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are equipped with the right mixture of
technical, business and influencing abilities.
This will enable the CIO to show confidence
in the decisions the team is making, which
is much needed to show how important
technological decisions are being made and
evaluated. For example, cloud migration
processes are of course crucial to meeting
key Digital Transformation objectives but
concerns over aspects like governance in
adoption pose challenges. Seventy percent
of leaders including CFOs don’t have
confidence in the IT function’s ability to
manage cloud across the business, so greater
clarity is needed on tracking performance
through a strong network of communication.
Communicate each other’s areas
of expertise
Whether the role is either financial or
technological, there’s one key dependence
that both parties share; the responsibility for
risk and compliance in the organisation. It’s
that shared responsibility which extends to
the need for a complete understanding of
each other’s roles and the challenges they
face. CIOs should be familiar and aware of
the financial demands and processes, and
CFOs need to be well briefed on the plans for
technological development with a high-level
overview of what to expect.
The fluid and fast-moving nature of the
cloud adds further complexity to the CIO-
CFO relationship, and as organisations
transition to the cloud, new and rapid shifts
in IT spending and budgeting processes
are more frequent than before – the IT
and finance teams have to learn how to
speak each other’s language. Research
from Forbes shows that just under a third
of CIOs found the CFO’s lack of expertise in
the other’s field the biggest barrier keeping
them working closer together, and vice versa,
emphasising the gaps in knowledge are
indeed present and how both sides would
benefit from learning about one another’s
roles and activities.
Have robust roll-out plans
A primary strain on the CIO–CFO relationship
revolves around budgeting and how costs
are controlled. Historically, these functional
roles speak a different language. The CIO’s
pet projects are often expensive and take
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years to complete but that’s not much help
to CFOs dealing with quarterly pressures.
CIOs can sometimes struggle when
communicating the true ROI of IT projects,
as well as their impacts, activity priorities
and key financial details. All of which are
essential pieces of information on the
financial side, and with CFOs’ sights set
on ensuring and maintaining the financial
health of the organisation, they expect CIOs
to present a clear and detailed business case
for IT investments.
Lead with data
Though the two leaders do have their
differences in priorities and communications,
there’s one aspect both parties largely
depend on: data. Access to real-time
data gives CIOs the ability to assess their
investments in new technologies to help
make better business decisions and should
use this to their advantage.
The relationship between the CIO and
CFO can make or break an organisation’s
ability to grow, so it’s imperative that CFOs
understand and value the potential the CIO
and their IT team brings to the table – be
it access to vast datasets, benefits from
powerful analytical methods or the adoption
of new and applicable technologies. Using
these, the CIO and CFO can work together
to identify and track key KPIs, an entity they
can both understand and hone in on.
Achieving business success
As organisations continue on their Digital
Transformation journeys, CIOs and CFOs are
going to have to be on the same page sooner
rather than later, so CIOs should aim to work
in tandem with the organisation’s financial
leader. Instead of leading with the plans they
have and the required investment, information
officers would see more success by speaking
the CFO’s language, putting the case forward
to them. What’s important is listening to one
another and putting each own’s side forward
in a matter that’s meaningful.
The CIO should aim to build their case as
a response to the needs of the business
as a whole. By appealing to the CFO’s
near-certain desire to ensure the spending
supports the strategy, the CIO can build
stronger and more valuable relationships
with the financial officer, while having
a positive impact on the wider business.
Bridging the gap in the relationship between
the two may require some extra time and
hard work, but the whole organisation
will benefit in the end. It is trust, positive
influence and a shared understanding that
contributes to an effective relationship. n
www.intelligentcio.com