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Why should EAs make friends with CFOs?

Submitted by AG on Thu, 05/14/2009 - 8:47am.

Brian Burke, an Enterprise Architect with Gartner, has posted an interesting video on YouTube discussing the relationship between EA and the CFO.  He asserts that in the current economic environment, it is critical for EAs and CFOs to work closely together.

And while CFOs are sometimes mystified by the deliberations of EA, there are common areas of interest.  Namely reducing costs, measuring business performance, and driving business growth.

From a cost reduction perspective, there is a natural fit with EA’s ownership of the IT (and frequently project) portfolio architecture.  This data can be used to reveal cost reduction and consolidation opportunities.
Burke advocates the use of business value model templates (such as one provided by Gartner) to translate EA speak into a business value presentation that the CFO can understand.

In Brian’s view, the bottom line revolves around creating collaboration focused on understanding and implementing the business models that will help the enterprise return to growth and profitability in the most efficient manner as the economy improves.

You can see his 3 minute video here:


 

The conversation continues on the Enterprise Architecture Network Linked In group here.

Jim August, who was the Chief Technology Architect at MetLife makes the assertion that the organizational structure of most organizations, and the incentive structure of CIOs makes it nearly impossible for the EA discipline to achieve it’s full potential. When a CIO is bonused on spend size of team and spend, the EA and the CFO will find their goals thwarted.

Matt Blunt, a sales manager for an IT solutions firm, comments points out the often contentious relationship between CIO, EA and Finance.  He notes that unless these three roles are in sync on procurement decisions, substantial inefficiencies will arise in the standardization of technologies.

Management consultant Kirk Rheinlander observes that EA is a business tool that provides business value to business operations.  The alignment with IT exists primarily because IT is a fast changing service that has reach into all corners of the enterprise.  EA is most effective when it can break down barriers that separate it from the business and from CFO alignment.

What do you think?  Where does EA exist in your organization and how does it play with the finance organization?   

 

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