In search of the ideal CIO.

• Author: Palmlund, David
• Position: Chief information officer

Looking for the right person for that top information slot? This recruiter explains which CIOs are winning the top jobs - and who's falling through the cracks.

Asked why their CIOs failed to measure up, senior executives in a recent survey had a long list of complaints. "Our CIO is history," the respondents said, "because he ...

* Was too internally focused and didn't pay attention to markets, customers and competitors.

* Was always reacting; he failed to anticipate problems and opportunities.

* Didn't communicate well with the rest of the business.

* Constantly promised more than his organization could deliver because of the lack of user involvement and buy-in."

This survey shows that while some CIOs are making the transition to business partner, others are still lagging behind in their thinking. If you oversee your company's information-technology area, here's a window into why and how successful CIOs make that transition to business partner, and how that affects functions in the rest of the organization.

Today's CIO is often required to have a bachelor's degree and even a master's degree, and 10 to 20 years' experience is ideal. Hardware-specific experience isn't as important today as it once was, because the technical people underneath the CIO now provide the hardware information. But certain other types of experience, such as telecommunications and multimedia, are becoming much more valuable.

Also, industry-specific experience is very important for CIOs in high-tech, transportation or retail fields. It's very common for someone in high tech or transportation to move up from a CIO position to a senior management position. On the retail side, it's more common for the CIO to advance by assuming additional responsibilities, such as distribution, store management or real estate.

The typical CIO's staff is changing to accommodate new business ideas. In the past, large staffs connoted power for the CIO. Today, a smaller staff that's heavily outsourced allows the CIO to get rid of the mundane and become more of a business partner, and thus a survivor. But outsourcing shrinks the traditional kingdom of the CIO, and the danger here is that the information-technology area can become merely the keeper of the infrastructure.

WHO GETS THE BIG BUCKS?

In 1995, the average U.S. CIO earned $147,000 in total compensation. CIO compensation commonly includes options with one- to three-year vesting, restricted stock with three- to five-year vesting, or...