Focusing on the future

Illustration: Katy Dockrill

The role of CFO is evolving into chief focus officer as finance executives are increasingly asked to help drive an organization’s direction and business model design.

That’s the finding of an IBM Business Consulting Services survey that examined the current state and future direction of CFOs. The study, which interviewed 450 CFOs from 35 countries, suggests that over the next few years CFOs will need to instill the processes and disciplines that guide the focus on the enterprise — what to measure, what to globally source, what to outsource, what markets to pursue and how to optimize the business portfolio.

The report also highlights challenges faced by finance departments as CFOs attempt to extend their influence beyond the executive suite into all areas of the business.

“CFOs recognize that they are central to driving performance management and governance processes that lead to competitive advantage,” says Jim Bramante, partner and financial management leader, IBM Business Consulting Services. “The challenge is making those significant changes in service while at the same time dramatically restructuring the cost of service.”

Automation, outsourcing and shared service delivery processes were all highlighted by the survey’s respondents as potential means to cut delivery costs and make the cost of finance more variable. However, while 60% of the CFOs outsource now or plan to in the future, they are reluctant to completely outsource the finance function.

But that may change as demands on a CFO’s time increase with added responsibilities — in fact, even today’s finance executives are feeling the burden of working long hours. According to a recent survey by Robert Half Management Resources, 36% of CFOs said if they could change one thing about their current position, they would work fewer hours.