How hot is the hot seat? Just ask a CFO.
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. The pressure to help the business make all manner of decisions better, faster and with more certainty is intense.
However, study responses also reveal that Finance's effectiveness falls short in:
Yet, our 2010 study uncovered a select group of Finance organizations – called Value Integrators – that have found a way to excel. In every area of the Finance agenda, their effectiveness surpasses their peers. Not only are they better at helping their businesses navigate uncertainty and complexity, but on every financial measure assessed, their enterprises outperform.