I posted earlier on “Where should IT sit in the reporting structure?” I did more research and found this very interesting paper: CIO Reporting Structure, Strategic Positioning, and Firm Performance:
To Whom Should the CIO Report?
The authors state that the reporting structure for a CIO depends on the strategic positioning of the firm. In some cases, the CIO to CEO reporting model works best, in others the CIO to CFO model produces positive results.[Tweet] The key factor is the strategic positioning of the organization. If there is a plan to grow, expand into new markets, etc then reporting to the CEO produces better results. If the organization is in a cost reduction, sustained mode then reporting to the CFO results in effective cost and investing control.
I worked in an organization focused on expanding the use of IT to deliver new and improved services. In that organization, IT reported to a VP dedicated to Teaching, Learning and Technology. It worked well to have the focus at a VP level to ensure that a multi-year strategic initiative was adequately funded. I also reported to the CFO in a cost reduction environment and found it to be beneficial in securing new funding for IT services, particularly if the new funding addresses institutional risk.
What are your thoughts?