5 key transformation challenges for the CFO
The way I see it, the CFO office has to address 5 major transformation challenges.
First, Finance needs to determine a new set of metrics representing the value of the company, like customer profitability, customer equity, intangibles valuation, brand equity, etc. To define these metrics, Finance has to gain a deep understanding of the business.
Secondly, data should be made trusted and accessible to internal consumers. A strategic debate is needed to determine who is responsible for a unified data organization that delivers the right data, at the right time to the right people in the right context.
Building on that, Finance needs to breed analytical skills and creativity in order to enable foresight.
Fourthly, finance departments need to attract empathic people and organize business collaboration. Agility is a key prerequisite in the highly volatile world we are living in today. To play its role in it, Finance should invest in empathic and creative people who are able to guide an organization from point a to b, based on the insights it delivers.
Finally, a rule-based exception handling center should be installed enabling Finance to spend more time on its new role.
In short, to become a strategic partner to the business, Finance needs to look at the decisions it takes through a different lens. CFOs who are eager to take up this prominent and more strategic role as a business partner, are in the driving seat to help their company do the right things in the right way.
This article is the first of a series of 6. Having set the scene of why CFOs need to transform the finance role, I will dive deeper into the 5 challenges CFOs are facing today.
Author: Thierry Bruyneel. You can connect with Thierry on LinkedIn.