The Power of CIO-CFO Collaboration: Essential for Tech ROI and Business Growth
Survey finds executives diverge on tech ROI, AI investment, and innovation budgets, but cooperation holds key to success.
CFO Real Insights: The CIO Imperative
The collaboration between chief information officers (CIOs ) and chief financial officers (CFOs) has become increasingly critical. This partnership isn鈥檛 just about managing costs or implementing new technologies; it is about driving innovation, enhancing business outcomes, and ensuring long-term organizational success.
CIOs and CFOs must maintain a close alignment to achieve their goals. To explore the dynamics of this partnership, 乐鱼（Leyu）体育官网 recently conducted a survey of these executives. The survey aimed to understand their perspectives on potential points of contention, barriers to collaboration, and the outcomes and benefits of working more closely together.
Our survey found certain areas of cooperation:聽
Both groups 鈥�
鈥� see their roles as collaborative.
鈥� feel that their collaboration has had a significant impact on innovation and adaptability.聽
鈥� acknowledge that AI has increased collaboration and led to the creation of new initiatives.聽
鈥� agree that regular meetings are necessary to review technology investments, suggesting a bi-weekly schedule.
But also points of disagreement:
- Budgets: 63 percent of companies have more than 20 percent of their annual budget dedicated to innovation, but a third of CIOs consider that amount insufficient, while a third of CFOs consider it excessive.
- Who鈥檚 in charge: More than half of each group felt they were primarily responsible for AI and technology investments.
- AI鈥檚 impact so far: CFOs said that the technology had a bigger impact on operational efficiency and risk management than CIOs.
- Sources of frustration: Nearly half of CIOs are frustrated with assessing tech ROI while CFOs are frustrated with understanding tech capabilities.
When CIOs and CFOs work together, they can ensure that technology investments are aligned with business goals, that technology is used effectively to improve business performance, and that technology risks are managed effectively. When CIOs and CFOs are at odds, it can lead to inefficiencies, wasted resources, and higher risks.
Ultimately, building trust, frequent communication, and shared goals are the keys to strengthening the relationship between CIOs and CFOs. The following report delves deeper into in the dynamics of the CIO and CFO collaboration in greater detail.
CIOs and CFOs see their relationship as mostly collaborative
One of the primary challenges in CIO-CFO relationship is their differing perspectives. CIOs often focus on long-term technological advancements and capabilities, while CFOs prioritize short-term financial performance. Bridging this gap requires mutual understanding and alignment on organizational goals. The survey also found areas of contention around assessment of technology ROI and understanding of technology tools and capabilities.聽
The good news is that, despite these divergent responsibilities and perspectives, our survey found most CIOs and CFOs generally seem to have a positive view about how they work together.聽
92%
of CIOs and CFOs felt their role was collaborative
One trend we鈥檙e seeing is that more CIOs are reporting to the CFO. If that鈥檚 the case, then that will undoubtably lead to more collaboration and a shared vision.
Joe Moawad
Principal, Advisory, Corporate Services, 乐鱼（Leyu）体育官网 US
Who鈥檚 in charge?
The survey also reveals a notable division regarding who CIOs and CFOs believe holds primary responsibility for AI and technology investments. More than half of the respondents from both groups feel they are primarily in charge, with 59 percent of CFOs claiming this responsibility, compared to 61 percent of CIOs. This overlap in perceived authority points to potential power struggles and the necessity for clear delineation of roles to optimize technology strategy and implementation and effective decision-making.
Technology leaders all think they鈥檙e in the driver鈥檚 seat when it comes to AI, since they鈥檙e enabling the core technology required to utilize AI. But it鈥檚 also likely that others in the organization, like CFOs, would think that they鈥檙e in charge since they are the ones who are incorporating AI into their function.
Jeoung Oh
Techonology Strategy & Architecture Leader, 乐鱼（Leyu）体育官网 US
Disagreement over budget allocations
CIOs and CFOs also disagree about the level of budget allocations for technology investments, with CFOs thinking spending is excessive, while CIOs saying it鈥檚 too little鈥攁s would be expected.聽
More than half of CFO and CIOs view their innovation budgets are adequate however...
~30%
CFOs who felt innovation investment budgets were excessive
~30%
CIOs who felt innovation investment budgets were inadequate
However, budget allocation is one area where collaboration between the two executives is essential. CIOs can provide insights into which technologies offer the best growth potential and efficiency improvements, while CFOs can evaluate the financial viability of these tech investments and provide rigor in developing business cases. This collaborative financial-technology planning ensures that scarce resources are allocated wisely, focusing on investments that drive the most value.
Barriers to collaboration
While CIOs and CFOs generally believe they work together well, they did indicate a few barriers to their collaboration, our survey found. For example, technical jargon used by IT professionals can be challenging for finance teams to understand, and financial terminology may be unfamiliar to IT staff. Another issue is disconnected operations. CIOs and CFOs often operate in separate silos, each focused on their own needs and challenges. This can lead to uncoordinated efforts and wasted resources.
Generally, CFOs were more like to see barriers to collaboration, specifically:
1
2
3
CIOs and CFOs can take several steps to help lower these barriers.
- Clear communications: Effective partnership and clear communication can be achieved by rebuilding trust through understanding each other's priorities and being transparent about needs and strategic visions.
- Agree on ROI measures for tech investments: CIOs and CFOs need to align on the reasoning behind the decisions they make on sourcing new tools and investing in technological infrastructure and how they intend to measure success.聽
- Align on key performance indicators (KPIs): Each role shares the common goal of helping the organization remain profitable and relevant. Develop and manage joint KPIs that allows visibility into tech investment success.聽
Consequences of lack of coordination on IT and digital investments
Strategic technology investments are vital for organizations to remain resilient and competitive. Businesses see digital transformations as a high priority and plans for increased spending on digital projects are already in place. Gartner, a leading research and advisory firm, has forecast a 9.8 percent year-over-year growth in worldwide IT spending for 2025, reaching $5.61 trillion, primarily driven by continued investments in AI.1
C-Suite relationships ensure digital investments have the biggest impact, and the relationship between CIOs and CFOs is one of the most important. When CIOs and CFOs aren鈥檛 aligned in their thinking, that lack of coordination can lead to a waste of resources.
Strategies for improving CIO-CFO collaboration
Establish Shared Goals and Objectives: CIOs and CFOs should clearly define success metrics for both technology initiatives and financial performance. For example, a shared goal could be reducing costs, improving customer retention, or accelerating digital transformation.
Foster Open Communication: Regular check-ins and shared dashboards that provide transparency into key metrics can help maintain alignment. Transparent conversations allow both leaders to share insights, understand each other鈥檚 challenges, and co-create solutions.
Build trust and understanding: This starts with the CIO鈥檚 understanding of the finance organization鈥檚 technology, needs and priorities, and the CFO gaining a clear understanding of IT鈥檚 priorities and vision. Ongoing collaboration and long-term planning help the CFO feel confident that the CIO is a partner.
Co-lead key initiatives: Collaborating on and potentially co-leading high-impact projects, such as cloud migrations, compliance improvements, or AI deployments can better align resources and ensure success.聽
Develop a shared vision for technology鈥檚 role: This involves more than just agreeing on budgets; it requires a complete understanding of the company鈥檚 long-term objectives and how technology can support them.聽
Conclusion
The collaboration between CIOs and CFOs is crucial for driving innovation, managing risks, and achieving business success in the digital age. While challenges such as different perspectives and communication barriers exist, these obstacles can be overcome through deliberate efforts and a shared commitment to aligning goals. By fostering open communication, developing a shared vision, and building trust, CIOs and CFOs can forge a partnership that delivers sustainable value and propels their organizations forward.
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The CFO-CIO Partnership: Key to Driving AI Innovation
Chief financial officers (CFOs) and chief information officers (CIOs) say they collaborate, but they hold distinctly opposite perspectives on how to measure the benefits of tech investments, whether investment budgets are adequate and which of them is responsible for making key decisions, according to a new 乐鱼（Leyu）体育官网 survey.
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