FSN: Strategy tops CFO ‘to-do list’ as compliance concerns recede

Strategy tops CFO ‘to-do list' as compliance concerns recede

3rd April 2006
Formulating corporate strategy and planning has become the top priority for CFOs, according to a Financial Times Research Centre survey commissioned by business performance management (BPM) specialist, Cartesis. The study revealed that 45 per cent of CFOs see corporate strategic planning as their top priority now, while 52 per cent believe it will become their main concern in three years.

This was followed by 30 per cent, who believed financial management and reporting was the second most important priority. Just 10 per cent felt complying with regulations was top of their agenda. This demonstrates a clear shift in priorities for the CFO, compared with this time last year, when regulations and compliance were the key priorities.

When it came to their second priority, 42 per cent of respondents said it was communicating with the market and analysts, while 20 per cent said financial reporting and the same number said compliance. Interestingly, those that said compliance would be their second priority in three years dropped to just 12 per cent, again emphasing how compliance is being integrated into the CFO's tasks and the focus is now firmly back on managing business performance.

Cartesis' study, conducted by the Financial Times Research Centre to survey FTSE 500 companies – ‘The CFO – from number cruncher to heavy puncher' – looked into the changing role of CFOs and how their duties have extended beyond accountancy to every corner of corporate strategy.

“The results to the survey reveal how compliance has shifted down the agenda of the CFO, to be replaced by more strategic goals,” said David Gray, UK Country Manager, Cartesis. “Although the more tactical concern of compliance with the numerous regulations in the governance landscape remains a crucial part of the CFO's remit, it seems they now are feeling more in control of the situation.”

David added: “CFO's now have a much better understanding of compliance processes and in many cases are seeing benefit from them. This is enabling them to have greater involvement in business development and increased control in the decision making process, a move which enables them to better serve the sort of growth strategies which companies must now adopt. What CFOs now need to realise is that BPM isn't just one process. Instead, it consists of a combination of different but highly interrelated activities, including corporate strategy, planning, reporting and compliance, all of which are reflected in their role and priorities.”

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