We’ve all heard it. Effective CIO’s genuinely understand the business; its strategies, people and processes while always thinking in terms of the (quadruple) bottom line. The fact is Information Technology leaders are well placed to gain these insights, having an enterprise-wide view of the company’s demand for new technology solutions and an ear to the ground supporting day to day business operations. In my case, I felt compelled to better understand the economics of my business.
Best way to do that? Swap jobs with the Financial Controller I thought – and then made it happen – for three whole months!
So, two weeks in to the FC gig what have I learned about the economics (more-so the financial management challenges) of a large Government business enterprise? Without giving too much away, here’s a taste.
- Every dollar counts. Investment and loan interest rates and terms are constantly watched and optimised.
- Investment decisions are made on a much greater scale. Having now authorised multi-million dollar payments and business cases, it really puts the governance around a say, $10k software request, in perspective.
- Think there’s too much regulation in IT? Think again. A multitude of financial statements and ratios are required on an almost daily basis to a variety of Government owners, regulators, auditors, the Board, its sub-committees and executive management. There’s no room for typo’s or minor calculation errors here – accuracy is king!
- Financial modelling is complex, comprehensive and long range. Yes, I know predicting IT investments over three years is hard (some technologies you will be using haven’t even been invented yet) but consider the huge number of inputs and volatility of external factors into a 10 year financial model!
So yes, while I have so much more to learn about my business’ economics, I do have a new found respect for the finance team, their complex challenges and responsibilities.
