What is the HR Fallout From CEO-CIO Misalignment?

Collaboration between a company's CEO and its Chief Information Officer (CIO) is a critical component of organisational health, influencing everything from strategic decision making to the successful integration of new technology like AI. 

However, this crucial relationship often suffers from a major disconnect. According to a study named "Crucial Conversations" by Netskope, two in five CEOs report being misaligned with their CIO on key decisions. 

This research, based on interviews with global CEOs and 202 CIOs in the UK and US, highlights a significant trend for those in charge of people and culture. 

With 31% of CIOs not confident they know what their CEO truly wants, the potential for internal friction and strategic drift could be high. 

Discussing the findings, Mike Anderson, Netskope’s Chief Digital and Information Officer, says: “Our goal with this report is to give CIOs a peek inside the minds of CEOs, and offer guidance about how to position discussions in the most effective ways possible.”

C-suite expectations and talent alignment

For HR leaders, understanding the expectations placed upon technology chiefs is vital for recruitment, development and succession planning. 

The Netskope report outlines several key traits that CEOs value in their CIOs, which HR leaders can use to build ideal candidate profiles and internal development programmes. 

These include being:

• Technically expert but focused on business outcomes
• Future-facing tomorrow’s tech developments while staying in the here and now
• Collaborative and involved in multiple departments but not domineering
• Visionary and strategic but remaining hands-on and detail-oriented

When these expectations are not met or understood, the resulting dysfunction can impact the entire organisation. 

The report notes that 34% of CIOs do not feel empowered to make long-term strategic calls. 

This lack of empowerment can directly affect employee engagement and talent retention within technology departments, a critical concern for any Chief People Officer. 

David Smoley, former Global CIO of AstraZeneca and Flex, said: “When it comes to your CEO relationship, focus on quality over quantity. It’s more important to have engaged communication and be closely aligned with their priorities, than to have a high number of interactions for the sake of it.”

Strategic gaps in modernisation and AI

Despite constant corporate dialogue around digital transformation, a quarter of CIOs (26%) state it is difficult to get clear answers from their CEO on these strategies. 

This ambiguity has tangible consequences. The Netskope findings show that 41% of CIOs believe their businesses are not investing enough in modernising IT infrastructure. 

This sentiment is echoed by PwC data, which found a 20% drop since 2023 in the proportion of IT leaders who feel their function is ready for reinvention, a period marked by the rapid rise of enterprise AI. 

For HR leaders, this misalignment signals a potential roadblock to implementing technologies designed to improve workforce efficiency and experience. 

It could also suggest a workforce that is ill-equipped for the future, creating major reskilling and recruitment challenges.

People, performance and resource management

The integration of people and AI into a cohesive operational environment is a primary concern for CEOs. 

They are now encouraging CIOs to communicate more broadly about performance and resourcing across the company, not just within the confines of the IT team. 

This marks a critical intersection point for the CIO and CHRO. As technology becomes more embedded in every role, leaders want transparency and simplified metrics to measure its performance and impact on the workforce. 

In particular, CEOs are asking their technology chiefs to demystify technical jargon, particularly around budget decisions and risk, and present options with clear trade-offs. 

They also seek transparency over the entire IT estate to understand potential problems before they arise. 

This collaborative approach is essential for enacting company-wide change. 

Joe Topinka, Founder and CIO of Mentor, said: “For IT and digital leaders leading modernisation, it means intentionally forging stronger ties with the C-suite that are anchored in clear communication and shared goals.” 

This alignment is not just a technology issue but a fundamental people and strategy concern that requires direct input from HR leadership.