Should the CIO/CTO report to the CFO?

People & Leadership Strategy & Architecture Team & Organizational Design +2 more

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Director of IT in Software, 1,001 - 5,000 employees

I think a lot of technology projects are now being driven out of the CFO’s office, so how do we decouple? CFOs are focused on the spend piece. That's a success metric for them: Can we deliver this project on time, on budget, etc. Alignment with the rest of the business isn’t at the actual core of their success metrics.

4 3 Replies

Chief Information Officer in Software, 1,001 - 5,000 employees

If I could change one thing, I would mandate that IT should never report in to a CFO. I would not take a job that reports in to a CFO.

CIO / Managing Partner in Manufacturing, 2 - 10 employees

Actually, I've seen more and more CIOs now being properly part of the C-level, and not reporting to the CFO. Reporting to the CFO can often be a problem.

Director of IT in Energy and Utilities, 1,001 - 5,000 employees

Agree I think just because traditionally they report into CFO doesn’t mean it makes sense I’ve found it decouples the priority of the business to a financial motivation for projects and strategy focus when in fact the CEO should be the one directing that strategy with input directly from CIO or VP of IT , problem is CEO sometimes has too many reports and that dissuades them from having IT report to them.

Senior Executive Advisor in Software, 10,001+ employees

When you're the CIO or a CTO and you're driving this organization, you're focusing on increasing the intrinsic value of the company and the extrinsic value that the company provides. The CFO needs to focus on containing costs and ensuring things are stable. So those roles are in conflict with each other. And as a CIO/CTO you would obviously have a tumultuous relationship with your supervisor if you report up to a CFO.

4 2 Replies

CIO / Managing Partner in Manufacturing, 2 - 10 employees

Spot on, the only exception is where you have an enlightened CFO who really understands the value of technology.

Board Member in Healthcare and Biotech, 1,001 - 5,000 employees

You could count them on one hand and still have a few fingers spare

CTO in Education, 51 - 200 employees

This is two separate questions since CIO and CTO are not the same role. I can see valid arguments for the CIO reporting to the CFO in certain org structures. I do not think it makes sense for the CTO.

Senior Director of Engineering in Software, 501 - 1,000 employees

No. Never. Why?

VP of IT in Education, 501 - 1,000 employees

Nope

3 1 Reply

GVP in Software, 10,001+ employees

Because the CIO isn't a 'cost center'?

Board Member in Healthcare and Biotech, 1,001 - 5,000 employees

Once upon a time in 2008, I wrote this on my blog

http://cio-inverted.blogspot.com/2008/07/cio-reporting-non-issue.html?m=0

I think it is still relevant.

CEO in Services (non-Government), 2 - 10 employees

I have been a CIO reporting to the CFO. IT was always a cost cutting machine and hence a cost center. I see this same thing with every IT shop where the CIO reports to CFO.

CIO has to report to the CEO. This to me is not debatable.

For the CTO … it the role is product focused (core for company) then again report to the CEO. If this is a IT focused CTO then reporting to the CIO.

CIO in Education, 1,001 - 5,000 employees

No. The CIO needs to have a good working relationship with the CFO but that doesn’t mean it has to be as a direct report.

Director, IT Architecture in Software, 5,001 - 10,000 employees

Absolutely not. When CIOs report to the CFO, there tends to be more priority placed on CFO projects and initiatives. The CIO position should be a direct report to the CEO. A good CIO will be more strategic in their thinking and be concerned not only on financial aspects of the business but operational also.

Director in Construction, 1,001 - 5,000 employees

I don't think any successful organization is driven by a CFO. Organizations where the CFO gets too much power die very slow and painful deaths. Same is true where a CFO takes on a CEO role in an organization. Unfortunately at public companies, looking quarter over quarter at revenue numbers gives lots of power to a CFO (and not enough to business growth or investment for future needs).

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142 19 Replies