CFO a catalyst to business growth: Future Finance Transformation Strategy
The CFO of this new era is undergoing a major transformation in all aspects of the Industry, as they step up to signify the challenges over the next five years is technology. “Fund Transformation” is initialized to develop the innovation which evolves the activities meant to improve monitory management inside an organization. It can involve and elaborate a variety of tasks; minimizing the budget cycle for implementing new accounting software to reduce the overhead costs is one of the major role of a CFO today.
Marked with steering their businesses through the critical economic times, CFOs used their expertise in cost incorporation and operational efficiency to ensure the survival of their organizations and budget system. Those who succeeded earned the respect and confidence of executive management and external shareholders and grabbed considerable market share for their organization. This elevates the conventional CFO from a financial steward to a corporate strategist and the changing era of CFOs can expect their role to continually evolve for better opportunities.
Digital transformation is obviously expected to invest changes in high-tech companies, but there are certain industries outside the tech sector that are very particular in areas they struggle to understand how to grasp and harness in the digital forms that access the capabilities available to them.
Work skills with high tech to low-tech industries:
5 years of the span from now on, a finance team may be defined by how well it makes use of technology and innovative business tools, regardless of what industry it is into. Some examples of ways that digital technology will increasingly be used by CFOs in “non-tech” sectors are:
The tech-savvy CFO
The role of today’s CFO has already expanded with regards to including strategic corporate growth and also advise well in managing the bottom line. In the vision of CFO 2020, expectations placed on the CFO are presumed to refine and perform better, and CFOs will need a much more diverse and multidisciplinary skill set to meet these enhanced opportunities.
This blog detail certain traits and skills that CFOs will need in order to keep up with the pace of digital transformation in their role:
1. Digital knowledge: CFOs have to be technologically sound in order to capitalize on technical innovations which will benefit the company and the industry as a whole.
2. Data-driven access: CFOs will need the ability to execute company strategy and operate decisions which are based on the data-driven insights.
3. Regulatory compliance: Regulations and policies continue to be more stringent globally, hence CFOs will need to be proficient on working closely with regulators and compliance systems.
4. Risk management: With the evolving global economy comes where cyber securities and geopolitical risks worldwide.
5. The CFOs vision in 2020, especially those by enlarging multinational organizations, will need to have the expertise to monitor and manage risk in areas that may be unforeseen today.
The Catalyst CFO:
This orientation is for engaging in strategy development. CEOs and boards increasingly want the current CFOs to not only deliver a financial organization which adds in the numbers, but they also want to partner with them in shaping the organization ’s strategies and policies.
For example, CEOs typically want their CFOs to notice every nook and corner for a new opportunities and potentially black swans to help in transforming the company’s products and market cycle, as to capitalize eventually and to plan for future growth of the organization, which further create and impacts on communicating the corporate’s fast-paced growth story, an improvement in decision making around the key investment. At the same time, the boards have widened their own expectations which are concerning risk factors involved, in protecting the origination’s reputation, compliance, and regulatory matters, among others. Now, the question arises that where should CFOs focus be, and how should they orient themselves in supporting strategy?
Across the well-flashed 4 roles of the modern CFO as operator, steward, catalyst, and strategist, the orientations bring greater clarity to the strategist role and the capacity of an organization to reorient and put things in place for a new strategy.
Finance leaders and finance catalyst today are expected to be strategic thinkers and business partners who are having a master thought on the numbers. A recent survey found that nearly three-quarters of C-suite executives say they were satisfied and that their finance organization also contributes to the strategy or execution of strategy for the larger enterprise.