CFO of IT Competency Model

CFO of IT establishes the framework for managing IT-related investments and fund innovations that deliver competitive advantage. The CFO of IT role builds upon the foundational practices of accounting and expense management — what we call the Technology Controller and Cost Optimizer roles — to drive the greatest returns, improve business alignment and accelerate change for their enterprises. The CFO of IT — or whatever the title of the executive who leads the business management of IT — is not just a financial leader; he or she often is essential to the success of the technology organization and the business that depends on exceptional technologies and innovations. An effective CFO of IT (or the equivalent) fulfills at least five different roles, as described by the Competency Model below.

source: TBM Council

A strong CFO of IT will do more than manage the IT budget. S/he will also direct the strategic and operational financial planning processes for the IT organization, create a better understanding among the executive team of the intricacies of IT cost structures and investment strategies, develop a solid approach to communicating the IT financial picture to the entire business community and educate business partners about the cost and value of IT.

While “IT finance” is the focal point of the CFO of IT, many of these executives play additional roles. With their ability to dissect the financial picture of large vendor contracts, some CFOs of IT function as head of the vendor management office. Likewise, when it’s time to upgrade finance systems, the CFO of IT is often asked to lead that program.