Robert Jaques

It is fair to say that the historical relationship between many FDs and their CIOs has been characterised by mutual suspicion, misunderstanding and, in some cases, hostility. In fact, it has long been argued in certain quarters that FDs should be entitled to an open season when they can hunt down CIOs and put a stop to their techno-tomfoolery.

The justification for this harsh stance on the sandal-wearing, acronym-spouting, binary watch-touting technology professionals is, of course, cold, hard cash. Return on investment for these wheelbarrow-loads of money has often been creatively referred to as a bit of a ‘grey area’. Spending on roll-outs of some of this ‘must-have’ technology has, for many companies, been accompanied by little or no quantifiable business benefits.

But this, of course, is only half the story. Seen from the perspective of hard-working IT professionals, many FDs are demonised as narrow-minded, suit-wearing, number-crunching, legume quantifiers. It is widely argued by the geeks that these killjoys do nothing but rein in legitimate attempts to boost competitive advantage and improve process efficiency by buying the latest and greatest technology known to humanity.
However, there are signs of a rapprôchement that could see the twain of CIO and FD finally meet in harmonious union. Recent research highlights the many and varied commercial advantages to be accrued by firms that manage to bury the hatchet between these historically bitter adversaries.

It is perhaps even more telling to take a step back from the actual words and look at the origins of these two reports. The first is firmly in the IT corner, coming as it does from technology analyst firm, Gartner, while the second, an Ernst & Young study, fights the FD’s corner.

Gartner’s report, Meet your Next CIO, advises senior IT pros, including those currently working as CIOs, to make 2008 the year when they acquire at least one or two years of non-IT business unit management. Only if they broaden their horizons in such a way will they be able to progress up the greasy pole to what the analyst firm described as the “new” CIO roles of the future which are becoming increasingly focused on business, rather than technology.

This advice follows on from what Gartner describes as some “intriguing” CIO hiring trends. Its research notes that CIO candidates are not required to have formal technology-orientated backgrounds. Gartner polled recruitment specialists, asking whether CEOs were looking for particular educational backgrounds and technical know-how. The answers were that CEOs had no preferred educational backgrounds: one said: “When push comes to shove, it doesn’t matter.”

This is not to say that corporates are just grabbing the nearest passer-by to take over their IT departments. Professional qualifications and competence are still necessary for those wanting to become CIOs. But the new approach does mean that suitable executive candidates, often from other parts of the business, will increasingly be selected on merit to take over responsibility for what has historically been the CIO’s domain. They will then be given the relevant technical training on the job.

What is important is that these “new CIOs” must be able to show that they understand the needs of the business as a whole and not just maintain a narrow technical focus. In recognition of this they will be working to a far broader remit with much responsibility for business functions and divisions that have been beyond the scope of the traditional IT silo.

The IT recruiters noted that experience in rolling out high-powered software packages such as Enterprise Resource Planning systems meant that many CIOs had good knowledge across the range of activity within their businesses. As a result many have already reached the position where they are equipped to take on broader, business responsibilities.

These sentiments were echoed by Ernst & Young. The firm notes that the long-overdue reconciliation between IT and finance is also being driven by the onslaught of compliance regulations which almost always have an equally profound impact on both FDs and CIOs.

The Ernst & Young report, Successful IT in High-Performing Organisations: The impact on business growth, notes that successful organisations exhibit a sophisticated understanding of IT and a flexible view of its function and reporting lines. These firms, the study urges, must employ a variety of leadership structures to support integrated business and IT decision making. One strategy is to promote existing CIOs to the board where they can gain holistic business experience.

The fact is that, in today’s business world, IT must play a key role in helping companies succeed. Technology is here to stay and needs to be made to work hard to support core business objectives. Getting the relationship right between FDs and CIOs – or whatever they will be called in the new corporate world order where traditional roles are merging and morphing – is essential. It’s nothing personal, it’s just business.

Like this story? Spread the news by clicking below:

 del.icio.us     Digg this     reddit!