Tag Archives: Data Pains
Recently, I had the opportunity to interview half dozen CIOs and half dozen CFOs. Kind of like a marriage therapist, I got to see each party’s story about the relationship. CFOs, in particular, felt that the quality of the relationship could impact their businesses’ success. Armed with this knowledge, I wanted to see if I could help each leader build a better working relationship. Previously, I let CIO’s know about the emergence and significance of the strategic CFO. In today’s post, l will start by sharing the CIOs perspective on the CFO relationship and then I will discuss how CFOs can build better CIO relationships.
CIOs feel under the gun these days!
If you don’t know, CIOs feel under the gun these days. CIOs see their enterprises demanding ubiquitous computing. Users want to use their apps and expect corporate apps to look like their personal apps such as Facebook. They want to bring their own preferred devices. Most of all, , they want all their data on any device when they need it. This means CIOs are trying to manage a changing technical landscape of mobile, cloud, social, and big data. These are all vying for both dollars and attention. As a result, CIOs see their role in a sea change. Today, they need to focus less on building things and more on managing vendors. CIOs say that they need to 1) better connect what IT is doing to support the business strategy; 2) improve technical orchestration; and 3) improve process excellence. This is a big and growing charter.
CIOs see the CFO conversation being just about the numbers
CIOs worry that you don’t understand how many things are now being run by IT and that historical percentages of revenue may no longer appropriate. Think about healthcare, which used to be a complete laggard in technology but today it is having everything digitalized. Even a digital thermometer plugs into an iPad so it directly communicates with a patient record. The world has clearly changed. And CIOs worry that you view IT as merely a cost center and that you do not see the value generated through IT investment or the asset that information provides to business decision makers. However, the good news is that I believe that a different type of discussion is possible. And that CFOs have the opportunity to play an important role in helping to shape the value that CIOs deliver to the business.
CFOs should share their experience and business knowledge
CFOs that I talked to said that they believe the CFO/CIO relationship needs to be complimentary and that the roles have the most concentric rings. These CFOs believe that the stronger the relationship the better it is for their business. One area that you can help the CIO is in sharing your knowledge of the business and business needs. CIOs are trying to get closer to the business and you can help build this linkage and to support requests that come out of this process. Clearly, an aligned CFO can be “one of the biggest advocates of the CIO”. Given this, make sure that you are on your CIOs Investment Committee.
Tell your CIO about your data pains
CFOs need to be good customers too. CFOs that I talked to told me that they know their business has “a data issue”. They worry about the integrity of data from the source. CFOs see their role as relying increasingly on timely, accurate data. They, also, know they have disparate systems and too much manual stuff going on in the back office. For them, integration needs to exist from the frontend to the backend. Their teams personally feel the large number of manual steps.
For this reasons, CFOs, we talked to, believe that the integration of data is a big issue whether they are in a small or large business. Have you talked to your CIO about data integration or quality projects to change the ugliness that you have to live with day in day out? It will make you and the business more efficient. One CFO was blunt here saying “making life easier is all about the systems. If the systems suck then you cannot trust the numbers when you get them. You want to access the numbers easily, timely, and accurately. You want to make easier to forecast so you can set expectations with the business and externally”.
At the same time, CFOs that I talked to worried about the quality of financial and business data analysis. Once he had data, he worried about being able to analyze information effectively. Increasingly, CFOs say that they need to help drive synergies across their businesses. At the same time, CFOs increasingly need to manage upward with information. They want information for decision makers so they can make better decisions.
Changing the CIO Dialog
So it is clear that CFOs like you see data as a competitive advantage in particular financial data. The question is, as your unofficial therapist, why aren’t you having a discussion with your CIO not just about the numbers or financial justification for this or that system and instead, asking about the+ integration investment that can make your integration problems go away.