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The Dynamic Duo: CFOs and CIOs

Relationships among the C-suite are crucial to a company’s success. Depending on how healthy these relationships are, they can permeate throughoutIT purchases the rest of the organization and help determine strategic dynamics. A recent study by Ernst & Young found that these relationships between high-level executives are as crucial as ever, particularly among finance and IT.

While finance and IT generally operate as separate functions, challenges can arise when the two don’t collaborate. For example, CIOs determine the technology advancements companies need to make in order to keep up with competitive standards, while CFOs are tasked with budgeting for such pursuits. But if the CFO and CIO don’t see eye to eye or if CFOs don’t understand IT’s role, the overall success of the company may be at risk.

The EY study surveyed 652 CFOs and financial leaders and found that 61 percent of respondents have increased their collaboration with the company’s CIO in the last three years. This increased collaboration ultimately could help CFOs balance the company’s budget with strategic technological ambitions.

Despite this increased collaboration, there is still a struggle to get CFOs to adopt an approach that focuses less on budgeting and more on corporate strategy. The study found that 68 percent of those CFOs surveyed view their most valuable contribution to IT as either managing costs or setting budgets, as opposed to determining the company’s capacity for pursuing new initiatives. Additionally, the survey found that the main barrier in this relationship is an insufficient understanding of IT issues.

Developing a closer relationship with IT and working to understand the challenges the IT department faces throughout the organization can help CFOs overcome this barrier and improve the all-around strategic vision of the company. These increased investments into IT can help a company to mitigate risk by defending against cyber attacks, while allowing the proactive pursuit of endeavors related to big data, among other things.

Learn more on how a robust human capital management (HCM) platform like ADP SmartCompliance® can help the finance and IT departments develop consistent, scalable processes to manage HCM-related compliance tasks.
 
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The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.


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