The role of the Chief Financial Officer (CFO) is paramount in companies as they take a more comprehensive approach to the business as a whole and promote a more general business focus. According to a recent study by Accenture, ‘The CFO as Architect of Business Value’, which surveyed over 600 senior finance professionals across ten industries, businesses that allow their Chief Financial Officers (CFOs) to play a greater part in strategic activities are more likely to be successful.
Here are five ways in which your CFO can improve the success of your business.
- Ensure Flexible Operating Model
Today, in order for organisations to grow they require stronger Mergers and Acquisitions (M&A) to consolidate the company as well as wanting to transform their products by offering value-added features to their services. Therefore, it is important for the CFO to make sure that the operating model is flexible and can change in order to add value to the business as a whole.
- Invest in Digital Technology
CFOs need to have knowledge of the Return on Investment (ROI) that can be gained from the company investing in digital technologies such as social media, cloud computing or big data and maintain a strategy that prioritises the digital items that work.
- Maintain Strategy
As companies expand to different regions or countries, create new products and provide better services, it becomes difficult for a business to have an overall desired outcome, therefore it is essential for the CFO to maintain a strategy that is beneficial for the entire organisation. This strategy must ensure that all needs of the business are reached, financial risks are managed by the treasury and that it supports the objectives of all other C-suite members of the team.
- Consider Financial Future
The CFO must look to the future and consider the economic value of every entrepreneurial decision made. Business indicators should be taken into account from the start and the financial future of the company must be examined in order to respond to changes in the market.
- Stronger Finance Function
The financial skills of a CFO are most important. They must embrace a diverse range of responsibilities which may range from being able to communicate coherently to being more aware of specialist business process knowledge or particular economic industries.
The Accenture study states that a stronger finance function for the CFO creates a high-performance business. By allowing your CFO to invest in digital technology, maintain strategy and embrace a more financial role within your business, you could help boost the success of your company.
