If CIOs only stay 4 years, why hire them from outside?
CIO turnover is high, limiting long-term strategy planning. Internal talent development can lead to meaningful leadership, rather than relying on external hires for transformation.
Business has developed an odd habit. Every few years, we replace the CIO.
Not because they have necessarily failed and not because the organization has fundamentally changed, but simply because a different CIO has appeared on the market carrying fresh ideas, a compelling LinkedIn profile and a promise to transform everything.
Then, four years later, we do it again.
Research shows that more than 70% of CIOs have been with their organization for fewer than five years and nearly 40% for fewer than two years. These are remarkable numbers for people supposedly responsible for long-term technology strategy.
If we accept the frequently cited average CIO tenure of around four years, the economics become rather interesting.
A new CIO typically spends the first six months learning the organization: the politics, culture, history, personalities, unwritten rules and reasons why apparently irrational decisions were once entirely rational. The final six months are often spent either planning an exit, preparing a successor or dealing with the consequences of the next career move.
At best, we receive about three years of fully effective leadership from someone supposedly hired to define the organization's technological future, which raises an awkward question. Why are we so convinced that the next CIO must come from somewhere else?
The cult of the external hire
There is a persistent belief that transformation arrives from outside, as boards often assume fresh thinking requires fresh people. It results in a recurring cycle of external appointments bringing external solutions to internal problems.
Occasionally, this is absolutely the right thing to do. Sometimes, organizations become trapped by their own assumptions and need an outsider's perspective, but making that the default position seems increasingly strange.
Imagine applying the same thinking to an elite sport. A rugby club would identify a talented young player, invest in them for years, watch them learn the culture, understand the tactics and build relationships. Then, just as the player was ready for leadership on the pitch, the club replaced that person with someone who had never been in the dressing room.
Most clubs would regard this as slightly inefficient, whilst many organizations call it succession planning.
The knowledge that's hardest to replace
The strongest argument for developing CIOs internally isn't technical knowledge. Technical knowledge expires too quickly, and any aspiring technology leader who cannot continuously learn is already in trouble.
The real value sits in organizational understanding.
A good CIO should understand how decisions are really made, which stakeholders matter, what the business values really are, which risks are tolerated and which are not, and where previous attempts succeeded and failed.
This knowledge is rarely documented. Rather, it lives inside relationships, experience and accumulated judgment. The irony is that these are precisely the things external appointments lack. This results in every external appointment beginning with a learning curve internal candidates have already climbed.
The modern technology leader is not a technical leader
I think it is now generally accepted that the modern CIO role extends far beyond technology. Future leaders need commercial awareness, people-development skills, organizational influence and business judgment alongside technical credibility.
This matters because many organizations still think about succession the wrong way. They identify the smartest technologist and assume leadership follows naturally.
It doesn't.
The best specialist is not automatically your next technology leader. Future leaders must develop business understanding, learn how organizations operate and gain experience influencing beyond their technical domain.
The good news is these capabilities can be developed. The concerning news is that many organizations never try.
We promoted the wrong people
Technology has a long history of promoting brilliant engineers into management. Sometimes it works beautifully; sometimes it resembles asking an award-winning violinist to run an orchestra because they happen to be excellent with a violin.
The roles are related but not the same, and the outcome is often unsuccessful. Future CIOs need opportunities to exercise judgment, build relationships and understand strategy long before they inherit the title.
We need a more effective approach to evaluating future technology leaders. Examining technical capability alone has long been the wrong approach. We need to explore multiple dimensions, including whether someone who could be a CIO actually wants to be one. Many technical experts prefer the technology over other aspects, which seems obvious, yet many organizations discover this only after promotion.
The missing career path
One of the biggest problems is that many organizations lack a clear path to technology leadership. If ambitious technologists want career progression, they are often pushed toward management regardless of their strengths. Sometimes, because of this, they leave.
Neither outcome is particularly helpful.
The more effective approach is to create a credible technical leadership pathway all the way to executive level, exposing future leaders to commercial discussions, investment decisions and strategic planning.
This achieves two important things. It lets potential leaders grow before they're needed and lets the organization directly assess candidates over time in real-world situations.
Sponsorship matters more than recruitment
We often talk about mentoring staff to help them develop, but there is something more useful: sponsorship. Mentors provide advice, but sponsors create opportunities.
A sponsor uses their influence to give someone stretch assignments, exposure to customers, regulators, boards and strategic decisions. They create experiences rather than offering guidance alone, and the organizations that consistently grow leaders tend to do exactly this.
They don't wait for people to become ready; they create situations that help them become ready.
The succession question
Perhaps the most revealing question a board can ask is: "If our CIO resigned tomorrow, who could replace them?" If the answer is "we'd start a search," that's not succession planning; that's recruitment.
Real succession planning means identifying potential leaders early, understanding their aspirations, testing their judgment and providing opportunities to grow. The result is not just a stronger leadership pipeline; it also shortens learning curves, provides greater continuity and creates leaders who already understand the organization they are being asked to lead.
Stop buying what you could be growing
None of this suggests organizations should never hire CIOs externally. Sometimes, an outside perspective is precisely what's needed, but it should be the exception rather than the default.
If the average CIO really spends only four years in the post, then replacing one external hire with another every few years starts to look less like strategy and more like a recurring administrative process.
Organizations that will thrive over the next decade will likely be the ones that stop treating technology leadership as something they buy and start treating it as something they build. If we're only getting three productive years from each CIO, perhaps the best investment isn't finding the next one. It's growing them before we need them.