Good Rapport

Because IT-related projects are often a large capital expense, it is very important for a CIO to have a constructive relationship with the CFO, says Hemant Kogekar, who has headed up IT at both Citibank and supermarket chain Franklins. "Having a good rapport with the CFO gave me a good perspective of the effect of IT on the company's health, what other capital expenses were taking place and what the company could afford. When you start looking at things from a CFO's point of view, you learn more about where IT projects fit in the overall spectrum of business problems. That helped me as a business person, even if it meant taking some knock-backs on projects," Kogekar says.

At Citibank, Kogekar was in the same peer group as the CFO, but at Franklins he initially reported to the CFO. "The CEO wasn't interested in IT and delegated it to the CFO who was familiar with the concept of IT projects," Kogekar explains. "This worked well because he was a change agent, which aligns well with IT, and not just a number cruncher."

However, when a new CEO more used to dealing with IT and setting its priorities and funding took over at Franklins, he wanted Kogekar to report to him directly. A new CFO also came on board who was more interested in finance and was not competing for control of IT, Kogekar says. Consequently, the relationship became one of peers and finance became a customer of IT in the same respect as all the other business units.

According to Kogekar, the CFOs in both Citibank and Franklins brought more financial rigour to projects than the operating units. Nor did he have any more conflict with them than with anyone else in the normal rough and tumble of business life.

However, he admits that CFOs sometimes have a simplistic view of IT, and trying to justify upgrades and infrastructure projects to the CFO can be hard. Usually, it is the CEO who better understands the issues and is consequently more sympathetic and prepared to make a leap of faith, Kogekar says. At the same time, his interaction with the CFO at Franklins led him to start challenging the necessity and timing of some upgrade cycles and find areas of savings himself.

So the days of the CIO reporting to the CFO may be numbered - although this will depend on the level of importance of IT to an organisation. It appears more likely that CIOs and CFOs will operate as peers and both will be responsible to the CEO vEditor's NoteOn June 21 BankWest announced the creation of a new division, BankWest IT, within its organisational structure through the amalgamation of its existing IT services unit and its wholly owned subsidiary CBSIS Ltd. The restructure will see CIO Leigh Sprylan and CFO Ross Hughes no longer residing in the same division. Sprlyan's new title is director IT client management and services delivery.

A BankWest IT general manager, who will be appointed soon, will head the division. In the interim BankWest general manager finance and corporate services Tony Iannello will fill the position, which incorporates the old CIO role plus much more. Hughes will be acting general manager finance and corporate services.