Why CFOs Should Lead ERP Governance — Not IT

Too often, ERP implementations are still treated as technical projects. The software works, the integrations run, and the go-live checklist is ticked off — yet users struggle to adopt it, processes remain inconsistent, and the system fails to deliver strategic value.

The root cause is rarely technology. It’s governance.

When ERP projects are driven primarily by IT, the focus naturally gravitates toward making the system work rather than ensuring the right business outcomes. Governance led by finance — particularly by the CFO — changes that equation entirely.

1. ERP success depends on business decisions, not configurations

ERP systems are built around business logic: how invoices are processed, how budgets are approved, how financial data flows between entities.
These decisions are business decisions — not technical ones.

When governance sits with IT, design discussions often center on “how to configure the system” instead of “what process best supports our objectives.” This leads to solutions that technically function but don’t fully reflect the organization’s financial reality.

By contrast, CFO-led governance ensures that process design, controls, and data structures are aligned with how the business actually operates.

🔗 See also: The ERP Implementation Journey: From Design to Go-Live

2. Lack of business engagement makes change management nearly impossible

One of the most common failure points in ERP projects is weak business participation.
When IT owns the agenda, business teams become “reviewers” instead of “co-designers.”

That distance kills engagement. Users resist change because they don’t feel ownership.
The result: new processes are imposed rather than adopted.

When finance leads governance, stakeholders from accounting, procurement, and operations are actively involved in shaping decisions. Change management becomes natural because people are invested in what they helped build.

🔗 Related reading: Roles & Responsibilities in an ERP Implementation Project

3. IT-driven governance often hides non-technological issues

When IT drives, discussions tend to stay within the system’s boundaries.
But many ERP challenges — unclear approval chains, inconsistent cost center logic, duplicate data ownership — are not technological.

They’re process or governance issues.

Finance-led governance brings those underlying problems to light. Instead of forcing the system to accommodate weak processes, it encourages teams to fix the root cause.
This is where transformation truly happens: when the ERP becomes a catalyst for simplifying and strengthening operations, not just automating what already exists.

4. Finance leadership ensures priorities align with value

When business priorities guide governance, effort naturally flows to what moves the needle: accurate reporting, streamlined closing, automation that saves real time, compliance, and insight.

CFOs and their teams are best positioned to weigh cost versus value — to decide which features matter and which can wait.
Projects led from finance tend to produce leaner, more coherent designs with higher adoption.

In several organizations, when finance took over governance from IT, the project’s tone shifted. Accounting and business teams became more engaged, decisions were faster, and design workshops centered on value creation rather than technical constraints.

5. IT’s role remains essential — but as an enabler

Strong ERP governance doesn’t mean sidelining IT. On the contrary, the collaboration works best when IT owns system reliability, security, and integration — while finance owns process logic, controls, and data quality.

In mature governance models, IT is the technical delivery partner; finance is the product owner.
This partnership balances technical feasibility with business relevance.

🔗 See also: ERP Security: 10 Business Considerations

6. A governance framework that works

A practical model many organizations adopt includes:

• A CFO-sponsored Steering Committee setting business priorities.
• Business Process Owners (Finance, Procurement, Operations, etc.) responsible for design and acceptance.
• IT Delivery Leads ensuring stability, performance, and technical compliance.
• A PMO or ERP Manager maintaining alignment and risk visibility.

And while this article focuses on the CFO, it’s important to note that ERP success often depends on a coalition of executives — including those from operations, manufacturing, or project management, especially in organizations where large parts of the process fall outside finance’s direct responsibility.

The common denominator is clear accountability and a governance structure that keeps decisions anchored in business value.

7. ERP governance is financial governance

At its core, ERP governance is about financial control, data integrity, and transparency.
Those are the CFO’s domain — but they must be supported by a network of other leaders who share responsibility for operational excellence.

When finance leads, supported by IT and other executives, the ERP becomes more than a system — it becomes a living representation of how the organization governs itself.