Given the importance of enterprise performance, the finance function must move beyond its traditional role and increase its support to the steering of the strategic, financial and operational activities of the enterprise. The objectives are to maximize the return on capital employed and cash generation to accelerate the achievement of profitable growth.
On the strategic dimension, there are six top issues facing CFOs: supporting the CEO in the definition of the strategic plan, aligning financial planning to that strategic plan, positioning the function as a key player in business transformation and value creation, making good investment decisions, defining the right management framework to optimize the enterprise’s financial performance, and managing information to guarantee the comprehensiveness and precision of the financial indicators of value creation.
On the more operational dimension, where the objectives are to maintain and increase competitive advantage, the challenges are to secure and improve direct margins, strengthen operational and financial prediction capability, control operating costs and accelerate the generation of free cash flow.
To address these issues, the finance function must rethink its organization, develop its skills and optimize its activities, where appropriate taking advantage of digital developments.