18 December 2016
In any successful business, it is becoming increasingly clear that behind every good CEO is a great CFO.
The CFO has long been the CEOs sounding board, and the person that the CEO seeks out to test an idea, be inspired, make plans or address concerns.
A recent report by Forbes and KPMG found that 63 percent of CEOs predict the CFOs influence will increase more than that of other board directors in the next three years.
In a modern business, the challenges facing the CFO have grown considerably and the role is broader and more important than ever.
While reporting and compliance are still the CFOs core mandate, they are more than just a gatekeeper for the company finances. They must also be a leader, an investor and an innovator. They must be able to think in a more entrepreneurial way than their predecessors.
To achieve this, the CFO must encourage change and new ways of thinking that will free their teams up for more strategic business analysis. They need to recognise and embrace growth opportunities, making the business more agile through a period of digital disruption and economic uncertainty.
They must balance some of the traditional risk aversion commonly associated with CFOs by helping the business invest in opportunities that can open up new markets, improve customer satisfaction or stave off the threat of more innovative competitors.
Being less risk-averse does not mean reckless, however. The CFO must be prepared to act and back the business with investment, but they must make those decisions based on solid numbers.
They must be able to quickly analyse data about trends, the market and the economy in order to provide the business with informed, accurate guidance about where new opportunities lie and how important those opportunities may be.
To keep pace with the rapid rate of digital transformation, the CFOs ability to make quick, informed decisions on investment and risk while understanding changing consumer and market conditions is crucial.
CFOs need to foster a closer working relationship with the CIO, to ensure they have all the data they need and the means to analyse it. Their partnership is vital if the CFOs decision-making is to be powered by the most up-to-date data, whenever they need it. Companies whose CFO and CIO both have a digital mindset will be industry leaders.
It is this increasing role at the intersection of digital transformation and high-level decision-making that positions the CFO as the natural heir to the CEO.
The CFOs knowledge and experience of the organisations finance and technology, combined with managerial ability and perceived gravitas in the eyes of the markets and investors, are a strong foundation for unifying the business and driving it forward.
© Oracle 2016
In any successful business, it is becoming increasingly clear that behind every good CEO is a great CFO.
The CFO has long been the CEOs sounding board, and the person that the CEO seeks out to test an idea, be inspired, make plans or address concerns.
A recent report by Forbes and KPMG found that 63 percent of CEOs predict the CFOs influence will increase more than that of other board directors in the next three years.
In a modern business, the challenges facing the CFO have grown considerably and the role is broader and more important than ever.
While reporting and compliance are still the CFOs core mandate, they are more than just a gatekeeper for the company finances. They must also be a leader, an investor and an innovator. They must be able to think in a more entrepreneurial way than their predecessors.
To achieve this, the CFO must encourage change and new ways of thinking that will free their teams up for more strategic business analysis. They need to recognise and embrace growth opportunities, making the business more agile through a period of digital disruption and economic uncertainty.
They must balance some of the traditional risk aversion commonly associated with CFOs by helping the business invest in opportunities that can open up new markets, improve customer satisfaction or stave off the threat of more innovative competitors.
Being less risk-averse does not mean reckless, however. The CFO must be prepared to act and back the business with investment, but they must make those decisions based on solid numbers.
They must be able to quickly analyse data about trends, the market and the economy in order to provide the business with informed, accurate guidance about where new opportunities lie and how important those opportunities may be.
To keep pace with the rapid rate of digital transformation, the CFOs ability to make quick, informed decisions on investment and risk while understanding changing consumer and market conditions is crucial.
CFOs need to foster a closer working relationship with the CIO, to ensure they have all the data they need and the means to analyse it. Their partnership is vital if the CFOs decision-making is to be powered by the most up-to-date data, whenever they need it. Companies whose CFO and CIO both have a digital mindset will be industry leaders.
It is this increasing role at the intersection of digital transformation and high-level decision-making that positions the CFO as the natural heir to the CEO.
The CFOs knowledge and experience of the organisations finance and technology, combined with managerial ability and perceived gravitas in the eyes of the markets and investors, are a strong foundation for unifying the business and driving it forward.
© Oracle 2016
