Restructuring For Efficiency

In history of role developments, a CFOs role is one which is most evolved. I am not saying this because I am a CFO myself.  A CFOs role is reflecting the current state of affairs and the agility needed to accommodate the changing needs. There were times when CFOs were called bean counters evolving into accountants, then risk managers and conscience keepers, business partners and finally strategists.

The current state of our economy allows us to use all our varied skills to the benefit of our organization.  For example
• A CFO needs, to be a business partner to support profitable growth. When markets are tough we need to support difficult decisions - remember the topic of price vs volume? Who will make the final choice but a person who is not influenced by emotions of loosing market share?
• Strategist – is it the right time to invest? Are valuations low enough? Is it right time to fill the portfolio gap which was very expensive in the past?
• Restructuring for efficiency – as one of my colleagues puts it – never loose an opportunity offered by a downturn.  Its best to push for game changing reforms, long delayed restructuring plans to emerge much leaner and meaner when the economy picks up
• Conscience keeper – it is proven that incidence of fraud and misappropriation is higher during slowdown. Especially for an Indian economy where most of us are used to operate in high growth environment, dealing with a slow down can be traumatic and can often lead employees, customers, vendors to make mistakes. This is the time for the CFO and the Finance team to take their role of being conscience keepers much more strongly. Is that sale going on extra credit terms? What about the discounts? Why is the last leg of project closure still pending?
• Balancing performance during slowdown needs strong leadership and support from the CFO.  While it is normal, and much needed for the commercial teams to be bullish on the  market, it is essential for the CFO to play a balancing role without curbing the optimistic spirit
of the teams

I feel proud to be leading a team which plays these diverse roles very effectively. Over the last 5 years, Schneider Electric has recorded huge growth in India – both organic and inorganic (through 8 acquisitions in India). Finance at Schneider Electric is organized into Controlling (business partnership role), Central roles (closing, reporting, credit, FPA, risk management) and Global roles (legal, tax, shared services).

"Balancing performance during slowdown needs strong leadership and support from the CFO"

The controlling team plays the front ending role of supporting and driving performance.  They in turn are supported by strong central roles of credit, risk management and FP&A which ensure
they have enough time for business facing activities.

At Schneider Electric, we have excellent people management processes which ensure that the  team members move into different roles to create appreciation of what others as doing as well as to develop themselves holistically.