Reporting Lines: CIO to CEO

IS it essential for the CIO to report to the CEO? The reporting relationship of CIOs is frequently an area of curiosity and sometimes concern for Gartner Executive Program members. It’s also a question that Gartner asked of more than 2,000 CIOs worldwide in our latest annual CIO survey, which tracks how CIOs balance their business, strategic, technical and management priorities. The survey report aggregates the responses from CIOs in 50 countries across 38 industries, representing over $160 billion in corporate and public sector IT spending. I’ll go into more detail about the findings of this year’s survey next month.

This year’s survey found that globally, a minority of CIOs (38 per cent) report directly to their CEO today.  This situation has remained remarkably consistent over the period in which this question has been part of the annual survey (From Gartner's EXP Global CIO Survey- Source: Gartner (January 2011)

The Asia Pacific survey results show that the number of CIOs reporting to the CEO in our region is very similar.  Forty percent of APAC CIOs report to the CEO, 14 percent to the CFO, 16 per cent to the COO and a significant 30 per cent state that they report to the ubiquitous “Other”.

CIOs should take caution in interpreting the fact that they may not report to the CEO as evidence that their strategic contribution is not appropriately recognised.  Gartner does not believe CIOs should report to the CEO in all cases, or by default.  Consider the following analysis in terms of your own circumstances.

Current practice is for Boards to counsel CEOs not to let their personal span of control (total number of direct reports) become too broad.  Therefore a CIO must justify his or her occupancy of a direct reporting line.  

Typically CEOs compose teams that include:

1. Legal, fiduciary, regulatory or company constitution required roles such as CFO, Legal Counsel, Company Secretary.  These roles are usually permanent members of the CEOs team of direct reports.

2. Roles that represent ongoing core operations pertaining to the industry sector e.g. COO or Head of Manufacturing in FMCG organisation.  These are usually also permanent direct reports also.

Then there are a number of roles which may be required during special events, e.g. M&A activity, or roles that involved in enacting specific strategic changes.  These direct reports may be transient depending upon their ongoing accountabilities post the special event, and the circumstances of the organisation.

9 Steps to Take with Your Accounts During a Bank Merger or ...

Banks are constantly being gobbled up by larger financial institutions looking to expand their empire. This trend can be extraordinarily frustrating if you’ve spent a long time with a bank you like and then a larger one takes it over and changes all the rules.

Getting accustomed to the changes can be unsettling and even expensive. But before you jump ship and transfer your funds to a different bank, consider these 9 tips.

If your bank was just purchased or taken over, do not panic. Sometimes nothing significant changes at the consumer level aside from new deposit slips and a new sign. But even if changes are coming, the merging of two banks’ systems takes time. In other words, you will probably not feel the effects for at least several months.

Once the acquisition or merger has been announced, get to know the new bank as quickly as you can. Whether it’s a large national bank or a smaller regional player, there’s usually a website you can go to that details the bank’s account structures.

For example, does the new bank offer an account like the one you had with your old bank? If you find a similar option, check it for associated fees. If you are used to free checking and the new bank doesn’t offer it, your account may not be free for much longer. On the other hand, the new bank may charge you less for services you’ve been accustomed to paying for.

As the bank merging process continues, significant changes to various types of accounts will be announced. Pay close attention to all e-mail and paper correspondence you receive from the new bank. Be wary of e-mail phishing hoaxes, however.

The bank must legally inform you of changes to your account. After being notified, you will have time to make adjustments or switch to a new bank. Again, do not panic.

Once you are made aware of the changes, decide whether you can accept them or if you need to . Perhaps the changes are minor or your particular type of account is unaffected. If that is the case, consider staying since moving between banks can be a hassle. But if new fees will be added or you’ll otherwise be inconvenienced, don’t be afraid to take the leap and search for a new place to bank.

If new fees are added or your account is changed, don’t forget that you have leverage. Explain to the new bank that you will take your business elsewhere unless they let you keep your account under the old rules, known as “grandfathering” you in. At the very least, request that they compromise and meet you in the middle. Most banks will bend over backwards to prevent a stable, long-term customer from leaving.

Chambers global, the world's leading lawyers for business ; 2004-2005 The client's guide

Bank mergers in a deregulated environment, scrutinizing the promises, avoiding the pitfalls

The Code of Federal regulations of the United States of America

The timely positioning of banks for acquisitions and mergers

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