When Does Your CFO Need a Fractional IT Leader?
The CFO usually has two core roles: overseeing the financial strategy of the business and operating the finance function. In addition to these hugely demanding and specialized functions, many CFOs oversee IT as well. But IT and technology are crucial to running an enterprise, especially as it grows, and cybersecurity risks are a strategic issue requiring expert attention. Fractional IT leadership for CFOs can provide the necessary expertise in these areas.
Simply put, sometimes a CFO needs help—often in the form of a fractional CIO, CTO or CISO. (Not sure if you need a CIO, CTO, or CISO? Read this.)
Fractional IT leadership for CFOs brings a number of advantages to a business. It eliminates the need for an expensive full-time position, and since the model is flexible, the business pays only for what is needed. There are no in-costs, no on-costs and no out-costs. Because a fractional IT leader is a cost-effective way to access top talent, it can help a business to punch above its weight and access top talent quickly.
So what drives the transition when a fractional CIO, CTO, or CISO is needed alongside the CFO?
✔ Too many demands of financial leadership.
The financial strategy and operational demands of the finance function will grow as the business grows. New product lines, expansion plans, or M&A may require a step-up in finance activity. The CFO may simply need to focus exclusively on these priorities without distraction.
✔ New systems and reporting initiatives.
Businesses often deploy simple systems during their first phase of growth, then replace these with integrated systems in the next stage, then later deliver automation, economies of scale, and reporting. At any of these inflection points, a business needs a dedicated IT leader to set systems strategy as well as focus on the process, organizational, and technical details. Large projects and transformations are bread and butter for CIOs and CTOs.
✔ Tech initiatives, custom software, and AI.
New, tech-led initiatives require a “tech native” with in-depth knowledge of how the technology works and how it can deliver opportunities. These initiatives typically require detailed collaboration with developers and engineers. Additionally, the IT leader must speak their language in order to not only challenge decisions but also fully understand the options and long-term implications.
✔ Cybersecurity and risk.
As companies grow and their assets and liabilities increase, they often require a functional expert for cybersecurity strategy. This expert must set a strategy aligned with the business, make informed decisions, and be fully accountable. The role may become more time-consuming and may require crisis management experience.
✔Digital and online initiatives.
The balance of the tech function may move to marketing and revenue generation, which requires different skills and a different type of leader. The new IT leader may need to shift focus to the CMO or COO. They might need to refocus on brand experience and UX. Additionally, they must ensure integration between revenue generation and fulfillment. The IT leader may need a deep knowledge in areas like SEO, advertising, and social media.
✔ Team and supplier leadership.
As the CFO’s strategic role expands, the IT team may begin to feel more distant and disconnected. The Head or VP of IT or IT Director may feel detached from the business strategy. In addition, as the number of suppliers and the complexity of their roles and interconnections increases, an expert IT leader may be required to ensure great relationships and performance.
Simply put, a fractional IT leader allows the CFO to return to thinking strategically about the future and to pursue more ambitious growth plans with confidence. A fractional IT leader can bring the specific skills, experience and flexibility needed to deliver the tech strategy.