CIO

Evolve as CIO

Tue, 16 Oct 2007 06:59:58 -0400

These days, C-level recruiters say chief information officers are taking on new responsibilities that require them to think like a business-type more so than a systems-type. To some degree this is being fueled by what's going on in the CFO's office. Carl Gilcrist, of Spencer Stuart, says that CIOs are increasingly taking over managing shared services within an organization, a role typically held by business-types. For financial-oriented apps, the logic goes that the CFO is burdened with Sarbanes-Oxley and other laws and doesn't have time. That makes some sense. But I would think that compliance has become a huge issue for many CIOs, as security and IT governance issues are huge these days. So I would think that broad-minded CIO might break out of the techno box a bit by becoming a compliance resource for the CFO. Being the GRC point man seems like a good spot to be. If you're up to it. Column

The Greening of Sarbanes-Oxley

Tue, 21 Aug 2007 06:59:59 -0400

A joke? Sarbanes-Oxley as an environmental issue? Well, there's no denying that Sarbox and other regulations have really boosted the data storage demands of all companies. The law single-handedly kicked the storage industry to a whole new growth plane. Who would have thunk it? But these centers are huge energy hogs, and thinking green would be a win for all parties, not to mention the environment. So we're seeing more CIOs pay attention to energy efficiency. PG&E and other utilities offer various services to this end. PG&E has budgeted $1 billion for such programs. Southern California Edison and San Diego Gas & Electric are also thinking about this. Obviously, there are a lot of data centers in California--but other utilities are also thinking about it.

Read more:
- on the greening of Sarbox here

ALSO NOTED: PwC settles with Justice Department for $2.3 million; CIOs still grappling with compliance after five years;

Tue, 21 Aug 2007 06:59:58 -0400

> PwC settles with Justice Department for $2.3 million. Article

> Private placements: A good way around Sarbox. More trading venues emerge. Article

> More on risk and Sarbox. Article

> Academic predicts the death of Sarbox. Article

> Protiviti angling for more J-SOX business. Article

> CIOs still grappling with compliance after five years. Article

> Yet another retrospective on the 5th anniversary of Sarbox. This one from Web CPA.

> CA's Kumar reports to prison. Article

> Rigases jail term begins. Article

And finally ... Battle between punk rockers turns on accounting. Article

Financial and IT pros more alike than we think?

Mon, 30 Apr 2007 20:01:39 -0400

One issue we've grappled with in this newsletter is that the different worldviews that financial pros and IT pros bring to the table. It's fair to say that they do not often see the world the same way. One CIO has dared to write a column listing ten reasons why there's a "dark side" to going public. As I read the list, there was a sense that perhaps the two sides aren't that far apart. Number 1 on the list is "Ronco sales tactics." Truth be told, the frenzy to come up with earnings, as if they can be magically conjured, probably rubs a lot of financial people the wrong way also. It's a fact of life, and I'm sure more than a few CFOs have nixed some ideas. Number 2: Obsession with stock options. The CIO sees a lot of time wasted on the complex processes that govern the use of options. While the CFO understands the need to incent people, I'm willing to bet that more are sensing that some grants aren't achieving that. Then we get to Number 3: "The Crushing Burden of Sarbanes-Oxley." The CIO certainly sees the pain and the costs, but does he see the upside? More CFOs are coming around to the procedural benefits of compliance. It's all a matter of perspective. I propose that all CFOs ask the company's CIOs out for lunch more often.

For more:
- here's the CIO's column in Computerworld

Give your CIO more compliance training

Mon, 26 Mar 2007 20:01:38 -0400

The CIO's job these days is as multi-siloed as it has ever been. Sadly, many CIOs and other IT managers often lack the necessary training when it comes to compliance. So it may be wise for CIOs to hire the right compliance staff or at least get some training. This is part of the widening of the CIO job over the past few years. It's no longer about setting up networks. This may also be the time to foster a tighter bond between your compliance and legal teams and the CIO's office. Article

More CIOs benefit from Sarbox

Mon, 05 Feb 2007 19:01:39 -0500

For information technology execs, Sarbanes-Oxley has been a mixed blessing. True, there's more pressure than ever and a lot of systems flaws have been revealed. But some CIOs and others have been able to use Sarbox to their advantage. According to Baseline, some have used compliance requirements as a way to initiate strategic systems reviews. Others have consolidated multiple ERP systems into one. Still others have upgraded different infrastructure segments. Many have been able to boost their budgets and hire new workers, and quite a few have become versed in financial notions of risk, which only makes them seem that much more well-rounded. For these CIOs, compliance has been a boon, one that has raised their internal stature. Now, I do not expect one to be seen as a candidate for CEO. Still, it seems wise to view Sarbox as a vehicle for positive change.

For more:
- read this article

Related Article:
Should the CIO report to the CFO? Report
Flexible compliance saves time and money. Report
Sarbox pushing IT salaries higher. Report

Should the CIO report to the CFO?

Mon, 04 Dec 2006 19:01:39 -0500

There's been a lot of talk recently about the CIO's relationship to the CFO. Increasingly, these guys--and their departments--are being thrown together either in confrontation or in partnership. Just about every piece of software sold today comes with a lot of Sarbanes-Oxley attached, so you would expect the CFO to be involved. A still unpublished annual survey by CIO magazine has found that CIOs who report to CFOs may be more inclined to focus on compliance (36 percent) than those reporting to the CEO (20 percent). Also, CIOs reporting to CFOs feel like they are more successful in cutting costs (60 percent), compared with those who report to the CEO (48 percent). This is somewhat interesting. There is a case to be made for giving the CFO executive oversight. It all comes down to the personal relationship.

For more:
- here's a brief from CIO

Make sure your CFO gets along with the CIO

Mon, 04 Sep 2006 20:01:38 -0400

Sarbox elevated the responsibilities of CFOs, which has resulted in some CIOs taking a back seat. CFOs these days are seen less as strategic thinkers and more as step-by-step, compliance-oriented, process guys. Hey, just keep us out of jail! But an imperial CFO that--whether consciously or not--relegates the CIO to a lesser role is a recipe for disaster. It may be worth your time to explore the relationship and come up with an arrangement that truly leverages both officers. Article