It can be said the CFO and CIO are rowing in the same boat – they have a shared destination (success for the business), but differing priorities can mean sometimes each is rowing at a different pace, or even in a different direction. In addition, since each sits in a different position, they can identify obstacles and opportunities on their side of the boat that their partner may not see as clearly.
According to a recent Censuswide survey of more than 400 CFOs and CIOs across North America, 72% of respondents believe the relationship with their counterpart has strengthened, which directly led or contributed to positive business results. This indicates a strong partnership between CFO and CIO is not simply a matter of getting along with your colleague – it can directly boost the bottom line for the organization.
On the other hand, there were also misalignments on priorities – notably, on cost flexibility and risk versus innovation – which can strain the CFO/CIO relationship and hinder growth and innovation. Though they share a common overall goal, business and IT could be making decisions that are out of sync with each other’s individual priorities, slowing down the organization’s progress.
Looking at the Censuswide survey results, we offer four major insights into how business and IT leaders can strengthen their collaboration.
Top goals for 2024
When asked their top goals for improving their business in 2024, there was a remarkable alignment between CFO and CIO responses – with one notable exception:
- CFOs prioritized growth (30%), improving profitability (24%) and risk reduction (23%) as their top goals
- CIOs were tied on growth and improving profitability (both 28%), followed by risk reduction (25%) and technology improvements (25%)
In this case, both sides are rowing in almost perfect unison, yet one side may not see an opportunity for improvement that the other side clearly does. While business and IT leaders share an overall vision for driving business success, CFOs could be undervaluing the role that technology plays in achieving that vision.
Insight
The fact that CIOs place more emphasis on tech improvements, while the issue isn’t even in the top 3 for CFOs, could slow down digital transformation initiatives. CFOs should consider that technology isn’t simply a cost center but a critical enabler for growth and profitability for an organization – especially when you maximize existing IT investments, which can provide flexibility and cost savings that can in turn be utilized to fund innovation and growth.
Why did the CFO/CIO relationship grow stronger?
Survey results found that while both leaders valued collaboration, they had different motivations for improving it:
- CFOs said the partnership increased due to a focus on security, compliance, and risk (46%)
- CIOs thought it was due to an urgent need to collaborate to make nimble technology decisions (42%)
CFOs were driven by the need to manage risk and security concerns, whereas CIOs were concerned with agility in decision-making to enable rapid digital transformation. Though different, these aren’t incompatible goals, as the ability to make informed, quick technology decisions can be a critical advantage when dealing with security issues.
Insight
When they consider the motivations of their counterpart, leaders can help each other enhance both organizational resilience and agility. By highlighting complementary goals, CFOs and CIOs can improve their partnership to an even greater degree in future collaborations. Though both sides are rowing strong in this case, they can help each other row with even greater power next time.
What made the CFO/CIO relationship worse?
Although survey results showed an improvement in the CFO/CIO relationship, there were some cases in which the opposite occurred. Ironically, C-level leaders mostly agreed on why their relationship eroded:
- CFOs blamed a lack of flexibility on identifying ways to cut costs (35%)
- CIOs concurred on the lack of cost-cutting flexibility (36%) but were equally upset by a frustrating lack of urgency (36%)
While both leaders shared a mutual frustration with rigid financial controls, CIOs also felt held back by slow decision-making. This mirrors findings where CIOs felt their partnership improved due to nimble decision-making with their CFO counterpart. For better and for worse, CIOs place great value in the ability to act quickly when making technology decisions. This viewpoint can clash with CFO priorities, which are more driven by financial discipline.
Insight
In an era of digital transformation, it’s important to find a balanced approach between cost-cutting and the urgency of technology adoption. Row too slow – or too fast – on either side of a boat and you could end up going in circles instead of speeding toward the shore of innovation and growth.
The same tool, used for different purposes
Finally, one key area of misalignment between business and IT leaders was in the use of business cases:
- CFOs use a business case to provide a consistent framework for comparing proposed investments against each other (37%)
- CIOs use a business case to ensure projects meet prescribed metrics for ROI (40%)
In keeping with their financial oversight role, CFOs use business cases to compare different technology investments. Meanwhile, CIOs use business cases to determine the ROI of individual projects. Using the same business tool for different purposes could lead to friction if not aligned.
Insight
By working together to determine a consistent, unified approach to business cases, C-suite leaders can streamline decision-making, reduce conflicts and accelerate technology investments. It makes little sense to use one oar for rowing and another as a rudder – especially if neither partner informs the other of their plan.
Smoother sailing on rough waters
Survey findings from CFOs and CIOs across North America demonstrate that by aligning on priorities, strategies and concerns, business and IT leaders can be better prepared to face the turbulent challenges of the modern business world.
A strategic partner like Rimini Street can be the experienced guide that helps CFOs and CIOs navigate those rough waters. With nearly 20 years of experience, we provide expert third-party support and services that deliver exceptional cost savings, flexibility, and risk mitigation – directly addressing C-suite leaders’ focus on growth, security, cost-cutting, and innovation.
With Rimini Street’s help, technology and financial leadership can achieve the collaboration and alignment that’s critical for driving digital transformation and maximizing ROI. And that can mean the difference between getting lost at sea or sailing on to success.
To see how nearly 3,000 CFOs and CIOs around the world are taking on modern business challenges like emerging technologies, security risks and demands for ROI, read the full Censuswide global report: “C-suite Imperatives: Evolving IT and Enterprise Investments”
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