It sounds simple, but CFOs really want to know that their technology compatriots have a guiding vision when they're asking for project and budget funding. If the CIO doesn't have a written plan and can't clearly explain what that plan is, then the finance folks will wonder whether they're being asked to throw money willy-nilly at one new idea after another. What CFOs want to hear are budget figures related to an IT strategy that shows ongoing, predictable IT costs and new investments that will push the strategy forward while meshing with the overall business goals. They want to hear specifically how IT plans will help achieve sales growth, strengthen cash flow, improve product quality or enable e-commerce. And moving the company forward will require thoughtful attention to what technology pieces are needed to do that.
Strategic planning extends beyond a single fiscal year too.
Few IT projects have a single year duration, so CFOs will be looking for an explanation of how the current budget requests and plans reflect the overall scope of a project. Return to Spender Everyone wants to know the returns they'll get for what they spend. Dahm puts it more bluntly. I don't want to throw money out the door if there isn't a solid payback. One key about these budgeting fundamentals is that they remain constant across the business world, even as a particular industry undergoes important changes.