5 Reasons the CIO and CFO Should Be Best Friends

With the rising importance of the CIO it is important to establish a close-knit relationship between the CIO and CFO. In an article from InformationWeek, Curtis Franklin Jr. outlines the five reasons that the CIO and CFO should be best friends:

  1. You need investment.
  2. Security costs money.
  3. You have to understand revenue.
  4. You must retain talent.
  5. The team matters.

Business Besties

Even though everything seems to be moving to the cloud, which means you will need fewer server racks sitting in a data center, you will still need to make investments in hardware, services, and people if you want to be successful. Shifting spending from hardware to software does not mean investments decrease or halt, but only that it is changing. And this changing may require the assistance and understanding of the CFO. The driving force of effective collaboration is that as a CIO, you have a deep understanding of finance, but you do not know the ins and outs of your company’s as your CFO does. So in regards to that, build a relationship to acquire better information with less effort and build your proposals for your new investments on fact.

When it comes to security, it’s a necessity and pure expense for every company with a computer. As the CIO you will have to drive that point across, and having the CFO on your side is an advantage. It is important to have the CFO educated on the importance of security and security investment as well.

According to a Harvey Nash/KPMG 2016 Survey, 63% of the CIOs participating have CEOs who are focused on IT projects that make money. That doesn’t exactly line up with the mentality of CIOs. With this focus shift from expense to revenue, you will need to have an understanding of all the factors that weigh on revenue in your organization, which is when having the CFO as a friend will be helpful.

The shift to the cloud will require more staff members with expertise. Instead of going the route of replacing the highly skilled workers you already have, invest in them. Retaining your employees will require the most obvious of things–a salary raise, or providing the costs for education and travel to industry conferences. Assure that your talent has the tools they need and productive work environment. The CFO will know exactly what it takes to replace an IT employee, and having their expertise will allow you to intricately relay how investing in employee retention is not as cost-heavy as replacing them.

Teamwork makes the dream work. Rarely will you have a team solely composed of IT members. When putting an executive team together it is impossible to not have someone as valuable as the CFO. Their expertise of finance will allow your proposals to stand on facts and not mere interpretation of the money stream, which will give you an advantage.

You can access the original article here:

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