There are often C-level positions that head the Information Technology (IT) and Human Resources (HR) functions of large organizations and report directly to the CEO. In many middle market businesses, these functions fall under the responsibility of the CFO, particularly when they are outsourced to 3rd party service providers.
The objectives of a CFO who oversees IT are to:
- Ensure the IT mission, priorities and plans are linked to company strategy and can be driven to the bottom line;
- Monitor execution and performance against the IT plan;
- Leverage IT for efficiency and innovation;
- Assign adequate resources to support the company’s operations and accounting systems.
Whether a CFO is in charge of IT or not, they should play a leading role in the selection, implementation and development of a company’s ERP system.
The objectives of a CFO who oversees HR are to:
- Ensure the companies organizational development supports the strategic plan;
- Manage payroll and employee benefits;
- Maintain employee policies and procedures;
- Manage the employee performance appraisal process.
A CFO should not allow themselves to get bogged down in the day-to-day workload of IT, HR or, or that matter, other accounting duties that can be adequately performed by people at a lower pay rate. They do need to take ultimate responsibility for these areas and be hands-on enough to ensure that they are being performed adequately and that they support the operations of the business.
The Middle Market CFO 