In today’s challenging environment, financial leadership is more important than ever. Here, financial executives especially Chief Financial Officer (CFO) has greater role in accelerating strategic growth across the enterprise. In the current scenario CFO’s must be a catalyst agent and are increasingly required to partner with CEOs in leading the transformation across an organization. In order to play the major role in driving transformation CFOs need to be well equipped and go beyond the numbers to diagnose and navigate change efforts more efficiently to improve future performance of the company. So, what steps or strategies a CFO need to adopt to effectively support and influence change in their organization?
Rapid technological change, market trends, more empowered consumers and employees, and ever changing government rules, have all combined to disrupt traditional business models. In this diverse situation the main challenge before the CFO is to not only manage disruption, but to also identify and invest in the business models, products, and services that will lead to sustainable, profitable growth.
As a first step, to become the leader in business transformation, CFOs must change their roles from technical expert to a highly accomplished commercial leader. As the business today are more socially exposed CFO can no longer contribute to decisions solely from a financial perspective, whereas they must be aware of customer and consumer behavior and cognizant of the public perceptions of all key decisions.
Getting transformations off the ground, CFOs should always closely monitor market opportunities and make investments that help the organizations leap forward as per the increasing demands. Excellent financial development can be developed by investing continually in people, process and technology.
Evolving technologies need to be adopted to provide greater scope for a transformation. Here IT department plays a major role and CFO needs to understand the power this department can wield. CFO has to develop a strong relationship with the CIO and try to understand some of the key areas and implement the trending technologies in a way that will achieve vital business objective.
Collaborate with other departments like HR and Marketing to ensure that technology investments enable the right business outcome.
Over the years, CFOs major responsibility include profitability and cash flow and cost management. But in this changing global economy financial leaders should maintain a clear balance between the cost management and increased focus on growth.
CFOs should be effective change agents. Whenever a change is initiated in an organization, there is invariably a resistance. Financial head should have the ability to overcome organizational resistance. They should show strong leadership skills, commercial and strategic insight.
Adopt a forward-looking approach to strategic insight and decision support, along with a strong grasp of information through more robust use of analytics, to stay one step ahead of business model innovation.
CFO should be an effective business partner who drive for continuous improvement of the organization by providing fiscal oversight, predictive analytics, robust planning and forecasting. With these, CFOs can effectively change their role from a financial steward to a transformation agent.
Stylus Systems, the technology company help you to achieve the business transformation in its best possible way. With a clear understanding, we work across process, people and technology to make change a reality. Talk to us for tips on how to restore shine on your business.