Architects Beware - Reporting to the CFO could hinder your success
I've talked to a lot of architects who have had experience reporting to CFOs, and they often express unease about the situation. They've had varying levels of success, and sometimes they feel like they're not getting the engagement they need. It's definitely something to consider if you find yourself in a similar situation. Unfortunately there is no silver bullet and sometimes no way of fixing things, but identifying where and why you might have separation could certainly help.
Nature
I have a lot of accountants in my family, so I feel pretty confident to say they are wired differently. Accountants tend to be very evidence-based and focused on the costs and benefits of a specific activity. As an architect, you are more conceptual and don't necessarily have a clear monetary benefit for every activity you undertake. This can lead to difficulty for you in getting the support you need from a CFO. These disparate ways of thinking often lead to difficulty for an you to get the support they need.
Tailor your communication: When engaging with stakeholders such as a CFO, consider who you are pitching to and what information is pertinent to them. Work on your storytelling skills to present your ideas in a way that is easy to understand and relevant to their priorities.
Storytelling
I know a lot of architects who are very good at creating innovative solutions, however their ability to tell a story and engage the business is severely lacking. When engaging with stakeholders such as the CFO, you need to consider who you are pitching to, and what information is pertinent to them. A CFO may not have the visibility they need to understand the complexities of the solution. Therefore, there is an increased risk that they may not fully understand the scope of your responsibilities, and in turn may not provide the support and resources needed to succeed.
Find common ground: Identify shared goals and objectives between your architecture function and the CFO's priorities. Highlight how your work can support their goals in terms that resonate with them.
Conflicting Priorities
While your focus is on implementing solutions that enable a company to achieve its business goals, a CFO may be more focused on reducing costs and maximising profits. There is therefore a risk that decisions will be made based solely on financial considerations, rather than on what is best for the business. This misalignment of priorities can lead to suboptimal decisions that may negatively impact the company in the long run. I met an architecture leader recently who recommended to their CFO that they needed to undertake an RFP process to ascertain the best solution for their corporate function transformation, rather than taking whatever their ‘trusted’ consulting partner recommended. This was turned down by the CFO as it would cost too much and they assumed that they would end up choosing what their partner recommended anyway. It’s safe to say that the architect moved on relatively quickly.
Collaborate with the CFO: Engage with the CFO early and often to ensure that your work is aligned with the company's overall business goals. Work with them to develop a shared vision and roadmap for achieving these goals.
Lack of Strategic Input
Architects are responsible for evaluating new technologies, identifying opportunities for innovation, and ensuring that the company's investments align with its overall business goals. When you report to the CFO, there is a risk that you will not have a seat at the table when it comes to making strategic decisions. This can limit your ability to provide valuable input and shape the company's strategy in a way that supports the business's long-term goals.
Get a seat at the table: Make sure you have a seat at the table when it comes to making strategic decisions that affect your architecture function. Advocate for yourself and your team to ensure that you have a voice in shaping the company's strategy.
In an ideal world, architects would report to an executive who has a deep understanding of the company's operations and can provide the support and resources they need to succeed. But in the real world, that's not always possible. If you find yourself reporting to a CFO, it's important to think carefully about the situation and identify any areas of separation that may be causing problems. Then, work collaboratively with your CFO to find solutions that work for everyone.