Zedan IT Blog

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Why Is the CFO Still Boss of IT?

Found interresting articles on http://www.cio.com talking about CIO and their reporting structure to CFO.  I am qouting some of it:

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As businesses expanded– and as technological innovation became more fast-paced–IT deployments have gone out from the old setup and spilled over to influence the way entire organizations carry out their work.

A recent Gartner survey, however, reveals that more and more IT organizations are finding themselves easing back into the old setup, especially due to the recent financial crisis and the fact that higher-ups are still stuck in the IT-as-a-cost-center conundrum.

In the survey of over 480 senior finance managers, 42% of IT organizations are already reporting to the CFO, while a staggering 53% prefer to move to this setup.

Gartner’s survey talked with finance controllers across the globe. Computerworld Philippines ran its own survey, asking local CIOs about reporting setups in their own companies. Of those surveyed, only 25% said they report to the CFO, while 65% report to their respective CEOs.

Of those CIOs who report to their CFOs, 80% said the setup has been beneficial to their company, while the remaining 20% said otherwise.

Surprisingly, all of those who responded that they are not currently reporting to the CFO said their IT organizations are better off under the CFO.

“Where the CIO should report is a question as old as the CIO role itself,” said John Van Decker, research vice president at Gartner. “CFO reporting can lead to success if the CFO has a deep understanding of IT’s value.”

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In my personal openion (and experience), IT managers, CIOs should not report to the CFO as in my past experience this structure leads to influnce IT department to allocate most of the resources and budgets to achieve Financial departments goals and objectives.   Accordingly IT Department it self became finance aware only and loose an important value in being an essential resource to achieve the organization’s (as a whole) competitive advantage,  and sometimes it is used by finance as a tool to influence organization’s strategy.

What do you think?

Read the full article:

http://www.cio.com/article/602868/CFO_IT_s_New_Boss_?source=CIONLE_nlt_insider_2010-08-11

http://www.cio.com/article/591633/Why_Is_the_CFO_Still_Boss_of_IT_

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