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 coming weeks our Director, Simon Elkinson dissects the findings. Here is Part 2 of the series where the findings of the Pros of reporting to a CFO are revealed.

Pros of Reporting to a CFO
Findings
From feedback gathered from various CIOs, several advantages of reporting to a Chief Financial Officer (CFO) were identified, largely centred around financial support, organisational alignment, and strategic influence.
Strategic Collaboration
A strong CFO can be an essential collaborator, aiding the CIO in navigating complex organisational structures. They can secure board backing for IT roadmaps, ensuring alignment between IT strategy and the company’s financial goals. CFOs typically have better visibility across the business, providing valuable insights to help CIOs focus IT efforts where it matters most. In companies with growth initiatives, this can be particularly powerful.
Direct Financial Support
CFOs hold significant sway over budget approval processes. Reporting to a CFO enables direct access to the purse strings, potentially reducing the number of steps needed for financial approval. This can foster smoother financial planning and faster decisions, particularly for CapEx and OpEx budget discussions. A trusted relationship with a CFO may allow the CIO more autonomy in managing the IT service without needing constant oversight.
Insightful Decision Making
Given their grasp of financials, a CFO can offer meaningful support in prioritising IT investments. They understand business cases and can provide feedback on how to present them effectively to the board. CIOs report that CFOs are often more available for engagement compared to CEOs, leading to quicker decision-making. This also helps in aligning IT spending with the overall financial performance of the company.
Budget Flexibility
CFOs who value digital transformation can find funds to support IT initiatives, even when they don’t fall within the CIO’s direct budget. Additionally, they are often in a position to evaluate the financial benefits of digital initiatives, facilitating additional investment if they see clear business value.
Supportive in Business Case Development
CFOs are rigorous in their evaluation of business cases, ensuring that investment proposals are financially sound and aligned with the company’s strategy. CIOs who work closely with CFOs benefit from guidance on budgetary manoeuvrability and tradeoffs, helping to avoid wasted time pursuing projects that won’t gain traction.
Close to the Money
Reporting to a CFO provides CIOs with an advantage in budget planning, allowing easier access to financial data and a more straightforward dialogue around risk management and expenditure. Having a direct relationship with a CFO can fast-track approval processes, ensuring quicker alignment on critical decisions.
Influence on Broader Company Politics
CFOs, often serving as the right-hand person to the CEO, possess significant influence both within the executive team and with the board. This positioning can help the CIO gain broader support for IT projects, making the CFO a critical ally in navigating internal politics and securing investment for long-term initiatives.
Commercial and Risk Awareness
CFOs are generally more commercially savvy and risk-averse, which can work in the CIO’s favour, especially concerning areas like cybersecurity investment. CFOs tend to prioritise business continuity and efficiency savings, meaning that securing budgets for essential IT initiatives can be easier when reporting directly to them.
Overall, the consensus is that reporting to a CFO can offer numerous advantages, particularly around financial management, strategic influence, and quicker decision-making. However, the effectiveness of this reporting structure largely depends on the specific CFO’s outlook on IT and their relationship with the CIO.
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.
We get CIOs! 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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