Recent challenges of global CFOs - Deloitte United States...Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016 North America

Recent challenges of global CFOsSandy Cockrell, Global leader and US national managing partner, CFO Program, Deloitte LLP

March 16, 2017

Copyright © 2017 Deloitte Development LLC. All rights reserved. 2Recent challenges of global CFOs

• Background

• Business environment

• Business risks and strategies

• The role of the CFO

• Question and answer

Agenda


Background

CFO Global Signals™ survey

• The surveys conducted are “pulse surveys” intended to provide CFOs with quarterly information regarding their CFO peers’ thinking across a variety of topics.

• Twenty-eight Deloitte CFO surveys covering more than 60 countries, are conducted on a quarterly, biannual or annual basis

CFO Transition LabTM

• Our CFO Transition Lab is a one-day experience based on our extensive research on CFO transitions

• Focuses on use of time, talent and relationships

• Helps CFOs as they create a tangible 180-day work plan

• Over 1,200 Labs completed across our global network

www.deloitte.com/thecfoprogram

http://www.deloitte.com/thecfoprogram


Business environment


Question

Compared with three months ago, how do you feel about the financial prospects for your company, over the next 12 months?

• More optimistic, primarily due to external factors(e.g., economy, industry and market trends)

• More optimistic, primarily due to internal/company-specific factors (e.g., products/services, operations, financing, assets)

• No notable change

• Less optimistic, primarily due to internal/company-specific factors (e.g., products/services, operations, financing, assets)

• Less optimistic, primarily due to external factors(e.g., economy, industry and market trends)

• Other/Don’t know


-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16 1Q17

Argentina

NorthAmerica

Americas

CFO sentiment: Net change in optimism (as of Q1 2017)

Source: Deloitte Touche Tohmatsu Limited’s Global CFO Program, Q4 2016 Global CFO Signals survey

Net % of CFOs who are more optimistic about the financial prospects of their company now than three months ago.


-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

France

Germany

Italy

Netherlands

Russia

Spain

Sweden

Switzerland

Turkey

United Kingdom

Average

Europe





-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

4Q13 1Q14 2Q14 3Q14 4Q14 1Q15 2Q15 3Q15 4Q15 1Q16 2Q16 3Q16 4Q16

Australia

China

Japan

Asia Pacific





North American CFOs’ perceptions of North America’s economy

Assessment of economies (as of Q1 2017)

Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey

How do you regard the North American, European, and Chinese economies?

North America

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%

Net % good now Net % better in year Economic optimism index


North American CFOs’ perceptions of Europe’s economy




Europe

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%



North American CFOs’ perceptions of China’s economy



China

-100%

-80%

-60%

-40%

-20%

0%

20%

40%

60%

80%

100%




Business risks and strategies


CFOs’ assessments of their company’s prospects

External challenges and business risks

Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016

Europe (Q3 2016)North America (Q1 2017)

Resources• Skills shortage• Immigration

Geopolitics/Policy/Trade• Effects of Brexit• US presidency

Economic environment• Weaker domestic and foreign demand• Financial markets instability• Deflation and currency depreciation

Resources• Skills shortages

Policy• Tax policy and reform• Regulation• Rising health care costs• Trade policy

Capital/currency markets• Currency shifts (Dollar, Mexican peso)• US equity markets are seen as overvalued• Corporate taxes• Rising and falling interest rates

Other than economic growth challenges, which of the

following external factors have presented obstacles to your

company’s growth over the past 12 months?

Which of the following factors are likely to pose a

significant risk to your business over the next 12

months?


What is your company’s business focus for the next 12 months?

CFOs’ top strategies (North America as of Q1 2017; Europe as of Q3 2016)

Offensive vs Defensive strategies

Organic growth

• North America

• Switzerland / Russia

Inorganic vs Organic growth

Revenue growth

• North America

New business vs Current business

New offerings or products

• North America

• France / Germany / Italy / Russia / Spain / Sweden / UK

Inorganic growth

• Germany / Italy / Sweden / Turkey / UK

Cost control

• France / Germany / Italy / Spain Switzerland / Russia / Sweden / Turkey / UK

Existing offerings or products

• Not selected

Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016

Existing geographies

• North America

New geographies

• Germany / Switzerland / Sweden / Turkey


The role of the CFO


The four faces of the CFO

Provide financial leadership in determining strategic business direction, M&A, financing , capital market and longer term strategies vital to the future performance of the company

Catalyze behaviors and change across the organization to execute strategic and financial objectives

Protect and preserve the critical assets of the organization and accurately report on financial position and operations to internal and external stakeholders

Balance capabilities, talent, costs and service levels to fulfill the finance organization’s core responsibilities efficiently


Themes

CFO Transition Lab

Source: Deloitte LLP ‘s CFO Program, CFO Transition Lab, 2010-2016

Financial Planning & Analysis

Develop a function to deliver insights and partner more effectively with the business.

Operational efficiency

Create an efficient Finance operating model which fosters development and scalability to meet business objectives.

Corporate strategy

Establish a platform to become a contributor to corporate strategy.

Information technology

Develop a plan to rationalize IT systems to better support financial fact gathering for the business.

Communications and teaming

Create a comprehensive communication strategy to effectively convey key messages to various consistencies.

Talent

Execute a talent agenda which elevates the skills of Finance and develops people.


Question and answer

Click here for more information about The CFO Program.

About Deloitte

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private company limited by guarantee (“DTTL”), its network of member firms,

and their related entities. DTTL and each of its member firms are legally

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Global”) does not provide services to clients. Please see

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not be available to attest clients under the rules and regulations of public

accounting.

Copyright © 2017 Deloitte Development LLC. All rights reserved.

Member of Deloitte Touche Tohmatsu Limited

https://www2.deloitte.com/global/en/pages/finance/articles/step-ahead.html

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Recent challenges of global CFOs - Deloitte United States...Source: Deloitte LLP ‘s CFO Program, Q1 2017 North American CFO Signals survey and European CFO Survey Q3 2016 North America