C&L_December 2017 (1)

Insight
AAs many as 96% of senior executives see close collaboration
between CIO and CFO as critical or very important for
success of IT transformation in an enterprise. However, a
predominant majority (89%) of them acknowledge that significant
barriers exist, at present that prevent the two from
effectively collaborating with each other, says a new report
based on a global study of senior executives conducted by
Forbes Insight, in association with Dell EMC.
Ironically, one of the manifestations of that barrier could
be the difference in perceptions between the two about what
creates that barrier itself. While CFOs blame it on reporting
structure and CIOs’ lack of business expertise, CIOs think
a significant reason could be CFOs ‘outdated attitude’ about
the primary role of the CIO. Interestingly, CEOs seem to
endorse that view—and even more emphatically. While only
30% CIOs point to CFO’s outdated attitude as a big reason
for creating the barrier, as much as 45% CEOs think so.
20%
29%
25%
29%
32%
30%
11%
13%
CIO
What creates the barrier to effective
CIO-CFO collaboration?
20%
20%
30%
35%
18%
30%
16%
13%
CFO
There are no significant barriers
No clear mandate from CEO/
board
CFOs have outdated attitudes
about the primary role of CIO
Lack of incentive to work more
closely together
Conflicts arising over traditional
reporting structure
CIOs' lack of business expertise
CFOs' lack of sufficient technical
expertise
Conflicting responsibilities and
priorities
Source: Forbes Insight/Dell-EMC Study 2017
While only 30% CIOs point
to CFO’s outdated attitude
as a big reason for creating
the barrier, as much as 45%
CEOs think so
However, many (30%) CFOs do admit that it is their community’s
outdated attitude that is the major factor in creating
the barrier. “The finance team becomes a barrier if the
discussions are only about the budget and how to run as
lean as possible. That’s a losing attitude for IT Transformation,”
the report quotes Khozema Shipchandler, Global CFO
of GE Digital as saying.
There’s significant regional variation too. While in the
Americas, the reasons for the barrier are thought to be due
to structural issues—conflicting responsibilities and reporting
structures—in APAC, it is name calling. ‘CIOs lack of
business expertise’ and ‘CFOs’ outdated attitudes about
CIO’s role’ that are identified as the top reasons that contribute
to the barrier.
What are the biggest consequences if CIOs and CFOs
do not work together effectively? As many as two out of
three (63%) think the risk of falling behind competition is
increased significantly.
Another significant finding reinforces that idea. The report
finds that it is not investment but the effective collaboration
between the two that makes a company a leader or a laggard
in IT transformation. “Although leaders and laggards in IT
are seeing different outcomes, the results aren’t a function of
who spends the most for IT Transformation. This year and
in 2018, both groups are devoting significant percentages of
their total budgets in this area,” the report notes.
December 2017 | CIO&LEADER
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