Only 12% Of I&O Leaders Exceed CIO Performance Expectations: Gartner

In the face of continued economic headwinds, only 12% of infrastructure and operations leaders rated their function’s performance as exceeding CIO expectations, according to a survey by research and consulting firm Gartner. 

The survey was conducted among 122 I&O leaders from enterprises in North America, Europe, the Middle East and Africa, and Asia-Pacific whose growth was impacted by external threats in 2022 and 2023. 

“I&O leaders must support senior leadership by proactively contributing to their organisation’s ability to navigate economic uncertainty,” said Cameron Haight, VP analyst at Gartner. “Their destinies are interlinked, as a failure by the business to execute the proper strategy will have repercussions across the organisation,” Haight added. 

Cybersecurity risks (48%) was cited by I&O leaders as the most frequent threat impacting enterprise growth in 2023. Supply chain disruptions (45%) and talent and skills shortages (43%) were listed as the second and third most important external threats likely to impact growth, followed by inflationary pressures (40%). 

While seeking to overcome these threats, I&O leaders are being asked to meet organisational expectations with funding that barely keeps pace with inflation. In 2023, 41% of I&O leaders’ budgets increased but stayed steady relative to inflation, while 37% of budgets were either cut or stayed steady but declined in real terms due to inflation. Only 27% of I&O leaders’ budgets increased and grew relative to inflation. 

“While it remains to be seen what 2024 budgets will look like, the lack of real funding growth observed to date could cause projects to be deferred into next year, causing a cascading appropriations challenge,” said Haight. 

Actions For I&O Leaders To Navigate Economic Headwinds

Gartner identified three actions that successful I&O organisations were adopting to counteract the forces of economic uncertainty. I&O leaders that leveraged these practices were three times more likely to help their enterprises better navigate a turbulent economy, Gartner said. 

• Workplace Environment That Improves Well-Being And Inclusiveness: I&O leaders face challenges recruiting and retaining talent to achieve their objectives. Within I&O teams that were rated as the most effective, 84% of leaders reported building a welcoming and inclusive workplace. Furthermore, 79% of I&O leaders at highly effective organisations ensured the holistic wellness of employees by holding them accountable for personalising their well-being progress. 

• Improving I&O Efficiency Through Enhanced Analysis Capabilities: Maximising the impact of technology and other investments remains a critical focus for I&O leaders. According to the survey, 89% of leaders in highly effective I&O organisations formulated strategies for process transformation and optimisation, and 82% identified opportunities to reduce technology costs through economies of scale or cross-enterprise synergies. 

• Enhancing I&O’s Ability To Partner In Digital Business Activities: I&O leaders may struggle to be viewed as a key partner with business leaders, due to an inability to easily link IT investments to business outcomes. To enhance their contribution to the organisation’s digital business strategy, 92% of effective I&O leaders fostered better coordination of I&O digital investments across lines of business or product lines. Additionally, 84% applied objective analysis to translate enterprise priorities into investments that advance digital business potential, and 79% provided a common language for business and I&O stakeholders to coordinate digital investment decisions.