Finance is more than the language of a business – it’s the DNA. IT Financial Management and Technology Business Management is a critical component in enterprise-wide financial health. CIOs contend with a host of financial challenges and investments every day, especially with the rise of COVID-19, and are continuously required to demonstrate financial discipline to their colleagues and stakeholders. IT leaders can leave an impactful mark on their organizations and change the scope of their futures.
CIOs share the most important lessons they’ve learned in ITFM and TBM and how those apply to their enterprises:
Bradley Strock, CIO, PayPal
“I would say the most important lesson about IT finance is that it is business finance. What I mean by that is the language of business is finance, and it is fundamental to conducting business anywhere. So, while there are certainly particular nuances to IT from a financial perspective, I view all of it as business finance.”
Ron Guerrier, CIO, Farmers Insurance
“The most important lesson that I’ve learned about IT finance comes with the prep, polish, and presentation. Most IT professionals don’t think too much about the evangelism needed to get IT initiatives funded and launched. I’ve learned that taking the extra time to ensure that you’ve prepared all the necessary documents and all accounting treatments are true. The next learning is that the details must be polished, as the flow and logic must tell a story that resonates with those approving the request. The final step is a presentation that not only provides low-, mid-, and high-cost options with a recommendation, but also has a few mock-ups or wire frames that give a visual deliverable.”
William Miller, Founding Partner of Proven Optics, shares his framework for ITFM and TBM success. He states, “It’s about much, much more than allocation and reporting. It’s all about forward-thinking analysis and value-add executive direction. Through years of ITFM and TBM practice, we’ve found the key to success isn’t any one thing. Success is the outcome of the snowball effect of getting lots of things right.” He continues, “In the overwhelming majority of organizations, IT is viewed as a cost-center. In these environments, business executives look to IT to be cheaper, faster to market, or more efficient. To manage these demands, the majority of IT Execs and CFOs rely on either software or manual spreadsheets to deliver IT financial reporting around costs and P&L impact. This may do an okay job of maintaining the status quo. But, it will do little to drive the outcomes the business wants.”
Proven Optics can aid you in developing an ITFM or TBM practice that will reveal your organization’s health. Build your IT Value Story™ today.
For more insights, click here
