As we head into 2016, the accounting industry continues to advance and innovate. These changes bring new opportunities for CFOs and other finance leaders to prove their strategic value, but also present challenges that must be understood and navigated to guarantee organizational success.
At IMA, we recently explored the top issues keeping CFOs up at night in 2016, including cybersecurity and geopolitical risks. To anticipate and counteract these uncertainties, CFOs must learn to become Chief Future Officers, according to Maureen O’Connell, CFO of Scholastic. In this interview, Maureen and I discuss why the CFO is best equipped to take on this role, and how finance leaders can transition into corporate strategists with an eye for the future.
This interview has been edited and condensed.
Jeff Thomson: You created a SlideShare on the importance of re-envisioning the CFO as the Chief Future Officer. Of all the members of the C-suite, why is the CFO best equipped to step into this role and how can current CFOs communicate their ability to predict and plan for the future to their CEOs?
Maureen O’Connell: CFOs have access to financial and customer data across the organization. As a result, a good CFO can develop actionable data to inform decision-making. In addition, the CFO is not tied to any one business, but rather focuses on the overall results of the company; therefore, the CFO can remain unbiased when developing strategic alternatives. For this reason, the CFO is well-equipped to assist and advise the CEO.
Thomson: As CFOs look to the future, what are the greatest risks imposed by technology, and how should they partner with other departments to ensure the organization is prepared for these challenges?
O’Connell: Given the current landscape, CFOs need to proactively mitigate technology risks. Cybersecurity issues are here to stay. From a financial perspective, leakage of financial or customer data can be devastating. To avoid these risks, clear data management policies must be in place, and CFOs must institute good governance practice regarding access to sensitive data.
O’Connell: Technology-based innovation is imperative for success in a competitive business environment. Working closely with the CIO, the CFO must focus on prioritizing technology innovations that improve efficiency and drive profitability. These often include increasing access to market insights, better knowledge sharing across the organization and improvements in customer experience, among others.
Thomson: Do you believe the CFO of 2020 will look greatly different from the CFO of 2016? If so, what will be the biggest changes to the role, and what steps should current and aspiring CFOs take so they’re able to fulfill future expectations?
O’Connell: Just as organizations continuously evolve with the ever-changing global business climate, the role of a CFO is bound to change. A CFO needs to go beyond being “the finance operations expert” to become a corporate strategist who can enhance the firm’s valuation and brand, and win over stakeholders’ trust and goodwill.
