If you’re a CFO (or future CFO), you probably understand that your role has been evolving over the past few years. CFOs are no longer tasked strictly with cutting costs to ensure control. They are now required to think more strategically and become more of a thought leader than a spreadsheet monitor. Today's CFOs are being asked to be responsible for more business decisions than ever before—ranging from financial reporting processes to recommending information technology platforms.
We think there are a few things CFOs should be in the know on if they aren't already. Here's our list.
CFO CIO = Success
IT decisions are increasingly involving the CFO now. In some cases, the CFO and the CIO are combined into one role. If not, these two positions are definitely linking up more often than not to make decisions on technology investments. This is especially true when it comes to Business Intelligence (BI), analytics, and performance management. The impact of these types of technology solutions can be huge for driving high performance. However, without CFO input on functionality and needs, decisions tend to be more tactically focused and do not solve the most fundamental issues of data quality. So if you don't have a CIO in your C - suite then it might be time to partner up or brush up on your own tech understanding.
Increase Your People Value. Experience Improved ROI.
Big data is definitely not just a buzzword and it shouldn't be left to the guys in the business department or IT to be dealing with. Utilizing data across all departments and to drive all decisions is becoming the new norm. Bringing on and retaining talent that understands the importance of data-driven decisions is more important than ever. With information access truly unlimited, there really isn't any reason why each department isn't relying on the actuals to map out the strategy. Need tips to get your team started? We've got you.
- Cultural preparedness – ensuring everyone in the company has a new mindset that promotes data-driven strategies
- Create new teams strictly focused on big data analytics and defining how they will impact business strategy
- Evaluate your processes and technologies to ensure everyone is on the same page. And we don't mean spreadsheet page.
Innovation Has Long Been Required. Are You Up For It?
Like we mention earlier, the role of CFO is transforming. More and more CFOs are being challenged to get out of the day-to-day reporting and number checking and step into a more forward-thinking mindset. A mindset that is, shall we say...more creative. Before you fall off your chair and curse the marketing department, read the tidbits below. After that, you are free to fall to the floor. Though we hope you don't.
- Instead of looking solely at the bottom line, CFOs now need to strategically invest to meet the needs of the entire organization and advance the big picture plan.
- Understanding why and how the CFO role is changing also requires a look at the CMO role. In the past, the CFO and CMO have often been at odds due to the lack of information and the inability to justify marketing spend. This is no longer the case.
Though these changes do not represent every industry and area of business, they are still good to know and keep in mind as organizations evolve. Looking ahead rather than looking behind is now the new norm. And as always, we're here to help you keep your eyes on the future and drive a high performance organization.