Why the CFO? - The Numbers are In

Whether the CIO should report to the CFO or the CEO is a hot button issue for most CIO's.  Most CIO's that I know believe they should report to the CEO to make sure IT gets the proper strategic exposure.  In cases where the company views IT as tactical it can report to the CFO.  However, as I mentioned in an earlier post when IT is strategic it should report to the CEO.

Now we have some numbers to back up this assertion.  In his October 23rd blog on CIO.com, Christopher Koch reports some numbers for their "State of the CIO" survey of over 500 IT leaders.   Koch reports, "Having the CIO report to the CFO destroys value in nearly every possible way."  Some key points show that reporting to the CFO results in:

• More time on tactical, less on strategic
• Less innovation leadership
• Less IT value

The difficulty is in the chicken or egg argument.  Does IT report to the CFO because it is tactical or is it tactical because it reports to the CFO?  But as Koch correctly reports, ". . . something is sure to crop up around the corner that could present an opportunity for a company that uses IT tactically to start using it strategically. Bury your CIO inside finance and you'll be sure to miss that opportunity."