October COmmunIT Breakfast
Business and People: Why Relationships are Essential for a Successful Business
It is undeniable that technology is continuing to grow and shape the business world. Technology encourages innovation within the workplace and is constantly evolving how organization’s operate if they choose to embrace it. This constant change also comes along with a significant cost change; a cost that can be overwhelming for many businesses. As two key technology decision makers, your Chief Information Officer (CIO) and Chief Financial Officers (CFO) should have a supportive relationship and they should understand each other’s objectives. For your company to be successful there must be a good relationship between these two key players.
Getting the CIO-CFO Relationship 'Right'
Technology helps to increase the productivity, efficiency and effectiveness of business operations and communication. It’s important to pay attention to the advancements the business has made through technology. The CIO should remind the CFO why the company needs technology and the competitive edge it grants to the company’s success. Measure and highlight what technology investments have meant to the business in the past. The CFO should understand where the company would be without technology and be able to show where technology will take the company in the future. Never let your CFO forget the significance of technology.
Transparency is key
We learned at last month’s breakfast that almost every CFO believes that given the opportunity, there is no cap IT could spend on technology. Let’s face it, technology can be an expensive investment. CIOs need to be aware that when they are asking the CFO for money, this is money that would be going to other parts of the business. Your CIO should explain the importance of and reasoning behind their spending in as much detail as possible. In addition, stop sandbagging! Don’t put extra cushion on your budget ‘just in case’, be transparent with how much money you need and always be realistic. This will build trust and strengthen the relationship.
Understand your CFOs cycle
CFOs have spending cycles and it’s important that CIOs understand and familiarize themselves with these. For example, if your CFO cares about earnings in March and cash in September, maneuver IT’s objectives to align with these goals. Remember to always be thinking ahead in your expenses. The IT team needs to be aware of how their projects fit into the overall organizational framework and how they specifically impact the company financially.
Building good relationships take time and is not always easy. However, it is always worth it and companies who embrace this culture are more successful.
Every few weeks Plow brings together top executives from within the Greater Nashville Area, encouraging them to build relationships, discuss common challenges, exchange practices, and more over tasty breakfast, strong coffee, and good conversation.
Headquartered in Brentwood, Tennessee, Plow is a Total Service Provider (TSP) with several distinct business practices that, when consumed together, offer our clients a unique, best-in-class experience that give them peace of mind, valuable time back and the economies of scale that come with having one partner that is focused on exceeding their expectations with every engagement.