Is Your Finance Team Flying Blind? ✈️ The CFO-CTO Solution

Ever feel like you spend incredible amounts of time investing in projects that end up shut down because another team goes over budget or miscommunicates?

You’re not alone. Too often, teams within an organization lack clear communication and synergy, leaving each flying completely blind.

But how can you build a successful business with each team charging full steam ahead in their own directions?

Simple answer: You can’t.

Without a fantastic relationship between your CFO and CTO, you’ll never gain clarity and will continue the frustrating cycle.

Joel Dolisy, Chief Technology Officer at WellSky has had his fair share of navigating (and building) these complex relationships. From his perspective, there are several things you can do as a CFO to build the best relationship with your CTO and their team.

Time to consider the CTO perspective…

In finance, we tend to have a project mindset. With predictable cycles, this mindset serves us well. However, it can also create a disconnect from other teams who approach organizational initiatives as products.

The difference:
➡️ A project usually has a beginning and an end. With an initial investment, finance focuses on the proposal, planning, launch and initiation. But this can lead to a failure to recognize the maintenance and ongoing project lifecycle that spans longer periods.

➡️ The product mentality recognizes the entire lifecycle of an initiative or investment. 

The shift:
A lasting company can’t be built on quick products alone—you need products that span multiple years. Challenge yourself to step away from the launch-invest-close-out mindset and consider the entire lifecycle of a product. 

The CFO-CTO Challenge: Balancing Horizons, Investment and Innovation

Once teams find alignment, there are many challenges they must face together. One major challenge? Finding the right balance between short, mid and long-term investments.

An organization can’t move forward if too many resources are being poured into projects that no longer work. However, organizations cannot be sustained without long-term projects. So how do leaders know what to invest in and when? 

Joel says any CTO-CFO partnership can strike the ideal balance by adapting and applying McKinsey's Three Horizon Framework.

To find business success, you need all three horizons. But you also need an approach that allows for calculated forward movement. This balance requires: 

✅ A clear, defined understanding of when to stop investing in current products and pursue new opportunities.

✅ A realistic view of the level of investment needed for continuous maintenance.

✅ Discussion shaped around the revenue coming from Horizon 2 investments. 

When you build a great relationship with your CTO, you can push your business forward, working together to invest in the most valuable initiatives. Not meeting regularly with your CTO? Get a meeting booked ASAP. Not sure where to kick off the conversation? We’ve got you covered—tune in to The CFO Show today. 

In case you missed it…

Stuck in a forecast cycle of meeting never-ending deadlines? When you’re too busy to slow down and look at the bigger picture, you can miss innovation opportunities that can supercharge your efficiency. Hosts Tom Seegmiller, VP of FP&A, and Melissa Howatson, CFO of Vena Solutions share their top tips for achieving innovation (without sacrificing quality or deadlines).

What’s next…

More and more, CFOs are being asked to balance their day-to-day financial responsibilities with the imperative need for organizational innovation. Nicolas Herman, CFO of Microsoft, Canada joins to explore ways to avoid distractions and rabbit holes, discuss strategies for building and guiding teams to amplify their impact, and offer advice to new CFOs on how to differentiate themselves and ultimately leave their mark.