CII-Deloitte report on ‘Millennial CFO- Driving Performance and Business Value” was released on 23 September, 2015 by Mr S S Mundra, Deputy Governor, Reserve Bank of India (RBI) during the CII CFO Summit 2015 at Mumbai.
This thought leadership publication throws light on what CFOs need to address to be successful in the business world.
Mr V S Parthasarathy, Chairman – CII CFO Summit and Group CFO & Group CIO, Mahindra & Mahindra Ltd Said that : “The 9th edition of CII CFO Summit covers how a New Age – next generation CFOs, who are tech savvy visionary, are ‘adept to adapt’ to any evolving situation. Recent events have reinforced the CFO’s elevated status. Even while carrying out the critical task of measuring and monitoring their company’s performance, providing strategic input has also become an imperative. Developing people and ensuring Gender diversity to work place has become another top-of-the mind issue.
Paradigm shift in the role of Millennial CFOs:
The role of a CFO is becoming more complex and dynamic with the constant change in external environment along with the advances in technology. CFO has become more of a business partner and an enabler for business growth and transformation. “JACK OF ALL TRADES AND MASTER OF ONE” truly reflects the current requirements on the skills of a CFO, they need to have the basics right but also work with multiple functions to drive strategy and decision making.
Start-up CFOs: Resilience, Volatility and Growth:
India has redefined its image from the IT hub of the world to the fastest emerging startup ecosystem in the recent past. Within the start-up framework, together with the nuances attached to a nascent and growing area, a CFO’s role assumes significant importance. The role encompasses the entire spectrum of activities with the objective of successfully delivering the value for business venture and the CFO is required to play different roles on a start-up’s journey from evolution to its market maturity, acceptance, and growth.
Women CFOs: Diversity in Ideas and leadership:
“In order to attract and retain the best talent, businesses must provide an environment that is conducive to professional as well as personal growth,” said Punit Renjen, Deloitte Global CEO, during Deloitte Global’s International Women’s Day webcast on gender diversity. Gender diversity in senior management is key to a balanced approach adopted by organizations for growth and value creation to all stakeholders.
Innovation and Technology: The Road Ahead:
When it comes to innovation, the opportunity for CFOs is not so much to play the role of a skeptic but rather to be the voice of reason, as keeper of the data-rooted business model. A CFO can engage with the innovation teams as the person who says “yes” because he or she can logically relate innovation to the key drivers of the business, and recognize how some ideas outside of the core business may be worth pursuing. The “Digital world” is demanding that the CFOs play a lead role in driving innovation using the digital ecosystem.
CFO - The Steward and the Operator:
Increasing technological changes have triggered a strong need for the robust internal controls, policies, and risk management practices to guard the company against the threats. Governance and transparency are pervasive in nature. Whether it is tax planning or capital alignment or business reviews, prudence is important for sustainability and credibility. Today, CFOs need to be engaged with all the functions and stakeholders to build the culture of strong governance and act as a shield to safeguard the company.
Deloitte India Spokesperson: “The portmanteau “Glocalization” is a reality (Coined by Harvard Sociologist –Roland Robertson in 1980s) in which today’s Chief Financial Officers (CFOs) operate. It presents challenges that they must face, and opportunities they must embrace. As the business information becomes accessible as well as globally interconnected, new markets appear as quickly as others fade. CFOs are expected to play a more strategic role in business where technology and globalization are adding layers of complexity and overwhelming opportunity. Reducing costs, improving efficiency, and partnering with business functions is increasingly becoming a priority for CFOs”
Climate change is not the only change, business scenarios are also changing very fast and the CFO may have to act like a CFO of a start-up, where they have to engender (create) everything from scratch. To explore these dimensions, this year’s theme of CII CFO Summit 2015 is ‘Millennial CFO – Driving Performance & Business Value’ and this report focuses on CFOs role in the present world to meet the expectation of the stakeholders. The report also captures views from start-up CFOs role in defining growing & making business successful; on how diversity at work is not unheard of in the current corporate environment; and how latest technologies are paving a way for enhanced business models for the millennial CFOs. The VUCA World throws challenges manifold, hitherto unheard. Our “Millennial CFOs” will stand, face-up, enable, engender and Rise.”
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