Beyond the Numbers: 5 Ways CFOs Can Shape Success

True or false: The CFO is the “numbers” leader in the C-Suite. If you said true, you are correct – but only partially. Today’s CFOs play a broader role in organizations than ever before. That’s good for them – and for the organizations they serve.

In a recent global Accenture survey of CFOs, 81 percent see targeting areas of new value across the business as a main responsibility, and 77 percent believe they have a role in driving business-wide transformation.

As a CFO for 10+ years at two very diverse companies, I couldn’t agree more. It’s in my DNA to go beyond the job description, collaborating across organizations to deliver results.

Breaking Boundaries

The impact of Covid-19, increased board expectations, the power of data and disruptions in the global economy require CFOs to move far beyond their traditional role.  Forward-thinking companies encourage this move, unleashing their CFOs to bring value across the enterprise.

Whether you are a CFO reinventing yourself or a company expecting that reinvention in your Finance leader, consider these ways to make a difference for your firm:

Lead Business Transformations – Large-scale business reinventions don’t just happen. CFOs are often the canary in the coalmine, seeing internal or external signals that require systemic change.  Serving as a catalyst, helping create a shared vision and developing an execution plan with clear accountability are all key steps CFOs can play. Then get out of the way!

Define the True Challenge – While CFOs lead a firm’s financials, we also play a key role in defining what’s driving them.  Revenues are down. Why?  Costs are up.  Why?  Margins have changed. Why?  Analyzing data, asking critical questions, driving debate at the table and engaging coworkers closest to the challenge are key. Example: When we had a cost problem at Staples, we engaged key players to pinpoint our pain points: labor efficiency and inventory management. Then we asked our merchants and distribution team to help develop creative solutions. With their input, we shifted our labor model to employ both full- and part-time employees. And we leveraged data analytics to build a dynamic SKU stocking model, pricing discontinued merchandise to sell and creating space for new high-value product for our customers. As a team,we reduced cost by more than $700 million over two years. You have to get to the root cause to get the numbers you need and want.

Inspire Every Day Innovation – Your front lines always know the problem and solution better than management. And leadership teams who listen and respond to customers consistently optimize results. CFOs should model this behavior, encouraging internal and external stakeholders to identify waste reduction or marketing/sales innovations. And reward them when they do. Example:  When I led Staples’ furniture business, we were losing a lot of money on a core product line: chairs. By watching customers in store and listening to our store associates, we learned our display layouts weren’t working.  Our associates and merchant team  collaborated to recommend a new display that enhanced the customer experience and reduced time and labor. The result? A double-digit increase in chair sales. We applied some of those earnings to fund in-store contests, making furniture sales much more fun for our associates.

Take Risks – CFO expectations are growing in this space. The recent Accenture study states “81 percent of all firms report that they are preparing for an increasingly volatile future. CFOs have the responsibility to help ensure the continued success of their companies.” Global trade, cyber security, technology investment, reputation and social media – the list of risks goes on and on. CFOs must navigate ever-increasing data sources, leverage artificial intelligence and build relationships to gain access to insights ahead of the competition. Then use those facts to help their firm.

Model a High-Performing Culture – CFOs with high-performing Finance teams set an example for their peers. Start by engaging all levels to define what a high performing culture means.  What do your employees need to be empowered and able to contribute their best?  Once you’ve defined your culture as a team, translate that into behavior and hold each other accountable.  Reward team members who embrace the culture and collaborate to earn success.  Get rid of those who don’t. And then encourage the rest of your firm to do the same.  Example: As CFO of a veterinary technology firm, I built a Finance team with top in-house talent and strategic outside hires. Step one was to build trust amongst ourselves. Step two was to listen to what our team needed to succeed. We met in person to shape a shared vision and agree on clear roles, responsibilities, behaviors and accountabilities.  When there were missteps, we called each other on them. That was key – a willingness to raise issues and resolve differences together.  Was it easy?  No. Did it strengthen the team’s performance? You bet.

Bottom Line

Today’s CFOs are going beyond the numbers to make a difference in their organizations. It’s our responsibility – and an exciting place to be.