Transiting Finance Team To Business Partners

Maximizing Long-Term Corporate Growth And Shareholder Value

Earlier, CFOs were considered to be gate keepers and security keepers but with the change in time, the role of a CFO has undergone evolution. Nowadays, CFOs are participating equally with their CEOs in the strategy matters, as well as implementation of key projects in the organization. They are in touch with the customer and other stake holders which is why they can feel the nerve of the business and advice CEOs to take the right decision at the right time. 

The Future of Forecasting

In earlier days, finance team needed to take care of only domestic environment but nowadays we also need to be careful of global changes as they are also impacting our economy.  Today, most of the finance teams are working on excel while doing forecast. They may be assisted with various data analyzing and reporting tools but final shape to any forecast is given in excel sheets only as it is more flexible.

Driving Better Business Results

One of the key challenges of a CFO is to change the perception of the finance team in cross functions as well as within finance.  First challenge is to change the mind set and thinking process of the finance team.  Finance team should look at the multiple options to provide  solution to a problem and equally participate in business decision making. After CFO is done with the changing mindset and thought process of the finance team, his job becomes easy.  Once CFO is able to establish a win-win relationship among various cross functional teams, finance team will have a greater business impact.

Budgeting For Innovation

For the growth of business there needs to be a balanced approach between budget responsibilities with the growth. CFO should not be blinded with only budget and expense control. They can better forecast project viabilit y and profitabilit y given in the present economic conditions.  CFO needs to continously monitor the progress of the projects and should not
defer from making on course corrections. Ultimately, there should be one common goal i.e., enhancing the value of business by both revenue growth and better profits.

"Key challenge of  a CFO is to change the perception of the finance team in cross
functions as well as within finance"

Financial Transformations

We cannot think of surviving without using technology. BI tools reduces a lot of day to day pressure on finance team and the team can focus on bigger issues.  With ERP, we can build in lot of controls which can reduce unforeseen risk. CFO as a leader of the finance team should be the first to adapt new technology and should not refrain from taking risks.

Challenges Of The Indian Economy: StrategySetting, Financial Planning, And Risk Management

Only way to deal with present situation is to be dynamic in our approach and be flexible. We cannot afford to stick on one stand as conditions around us are changing very fast.