For at least a generation, CFOs have been transforming from traditional “bean counters” into strategic leaders at the heart of company decision-making. A new, extensive study suggests that today, CFOs might even hold more influence than CEOs.
The evolution of the CFO role has only sped up over the past decade, shaped by “unprecedented global risk, economic volatility, and a surge in digitalization,” according to OneStream, the study's sponsor. In today’s business landscape, CFOs have become central to company success, stepping beyond traditional financial roles to drive strategic growth and resilience.
A very large 67 percent of CEOs believe a company’s success or failure now rests on the CFO’s shoulders. Investors echo this sentiment, ranking CFO competence as the second-most-important factor for a company’s success—only behind market expansion opportunities. In comparison, CEO competence ranked much lower, at seventh on investors' priority lists.
Four out of five investors now say they require confidence in a CFO’s growth-driven ambition before committing to a company. When this confidence is met, investors typically increase their initial investment by 2.6 percent, with the largest asset managers—those with over $50 billion in assets—willing to add a premium of up to 3.6 percent. This investor expectation aligns with sentiments from CEOs and line-of-business leaders, 69 percent and 78 percent of whom, respectively, anticipate their CFO to be a proactive force in driving corporate growth and profitability.
Looking ahead, 88 percent of investors and 65 percent of executives believe the CFO role will become even more essential to business success over the next decade. With ongoing economic and regulatory shifts, CFOs are under growing pressure to navigate the path toward sustained growth. Interestingly, 80 percent of investors reported being aligned with CFOs on business priorities, underscoring the CFO’s increasing influence on strategy and long-term value creation.
Despite their pivotal role, 69 percent of CFOs say they’re finding it challenging to lead organizational strategy and growth due to an increasingly broad range of responsibilities.
Indeed, 70 percent of executives described today's CFO as a “master of everything,” expected to have a comprehensive understanding of the company’s risks and opportunities. Investors share this concern, with 79 percent stating that CFOs are often so entrenched in operational tasks that they can’t dedicate enough time to the strategic elements of finance that are essential for attracting investment.
This is where hiring an outsourced CFO can provide significant value. An outsourced CFO brings a wealth of expertise usually not attainable by small businesses and middle-market companies. Fractional CFOS can help companies focus on strategic growth without being bogged down by day-to-day operational tasks. By leveraging the skills of an outsourced CFO, businesses can ensure that they have dedicated financial leadership that is not only experienced in navigating the complexities of financial management but also equipped to focus on long-term strategy and investment attraction.
For CEOs, the most sought-after qualities in a CFO are capital allocation skills, financial expertise, integrity, and transparency. Line-of-business leaders echo this need for transparency while also emphasizing the importance of risk management, data analysis, and team leadership. An outsourced CFO can effectively fulfill these requirements, offering a fresh perspective and specialized knowledge to drive the organization’s financial strategy forward.
In summary, as the role of CFO continues to evolve into a strategic linchpin within organizations, engaging an outsourced CFO can be a smart move for businesses looking to enhance their financial leadership and drive sustainable growth in an increasingly complex market.
If you are a business owner or CEO within the San Francisco Bay Area and Silicon Valley, in need of an experienced fractional or outsourced CFO to help your company control costs, increase profit margins, improve cash flow as well as identify strategic growth opportunities, our highly skilled outsourced CFO services provide direct access to high-quality expertise in a cost-effective manner.
コメント