By Eric A. Denniston, Managing Director, Denner Group International
There are some interesting future trends to be tracking regarding the the CFO ROLE and the business domain he/she leads. Technology and in particular shared technology is one of the key drivers in how their role will be changing over the next ten years.
Shared data and cross-functional training give employees and their teams more real-time access to data and the acumen to use the information, they can assess the financial impact themselves, instead of relying on finance to do it for them. The consulting group, Accenture, estimates that by 2020, “more than 80% of traditional finance services will be delivered by cross-functional teams.
Traditional communications and control centers are becoming more nimble and responsive. They are consolidating previously separate in-house financial reporting services such as compliance, treasury and investor relations. This is resulting in task-specific professionals being able to better focus on optimizing their areas of responsibility in support of their company’s strategies.
How is your business reacting to these changing trends? Is your CFO more involved in creating and driving strategy? Are new technological and cross-functional training tools being deployed to stay ahead of the competition? Have your systems become too complex, creating new “siloed” systems? Does your CFO understand how to deliver strategic initiatives through project and program management? Does your organization have the core competencies to transition from transaction-based activities to value-added tasks?
All of this implies a shift to finance teams being more involved in planning and analysis with more advanced digital platforms. A key outcome is reduced complexity, increased productivity and reduced costs.
The strategic impact of these trends significantly affect long-term growth and viability for all types of organizations. As you consider how you might address the challenges of these trends, one valuable solution is to evaluate your organization’s competencies to address these challenges and take steps to improve skill sets, create strong cross-functional capabilities and deploy the needed technological tools.
For further details on this topic you can click here to read an article in CFO magazine.