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Moving your Department on your own

By ferrandim ·

I (IT Manager) am currently reporting into the Finance Department, and need a motivation to make this and self-sufficient department.

If you could offer any papers, advice, etc it would be greatly appreciated.

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by CG IT In reply to Moving your Department on ...

$$ is the key here. In the companies business plan, they may not have included an IT department and budget for one. They may not be able to create an IT department nor be able to allocate funds for for one. Reasons can range from some executive who thinks theres no need for one let alone paying some high price salary to someone to a company that does govt contracting at the state or federal level and they don't have $$ or won't pay for one. But they might cover your salary if your in the finance department so your in the finance department.

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by ferrandim In reply to Moving your Department on ...

Hi, Maybe I did not make myself that clear. We have an IT Depertment with a budget, with an IT manager and staff. The IT Department all report to the Financial Manager. What I want to do is to put together a motivation why we should be on our own and report to the CEO.

The best reason is that no one here realy understands IT, but that wont be enough to convince the board to move IT onto its own with a CIO.

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by CG IT In reply to Moving your Department on ...

ok thats different.

In my opinion, one of the best places to look at how It is now structured in a corporate environment those industries that do government contracting. They are some the the largest companies in the US. Try this link or do a web search for information technology structure. Tons are articles on why having IT report directly to the executive level is or inportance in this day and age. Try or this is a pretty good one and this one was put together I believe by oklahoma state University

Leading aerospace companies, because of the vast nature of information generated at all levels within the company and the vast nature of government reporting requirements have Information Technology as it's own seperate organization unit reporting to executive manangement. One could argue that large companies need a seperate department due to sheer size but heck nowadays everyone knows how to use a computer and it's easy to learn to hack on the web. Should finance be responsible for telling the CEO that someone hacked in an engineering department account and stole blueprints off some engineers computer?

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by DC_GUY In reply to Moving your Department on ...

Typically in the U.S., a company's IT functionality is its most precious asset. You probably depend on an internal network or the internet for the employees to be able to do their jobs, to transact business with customers and suppliers, to manage inventory, shipping, scheduling, and sales, to perform financial transactions, and/or to control automated processes. Most companies would go bankrupt in a few days if their computer systems were unavialable with no backup.

Managing software is nothing at all like managing money. IT security alone is an issue of absolutely critical importance that far transcends the focus, training, and knowledge of any CFO.

How many CFOs know that 90% of the full life cycle cost of a software system is incurred AFTER it is developed? Do they know how to manage the software development process so as to minimize those costs? Do they know how to calculate the dollar value of their software portfolio using Function Point measurements, and that it is the largest single line item on many companies' balance sheets? Do they even know what "SEI CMM" stands for? Do they know that every IT shop that will still be in business in 2014 has already launched a software process improvement initiative? Do they know that 2/3 of their software "developers" actually spend all their time repairing defects in software that wasn't built to proper quality standards in the first place? Do they know why that is? Do they know anything about software QA?

I would not buy stock in a company that allows its precious IT resources to be overseen by a finance officer. Just tell them that!

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by cab In reply to Moving your Department on ...

The good news about reporting to Finance is that is where the money is. Moving your reporting to the CEO instead of CFO may help, may not. CEO's tend to focus on customers and marketing and stock analysts. The CFO tends to be closer to the business. I would prefer the COO who is even more interested in operations. Wherever you report, it is your results that will count, not who you report to.

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