Today’s C-suite alliances are faced with a multitude of uncertainties. High inflation, talent shortages, and fears of recession are just a few examples that demand attention. CIOs and CFOs must approach this volatile landscape through careful analysis and planning – without losing digital transformation momentum.
It’s more crucial than ever for technology and financial leaders to align to drive their organizations into the future.
CIO-Level Strategies to Drive IT Stability
CIOs are no stranger to uncertainty. They navigate through it on a regular basis as they are charged with responsibilities like downtime avoidance and expanding digital capabilities on a tight budget. Some might say they embrace it as the one true certainty.
But external uncertainties aren’t doing the most to destroy IT value. That title is held by uncertainties within the workplace…and the leading source of internal uncertainty is the absence of strategy.
Two-thirds of enterprises do not have a data strategy – which is crucial to driving business performance. What’s worse, only 14% of employees at companies who have a strategy understand what it is and the direction the company is taking.
CIOs can prepare their organization for the future by focusing on this one differentiator to drive IT stability. But in a world of infinite outcomes where is the best place to start to create organizational resilience?
C-Suite IT Guidance:
For optimal results, the executive team should place intense scrutiny on critical uncertainties and forgo the right ones.
The race to digitalize operations and leverage technology for innovation is trending to become even more fast-paced. It’s crucial that teams invest in data-driven IT strategies that will provide their organization with the best performance and security outcomes – from innovation to integration. (Related content: 8 Expert Tips for Strategic Tech Spending)
C-suite alliances can start by looking at talent. Hiring the right team, retaining key performers, and possessing the right partners such as a co-managed IT service provider to drive strategies and reduce costs will set your business up for success no matter what comes.
CFOs Lead Data-Driven Contingency Planning
As we mentioned previously, data needs to drive your business strategies now and in the future. With so many uncertainties on the horizon, it is crucial that CFOs develop data-driven contingency plans for plausible futures. Doing so will provide your organization with credible plans to mitigate the pitfalls and exploit the benefits.
CFOs must assess many domains including:
- Supply Chain Risk Management
- Strategy-setting and Execution
- Human Capital Management
- Capital Expenditures
Integrating financial planning and analysis (FP&A) will provide financial leaders with the data they need to create and update:
- Rolling Forecasts
- Dynamic Cash Flow Plans
- Emerging Risks on the Business
- Scenario-driven Assessments (in various economic assumptions)
Finance leaders must validate the data quality and integrity within the FP&A. Regular evaluation should be conducted on organizational data as well as by evaluating data from relevant external sources (e.g., economic trends and indicators). These plans must be collaborative and credible to ensure the best outcomes based on the most current and relevant data.
C-Suite IT Guidance:
C-suite alliances need to be flexible due to the unpredictable nature of the disruptions facing markets and industries today. Trust that your finance leaders are presenting sound data-driven plans and adjust your strategies based on said data.
Financial planning for IT during uncertain times is challenging, but necessary. Leaders are responsible for preparing the organization for the future through upskilling employees and embracing automation.
Investing in the right technologies can improve ROI for businesses and improve customer experience. Consider what value technologies like chatbots, automated data analytics, cloud computing and more would bring to your organization. Optimize the most promising revenue-generating opportunities and cut the ones that offer little to no value.
Leading CFOs champion digitization by:
- Carving out resources for automation and digitalization initiatives
- Encouraging a culture of innovation
- Changing internal processes
The C-suite team needs to clearly communicate any technology change with their employees, so they understand the reason for the change. This serves a dual purpose:
- To help drive the business strategy forward within the organization.
- To encourage employees to become more comfortable with new ideas and technologies.
Data-Driven Strategies & Alignment Create Success
External uncertainties will always exist. That’s why CIOs and CFOs who collaborate and create a solid tech strategy for their organization are key. Careful data analysis and communication as well as the right technologies and talent are going to drive success during uncertain times.
- Related content: 5 Digital Transformation Opportunities in an Economic Downturn
