The journey of the Finance function toward full strategic corporate partnership remains slow. The question is, why? For their part, Chief Financial Officers (CFOs) continue to promote the value of a Finance function that transcends the traditional roles of bookkeeper and data gatherer. Moreover, top-performing companies understand the value this type of predictive reporting can provide—to track trends and opportunities, support financial and business decision making and, ultimately, drive business performance. A Finance function that delivers business-aligned information and analysis that effectively contributes to executive strategy is becoming increasingly critical. Businesses should be able to derive that value from within rather than spending time and resources on outside analytical support. In fact, in a recent survey of 443 senior Finance executives worldwide, the majority of Canadian respondents—even more than their global counterparts—said their Finance group can best contribute to performance by better supporting business growth. From cost management to process improvement to IT conversion and integration, respondents cited multiple potential benefits that make the value of a strategically-focused Finance function clear.
But, if this is true—if the understanding and will are there to configure Finance as a true strategic corporate partner—why is it taking so long to realize this step in the journey?
Conducted during September and October of 2010, a global survey by CFO Research solicited opinion on the strengths, weaknesses, opportunities and barriers within today's corporate Finance function. Incorporating good Canadian representation, the survey provides a cross-section of opinion from companies of various sizes and industry sectors.
Several positions clearly emerge: CFOs and Finance executives want an expanded strategic role; they are frustrated by a number of barriers to this evolution; and they have a clear, benefit specific sense of the value they can potentially provide. But while progress has been slow, it persists, and there's reason for optimism. Drawing on Canadian responses to the global survey, this report outlines the current landscape, what the future may hold and what companies can do to help enable and leverage impending transformations within the Finance function.
To read more about the survey and its latest findings, please click here to view the report.
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