The responsibilities of a CFO are expanding beyond traditional financial management. CFOs are taking on a more strategic role, actively contributing to organizational growth and operational efficiency. They are harnessing technological advancements such as big data and analytics to optimize financial processes, inform strategic decisions, and participate in discussions on customer experience and product development. Fintech Review reached out to Claire Bramley, CFO at Teradata, to discuss the evolving role of CFOs.
Enhancing Efficiency with Limited Resources
From a functional CFO perspective, the focus lies on people, processes, and technology. This involves ensuring that the right individuals with appropriate expertise are placed in key positions, offering them necessary support and development opportunities. Embracing automation technology and process enhancements to boost operational efficiency is also pivotal. Prioritizing these areas is fundamental in empowering the business.
Moreover, trusting your team is crucial. As a CFO at Teradata, overseeing finance, security, IT, procurement, and real estate, building expertise in IT and security was initially challenging. However, acknowledging the expertise of your team can be advantageous. Assuming end-to-end responsibility in a large organization streamlines decision-making and facilitates significant value addition with time and effort.
Realism is essential in setting future plans. While ambitious 6-to-12-month plans are commendable, recognizing limitations and focusing on a few impactful initiatives is crucial.
Demonstrating Business Impact
Utilize data to convey value. An in-depth understanding of the business and its financial fundamentals is fundamental. It is imperative to rely on concrete data rather than assumptions or explanations to substantiate outcomes.
Maintaining a dashboard to base assumptions and forecasts on data and analytics allows for a comprehensive overview of the business’s financial status. Answering key questions concerning growth, customer expansion, and retention becomes feasible through data-driven insights.
Additionally, effective communication is often underestimated in early financial careers. Ensuring that the message is clearly conveyed and understood is indispensable for impactful decision-making.
CFOs play a pivotal role in decision-making and driving strategic business transformations.
The Future of the CFO Role in 2024
While managing financial operations remains a core responsibility for CFOs, the emphasis is shifting towards strategic partnership and contribution to the overall company direction.
Building robust relationships with business partners is crucial for effective task accomplishment. Collaborating on value propositions, continuous improvement, and cross-functional efficiency forms a key part of the CFO’s mission.
In today’s global and virtual business landscape, modern CFOs facilitate the success of individuals, regardless of their working environment.
Adapting to the Evolving Work Environment
In recent years, people have become increasingly mindful of factors such as flexibility, company culture, diversity and inclusion, and ESG practices when considering their careers. Aligning with the company’s mission and values significantly enhances employee engagement.
As a leader, prioritizing the well-being and engagement of the team is paramount. Recognizing and valuing their contributions fosters a collaborative and motivated work environment.
