Skip to main content
American ExpressAmerican ExpressAmerican ExpressAmerican ExpressAmerican Express
Contact UsLog In
Skip to content
DON'T do business WITHOUT IT
DON'T do business WITHOUT IT

Small Business Cards

Cards

  • American Express® Platinum Business Card

  • American Express® Qantas Business Rewards Card

  • American Express Business Explorer® Credit Card

  • View All Cards

  • Compare Cards

International Payments

  • International Payments

  • American Express AccessLine™

  • View All International Payments

Manage Your Business

  • Business Benefits

  • Why Amex for your Business?

  • Business Credit vs Charge

  • Business Rewards

  • Business Cash Flow Management

  • Business Travel Rewards

  • Existing Customers

  • Order Cards for Employees

Corporate Card Programs

Cards

  • American Express® Corporate Platinum Card

  • American Express® Qantas Corporate Platinum Card

  • American Express® Corporate Gold Card

  • View All Corporate Cards

  • Compare Corporate Cards

Payment Solutions

  • Buyer Initiated Payments

  • American Express vPayment™

  • View All Supplier Payments

  • International Payments

  • American Express AccessLine™

  • View All International Payments

Business Class

  • Business Class

  • Products & Solutions

  • Service & Expertise

  • Existing Customers

Business Class

Business Class

Insights and Inspiration to Help Grow Your Business

Security

    Planning for Growth

    • Growth Opportunities

    • Adapting to Change

    • Future Proofing

    • Strategy

    Managing Money

    • Managing Cash Flow

    • Financing

    • Becoming More Efficient

    Building Your Team

    • Leadership

    • Hiring & HR

    • Company Culture

    • Workplace Mental Health

    Getting Customers

    • Marketing & Sales

    • Customer Relations

    • Digital Tools

    Topics
    Planning For Growth  >
    Managing Money  >
    Building Your Team  >
    Getting Customers  >
    Podcasts
    THE NEXT CHAPTER  >
    American Express Business Class Logo

    Related Content

    Loading...
    Loading...
    Loading...
    Loading...

    How CFOs and CTOs Can Work Together Effectively

    Twitter Icon
    Facebook Icon
    LinkedIn Icon

    Published: 03 May 2017

    Updated: 05 March 2019

    Alexandra Cain
    Cain Creativity, Inc.
    Summary

    The relationship between Chief Financial Officers (CFOs) and Chief Technology Officers (CTOs) has shifted markedly as digital technologies have begun to drive operations and innovations. 

        With the emergence of CTOs as board members and having potentially equal footing with the CFO, comes a new dynamic that requires management to ensure the finance and IT functions work effectively together.

        Anthony Stevens is a partner at professional services firm KPMG and its chief digital officer. He says outside the box thinking is required to bring finance and technology functions together.

        “There's creativity required on both sides to establish an effective rhythm and alignment to the overall structure. Today strategy, vision and agility in execution are critical," says Stevens.

        However, conflict can arise in the way the two areas approach operational matters. The finance function tends to have a more traditional structure compared to IT in terms of the way the department is run and the way investment funds are allocated.

        Paul Harapin, Senior Vice-President and General Manager of cloud-based business intelligence platform, Domo says the ideal relationship is a collaborative one.

        “Often what you see is that the CTO is doing his own thing and doing what he thinks is right." he says. "But he's not really engaged in executing the strategy. On the other hand the challenge all CFOs have is making the transition from strategy to execution."

        “Technology is the enabler here, particularly with all the digital change taking place. If the CTO is not helping the executive team understand this change, their replacement will," says Harapin.

        As an example, Harapin says he recently worked with a CFO charged with delivering strategy across cross-functional goals, with different departments and different goals. These goals translated into operational metrics to guide execution of the strategy.

        “The CFO worked with the technology team to map out operational metrics so everyone understood them and their contribution to the execution of the strategy on a daily basis," he says.

        Harapin says one way issues can arise in the CFO/CTO relationship is when a CTO asks the CFO for money without due consideration to strategic purpose.

        “The more dynamic CTOs seek to align with corporate strategy and use technology as the lever to execute it," he adds. “So the ideal relationship is where technology is part of the corporate strategy, and execution is related to driving KPIs."

        Demarcation lines

        Despite the dominance of digital technologies, the traditional areas of control maintained by the CTO and CFO may have not changed. Stevens says as a result, for many companies, it is important to focus on the current business model while the firm builds new business models suitable for a digital business environment.

        “In this context, CFOs will typically spend ninety-five per cent of their time on the here- and-now. But it's arguable that because of the increasing pace of change, more time should be spent on the unknown; the future, what it will look like and the strategic thinking that goes with that," Stevens says.

        Nevertheless, he says, shared understanding and mutual respect for each other's roles and the factors influencing their decisions is the best way for the CFO and CTO to work together.

        “For a CFO, the idea is to work towards a position where they are able to make decisions based on less information, but with better analytic skills," says Stevens. "For the digital leader, it's an idea to run through the process of quarterly reporting and related issues to get a better understanding of this area."

        Ultimately, says Harapin, the CFO should have an overarching eye on the business and a firm hand on the purse strings.

        “The CFO should work closely on strategy and execution. But the CTO's role relates to how technology helps accelerate achievement of company goals. If any IT investment doesn't contribute to this, don't do the investment," he says.

        Building open and ongoing lines of communication between the IT and finance functions to work cohesively together can ensure all actions and investments are aligned to the company's strategic goals.

        Key Takeaways

        • Traditional responsibilities of the CFO and CTO have not changed, despite the dominance of digital technologies.
        • Two areas of potential conflict need to be managed: allocation of investment funds to IT and agility in acting on investment decisions.
        • Allocation of funds to technology should be strategic rather than piecemeal.
        Twitter Icon
        Facebook Icon
        LinkedIn Icon
        Want to Dig Deeper?
        Building Your Team
        Leadership

        Trending Content


        Get an American Express Card

        • Personal Cards
        • Credit Cards
        • Small Business Cards
        • Corporate Cards
        • Add Someone to Your Account
        • Refer a Friend

        More Products & Services

        • Insurance
        • Accept the Card
        • Online Services
        • ATM Locator
        • Global Network

        Important Links

        • Frequently Asked Questions
        • Ways to Pay
        • Accessibility
        • Safe and Secure
        • Resolving Complaints
        • Financial Hardship

        Company Information

        • About American Express
        • Careers
        • Contact Us
        • Site Map
          • Personal Cards
          • Credit Cards
          • Small Business Cards
          • Corporate Cards
          • Add Someone to Your Account
          • Refer a Friend
          • Insurance
          • Accept the Card
          • Online Services
          • ATM Locator
          • Global Network
          • Frequently Asked Questions
          • Ways to Pay
          • Accessibility
          • Safe and Secure
          • Resolving Complaints
          • Financial Hardship
          • About American Express
          • Careers
          • Contact Us
          • Site Map

        American Express
        AustraliaChange Country
        • Connect with Amex on Facebook
        • Connect with Amex on Instagram
        • Tweet your questions to @AskAmex
        • Connect with Amex on LinkedIn
        • YouTube
        • Website Rules and Regulations
        • Trademarks
        • Privacy Statement
        • Security Alerts

        Copyright © 2024 American Express Company