Show me the money!
Or what CFOs want to hear from data leaders
When we think about double acts, some iconic duos spring to mind.
Steve Jobs and Steve Wozniak, Bill Hewlett and Dave Packard, Francis Crick and James Watson, Marie and Pierre Curie, Helen Keller and Anne Sullivan, John Lennon and Paul McCartney, Thelma and Louise, Han Solo and Chewbacca, Batman and Robin, Sponge Bob and Patrick Starfish (my favourite).
And one more. The Chief Data Officer and the Chief Financial Officer.
Who? This hardly sounds like a partnership to rival the dynamic duo.
Well, when it comes to the business of data, this power couple, are a veritable George and Amal Clooney.
The definition of a 'power couple:’
"A power couple is a pair of individuals, who are both highly successful, influential, or accomplished in their own right, and whose combined presence amplifies their social, professional, or cultural impact.
They are often seen as equals, supporting and elevating each other's ambitions while commanding attention, admiration, or authority in their respective spheres."
This is a relationship that's more than the sum of its parts. Two leaders who challenge, elevate, and amplify each other.
(One point - most power couples involve some sort of romance. This isn't obligatory, and probably not advisable in a professional context).
When it comes to the CDO and CFO, the vision of an influential duo and a partnership of equals, working together to elevate the business impact of data, is an attractive prospect.
📊 We have a CFO who understands the potential of data beyond the budget, who sees value, not just cost.
💰 And a CDO who gets how the business ticks, who speaks fluently about revenue, margin, and risk.
This is a partnership where data informs decisions and finance drives focus.
The relationship with the CFO is crucial
💂♂️ The modern CFO is the steward of enterprise value
The CFO's job is not just about protecting the bottom-line, it is much broader than that. Increasingly, their focus is on shaping the future of the business - and many are far closer to the execution of strategy than a lot of CEOs.
They play a complex and high-stakes role, balancing, growth, productivity, and risk. To do this well, they require clarity, confidence, and speed. All things offered by data.
They need what CDOs are selling.
👛 The CFO holds the enterprise purse
Data is a costly business, and staying close to the financial guardian is a sensible move. Every investment case requires intelligence, including those for data initiatives. There are many demands on your organisation's treasury, and data leaders need to justify their expenditure and fight for capital allocation, just like any business function.
🎟️ A ticket to the boardroom?
Many data leaders bemoan the difficulty of getting into the boardroom.
The truth is the data leader who sits at board level is a rare beast. This won't make me popular (being a former CDO I've earned the right to be unpopular), but most CDOs are chiefs with a small 'c', and often a step or two away from the board.
I won't debate whether this is right or wrong, its just reality.
The only way this is going to change is if data leaders are able to show the true value of their impact, and this begins through collaboration with finance.
If you want boardroom level influence, partner with someone with a permanent seat.
This is why the data-finance relationship is so vital. CFOs are already living in the boardroom. They're translating commercial reality into strategic action. If you're smart, you'll find ways to bring the insight that sharpens that strategy.
I've done this multiple times. At one company, I joined within a week of a new CFO, as part of a team seeking to rapidly evolve a traditional business model, to become more data-led, and digitally savvy.
I'll never forget a meeting where the exasperated CFO lost his composure and called the senior team a bunch of dinosaurs - and then pointed at me and said:
'Speak to James, he'll drag you into the 21st Century.'
I wasn't short of work or influence after that.
😏 CFOs are the original data leaders
Finance is a fundamentally data-driven role, and the CFO is arguably the original data leader. Other functions, such as marketing, have long been data-savvy, but often don't have the same level of enterprise influence, as finance.
Long before CDOs existed, CFOs were making enterprise-wide decisions based on data. They built models, tracked performance, challenged assumptions, and aligned business functions using a single source of truth: the numbers.
(Or at least tried. Anyone who has ever tried to create a single source of truth knows how hard that is).
CFOs have long understood the importance of data that is:
Accurate
Actionable
Aligned to outcomes
This innate appreciation for data, has made CFOs both the best friend of the data function, and sometimes its sharpest critic. They know how important data is - and believe me they are the first to show their frustration when the function fails to deliver.
(Sweet)
Busting the CFO myths
Before we dive into building this partnership, let's address some persistent myths that data leaders hold about CFOs. These misconceptions can sabotage the relationship before it even begins.
Myth 1: CFOs are bean counters who don't understand innovation
This outdated stereotype paints CFOs as penny-pinching traditionalists who stifle progress. The reality is different. Modern CFOs are business architects who understand that sustainable growth requires intelligent investment in data capabilities.
They're not anti-innovation - they're pro-intelligent innovation. They want to see the business case, understand the risk profile, and ensure alignment with strategic objectives.
Myth 2: CFOs only care about cost reduction
While cost management is part of their remit, CFOs are equally focused on value creation. They ask questions like: How do we accelerate growth? How do we improve customer experience? How do we build competitive advantage? These are exactly the questions that data initiatives should be answering.
The CFO who challenges your budget isn't trying to kill your project - they're trying to ensure it delivers maximum value.
Myth 3: CFOs don't understand technology
Many CFOs have led digital transformations, implemented enterprise systems, and driven automation initiatives. They may not code, but they understand technology's role in business transformation. What they don't tolerate is technology for technology's sake. They want to see how your data platform translates into business outcomes, not just technical capabilities.
Myth 4: CFOs are risk-averse
CFOs are risk-intelligent, not risk-averse. They understand that avoiding all risk is the biggest risk of all. What they demand is that risks are identified, quantified, and managed appropriately. When you present them with a data initiative, they're not looking for zero risk - they're looking for calculated risk with clear mitigation strategies.
Myth 5: CFOs speak a different language
This one's partially true, but it's not insurmountable. CFOs do speak the language of business - revenue, margin, cash flow, return on investment. But data leaders need to be fluent in this language too. Technical achievements need to be translated into business terms - and this is the entire premise of the business of data.
What CFOs expect to hear from data leaders
Understanding what CFOs want to hear from you is crucial for building a successful partnership. Based on my experience working with finance leaders across multiple organisations, here are the key themes they typically emphasise:
💥 Business impact, not technical features
CFOs don't want to hear about your new algorithms or cloud infrastructure. They want to know how these capabilities will drive business outcomes.
Instead of "We've implemented a real-time data pipeline," try "We can now identify at-risk customers 30 days earlier, giving us time to intervene and reduce churn by 15%."
👓 Clear financial metrics
CFOs think in terms of revenue growth, cost reduction, risk mitigation, and capital efficiency. Most conversations should include quantifiable financial impact (its not always possible, or relevant if other KPIs are being considered). If you can't put a number on it (quantify), you're not ready for the conversation. Be prepared to discuss ROI, payback periods, and ongoing operational costs.
☣️ Risk assessment and mitigation
CFOs need to understand what could go wrong and how you'll handle it. This includes technical risks, data quality issues, regulatory compliance, and business continuity. They prefer leaders who think through failure scenarios and have contingency plans.
🕰️ Resource requirements and timeline
Be specific about what you need and when you need it. Vague requests like "we need more budget for data initiatives" won't cut it. Instead, present detailed resource requirements, implementation timelines, and milestone-based funding requests.
🔗 Alignment with strategic priorities
CFOs want to see how your data initiatives support the organisation's strategic objectives. If the company is focused on customer retention, show how your data capabilities will improve customer lifetime value. If growth is the priority, demonstrate how data will identify new revenue opportunities.
Operational excellence
CFOs value leaders who can execute reliably. They want to know that you can deliver on your commitments, manage budgets effectively, and build sustainable capabilities. Your track record of execution matters more than your grand vision.
🚀 Simplicity and ambition
A few months ago I asked a seasoned CFO, what he expects from data leaders. His advice was “keep it simple, but don’t shy away from ambition.”
In his view, to gain cut-through you need to keep your business cases simple and clear, focused on the points already discussed above.
However, he also said CFOs also expect some ambiguity, especially when it comes to asking for funding for new initiatives. As guardians of business strategy, they want to to see new ideas.
He said that many leaders think CFOs are robots who need absolute certainty of outcome and as a result their business cases are often not ambitious enough.
Part of the job of the CFO is to back ambition (in the right places), so as long as you can argue your case, don’t hold back when it comes to game changing initiatives.
Practical tips for data leaders
I’ll finish with some thoughts on how to build this crucial partnership with your CFO.
Start with their pain points
Don't lead with your data strategy - lead with business challenges. Listen to their current frustrations. Are they struggling with forecasting accuracy? Concerned about margin compression? Worried about regulatory compliance? Start there, then show how data can help.
Speak their language fluently
Invest time in understanding financial statements, business metrics, and commercial models. Read the annual report. Understand the key performance indicators that drive your business. When you speak about data, always connect it to financial outcomes.
Bring solutions, not problems
CFOs are problem-solvers by nature, but they're also time-constrained. When you identify a data quality issue or a gap in analytics capabilities, come with proposed solutions and resource requirements. Don't just highlight problems - show how you'll fix them.
Establish regular touch points
Don't wait for budget season to engage with your CFO. Establish regular check-ins to discuss business performance, emerging opportunities, and potential challenges. This builds trust and ensures you're aligned on priorities.
Deliver quick wins
While you're building your long-term data capabilities, identify opportunities for quick wins that demonstrate immediate value. These could be automated reports that save time, data quality improvements that reduce manual effort, or simple analytics that provide new insights.
Be transparent about challenges
CFOs appreciate honesty about obstacles and setbacks. If a project is running behind schedule or over budget, communicate early and propose solutions. Hiding problems until they become crises will destroy trust.
Collaborate on business cases
When developing investment cases for data initiatives, work with the finance team to ensure your assumptions are realistic and your financial projections are credible. Their input will strengthen your business case and increase the likelihood of approval.
Measure and report value
Once you've secured investment, rigorously measure and report on the value delivered. Create dashboards that track the financial impact of your data initiatives. Celebrate successes and learn from shortfalls.
Build relationships across the finance team
Don't just focus on the CFO - build relationships with FP&A managers, controllers, and other finance leaders. They can provide valuable insights into business operations and help you identify opportunities for data-driven improvements.
Think like an owner
CFOs think about the business from an ownership perspective. They consider long-term sustainability, competitive positioning, and stakeholder value. When you adopt this mindset, you'll naturally align with their priorities and concerns.
A transformational partnership
When this relationship works, it really works. You get a data leader who understands commercial reality and a finance leader who leverages data for competitive advantage. Together, they can drive decisions that are both analytically sound and financially intelligent.
This is not just about getting budget approval or board access (though those are nice benefits). It's ultimately about creating a culture where data and financial acumen combine to drive superior business outcomes.
The business of data.
Whatever happens to the CDO role in the future, one thing I do know is that the organisations that thrive are most likely to be those where finance and data walk in lock-step. Challenging each other, supporting each other, and ultimately elevating the entire business.
My advice? Stop seeing the CFO as an obstacle to overcome. Start seeing them as the partner who can help you transform your organisation.
A proper power couple.