Info-Tech Research Group launches its latest blueprint to strengthen financial literacy among IT leaders. The firm’s new research will empower informed decision-making and bridge communication divides between business leadership and IT teams for optimal business performance in increasingly competitive markets.
TORONTO, Jan. 16, 2024 /PRNewswire/ – In the face of a significant decline in financial literacy among all demographics, including management ranks, Info-Tech Research Group has introduced a timely blueprint titled Develop Your IT Leadership Team’s Financial Literacy. This research is particularly crucial now, as 74% of CXOs and 85% of CIOs have indicated dissatisfaction with IT’s perceived inability to deliver value, according to Info-Tech’s CEO-CIO Alignment Diagnostic. The firm’s new guide aims to bridge this knowledge gap by equipping IT leaders to better understand and influence how financial strategies impact their organization’s success.
“Financial literacy is on the decline with leaders and managers in every department and in every industry,” says Jennifer Perrier, principal research director at Info-Tech Research Group. “It’s a critical capability for a leader or manager of any business unit to be able to know the financial impact of their decisions and actions and how money flows in and out of their organization.”
Info-Tech’s research explores the various hurdles that have contributed to the historically low levels of financial literacy within the IT sector. For instance, IT leaders are often not recognized as business leaders, resulting in a communication divide that leads to misalignment and misunderstanding between IT and other business units. This issue is compounded by IT’s lack of awareness of its own business knowledge gaps, largely due to its consistent exclusion from business-related discussions and decision-making processes.
“The growing gap in knowing how to speak and understand the language of business is a serious impediment to IT effectiveness as well as the career paths of those who hope to join or remain in the management ranks,” explains Perrier. “Developing basic financial literacy involves not only learning some core financial concepts but also recognizing what they mean in the context of the organization and how to apply them in the real world to gain insight, avoid potentially expensive mistakes, and make better decisions overall.“
The key to successful IT financial management lies in effectively understanding, applying, and communicating financial concepts. The firm recommends that IT teams begin with basic foundational knowledge before progressively advancing to more complex financial skills. To facilitate this development, Info-Tech outlines in the blueprint the following steps for IT leaders to enhance their team’s financial literacy:
- Understand Importance: IT leaders and managers must develop financial literacy and understand how it impacts decision-making and business alignment.
- Identify Target Outcomes: Identify the target behaviors and outcomes required from the management team.
- Assess Current Skills: Assess current financial knowledge across the management team to set a baseline and identify areas for improvement.
- Select Priorities: Select and prioritize the specific financial concepts and skills that are most relevant and beneficial for the IT team’s development.
- Determine Approaches: Determine the approaches and tactics needed to improve financial literacy, considering the unique needs and learning styles of the IT team.
- Finalize the Plan: Finalize the financial literacy improvement program by setting clear timelines, individual objectives, and measurable goals.
By following these steps, IT leaders in organizations can systematically improve and create a culture of IT financial literacy, equipping their teams with the necessary skills to effectively communicate value, make informed decisions, and align more closely with business objectives. This approach not only mitigates frustration but also unlocks IT’s full potential to deliver tangible value.
For exclusive, insightful commentary on enhancing IT literacy rates in organizations from Jennifer Perrier, an expert in IT financial management, and to access the comprehensive Develop Your IT Leadership Team’s Financial Literacy blueprint, kindly reach out to [email protected].
About Info-Tech Research Group
Info-Tech Research Group is one of the world’s leading information technology research and advisory firms, proudly serving over 30,000 IT professionals. The company produces unbiased and highly relevant research to help CIOs and IT leaders make strategic, timely, and well-informed decisions. For more than 25 years, Info-Tech has partnered closely with IT teams to provide them with everything they need, from actionable tools to analyst guidance, ensuring they deliver measurable results for their organizations.
Media professionals can register for unrestricted access to research across IT, HR, and software and hundreds of industry analysts through the firm’s Media Insiders program. To gain access, contact [email protected].
SOURCE Info-Tech Research Group
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