Getting a CFO to Say Yes to IT Projects - Get CFO Input Long Before the Proposal (
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CFO Input,
Long Before the Proposal
In
addition to being able to speak clearly about an initiative’s benefits, there
should also be a complete lack of surprise, says Logicalis’ Baker: “If a
capital expenditure hits my desk, it shouldn’t be the first I’ve heard about
it. Too often at companies, there isn’t enough informal dialogue about what
issues are coming up in the near future. And that’s why good opportunities get
missed.”
Baker
suggests that CFOs and technology executives meet at least once each quarter to
chat about specific concerns, such as a potential lack of data storage space,
or higher-than-expected labor costs with IT employees. Involving the CFO early
and often can help to shape initiative proposals, and get them approved.
The
areas in which IT and CFOs can work together most effectively are security,
regulatory compliance, business continuity, storage management and service
management, according to Patrick Zelten, vice president of professional services
at Forsythe Solutions Group, a technology consulting firm.
“Understanding
business needs surrounding an area like storage management can have dramatic
effects,” he says. “The two groups can work together to set priorities and get
the maximum value out of the IT spend.”
Another
important aspect is an abundance of detail, which doesn’t mean technical
information, but rather, an explanation of how the project will proceed through
numerous phases. “One of my pet peeves is seeing a capital request that
completely lacks justification for the numbers, with no clearly painted
financial benefits,” notes Baker.
Details
about disk features or software upgrade advantages also leave him cold, he
adds. Like other CFOs, he’d rather see case studies of other companies that
have spent the money and benefited from the results, or a survey of customers
about what type of technology-fueled changes they’d like to see.
Another
advantage in a proposal is an articulation of outcomes at various stages of a
project, not just as the ultimate goal. “A fatal flaw can be trying to wrap too
much into one large outcome,” Baker says. “Instead, there have to be milestones
and measurable phases.”
Pressing
for a fast decision and putting a sense of urgency into the project is also a
sure way to get the CFO veto, Baker says. He finds fast-track requests to be
suspicious, particularly if he hasn’t heard about the project in the past.
Finally,
a large part of informal and formal discussions should center around general
expectations, with a healthy amount of realistic goal-setting, Zelten adds.
This includes thoughts on how a project might fit in with others already in
progress, or with goals in other departments, such as sales and distribution.
“There’s
much that can be done [to help] a CFO to understand technology’s role and for
IT to understand the business,” he says. “You can’t talk enough about risk,
cost and outcomes on both sides.”
IT Management 
