Section 1:
Changing expectations
Business leaders are looking to their CFO to drive business transformation and value creation. However, CFOs are struggling to make progress while juggling competing and multiplying requests from across the organization for the finance department to do more.
Becoming strategic growth drivers
Two-thirds of CEOs (67%) and LOB managers (66%) believe an organization’s success or failure rests on the shoulders of the CFO. Business leaders expect their finance leaders to spearhead progress: 69% of CEOs and 78% of LOB managers expect the CFO to be an ambitious driver of corporate growth. This belief is strongest among CEOs and LOB managers in Singapore (82%) and Australia (85%).
78%
of LOB managers expect the CFO to be an ambitious driver of corporate growth.
THE % OF CEOS AND LOB MANAGERS THAT EXPECT THE CFO AT THEIR ORGANIZATION TO BE AN AMBITIOUS DRIVER OF CORPORATE GROWTH.
76%
US
71%
UK
69%
FRANCE
60%
GERMANY
85%
AUSTRALIA
82%
SINGAPORE
Our study reveals that CFOs are poised to take up the mantle: 72% believe they are the most important member of the C-suite for driving business performance. However, 69% of CFOs report that they are struggling to drive organizational strategy and growth due to an ever-expanding brief.
67%
of CEOs believe an organization’s success or failure rests on the shoulders of the CFO.
“
The relationship between the CEO and CFO has really evolved over time. Business leaders increasingly recognize the value of having a strategic CFO who can give an unbiased view, grounded in the numbers. They’re looking for an honest arbiter who can balance the needs of various departments with the needs of the business and help them understand where the returns are.”
John Kinzer, Board Member OneStream Software and former CFO of HubSpot
‘Masters of everything’
Two-thirds of CEOs (67%) and 72% of LOB managers believe CFOs today are expected to be ‘masters of everything’, understanding all the business’s risks and opportunities. And 68% of CEOs and 69% of LOB managers believe CFOs today must be both profit-focused and purpose-led, taking into account dimensions of value beyond financial gain.
When considering the most important skills and attributes for CFO success, CEOs still prioritize core capital and financial skills. Meanwhile, LOB managers expect finance leaders to take a broader view: 70% believe a holistic understanding of the whole organization is now more important for CFOs than technical finance skills.
THE THREE MOST IMPORTANT SKILLS AND ATTRIBUTES FOR A SUCCESSFUL CFO, ACCORDING TO CEOS AND LOB MANAGERS
CEOs
1.
Capital allocation skills
2.
Financial acumen
3.
Integrity and transparency
LoB Managers
1.
Integrity and transparency
2.
Risk management expertise
and data analysis
3.
Leadership and team management
“
If CFOs are going to drive growth in a time of heightened variability — marked by inflation (and maybe exported deflation), recession and macroeconomic uncertainty — they have to prioritize. This requires a strong understanding of what’s going on in each and every area of the business — something that wasn’t as critical in the past but is now essential for effective leadership.”
Doug Orsagh, Vice President — Value Transformation, OneStream
If CFOs are going to drive long-term growth, they must break down silos between the finance team and other departments: 69% of LOB managers say the CFO must collaborate closely with other business leaders to fully realize organizational growth opportunities. While finance leaders were not historically expected to be expert communicators, these skills are now crucial to success.
70%
of business leaders believe CFOs today are expected to be ‘masters of everything’, understanding all the business’s risks and opportunities