Enterprise Architecture’s Next Ascent: Why It Must Report to the CEO

It took decades for IT to break free from Finance and rise as a strategic function. Now, Enterprise Architecture must make the same leap—reporting directly to the CEO to unlock its full enterprise impact.

In 1926, McKinsey & Company was founded by James McKinsey, a professor of accounting at the University of Chicago, with a singular focus on accounting.

At the time, accounting wasn’t just a department; it was the entire enterprise. Everything revolved around financial management.

Historical progression from accounting-centric enterprises to IT as a standalone department and finally to modern Enterprise Architecture as a unifying framework.

Organizations were structured around this singular function, and accounting governed nearly every aspect of the enterprise. The concept of separate departments like marketing, HR, or IT had yet to emerge, as accounting was considered the enterprise’s strategic backbone.

Fast forward to today, and accounting is one of many specialized departments, each playing a vital but distinct role in an enterprise’s success.

Over time, other functions like marketing and HR, which were once part of sales and finance respectively, have also evolved into independent departments, reflecting their growing strategic importance.

IT has become one of the most transformative functions, now central to strategy and operations across departments.

This journey—from accounting-centric enterprises to IT as a standalone, strategic department reporting to the CEO—offers valuable lessons for the evolution of Enterprise Architecture (EA).

Much like IT’s past, EA is currently positioned within IT. However, its application and potential extend far beyond IT. EA must now emerge as a separate, strategic department reporting directly to the CEO, ensuring its enterprise-wide impact is fully realized.

From Accounting to IT to EA: A Century of Evolution

Role	1920s: Accounting Era	1990s–2020s: IT Era	2020s+: EA Era
Core Function	Financial Control	Digital Operations	Strategy Execution
Reporting Line	CEO → CFO	CIO → CEO	EA → CEO
Enterprise Role	Enterprise Backbone	Cross-Department Enabler	Strategy Integrator
Risk if Misplaced	Overemphasis on cost	Narrow tech focus	Fragmented execution

1926: When Accounting Was the Enterprise

Nearly a century ago, enterprises operated as accounting-driven organizations. This was the era when:

1. Accounting governed all decision-making: From budgeting to operations, enterprises revolved around financial management.
   

2. IT’s initial purpose was finance-centric: Early IT systems were designed to automate accounting processes, cementing IT’s position as a sub-function of finance.
   

3. IT leaders reported to finance heads: Because IT was seen as a tool for financial operations, its leadership was confined to reporting within the finance department.

The Evolution of IT: Becoming a Strategic Function

As IT’s capabilities expanded, so did its influence. IT was no longer limited to automating financial processes; it began enabling:

1. HR systems for employee management

2. Marketing platforms for customer outreach

3. Supply chain solutions for operational efficiency

4. Sales systems for customer relationship management

By impacting multiple departments, IT became a strategic enabler across the entire enterprise. This transformation led to:

1. IT becoming a separate department: No longer confined to finance, IT established itself as a standalone function.
   

2. CIOs reporting to CEOs: As IT’s influence spanned all departments, its leadership required direct access to the CEO to align technology with enterprise-wide strategy.

Today, IT is recognized as a critical driver of enterprise innovation, not just for finance but for all departments.

Parallels to Enterprise Architecture

Like IT in its early days, EA is currently seen as an IT-centric function. However, EA’s true potential lies far beyond IT strategy execution. Enterprise Architecture is uniquely positioned to:

Enable enterprise-wide strategy execution: EA aligns the strategies, processes, systems, components, and operations of all departments.

Break down silos: By integrating cross-departmental strategies, EA ensures that business decisions are cohesive and impactful.

Support all 15 departments: From HR and finance to marketing and customer support, EA’s frameworks apply across the board, aligning departmental strategies with enterprise goals.

Why EA Reporting to the CEO is Essential

1. Beyond IT Strategy Execution

While EA currently resides within IT, its role in business strategy execution demands a broader scope. Every business decision today crosses multiple departments and impacts their respective strategies, processes, systems, components, and operations. EA architects are uniquely skilled to weave together strategies across departments as well as ensure seamless execution of business decisions that involve multiple functions.

2. Strategic Impact Across Departments

EA’s influence extends beyond IT to all 14 departments outlined in the ICMG Anatomy Model:

1. Marketing: Aligning campaigns with enterprise goals.
   

2. Sales: Optimizing processes and systems for customer engagement.
   

3. HR: Streamlining talent management strategies.
   

4. Finance: Enhancing operational efficiencies.
   

5. Customer Support: Ensuring seamless integration of systems and processes.
   

6. By reporting directly to the CEO, EA can ensure these cross-departmental initiatives align with the enterprise’s overarching vision.

3. Lessons from IT’s Evolution

The journey of IT from a sub-function of finance to a standalone, strategic department reporting to the CEO offers a clear blueprint for EA:

Just as IT became indispensable across departments, EA is now pivotal in aligning and executing enterprise-wide strategies. Similarly, marketing’s separation from sales and HR’s independence from finance highlight the natural progression of organizational roles as their scope and influence expand.

Keeping EA within IT limits its potential and narrows its focus to technology, whereas its true value lies in business strategy execution.

A Historical Perspective: John Zachman and the Roots of Enterprise Architecture

The concept of Enterprise Architecture has been shaped by decades of thought leadership, starting with John Zachman, who introduced the groundbreaking Zachman Framework in 1987 and is widely regarded as the founder of Enterprise Architecture. Zachman’s groundbreaking work emphasized that EA should be the architecture of the entire enterprise, not just IT. He envisioned the idea of Enterprise Engineering, where the architect acts as a strategic enabler for the whole organization.

Unfortunately, as IT complexities grew, the role of EA was often confined to managing IT challenges. While IT-focused EA has delivered significant value, it has overlooked the rising complexity of business operations, which continue to face growing challenges.

True enterprise architects must now evolve into enterprise doctors, diagnosing and resolving cross-departmental complexities to ensure cohesive business strategy execution.

One Enterprise, One Anatomy: A Transformative Breakthrough

The biggest shift in enterprise architecture and engineering has been the development of the "One Enterprise, One Anatomy" framework. This breakthrough builds on the wisdom of over 1,000 thought leaders, from Peter Drucker to John Zachman, culminating in the revolutionary ICMG Anatomy Model.

This model integrates the strategies, processes, systems, components, and operations of all 15 departments into a unified framework, enabling true enterprise-wide alignment. It goes beyond traditional models by addressing:

1. Cross-departmental strategy execution: Ensuring every decision aligns with the organization’s overarching goals.
   

2. Breaking silos: Unifying processes and operations across all functions.
   

3. Enterprise adaptability: Providing a robust foundation for navigating complexity and change.

Why "One Enterprise, One Anatomy" is a Breakthrough

Like medical anatomy revolutionized healthcare by providing a clear understanding of the human body’s systems and functions, enabling longevity and short-term efficiency, "One Enterprise, One Anatomy" does the same for enterprises.

It brings:

1. Long-term enterprise resilience: Aligning strategy execution with sustainable growth.

2. Short-term effective strategy execution and efficiency: Ensuring cohesive operations and immediate performance gains.

3. Transforming 100 years of enterprise evolution: By weaving together lessons from thought leaders and modern business needs, it reshapes how enterprises operate and thrive in complex environments.

EA: The Next Strategic Function

To unlock its full potential, EA must:

1. Evolve into a separate department: Positioned outside IT, EA can focus on enterprise-wide integration and alignment.
   

2. Report directly to the CEO: This ensures that EA’s strategic contributions are recognized and leveraged across all departments.
   

By following the path of IT’s transformation, EA can transition from an IT-centric role to a strategic enterprise function, becoming the backbone of modern business strategy execution.

FAQ: Addressing Key Questions

1. Why should EA report to the CEO instead of the CIO?

EA’s scope spans beyond IT to influence all 15 departments, ensuring enterprise-wide alignment and strategy execution.

Reporting to the CEO elevates its visibility and ensures cross-departmental integration.

2. Isn’t EA still primarily about IT? While EA originated in IT, its potential lies in driving enterprise-wide strategy execution, making it essential for aligning strategies, processes, and operations across all departments.

3. How does "One Enterprise, One Anatomy" differ from other frameworks? Unlike fragmented models, "One Enterprise, One Anatomy" provides a holistic, integrated framework that aligns all 15 departments, ensuring harmony, resilience, and long-term success.

How ICMG Consulting Can Help

ICMG Consulting specializes in transforming Enterprise Architecture into a strategic enabler for organizational success. With expertise in the "One Enterprise, One Anatomy" framework, we offer:

1. Strategic EA Assessments: Evaluate your current EA positioning and identify gaps in enterprise-wide strategy execution.
   

2. Custom Implementation of the ICMG Anatomy Model: Align your departments, strategies, and processes using our proven framework.
   

3. Executive Workshops and Coaching: Equip your leadership with the tools and knowledge to drive cross-departmental integration.
   

Partnering with ICMG ensures your EA function evolves from IT-centric operations to enterprise-wide strategy execution, delivering both immediate efficiency and long-term resilience.

Action Items

1. Evaluate the Current Position of EA in Your Organization: Assess whether EA is confined to IT or contributing to enterprise-wide strategy execution.
   

2. Build a Case for EA Reporting to the CEO: Use historical evolution examples and the ICMG Anatomy Model to justify transitioning EA into a standalone department.
   

Leverage the "One Enterprise, One Anatomy" Framework: Adopt this framework to align strategies, processes, and operations across all departments for cohesive execution.

Learning from History

The historical journey of IT’s evolution from a finance sub-function to a standalone, strategic department highlights an important lesson: Organizational roles must evolve to meet enterprise needs. Just as IT became a strategic enabler for all departments, Enterprise Architecture must now emerge as a separate department reporting to the CEO.

This shift will ensure EA’s potential is fully realized, driving cross-departmental alignment, enabling cohesive strategy execution, and supporting the enterprise’s future growth.

EA is not just IT’s strategy execution arm—it is the enterprise’s strategy execution engine. And it’s time we treat it that way.