IT and finance are equally significant divisions of an organization. However, constant friction between them affects business growth. IT often goes beyond the budget to adopt advanced technologies. While the finance department delays approving the unpredictable expenses of the IT teams.
In this article at the Enterprisers Project, Stephanie Overby explains how collaboration with CFOs is critical for the CIOs to improve their IT leadership ranking.
Digital Transformation Is Not Economical
The implementation of innovative tools is critical to delivering profitable results. Nonetheless, CIOs cannot ignore the concerns of their CFOs. By working together, both can find integrated solutions to drive desired business growth. There are several ways to strengthen your rapport with your chief financial officer. Take advice from the experienced IT leaders that must establish a strong bonding with their CFOs:
Guarantee Profitable ROIs
Talk about the immediate or long-term benefits of the IT projects to get approval for the initial budget. Share a liability matrix to showcase probable returns and expected risks.
Project success rates have significantly improved over the years. Nonetheless, Standish Group’s 2018 Chaos report states that only 36 percent of IT projects achieve success within budget and time. Thus, CFOs are uncertain about investing in IT projects.
Interestingly, agile projects are twice as successful as conventional ones. So, use an advanced agile approach to control existing risks reasonably.
Use Financial Terms
While discussing a new project, include investment terms, business values, and risk measurement. Mere technical description may not suffice the purpose of your presentation.
The CFO is more than eager to learn about your IT operations and strategies. So, help them understand the differences and complexities of your department. It helps them address the real financial risk well.
It is critical to understand the other person’s situation. Ensure you understand the strategic priorities of your CFO and align with them in each quarter.
Speak Your Mind
Help the CFOs understand the various facets of a project’s economic significance. It might involve some uncomfortable discussions. Have productive meetings with them to maintain transparency.
Accept the Ground Reality
Never hide facts like budget overdue or undelivered outcomes. It would hamper your relationship with the CFOs or the finance division. Maintain clear communication to address risks beforehand.
Click on the following link to read the original article: https://enterprisersproject.com/article/2019/12/cio-role-8-cfo-relationship-tips