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The CFO-CIO Partnership in Performance Management Projects
Much is obviously made of the focus on the line of business (that’s "LOB" for all you performance management insiders) regarding performance management software and applications, and rightly so. After all, most IT pro’s have no idea what planning and budgeting software actually does, much less which product actually fits best for the finance teams, so while they will often act as a primary gatekeeper or “rule out but not in” the preferred vendors, they rarely act as the decision maker, and in fact have often been relegated to a signatory on the PO in the entire process.

But there’s a strong case to be made for allowing the CIO to move up from the back row of chairs against the wall and join the main table at these discussions. For while the CIO is often now reporting to the CFO in the wake of the regulatory and financial scandals of the early 2000’s, they now command a vast array of applications and infrastructure investments that give them a unique and highly desirable perspective on the technology being used within the organization, beyond whether responding to whether they’re an “Oracle or SQL shop.” Let’s discuss just a few of the key reasons for ensuring that you have a strong CFO-CIO partnership in your organizations today as you embrace performance management projects:

First, they can bring invaluable experience and lessons learned from past implementations. Whether it be an SAP or Siebel project, they can point out the pitfalls and lessons learned from what was likely a long and drawn out process, and ensure that in BI and performance management, this time around you don’t make the same mistakes.

Next, they can point out new trends and technologies that they’re seeing their peers use, or that are starting to be adopted, and give you the pro’s and con’s of adopting those technologies yourselves. For business people who are used to a Software as a Service model in many aspects of their lives, SaaS may not be a big deal—but there may be significant IT implications, limitations on how the application can be used or who can access it at any one time—and you need to ensure you’re aware of how a new technology would impact your use cases.

They know ROI. In part because in many cases their past IT projects have often failed to achieve the lofty ROI goals set by the project team at the time of purchase. They know the staff that it requires to implement such products, the hidden fees and resources often required, and the unforeseen pitfalls that may not affect your project directly, but that will impact the broader IT environment, and further complicate their lives, while slowing down your project. While we on the business side often tend to get fairly excited about the potential of the technology, they can give us the straight scoop.

Additionally, they know the products that are making the biggest impact on the market. We’ve all read about the frighteningly short tenures of CIO’s these days, which means that your own CIO has likely been around the block at time or two. This is a good thing for our purposes, because it means they’re likely highly networked and know many of the vendors you’re evaluating from their prior lives. They’re plugged into their own roundtables and networking groups, and they have the off-the-record conversations that senior executives have that will let you know if you’re on the right track with your project. After all, at the end of the day this IS an IT implementation—and their neck is also on the line to ensure that it’s a success. They’ll be the ones to let you know if the product you’re evaluating has had issues elsewhere, and what those issues might be.

Now, there are likely 100 more reasons to ensure that the CIO is part of the discussion as you get ready to fully embrace the promise of performance management, but hopefully these few, if not giving you pause, then perhaps help you ensure that the CIO is at least on the “TO” line of your next project evaluation meeting, and not just a “CC.”