The 2010 IBM Global CFO Study – involving more than 1,900 CFOs and senior Finance leaders worldwide – provides the largest window into the CFO mindset during the worst economic downturn in decades. Surprisingly, cost reduction was not at the top of their agenda. Instead, CFOs ranked “providing inputs into enterprise strategy” as most important.
CFOs told us their role as strategic advisor is broader and more important than ever. More than 70 percent play a critical role in enterprise risk mitigation, business model innovation and selection of the key metrics linking performance to strategy execution.
From the category archives:
CFO
Summary
The demand for finance and accounting outsourcing (FAO) services is strong and will continue to grow in 2010, according to the findings of The WNS Annual CFO Survey 2010.
The study consisted of an online survey of 100 senior finance executives in organizations with revenues of over $3 billion. The survey was designed to identify and analyze key items on the CFO’s agenda and assess how alternative service delivery models such as business process outsourcing are used to address these agendas.
Some of the key findings include:
Over 75 percent of the finance executives plan to expand their outsourcing programs in 2010
Driving corporate cost cutting efforts and improving internal controls are the two most crucial issues in 2010
Forty-four percent of the finance executives believe growing the business will be an organizational imperative in 2010
Over 85 percent of the finance executives are satisfied with the benefits from FAO
The survey was commissioned by WNS (Holdings) Limited (NYSE: WNS) and conducted by EquaSiis, an EquaTerra company.
CPA Australia in conjunction with its Business and Management Centre of Excellence and the Corporate Sector Advisory Committee have developed the following short list of tips for chief financial officers to consider, and possible actions they could take to help steer their businesses through the economic downturn. Strategy is key, and the organisation will be looking to the CFO for leadership on finance and accounting matters that are critical to business success.
1. Develop a financial model for your business.
2. Keep your financial records up-to-date.
3. Review government responses to the downturn.
4. Keep your bank and your investors in the loop.
5. Watch your prices and those of your competitors.
6. Concentrate on the profitable customers and products.
7. Get the best terms from your suppliers.
8. Rationalise if necessary.
9. Look for possible acquisition and merger targets.
10. Know when is the right time for capital investment.
11. Be aware of the legal ramifications of taking on directors’ duties.
12. Take care of your staff.