Should a company promote someone from within to be CIO?
Case 1: Yes – If the company IT structure is such that there are divisional CIOs then it probably makes sense. Divisional CIOs usually have local jurisdiction over their specific budgets and staff. Therefore they have the experience to step up and lead the organization as CIO.
Case 2: No – If the company does not have people experienced in people, processes and technology. In this case, promoting someone without that level of experience is a recipe for failure. In cases such as this I would recommend that the firm go out and hire someone.
Case 3: No – If you company has a mediocre IT department. If the firm is still struggling to show value of IT then it is best to bring in new blood. A person with new ideas and experiences will be able to take charge and lead the organization.