Management practice. "The CIO role is no longer focused just on technology but on how to optimize the company and make it more efficient -- they are becoming business process experts."

Groce agrees that the CIO of the future must also be an outstanding business manager: "They have to be wired with a solid, extremely deep business acumen and leadership capability. If the person is a technologist who lacks these innate skills, they should remain on the technology path."

CIOs can earn the respect of the boardroom if they use a portfolio management approach to IT investment to show that the organization is paying the appropriate price for value-add IT services, Passori notes. "By aligning with corporate strategies, including the governance protocol, the CIO starts leading other business units regarding how to make investments," he says.

Get high-level and global exposure 

Experts agree that CIOs shouldn't be shy when it comes to getting recognition for success and face time with the board. And it's important that CIOs not be viewed by as exclusively IT-focused.

"For CIOs at Fortune 500 companies, it's about getting their story out there and being visible -- whether it's at industry conferences or thought-leadership panels," Corsello says. "You need to gain visibility to make the jump into a more business-focused role."

Finding an advocate and being relationship savvy are also key. Passori suggests that the CIO have a credible "playbook" -- a report that explains the state of the organization's IT strategy and where it's going -- suitable for a brief presentation to the CEO and the board of directors.

"A lot of CIOs are extremely bright and articulate but they are not politically connected within the organization," he says. "A CIO who wishes to be part of a succession plan needs an executive mentor who can influence those board members, and also needs to be able to deliver board-level presentations."

For many CIOs, dealing with global operations has become a significant part of their job description -- which can strengthen their chances of rising to CEO. From initiating outsourcing strategies to managing overseas vendors, they are no doubt being enlisted in a more strategic way.

"They need to think about how they are leveraging their business process outsourcing relationships, and ways to differentiate themselves in their organization and industry," Corsello says. "They need to make sure they are looking at those opportunities today before their competitors pass them."

Have integrity and vision

In an age of increased corporate accounting scandals, consumer privacy breaches, and regulatory crackdowns, character counts when it comes to selecting executive leadership -- and that includes a CIO being a good corporate citizen.

"Above all, to me, personal integrity is most important," Passori says. "The best leaders are not just visionaries but lead by example."

One thing is for sure, Passori adds, CIOs will continue to gain more procurement, contracting, and facility management duties. And the continued demand for seasoned executives will keep draining the existing talent pool of qualified CEOs, which will open the door for more CIOs to move into the corner office. As executive recruiter Groce puts it: "CEOs are asking us to find CIOs who can be CEO five years down the line. The CIO of 2010 is a future CEO."

Courtney Macavinta is a Silicon Valley-based business and technology writer. Her articles have appeared in CNET News.com, Business 2.0, Red Herring, and The Washington Post.