Quite rightly, it points out the progress made by the best finance functions in seeing the way forward for their business at a difficult time (
although what the more average performers have been doing is, sadly, another matter). Armed with robust information, simple processes and effective implementation of change, the CFO and CEO march together hand in hand.
This news should cheer every finance professional. But somehow I wonder. While agreeing with our report’s view that the more progressive companies’ finance functions are in better shape than ever, I can't help but feel a bit down.
Yes, huge progress has been made, aided by better systems and a clearer focus on shareholder value. When I led similar surveys in the mid-nineties, we talked about the need to move from score-keeper to business partner. But now that finance clearly gets the need to partner with the business and often achieves this, I can't help asking about the nature of this partnership. Quite simply, is it built on suitably robust foundations?
I have been lucky enough to have worked with many of the best CFOs over the years; outstanding individuals who have ensured their businesses create and, just as importantly, preserve value. Certain points of commonality surfaced time and time again in the partnerships they created with the rest of the business.
Firstly, they displayed a willingness to be right in the heart of the business — where wealth is created and the highest financial risks are taken. As an example of where this doesn’t quite happen,
our survey picks out R&D as an area which many finance functions neglect.
They provided clear, intellectual insight, supported by hard fact and analysis. This is difficult if your reporting system only serves up fragments of data rather than rigorous analysis aligned to shareholder value.
Finally, perhaps most crucially, they all exhibited that X-factor of emotional detachment. They were prepared to question; ready to see the other point of view and handle a period of temporary unpopularity rather than flexing to the wrong decision.
The strategic relationship that the best CFOs have with the rest of the business
is based on hard-won respect not a cosy closeness.
Personally, I think that now may be the time for all CFOs to restore some of that emotional detachment and to be prepared to take some hits for the good of the team.
— By Alan Buckle, Global Head of AdvisoryThe views and opinions expressed herein are those of the author and do not necessarily represent the views and opinions of KPMG’s network of independent member firms.
