A whopping 97% of employees and business executives believe that a lack of alignment in a team will impact the outcome of a project or task. Even so, experts note that companies will have to take things to another level to weather the current coronavirus pandemic and any second or even third wave that may arise in the future.
To be specific, CFOs and CIOs will need to work together more than ever before to help a company reach its core business goals. Philadelphia IT support business owner Scott Clarke from Menark Technologies shares insights into the CFO and CIO relationship.
What do CFOs and CIOs Bring to the Table?
CIOs are likewise indispensable to regular business operations, especially now that the COVID-19 pandemic has forced companies to use new technologies to allow employees to work remotely and customers to access company products/services from the comfort of home. As many companies plan for a possible second coronavirus wave, IT technology will likely need to be adapted and even upgraded to ensure the company has the set-up it needs to survive and even thrive should a second lockdown occur. Most CFOs aren’t able to stay on top of everything that is going on in the IT industry, which is why they need input from a CIO who can suggest time and money-saving IT improvements.
At the same time, CIOs don’t have the detailed knowledge of a company’s financial records needed to make financial decisions on their own. The COVID-19 pandemic has also had a huge impact on company finances and a CFO will need to pay close attention to cash flow and expenses to keep a company afloat. Some companies may even have to forgo necessary expenses to survive long-term. Both parties need to work together to ensure that a company is investing in the technology that will best meet its current and future needs without spending more money than necessary.
What Does a Successful CIO/CFO Partnership Look Like?
- In a successful CIO/CFO partnership, both sides share information in terms that the other party can understand and relate to. A CIO must be able to not only explain the need for digital transformation but also provide data showing how a particular IT upgrade will save money and/or increase profits. On the other hand, CFOs often know what other managers feel about IT upgrades, or the lack of them. They also have strong working relationships with board members and investors. This insight can help CIOs understand what upper management is looking for and deliver it.
- In a successful CIO/CFO partnership, every single cost is questioned and analyzed to ensure the money is spent only on resources that will move the company forward. This benefits everyone in the long run as the IT department gets needed upgrades while money is saved for future needs.
- A strong partnership makes it possible to analyze the ROI for an IT investment. How much money will the IT upgrade save or generate per year? Is it worth the expenditure or are there other, better alternatives?
- A CFO/CIO partnership isn’t just about making investment decisions. A CIO can help a CFO save money by finding ways to reduce IT costs by taking measures such as having people work remotely instead of at the office, leasing equipment instead of purchasing it, etc.
Every single company needs a CFO and CIO who can bring their talents and viewpoints to the table and work together to create custom solutions that will move the company forward. By sharing data and information freely, a CFO and CIO will be able to provide workers with the best tools for bringing in customers, generating sales, and cutting back unnecessary business expenses.