CFO and CEO collaboration is vital for determining capabilities and staying ahead of tech trends in the time of the COVID-19 crisis
Enterprises across the globe are witnessing deep collaboration between CFOs and CIOs, in the challenging times of the covid-19 pandemic. IT leaders are helping their finance counterparts with necessary technical data and insight into the financial aspect of the business. The majority of CFOs are unaware of their organizations’ specific technological aspects. Businesses are gearing up to face unprecedented financial challenges and therefore CIOs can offer CFOs perspective on acceptable tech costs. With commonly shared knowledge, both of them can schedule regular and detailed reviews of ad hoc expenses in the organization. CIOs can offer necessary input to the CFO while aggregating technology items that may need a relook for acceptability to company standards. So, in times of cost cuts, CFOs could do well to take clear support and inputs form CIOs to understand where costs can be optimized- to select which IT expenses to reduce.
It is not easy for CFOs to keep up with the ever-evolving nature of technology tools, but they can take a lead while measuring costs. Of course, when it comes to determining capabilities and staying ahead of tech trends, the CIO will need to step in. CFOs can focus on maintaining IT activity without increasing expenses; however, it requires CIO scrutiny and expertise. When both of them work collaboratively to find and implement these improvements, it makes the organization more effective as compared to when they make decisions in silos.
The COVID-19 pandemic presents an opportunity for identifying improvements in collaborative processes between leadership roles. The CFO-CIO collaboration, for instance, can present opportunities in software purchases higher ROI hardware deployments, and more. The implementation of IT projects is a key area where CFO-CIO collaboration can be fruitful.
Projects need to bring value to the company, and the calculation of that ROI requires the CIO and CFO to work together to measure the returns on budgets planned. CIOs can also discuss with CFOs to look for cost-reduction opportunities on certain projects that do not affect customer satisfaction. Moreover, both business leaders can protect their business revenues and business-critical IT.
Smart organizations will ensure that this collaboration goes well beyond the pandemic, and continue to provide value to the best utilization of financial and planning budgets for the company.