Transcription
Four faces of the CFO
CFOs play four critical rolesCatalystCatalyze behaviors acrossthe organization to executestrategic and financialobjectives while at thesame time creating a riskintelligent cultureStrategistProvide financial leadershipin determining strategicbusiness direction, M&A,financing, capital marketand longer-term strategiesvital to the futureperformance of thecompanyStewardProtect and preserve thecritical assets of theorganization and accuratelyreport on the financialposition and operations tointernal and externalstakeholdersOperatorBalance capabilities, talent,costs and service levels tofulfill the financeorganization’s coreresponsibilities efficientlyCopyright 2016 Deloitte Development LLC. All rights reserved.Four faces of the CFO2
1. OperatorThe objective of the Operator is to balancecapabilities, talent, costs and service levels tofulfill the finance organization’s responsibilities.Key focusKey rolesEfficiency and effectiveness ofoperations including overallrisk management of the financeoperationDynamically balance cost , riskand service levels in deliveringon the finance organization’sresponsibilitiesAdd value to the revenueownersDefine and adapt finance’soperating modelDevelopment of finance talentCompetenciesLeverage system capabilities,program / projectmanagement, problem solvingand adopting a cross-borderattitudeFocus on what matters bothinside and outside of financeStrong leadership skillsincluding an understanding ofkey information systems andhuman resource issuesStrong understanding of thecompany’s business model andindustryUnderstanding of risk andcontrols to properly manageand help mitigate riskCopyright 2016 Deloitte Development LLC. All rights reserved.Critical issuesEnsure finance and accountingfunction operational efficienciesare in place and allow attentionon value enhancing activitiesDeveloping and evolving thefinance operating model andtalent management in financialdisciplines as the businessmodel continues to changewhile remaining efficient andeffectiveDetermining how to allocatescarce or limited financeresources to drive the greatestreturn on investment whilemanaging riskAbility to adapt to globalmarkets and operations(shared services) and theevolution towards InternationalFinancial Reporting Standard(IFRS)Four faces of the CFO3
2. StewardKey focusAccounting and controlRisk management andpreserving assetsThe objective of the steward is to protect andpreserve the assets of the organization.Partner with functional andbusiness unit owners in the riskmanagement identificationprocessKey rolesEnsure company compliancewith financial reporting andcontrol requirementsEnsure adequate assessmentand mitigation of risk, andcompliance with applicableregulatory or other legalrequirementsManage business complexitywhile minimizing risk as thebusiness executes on itsstrategies and initiativesCompetenciesAccounting and reporting,compliance, applying goodjudgmentObjective nature and ability toeffectively communicate risksand potential solutions acrossthe organization and to theBoardKnowledgeable of operationaland fraud risksUnderstanding of controls andrelated control frameworks(COSO, COBIT, etc.Copyright 2016 Deloitte Development LLC. All rights reserved.Critical issuesInformation and data quality,optimizing controlsIncreased regulatoryenforcement across domesticand global operationsSpan of control overinternational operations anddiffering operating models andculturesUnderstanding effectivegovernance models overgrowing business complexity,global reach and overallmarketing, sales and productcomplexity (i.e. extendedbusiness relationships, royaltyagreements, distributorships,etc.)Four faces of the CFO4
3. CatalystKey focusDisciplined execution of strategicchoicesChanging organization behaviorand establishing a value attitudeThe objective of the Catalyst is to stimulatebehaviors across the organization to achievestrategic and financial objectives.Key rolesGaining business alignment tosuccessfully identify, evaluate andexecute strategies by partneringwith senior managementBeing a business partner withother executives such as the CIO,CMO, General Counsel or CLO,Head of HR and business unitleadersImplementing a process to defineoptimal targets and to measurethe performance of the strategicinitiatives through a BalancedScorecard and/or KPI frameworkCompetenciesBusiness perspective, change andconflict management,organizational agility andfacilitationStrong communication and changemanagement skillsStrong leadership and businesspartnering skillsCreating a culture of riskintelligence to manage risk toproper execution of businessstrategiesCritical issuesEstablishing structure of enterpriseaccountability for results, drivingenterprise executionGaining acceptance from businessmanagement as the organization’scatalystMaintaining enterpriseaccountability while businessmodels continue to changethrough extended businessrelationships, outsourcing modelsand global expansionUnderstanding of key performancemeasurements to measure successof strategic and operatinginitiativesCopyright 2016 Deloitte Development LLC. All rights reserved.Four faces of the CFO5
4. StrategistKey focusKey rolesHelping to set the future directionof the company in order toenhance business performance andshareholder valueLeveraging financial perspective toframe the acquisition of capital,undertake M&A and otherinvestments, strategic decisionmaking, integration ofperformance managementThe objective of the strategist is to provideleadership with respect to aligning financial andbusiness strategies such as M&A, theinvestments and capitalization of the company.Create a capital and riskmanagement lens to support theeffective execution of the strategicinitiatives of the CompanyEstablish, implement and monitormanagement’s interventionstrategy when risk issues exceeddefined thresholds of risk toleranceCompetenciesCritical thinking, analysis andpresentation of data, globalfinancial perspective, strategicagility, dealing with ambiguityCapital formation and structuringexperienceMerger targeting, due diligenceand integration experienceCritical issuesProviding a financial perspectiveon innovation, M&A and profitablegrowth, acquiring capital andtranslating expectations of thecapital markets into internalbusiness imperativesProviding the information and toolsnecessary for the organization tomake sound business decisionsStrategic M&A wave – speed andthe need to get ahead of the curveDifficult capital markets and liningup M&A fundsMerger integration executionBalancing risk tolerance withchanging business model and M&AopportunitiesCopyright 2016 Deloitte Development LLC. All rights reserved.Four faces of the CFO6
About DeloitteDeloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private companylimited by guarantee (“DTTL”), its network of member firms, and their related entities. DTTLand each of its member firms are legally separate and independent entities. DTTL (alsoreferred to as “Deloitte Global”) does not provide services to clients. Please seewww.deloitte.com/about for a detailed description of DTTL and its member firms. Please seewww.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP andits subsidiaries. Certain services may not be available to attest clients under the rules andregulations of public accounting.Copyright 2016 Deloitte Development LLC. All rights reserved.36 USC 220506Member of Deloitte Touche Tohmatsu Limited
Four faces of the CFO 4 2. Steward Key focus Key roles Accounting and control Risk management and preserving assets Partner with functional and business unit owners in the risk management identification . agreements, distributorships, etc.) The objective of the steward is to protect and
