Thistle, who’s been recruiting C-level executives for over three many years, says that CIO candidates typically favor to not report back to CFOs as a result of it indicators that the group considers IT as extra of a price middle. In contrast, when a CIO studies on to the CEO, it’s seen as having a seat on the desk. “Being a senior member of the chief management crew contributes to a CIO’s success in driving enterprise course of change,” she says.

However some CIOs discover it very pure—and even helpful—to report back to the CFO. “The CFO understands the actual enterprise worth of the transformations you’re pushing for,” says Amcor International CIO Joel Ranchin, who studies to the CFO. “Additionally they know the potential dangers. This steadiness between worth and affect is vital to profitable transformation. I used to assume it’s an indication of maturity when the CIO reported to the CEO versus CFO. I’ve modified my considering on that. There are numerous benefits to reporting to the CFO—so long as the connection relies on belief and constructive progress discussions.”

After all, there are different locations the place a CIO would possibly report. Some expertise firms, resembling AMD, create and promote merchandise which are primarily based on data expertise and are additionally used inside the IT division. In these circumstances, it makes extra sense for the CIO to be a part of the CTO operation.

Mark Papermaster, CTO of AMD, runs a corporation that features buyer dealing with CTO features, massive components of R&D, and the IT perform, which is headed by the CIO. “On daily basis, suggestions goes forwards and backwards between the IT division, which consumes the expertise we make, and the R&D facet of my group,” he says. “That method we get quick suggestions on our services and products, and we achieve a deeper understanding of buyer necessities.”

Even within the case at AMD, the place the CIO is within the CTO group, what’s important, says Papermaster, is that they function seamlessly as one crew with the CFO. He helps a transparent line of communication between the CIO and the CFO, understanding what’s most necessary is that every is aware of the opposite’s enterprise. The CIO ought to perceive what the CFO is attempting to attain with the corporate, and know which applied sciences will affect each the underside and high traces. Equally, the CFO ought to perceive the CIO’s views on digital transformation.

How nicely the CIO understands finance

A research performed by Gartner, detailed within the report “CIOs: Enhance How You collaborate With Your CFO,” discovered that when CFOs are requested how nicely their most senior IT government understands the affect of expertise on finance, greater than half point out that their IT counterparts are missing on this space. However surprisingly few firms select CIOs for his or her monetary expertise. “Monetary information will not be one thing purchasers sometimes ask for when recruiting a CIO,” says Thistle. “Nonetheless, the CIO might be anticipated to know and handle IT prices and budgets, each Capex and Opex.”