CFO and Finance’s role has been steadily increasing in prominence for the past 10-15 years. We see more dramatic shifts or expansion in Finance’s role precipated by economic, regulatory or industry shifts, such as we recently experienced with the Global Economic Crisis, or in the past with the Dot-Com bust, Corporate scandals and the emergence of Sarbanes-Oxley.
Most recently, the CFO and Finance’s role has expanded significantly beyond traditional Core Finance, compliance and management reporting, to address strategic and structural challenges within the Enterprise.
These things include enterprise cost reduction, escalating involvement in risk management, and more involvement in company strategy. Because the CFO is only one person, it is essential for the CFO to develop a strong leadership team and competent analysts with strong Finance and Business acumen. This is essential in order to increase Finance’s overall effectiveness on these broader Enterprise agenda items.
Read IBM’s 2010 Global CFO Study, the largest CFO study of its kind featuring findings from more than 1900 CFOs in more than 81 countries. The study will be available on Tuesday, March 2nd. http://bit.ly/9D8f1Y