Businesses are constantly facing changes due to the technological progress and unstable economic and political situation. Under the influence of this dynamics, the role of today´s CFOs is fundamentally changing. Their work does not end with passive control of numbers, revenues and expenditures, CEOs have higher expectations from their performance.
CFO needs to be able to identify new external and internal opportunities and thus contribute to the fulfillment of the business strategy. KPMG can help you in responding to these challenges and we will gradually focus on raised issues.
According to KPMG Global CEO Outlook, the growth is a top priority for the CEOs in the next three years. They rely on CFOs to help them to drive the growth strategy from mergers and acquisitions, to geographic expansion and organic growth.
Regulatory environment will have the most influence on the future of the CFOs, but this should not be viewed negatively. According to the KPMG survey among business leaders of the world´s leading enterprises, 61% of them see the regulation as an opportunity to derive competitive advantage and 51% of CEOs see it as an opportunity to utilize data analytics. CEOs therefore do not rely on CFOs only to ensure that the business adapts to changing regulations but also to get as much value for the business as possible in the process.
Applying financial data to achieve profitable growth is considered as a major strategic value a CFO can bring to an organization, say 85% of CEOs. Strengthening the alignment between financial planning and corporate strategy will likely be one of the CFOs top five priorities going forward. CEOs expect their CFOs to take the initiative to apply financial data analysis to explore new products, markets and channels. In addition, CEOs believe the CFO should be able to understand how financial and HR data can impact each other.
Application of new IT solutions and cutting edge technology is another area with significant influence on gaining competitive advantage. Cloud-based solution help automate processes. Integrated data and analytics help identify opportunities for profitable growth. Digital and mobile technologies help to improve decisions.
Therefore it is not surprising that 70% of CEOs say technology will have the greatest effect on the future role of the CFO. CEOs expect them to constantly explore and implement the best new technology.
Almost all CEOs (97%) said that attracting and retaining top finance talent is part of the role of the CFO. However, only 33% of CEOs give their CFOs a passing grade in talent management. This area is therefore expected to evolve very significantly in near future.