Because the definition of IT is so vast today, Summergreene said there are lots of domains needing investment - including management.

"We can't expect the technology-literate people of today to conform to our archaic management. We need to change the way we look at individuals," he said.

Geordie Conyngham, A/NZ CIO of food producer Cerebos Gregg's Ltd., said motivating staff isn't only about the individual's current job, but encouraging the person's capability and looking at their willingness to go forward.

"We work to build a team," Conyngham said, because relationships within a team tend to be a motivating force. CIOs can retain Generation Xers by not mentioning the corporate ladder, he added.

CIO Executive Council Deputy Executive Director Keith Roscarel concurred, saying that it's best to concentrate efforts on key staff and the rest will run "like a sausage factory".