CFOs and CIOs must partner to create shareholder value
By Bask Iyer
It is time to permanently retire the misconception that CIOs and CFOs have fundamentally competing priorities—that one exists only to spend money while the other exists only to save it. Every executive is tasked with doing what is right for the entire enterprise, not just defending their specific function.
Traditionally, IT has been accounted for as a General and Administrative (G&A) cost. Rather than being perceived as a strategic partner, tech has frequently been deemed a massive cost center—a convenient lever for leadership to pull whenever they need to reduce expenses.
But in today’s hyper-competitive global marketplace, speed is everything. Introducing a new product faster, closing a deal sooner, and collecting cash more efficiently are no longer just competitive advantages; they are operational necessities.
IT holds the keys to making this happen, but the technology organization cannot do it alone. CIOs must work hand-in-hand with their CFOs and business partners to reduce legacy drag, reallocate capital, and reinvest in modernizing IT for the future.
The Collaboration Barrier
Recognizing this shifting dynamic, Dell EMC and Forbes Insights previously published a study titled, IT TRANSFORMATION: Success Hinges on CIO/CFO Collaboration. After it was released, Dell’s CFO Tom Sweet and I sat down to discuss the findings, and those insights remain incredibly relevant to how I view the C-suite dynamic.
While nearly all executives agree that CIO and CFO collaboration is critical, a staggering 89% of respondents noted significant barriers to achieving it—including outdated reporting structures, misaligned incentives, and legacy attitudes.
The unifying incentive to fix this is survival. Both CIOs and CFOs are under immense pressure to maintain a competitive edge. If we don’t innovate, we will trail the competition or, worse, be entirely disrupted by an agile upstart hungry to eat our lunch. Collaborating effectively with the CFO enables tech leaders to deeply understand corporate financial pressures, allowing them to strategically advise business partners and provide the exact levers needed to make informed, growth-oriented decisions.
The Rise of the Entrepreneurial CIO
According to the study, it is increasingly vital for CIOs to possess strong managerial skills, with 74% of respondents adding that modern tech leaders must maintain an entrepreneurial mindset.
Throughout my career as a CIO, I made it my mission to aggressively and creatively deliver the innovation, performance, and scale the business demanded—even when facing flat or shrinking budgets. However, a continual focus on simply keeping the lights on and hitting tight financial targets can easily distract tech leaders from thinking like entrepreneurs.
To break this cycle, IT must find ways to automate and run leaner. Crucially, we must actively show the CFO our progress in doing so. Demonstrating operational efficiency builds a foundation of trust. That trust enhances our ability to sell a long-term strategy and justify the strategic investments required to truly modernize the business.
Driving Cultural Change
Real alignment requires driving a cultural shift between the IT and finance organizations by designating change agents on both sides of the aisle.
Furthermore, this alignment cannot stop at the CFO level. Instead of merely reacting to incoming IT requests, tech professionals need to closely partner with all business leaders to understand their broader digital transformation goals, sharing the ultimate responsibility for the success of those initiatives.
We are at a crossroads. Organizations can continue down the traditional, safe road and risk being disrupted. Or, leadership can transform IT to work closely with the CFO—not just to address immediate financial pressures, but to advance a digital transformation strategy that wins big. Personally, I refuse to be disrupted. The road toward deep C-suite alignment is always the brighter path.
