During Q3 of 2024, Piccadilly One conducted a survey where we asked for feedback on the reporting lines of CIOs based in the UK. Over the past few weeks our Director, Simon Elkinson has reviewed the findings. Here is the final part of the series where the findings of whether CIOs would move to a new role that was reporting to a CFO are revealed.
Overview
This report analyses the responses from CIOs surveyed to the question, "Would you move to a new role that was reporting to the CFO?" Out of the respondents, 62.5% of CIOs indicated they would consider moving to a role reporting to the CFO, while 37.5% of CIOs would not accept a role with that reporting structure.
Key Findings
Majority Open to Reporting to the CFO
The majority of CIOs surveyed expressed that they would be open to moving to a new role reporting to the CFO. This shows that many CIOs are willing to consider roles with different reporting lines, especially if other aspects of the job, such as strategic influence or career growth opportunities, are appealing.
Reasons for Accepting a CFO Reporting Line
The willingness of many CIOs to report to the CFO reflects several factors that make this reporting structure feasible, including:
Strong CFO-CIO Collaboration: Many CIOs have built effective working relationships with CFOs and believe that if the CFO is open-minded and supportive of IT as a strategic function, this reporting line can work well.
Operational Focus: Some CIOs recognise that reporting to the CFO may provide a better alignment with the company's financial and operational goals, especially if IT is seen as a critical enabler of cost savings, efficiencies, or digital transformation initiatives.
Strategic Impact: CIOs who believe they can still influence technology strategy, business transformation, and innovation despite reporting to the CFO are more likely to accept this reporting structure.
CIOs Who Would Decline Reporting to the CFO
A notable 37.5% of respondents would not move to a new role if it required reporting to the CFO. For this group, the reporting line is a significant factor in their decision-making process, and they generally prefer to report directly to the CEO for the following reasons:
Perception of IT as a Cost Center: Some CIOs feel that CFOs tend to view IT primarily as a cost centre, leading to potential conflicts over budgets and resource allocation. These CIOs prefer reporting lines that align IT with business transformation and growth rather than purely financial oversight.
Strategic Misalignment: For certain CIOs, reporting to the CFO may limit their ability to drive digital innovation and transformation at the highest levels. They believe that reporting directly to the CEO allows for more direct involvement in strategic decision-making and positions IT as a central business function.
Lack of Influence: Some CIOs fear that reporting to the CFO may reduce their visibility and influence across the broader leadership team, leading to missed opportunities to advocate for critical technology investments or strategic initiatives.
Factors Influencing the Decision to Report to the CFO
Whether a CIO is open to reporting to the CFO often depends on several contextual factors:
CFO's Attitude Toward IT: If the CFO is progressive, understands the value of technology, and collaborates closely with the CIO on strategic initiatives, this reporting line may be acceptable to more CIOs.
Company Structure and Strategy: In companies where IT is viewed as a support function rather than a core driver of business growth, reporting to the CFO may be more common. Conversely, in companies undergoing digital transformation, CIOs may expect a direct line to the CEO.
Previous Experience: Some CIOs have had positive experiences reporting to CFOs in the past, where they were given autonomy and were able to influence technology strategy despite the financial reporting line. Others may have experienced conflicts or limitations in this reporting structure, making them less likely to accept such roles in the future.
The Growing Importance of the CIO Role
The CIO role is evolving, with more organisations recognising the importance of technology in driving business success. As a result, many CIOs prefer to report directly to the CEO to ensure that IT is seen as a strategic business function rather than a support role under the CFO. However, the willingness of 62.5% of CIOs to consider reporting to the CFO suggests that for many, the role's influence and the opportunity to drive change may outweigh the reporting line structure.
Mixed Perspectives on CFO Reporting
The responses indicate a balanced perspective on reporting to the CFO, with many CIOs acknowledging that while it may not be ideal, it can still be workable in certain organisational structures. For some, this reporting line allows for strong alignment with financial goals and operational efficiency, while for others, it represents a limitation on their ability to lead digital transformation efforts.
Conclusion
37.5% of CIOs would not accept a role with this reporting line, reflecting a preference for greater strategic influence and visibility, which they believe is better achieved when reporting directly to the CEO.
This is a big number and one that needs to be noted when in the market for a new CIO it may well be that the role is a good one however it is imperative that during the process reporting lines are addressed and potential candidates are provided with an attractive opportunity to offset any concerns they may have.
Piccadilly One helps organisations hire CIOs. We Put People Above Technology placing the number one technology position within an organisation and that person's direct reports.
To discuss your next CIO hire or, if you're a CIO, your next direct report hire, contact our Director and Founder Simon Elkinson
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