The debate rages on and on! The CDO position has been the most under fire recently, and that’s quite normal as the role is quite the newbie in the C-Suite. There is currently no real tradition as to where the CDO sits, some report to the CIO, some have held independent positions within the executive suite, some under the Chief Commercial Officer etc. However, I believe it’s time to rethink this structure.

The best place for the CDO is under the Chief Financial Officer (CFO).

No doubt this statement will draw criticism. Many believe the CDO needs independence or can in fact align with technology functions, which is fine and that’s everyone’s prerogative to think how they want. It’s mine to add another view and sometimes, not a popular view.

However, I’ve often stated in many a post and article that data’s role in driving revenue, controlling costs, and influencing financial drivers becomes increasingly critical, and taking my learned colleagues hypotheses, my view is the CFO is best positioned to turn data into value.

So, this Monday article, will take you through why I think that and what it would take for this approach to succeed.

1. Revenue and Cost are the CFO’s Language

Language matters as I always say and both of these matter enormously to business, affecting top and bottom line. Data strategy, analytics, and AI should aim to influence financial outcomes directly. As the CFO is already accountable for these, it makes absolute sense in the short, medium and long term, specifically aligned around the business strategy. Yes, I know everyone says that and it’s true! But few do it, so maybe, the CFO is the likely person to spearhead this as they talk that way every day.

By embedding the CDO within the CFO’s domain, data initiatives are more tightly aligned with business outcomes that matter most. True, and I’ve spoken to my colleague about that many times Matthew Small, as he has been both on the finance end hunting for efficiencies and revenue, and using this knowledge, he applied it to his CDO role at BP Lubricants, working very closely with Finance. So, he’s seen both sides of the coin and won!

Here’s the kicker, the CFO will see this through the lens of the business use case, which links it back to the business strategy, and whether it’s optimising pricing models or uncovering new revenue streams, the CFO is uniquely equipped to prioritise these business use cases to deliver tangible value. His team can also measure these more effectively from a finance perspective too. You know, ROI, cost-benefit, Internal Rate of Return, Net Present Value, all of those things that the CEO is crying out for from data initiatives.

2. Objectivity in Decision Making

When the CDO reports to the CIO, data often risks being pigeonholed as a technical function, an appendage of IT that focuses more on systems and infrastructure than on business outcomes. Let’s be honest, this narrative ruffles many feathers, but it’s one we need to address head-on.

As I’ve said before, the CIO and their team are good at delivering technology. They are invaluable in partnering with the business to implement platforms like CRM or ERP systems that streamline processes and automate workflows. But here’s the hard truth: the CIO’s remit is technology, not business strategy. And this is where things start to unravel for data leadership under IT.

The CFO, on the other hand, approaches decision-making with a level of objectivity and accountability that is fundamentally different. Every decision they make is tied to the financial health of the organisation. That’s a massive difference. They don’t have the luxury of chasing shiny new tools or vague promises of “digital transformation.” Instead, they require clear, evidence-based justifications, the proof that every initiative aligns with organisational goals and delivers measurable impact.

This perspective is vital. It ensures data and analytics initiatives are evaluated through the lens of business value, not a technological one. Fancy algorithms or cutting-edge platforms mean nothing if they don’t contribute to the bottom line.

And let’s not pretend this isn’t a cultural shift for some organisations. Moving the CDO under the CFO will pinch a few egos. But the question we should be asking isn’t “Who owns the data?”, it’s “Who ensures that data, and analytics and now AI delivers value?” The CFO focuses solely on results and my belief is the answer.

This isn’t about undermining the CIO or dismissing their contributions. It’s about recognising that the CFO’s objectivity and financial accountability make them better equipped to integrate data strategy into the broader business strategy. Under their leadership, data isn’t just managed, it’s monetised, operationalised, and aligned with the goals that drive the business forward.

If this narrative makes you uncomfortable, good. Change rarely comes without discomfort. But it’s time to put the accountability for data where it belongs: in the hands of someone who measures success not in megabytes but in margins.

3. Budget Authority

Let’s face it, money talks, and when it comes to data initiatives, who controls the purse strings matters. This is why placing the CDO under the CFO makes so much sense. The CFO isn’t just managing budgets; they are shaping the financial priorities of the entire organisation.

When the CDO reports to the CFO, data initiatives are no longer seen as “nice-to-haves” or experimental side projects. They’re treated as core investments that must deliver measurable value. The CFO’s oversight ensures that every data investment, whether it’s new tools, platforms, or hiring, is aligned with the organisation’s financial and strategic goals.

Why is this important?

Because too often, data teams struggle with chronic under funding or investments that miss the mark. Reporting to IT frequently means competing for scraps from the broader technology budget, and when data sits outside both IT and finance, it risks becoming an orphaned function, disconnected from the very resources it needs to thrive.

Under the CFO, this dynamic changes completely. The CDO has a direct line to the person who controls the cheque book, meaning funding conversations are anchored in business value. This isn’t about asking for money; it’s about proving why the investment is essential to improving margins, reducing costs, or opening up new revenue streams.

But there’s another, less obvious benefit here: accountability. The CFO doesn’t just sign off on budgets; they demand a clear return on every pound spent. This creates a culture where data initiatives are scrutinised and held to the same standards as any other business investment. The days of vague promises and unquantifiable benefits are over. There is no free money any longer!

If you’re a data leader and the idea of being under the CFO makes you uncomfortable, ask yourself this: would you rather fight for funding from someone who sees data as a strategic asset or someone who sees it as just another line item in the IT budget?

If the answer isn’t obvious, maybe it’s time to re-evaluate your priorities.

The CFO’s role as the ultimate financial gatekeeper ensures that data initiatives aren’t just funded, they’re funded to succeed. That’s a game-changer, and it’s why this model isn’t just practical, I believe it’s necessary.

But with everything, there will be challenges when we introduce a new reporting line (not new), maybe, highly untested, by many current CDOs, apart from a few I know. Playing devil’s advocate to my own post, what are some of those challenges, of now lumping the CDO under the CFO?

Placing the CDO under the CFO isn’t without its challenges:

Risk of Over-Financialisaton (if that’s a word and it’s a mouthful!): I have seen this happen, in the context of one of the clients I work with. There is an absolute danger of narrowing the focus of data to purely financial metrics, potentially ignoring other strategic areas such as customer experience or innovation. In the case of my client, the CFO, realised that data and analytics would make sense in the CFO remit, but, he then decided that they would only focus on financial areas.

Which has now come to bite him in the behind, as the organisation has been stagnating and is now in need of a lifesaver. In this case, and with a lot of persuasion, after a long protracted meeting, the CFO understands that financial success is rooted in broader organisational performance. But watch out for those that keep it to themselves and don’t let the rest of the organisation feel the benefits.

Perceived Loss of Independence: A common concern for data leaders when considering reporting to the CFO is the fear of losing their independence. There’s an assumption that aligning with finance might limit their ability to operate autonomously or challenge deeply held assumptions within the organisation.

This perception stems from the belief that independence requires distance from any single department. However, the challenge lies in balancing this independence with the need for accountability and alignment with business priorities.

For some, the idea of reporting to the CFO feels like a compromise, a shift that could tether data strategy too closely to financial concerns, potentially stifling innovation or broader organisational influence. Convincing data teams that this alignment will amplify rather than silence their impact is a significant hurdle.

To overcome this, organisations must demonstrate how the CFO can act as a champion for data, fostering an environment where evidence-based decisions and autonomy coexist. It’s not about controlling data; it’s about elevating it to the strategic level where it can make the most difference.

Capability Gaps: Not all CFOs are equipped to take on the responsibility of leading a data strategy. While many excel at managing finances, driving data and AI initiatives requires a different mindset and skill set, one that not every CFO currently possesses.

This capability gap presents a real challenge. Effective leadership in data and AI demands a willingness to move beyond traditional financial management and embrace these tools as core drivers of business strategy. CFOs must not only understand the potential of data and AI but also foster a culture where these capabilities can thrive across the organisation.

The issue becomes even more pressing in organisations where CFOs are resistant to upskilling or delegating responsibility to those with expertise in analytics. Without this willingness to adapt, the risk is that data strategies remain underdeveloped, undervalued, or misaligned with business goals.

Addressing this challenge means identifying CFOs who see data and AI as more than just buzzwords. It requires leaders who are not only open to learning but also proactive in positioning data at the centre of strategic decision-making. For some organisations, this may mean investing in training or bringing in advisors to bridge the gap. The key is ensuring the CFO is ready and able to champion a data-driven future.

But which CFO is the best to report into and which one will back the success of the data strategy. To use an extremely typical consulting phrase…it depends!

There are many types of CFOs, well at least 4 types as many reports on the web tell me. CFOs I’m told typically fall into four personas, each with its strengths and challenges for driving data, analytics, and AI initiatives. I’ve put my spin on the four personas:

1. The Catalyst

A visionary who thrives on transformation and innovation, the Catalyst CFO is best suited for bold, disruptive data initiatives. They drive experimentation and redefine business processes but must ensure innovation is grounded in operational realities.

2. The Strategist

The Strategist CFO excels at aligning data and AI initiatives with the organisation’s long-term vision. They prioritise cross-functional collaboration and ensure data investments deliver measurable outcomes. However, they must avoid over-planning and embrace agile execution.

3. The Steward

Focused on governance, compliance, and risk management, the Steward CFO ensures data quality and regulatory alignment. They safeguard the organisation’s assets but must balance caution with a willingness to innovate.

4. The Operator

The Operator CFO prioritises efficiency and cost control, leveraging data to optimise processes and improve profitability. While pragmatic and results-driven, they should be encouraged to see data as a strategic asset beyond operational efficiencies.

Looking at those, I guess it’s the one that closely suits both the maturity of the organisation and CDO. For me, when reflecting and if I had to work with a CFO from these personas, it would probably be the combination of the Strategist-Catalyst. Because for me this is someone who aligns data initiatives with long-term business goals while being bold enough to pursue transformative opportunities. This balance ensures that data is both a strategic enabler and a practical driver of value.

That’s my view, you may well have a different combination, and of course again that depends on many factors such as the organisation’s maturity, the current priorities of the business, the appetite for innovation, and the CDO’s own strengths and style.

For instance, in a more risk-averse organisation, a Steward-Strategist may work better to build trust and align data initiatives cautiously but effectively. Conversely, a fast-moving company with aggressive growth targets might benefit from a Catalyst-Operator to ensure bold actions are paired with operational precision.

The best combination is the one that fits the organisation’s context, aligns with its goals, and complements the CDO’s approach to driving value through data. I leave that to you to ponder.

If your organisation’s data strategy feels disconnected from its business strategy, it’s time to confront an uncomfortable truth: the CDO may be sitting in the wrong place. Putting the CDO under the CFO isn’t a demotion for data, it’s a declaration of its strategic importance.

The CFO is no longer just a financial steward; they are becoming the architect of business value. In this role, data isn’t a byproduct, it’s the fuel as we have been saying for many years now. The CFO has the clout, accountability, and financial oversight to turn data into outcomes that matter, making them the natural partner to lead this transformation.

Yes, this idea will ruffle feathers, particularly among those clinging to traditional hierarchies. But here’s the hard truth: data is money, and if you’re not treating it as such, you’re leaving value on the table. Resistance won’t change the fact that the organisations thriving in the future will be those that align data, analytics, and AI with financial and strategic goals.

If you want data to drive growth, efficiency, and innovation, it needs to live where those outcomes are most scrutinised and valued. And that place is with the CFO. It’s time to stop debating and start doing.

I would be delighted to hear your thoughts on this proposal.