C-suite leaders have never had more complicated responsibilities. The rapid adoption of Generative AI (GenAI) technology and increased focus on ESG initiatives are just two of the growing list of priorities leaders have had to grapple with since the COVID-19 pandemic.
Given how many new challenges require specific expertise, like technology investments and long-term capital allocation, CFOs and chief information officers (CIOs) are increasingly well-positioned to help organizations make the right strategic decisions, particularly when it comes to technology. The nature of these challenges also suggests that the combination of these two teams can accelerate strategic technology initiatives from ideation, capital and talent allocation, to execution.
Combining Unique Perspectives and Expertise to Succeed
Identifying the appropriate tech investments is always a challenge, one where C-suite leadership is often navigating uncertainty. Since leaders often have to decide whether to adopt nascent technologies early on or let others make first-mover mistakes and catch up later, technological literacy has moved from a “nice to have” to a “must-have” skill among decision-makers.
Making the correct decision requires a broad and deep understanding of each business line’s strategic goals and which new technologies can best advance those priorities. This is where CFOs and CIOs have perspectives that few, if any, other leaders in an organization share. These two executives often have a purview of the entire global operation of the enterprise.
Combining the talents of both roles requires the two leaders to function in unison like a single head of an octopus, with tentacles reaching through all areas of the business to increase digital fluency and ensure corporate dollars are spent wisely and strategically. As these roles continue to evolve — as they have since the COVID-19 pandemic — the opportunities for successful collaboration will only increase, especially as technology and corporate strategy become even more entwined.
How the Role of the CFO Has Changed
In recent years, CFO duties have expanded beyond traditional financial reporting. Among those new tasks are ensuring compliance with evolving disclosure requirements, accounting for ESG initiatives and commitments, and developing expertise in various kinds of technology.
It is not a surprise that more than a quarter of CFOs (26%) indicated they have broader responsibilities. As the custodians of the organizational purse strings, CFOs are responsible for properly allocating resources, have the greatest insight into overall organizational needs, and can decide which areas of the corporation receive funding for talent and tech. As technology advances and pressure from stakeholders increases, these responsibilities will surely only grow in the years to come.
But, a smart investment strategy also necessitates a broader, more robust understanding of the technologies available and how new digital offerings can best improve organizational resilience and productivity. And no one understands that better than the CIO.
Turning Digital Needs From a CIO Priority to a Business Necessity
Whether they’re ensuring operating systems are properly secured from cyberattacks or advocating for advanced tech tool integration, CIOs have a unique perspective on an organization’s technological competencies, which is an imperative for enterprises today given the disruptive nature of technology. CIOs have become chief educators and evangelists with respect to the possibilities and risks of technology.
Today, like CFOs, CIOs recognize that their roles are changing. CIOs are also seeing scope creep with 43% reporting they are expected to drive organization-wide initiatives on tech education and 13% saying they now have a greater role in initiatives related to strategic planning. Examples of this expanded prerogative include the widespread and ongoing shift from on-site hardware to cloud-based servers or growing corporate interest in experimenting with predictive AI.
While CIOs are likely the most knowledgeable about evolving tech trends, they’re not always the best at communicating the business value of technology to other C-suite leaders. Through close partnership, the CFO and CIO can function as one voice to transform how organizations think about and invest in technology and help the C-suite understand their shared vision for the future.
Preparing the Business for Change
When the CFO and CIO work together on strategic technology initiatives, they help future-proof an organization and make it easier to accomplish business objectives. But to make the most of that combined expertise, investments in new technologies and digital offerings need to become a business priority. Seventy-six percent of finance leaders believe digital transformation will play a greater role in their companies’ ability to achieve their strategic goals. Organizations will have to do more than simply maintain the technological status quo if they want to remain resilient and competitive.
By collaborating, creating a shared language, and pursuing common goals, the CFO and CIO can help the business stay ahead of technology trends, choose the right strategic investments, and better prepare for a future that will be changing ever faster. Consider developing a plan to get your CIO and CFO to work together on these goals. This alignment and combined vision could unlock capabilities you don’t know your organization has.
Frank D’Amelio is an independent advisor for Deloitte’s CFO Program and John Marcante is an independent advisor for Deloitte’s CIO Program.