reported that “Digital success requires a product-based approach to IT — and a shift to persistent rather than per-project funding. Here’s how to address your CFO’s concerns about costs and risks.  CFOs want certainty when it comes to spend. And they want to know exactly how much return on investment (ROI) can be expected when IT leaders make technology-related changes.” The March 25, 2024 article entitled “How to get your CFO to buy into a better model for IT funding” ( included these comments:

Modern digital organisations tend to use an agile approach to delivery, with cross-functional teams, product-based operating models, and persistent funding. In contrast, traditional organisations use a project-based approach to delivery, with temporary teams created on an as-needed basis for a specific purpose with budgets based on up-front funding estimates.

CFOs have grown comfortable with the traditional project-based approach, through which they believe they get a better handle on spend certainty and a better sense of ROI. But to deliver transformative initiatives, CIOs need to embrace the agile, product-based approach, and that means convincing the CFO to switch to a persistent funding model.

Persistent funding, also known as perpetual funding, provides IT teams consistent funding on an annual rather than per-project basis. It empowers them to better consider long-term impact as well, enabling them to tackle technical debt and improve IT processes as necessary — activities often not addressed by project-based funding unless proposed separately.

What do you think about CIOs working with CFOs?

First published at