itSMFI 2017 Forum Focus - June Forum Focus ITSMFI | Page 33

Should the CFO
be the
Chief Strategy
Officer
By Alexandra Cain
Traditionally amongst a CEO’s responsibilities, long-term strategy development is
increasingly becoming something for a CFO to be involved in. So what approach
can a CFO take to substantively contribute to strategy development?
“There’s only a broad rather than direct linkage
between these processes,” he says. “Then generally
•
The CFO’s involvement in long-term corporate
businesses will do their annual business plan at
thinking starts with connecting corporate and
another time and the CFO will do their financial plan
business unit strategies to business and financial
separately again. But those four elements should be
plans
linked and the CFO plays a critical role in this.”
•
CFO’s are uniquely positioned to consider and plan
Consequently, says Meacock, it can be difficult for a
for a range of scenarios for the business
business to realise its strategic goals if it doesn’t link
•
Similarly, the CFO can continuously explore corporate strategy, business unit strategy, business
business models to help ensure business growth
plans and financial plans. The CFO’s other main
As Deloitte’s Chief Strategy Officer, John Meacock is strategic role is an ability to individually analyse the
closely positioned to see the nexus between strategy and various portfolios in the business.
Key Points:
the C-suite.
“The CRO has to understand each business division or
Meacock says at the most fundamental level, the CFO product, not just from a financial perspective, but
should be involved in holistically connecting strategies to using a range of metrics so they comprehend the
drivers that make the business work,” he says.
financial performance.
“Many organisations don’t connect corporate strategy
and business unit strategy to the business plan and the
financial plan.
It sounds really basic but most
organisations tend to do their corporate strategy, put it
away and the business units will prepare their own
strategy.”
33 itSMFI Forum Focus—June 2017
As an example, Meacock points to a firm wherein
management believed there was a direct link between
business performance and the economic cycle. “But
after dong some analysis we found this wasn’t the
case; there was actually quite a lag and they were
looking at their business completely the wrong way.