The IT Performance Gap: 6 Key Reasons for Falling Behind

Avanmag
By Avanmag
7 Min Read

CEOs often feel that their IT teams aren’t performing as well as they should, but the problem isn’t always the IT team itself. Sometimes, unclear expectations, the wrong way of measuring success, and a lack of resources get in the way.

For CIOs, doing a great job isn’t just about personal pride—it’s about building a strong reputation. When a CIO exceeds expectations, it becomes easier to influence decisions, gain trust, and secure the support needed for future innovation. It also opens doors for better career opportunities, making them stand out as leaders who can truly make a difference.

Meeting expectations is the basic requirement, but exceeding them brings real benefits. It not only improves a company’s performance but also helps IT teams by getting them the tools, resources, and training they need to do even better work. However, despite these benefits, many IT departments still struggle to stand out.

Studies show that IT teams are performing decently, but they’re not exactly wowing their organizations. A report from IBM in 2024 found that only 36% of CEOs think IT is effective in providing basic services. A decade ago, that number was 64%. Likewise, only 50% of CFOs see IT as efficient today, compared to 60% in 2013. Even among IT leaders, only 47% believe their own departments are performing well, down from 69% in previous years.

So, what’s holding IT departments back from excelling? Here are some key reasons:

One major issue is unclear expectations. Many companies don’t clearly define what they expect from their CIOs or IT teams. Without a clear goal, it’s hard to exceed it. At large organizations, CIOs usually understand their targets. But in smaller or less mature companies, there’s often confusion about what success looks like. A study found that while CEOs recognize the need for collaboration between tech and finance teams, only 35% of CFOs actually work closely with IT to set expectations. Because expectations vary so much from company to company, CIOs don’t always have a standard benchmark to aim for. This lack of clear communication means that IT leaders are often left guessing about what they need to achieve.

Even when expectations are set, the way success is measured is often flawed. Many companies focus on technical factors like system uptime and availability. But if the expectation is that systems must be up nearly 100% of the time, there’s no way to exceed that expectation—there’s no such thing as 105% uptime. Instead, success should be measured by how much value IT brings to the business. CIOs should work with their leadership teams to establish goals that focus on business impact rather than just technical performance.

Another challenge is shifting expectations. Even when a CIO has a clear goal, those targets often change unexpectedly. CEOs may hear about new technologies or competitor innovations and suddenly expect IT to deliver similar results. The rise of AI in recent years has dramatically shifted expectations for IT departments, sometimes making previous achievements seem outdated. In some cases, even CIOs who were exceeding expectations found themselves struggling to keep up with new demands. Additionally, as CIOs succeed, their goals often get pushed even higher. That’s why it’s important to set expectations that allow for long-term progress rather than constantly changing short-term goals.

Technology itself can also be a roadblock. Many IT teams are working with outdated systems that slow them down. A study from Deloitte found that legacy technology is one of the biggest reasons companies struggle to cut costs and improve efficiency. When IT teams spend all their time maintaining old systems, they have little room for innovation. Some organizations are just now moving from on-premise servers to cloud-based systems—a necessary step, but one that only brings them up to speed rather than putting them ahead. Without modern tools, even the most talented IT teams can’t exceed expectations.

Limited resources are another common issue. While IT budgets are generally increasing, many CIOs still don’t have enough funding to go beyond basic operations. In many companies, IT departments are expected to do more with less. If an IT team is underfunded compared to competitors, it’s no surprise that they struggle to excel. Most of their budget often goes toward simply keeping things running, leaving little for transformative projects. One way to solve this is by having CIOs report directly to the CEO rather than the CFO. This shift can help IT departments focus on driving business goals instead of just managing costs.

A final challenge is confusion over accountability. In many companies, there’s uncertainty about who is responsible for IT-driven projects. When problems arise, IT is often blamed, even if the real issue lies with other departments. For example, if a business team hands a problem to IT without working together on a solution, IT may struggle to fix it alone. But if the project succeeds, business teams often get the credit instead. This imbalance can discourage IT teams from striving for excellence. The solution is better alignment between IT and business teams, clearer collaboration, and shared accountability for outcomes.

To overcome these challenges, CIOs need to work closely with leadership to set clear and meaningful expectations. They should advocate for business-focused performance metrics, ensure resources are allocated effectively, and promote collaboration between IT and other departments. By taking these steps, IT leaders can not only meet expectations but truly exceed them—driving real success for both their organizations and their careers.

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