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Future ready CFO

Success is said to occur when preparation and opportunity collide. With CEOs increasingly looking to CFOs to assist influence business direction and strategy, there has never been a better opportunity for CFOs to make an impact. The CFO is now juggling traditional tasks with increased need for data-driven analysis and insights that support growth and strategy, which was once seen to be a numbers-only function. An increasingly competitive and rapidly changing business environment, in which new technology and business models are disrupting how business is done and how customers are provided, is driving this shift. Article elaborates on the world of a CFO | CFO and rise of Technology, Tips for a successful CFO. skills should a CFO possess, and Future ready CFO.

The CFO role used to be a very technical position that was isolated from the rest of the company. There was no requirement for CFOs to have strategic or business vision because they were either accountants or grew up in the finance office. This worked for a long time, however it no longer works in today’s business environment. CFOs must be able to comprehend business strategy and convey it effectively with others.

The World of a CFO

According to a research conducted by Accenture in 2014, “The proper steps have been made by CFOs, and finance is progressing. We see evidence of a more capable and stronger finance function and CFO, which leads to their expanding impact.” However, McKinsey found that “CFOs and their peers have diverging opinions about where CFOs deliver the greatest value; non-CFOs more typically identify the value provided in traditional areas” in their 2018 survey, The New CFO Mandate. According to KPMG’s The View from the Top poll, 45 percent of CEOs are concerned about their CFOs’ lack of commercial (i.e., non-financial) experience and understanding, and 41% say they lack necessary leadership abilities.

• Uncertainty and time restrictions afflict CFOs: The pace of change is quickening, businesses are growing more complicated, and CFOs are increasingly finding themselves in uncharted situations, compelled to develop their own playbook as they go. CFOs say that they wish to cut their time with the finance function by 5%, showing that they see the value of less time with the function but can’t yet quantify it. CFOs must improve their ability to take the risks necessary for long-term growth while also achieving CEO financial performance objectives.
• Shift of the consumer ideology: Customer expectations are shifting in this new world, and CFOs are being held accountable for customer success. They no longer expect a transactional connection, such as a one-time communication followed by no additional communication with a company while they use the product or service they purchased. They desire a long-term connection, which necessitates a greater emphasis on renewals. Long customer relationships can only be achieved if everyone involved with a client, from sales to service to finance, has a thorough understanding of the account and is able to act on the information gained to ensure a healthy, happy, and long-term relationship.

The CFO and the rise of technology

In this new world, a CFO who is unable to swiftly draw and analyse real-time company data in this manner will be out of place. They must ask the CIO about current business systems and guarantee that they are rapidly modified before they and the entire company suffer a setback. With so much demand on CFOs to drive corporate growth with more effect, those without the tools will face an uphill battle with a steeper gradient. They can only watch as more nimble and agile competitors rise swiftly and grab market share from them.

CFOs’ new reality will continue to shift, frequently at a rapid pace. CFOs can also take advantage of new technologies when they emerge if they have the necessary technology in place now. Technology is evolving at a breakneck pace, and with new trends like the Internet of Things on the horizon, CFOs will be expected to play a role by implementing a subscription billing system that allows recurring revenue generated from data captured through usage to be recorded and billed to customers. CFOs can actually affect customer success and take a strategic seat at the table if they have the correct technologies in place to enable them thrive.

So, what skills should a CFO possess in today’s financial world?

• Leadership – Today’s CFO must have the necessary leadership and communication skills to be an effective business partner. They must offer advice and counsel as well as serve as a sounding board.
• Operations – They should have a thorough understanding of the company’s business model and industry, as well as the ability to apply this knowledge to provide an unbiased perspective and constructively challenge the commercial and operations teams, ensuring that business decisions are based on sound financial criteria.
• Controls – In a globalised and volatile environment with increased burdensome regulations, the CFO is frequently responsible for ensuring appropriate risk assessment and prevention as well as compliance with relevant regulatory or other regulatory obligations.
• Strategy – Assisting in the development of strategies and facilitating their implementation. The CFO is also responsible for prioritizing and ensuring that the strategy is financially feasible.

Tips for a successful CFO

• Finance must be integrated throughout the organization, assisting critical functions such as commercial, operations, and production in making decisions.
• Dedicated finance analysis and assistance are always tied to the most significant roles in the business.
• Finance productivity and decision support are aided by fast and reliable data.
• Automation of reporting and analytics frees up time for forecasting and predictive analysis.
• The CFO‘s position in technology will grow in importance, but its efficacy is dependent on data accuracy, availability, and consistency, as well as a robust, integrated technology infrastructure. The world of a CFO | CFO and rise of Technology. Tips for a successful CFO. skills should a CFO possess, and Future ready CFO.

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