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to whom the IT department should report

By jbakaev ·
my organization is trying to adopt a new structure where the IT department reports to the administration and finance department instead of being attached directly to the CEO or general manger, will it work properly? please advise

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IMHO

by jdmercha In reply to to whom the IT department ...

It will not work. Putting a bean counter in charge of IT almost never works.

That being said, it depends on the philosophy of the organization. And that philosophy starts with the CEO. Does the CEO recognize that IT is critical to the success of the business? Does he/she recognize that IT is an asset to be leveraged and not an expense to be cut?

If the CEO does not value IT, then it doesn't matter who heads IT. If the IT VP is a tech, then the CEO won't listen to him/her. If the IT VP is an MBA, that VP probably won't value IT either.

But then the CEO may feel he has too many direct reports. Then it can depend on the size of your organization. Maybe the CEO only wants one direct report (the CIO). Maybe the CEO wants to eliminate a VP level position so he can pay his employees more.

Without knowing the size and function of your organization, I really can't say much more than my first statement.

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If no CIO,

by X-MarCap In reply to IMHO

The VP of operations would be reasonable, but not accounting function. You may support accounting, but the value of IT should be beyond supporting the accounting department...

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Marketing

by hllewellyn In reply to IMHO

Get this, we have to report to a guy that has an MBA in Marketing, with no clue about IT

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It is hard to know without an awareness of your industry but

by Tig2 In reply to to whom the IT department ...

I personally believe that IT is an operational function. But then, I think of IT as a profit centre, not a cost centre.

IT provides a service that is an operational requirement as well as a mission critical element of business. Imagine how your company would be doing business if the technology component didn't exist. In short, the doors would close and quickly.

Even businesses that are primarily manufacturing environments rely strongly on technology to keep the product rolling.

Because IT provides a vital business function, they are operational in nature and should be represented to executive management that way.

My $0.02

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accounting?

by ericl_w19 In reply to It is hard to know withou ...

why not just put the janitors in charge.IT should NEVER report to accounting.

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In a small company 100 or less

by stephenmoriarty In reply to to whom the IT department ...

I see no problem, I always reported to a controller in accounting, however its important that he have some high tech experience and not be just an old school accountant. The key in a small shop with a controller headman is to keep him in the loop and involved in any projects, and if he reports to the head man let him run a little interference for you.

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Not finance....

by debidaugherty In reply to to whom the IT department ...

Being only one IT person in a company of 150 people... this position started out as part of the Accounting department, simply because they had the server in their department area and our Accounting department is funded from all the other departments...

Apparently there was a computer-savvy person in Accounting back then... unlike now... and expenses that I need to make for the general network have to now be scrutinized by someone who doesn't have a clue what I'm talking about but wants to have me justify each expenditure to her as VP of Accounting...

You need to make sure the IT department ultimately reports to someone who has a vague clue how your network functions... or at least to someone in a position which will allow your department to do its job properly.

Just my two cents worth.... hope it helps..

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It may work

by Too Old For IT In reply to to whom the IT department ...

... right up until the first time your accounting manager has to stand up and tell the CEO his pet project isn't going to get done due to operation concerns, lack of staff, all that cost cutting, etc.

One place I consulted at IT reported to the guy who had spent his career doing IMAC on the phones.

In the end it does not make a difference as long as the company is not a IT pure-play. You end up wasting more time justifying, reporting, analyzing metrics, blah, blah, blah ... and unless you are saying exactly what the manager wants to hear and report forward, you are on the bottom rung.

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Pretty strong consensus here-NO!

by Economic_Dinosaur In reply to It may work

Twenty-plus years of reporting to finance has convinced me, unequivocally, that it is the absolute wrong thing for any company.
The philosophy of accounting mostly is diametrically opposed to the general tone of IT, which is to advance knowledge, and sometimes do things that are really difficult to put a "metric" to, whereas, Accounting tends to "measure and control" costs. They mix like oil and water in ninety-five percent of the situations they encounter.

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That's how my structure is...

by tryskadec In reply to to whom the IT department ...

IT is grouped with HR, Finance, Facilities and another department that also provides Company-wide services.


About the only downfall is that essentially the Other Departments are profit centers who fund our Cost Center, so there's a bit of us against them going on.

I personally like this arrangement, primarily because we interact in the most logical way - HR provides us with what we need for account administration, facilities and we work together to take car of phones and switches and cubicle wiring and such, and i believe the ties between Finance and IT are pretty obvious.

After looking through this thread tho - I guess Mine is a different scenario - We don't have any problems with accounting trying to control us. But they are also lateral counterparts, With "Administration" as the Umbrella, and we don't really answer to them. In your post it's not clear to me whether Finance is in charge, or Administration is in charge.

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