Finance leaders need to redefine their role to include new strategic focus areas. All CFOs have established performance objectives, including revenue, profitability, and growth. And the drive to achieve these goals is clear. But the unique task of the CFO now lies in articulating how to achieve a new goal. Focusing on the return on investment and impact of corporate performance is now a CFO’s primary goal, with fiscal outcomes at the top of the list.
What are some challenges that CFOs face?
Gary McGaghey: Fiscal leaders continue to grapple with the effects of currency fluctuation and are looking for innovative ways to mitigate its impact on corporate profits and stock valuations. Currency volatility has also amplified the need for revenue and profit management to ensure that the company is structured for future success.
In addition to currency challenges, organizations are also grappling with new technological challenges in competition from disruptive start-ups and public-sector innovation. Some of these new organizations, like Uber and Airbnb, are creating new ways of working, while others provide new alternatives to traditional transportation, lodging, and retail. Get more information at Fitmedia
How can CFOs help their businesses succeed?
CFOs have a vital role as business growth accelerators and are positioned to identify new opportunities, transform strategic thinking and drive accelerated innovation. Increasingly, business leaders are exploring the use of AI, biotechnology, and quantum science to make their business models stronger and more sustainable, added Gary McGaghey.
And entrepreneurs are relying on crowdfunding platforms and co-creation to raise capital for their ventures. Yet, the rate of change—both in nature and consumer behavior—has led to a fresh generation of entrepreneurs that are more comfortable with business models that cross-subsidize.
What is the future of finance?
Finance leaders must increasingly help their companies capitalize on the potential business value of data in the cloud, harnessing disruptive technologies such as blockchain, harness trends in demographic and lifestyle changes, monitoring emerging risks, and emphasizing a positive work environment, says Gary McGaghey.
What the CFO’s role has become
The CFO’s role is becoming more fluid and change-responsive yet measured in actionable levels of strategic influence. The CFO is an active strategic adviser, coordinating collaboration across the entire business.
McGaghey has a track record of delivering value for shareholders. In the most recent fiscal year, McGaghey delivered $1.5 billion in total shareholder returns to its investors, including an increase of nearly 50%. This is based on solid performance across our entire product portfolio and core values that focus on the customer first, quality control, innovation, and sustainability.