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Page 1: New The ever-evolving role of the CFO - ET Edge · 2017. 11. 22. · The role of a CFO in modern-day start-ups Navigating a budding enterprise through uncharted waters presents the

AN ET EDGE INITIATIVE

The ever-evolving role of the CFO

�he last two decades havewitnessed significant trans-formation in the role of the

corporate CFO. The role hasevolved from being that of mere-ly a numbers guru toa big-picture thinker,involved in the func-tioning of practicallyevery facet of thecompany. This transformationhas been accelerated consider-ably by the financial crisis, whichsent companies large and smallscrambling to raise cash, cutcosts and tap emerging markets,thus creating a new breed ofmodern CFOs who are requiredto have a dynamic backgroundfar beyond finance.

Besides the routine chores ofcollection, payment and report-ing, the CFOs now needed toembrace a host of new and chal-lenging responsibilities to guide

the company throughdifficult times andtransform dauntingrealities into reward-ing opportunities.

Their task has evolved frommore than just one of managingthe numbers to actually becom-ing one of managing expecta-tions of shareholders, banks andother senior management. Thus,beyond mere financial decisionmaking, the CFOs now need toact as trusted advisors to thebusiness and participate actively

in broadening the organizations'corporate vision.

Are the CFOs of today ready toface the profound changes shap-ing the world today, carry the in-sights into what tomorrow holdsand respond to changing envi-

ronments with better, morestrategic decisions?

These are some of the severalimportant aspects The EconomicTimes CFO Summit 2016 soughtto answer through discussions,presentations and case studies

from the game changers them-selves. This Conference offeredthe perspective of CFOs on thefinancial environment in whichthey work. These sessions threwlight on the CFOs' evolving rolein a changing corporate world.

� From left to right: Ravindra Sharma (VP, Asia Pacific & Japan, SAP Ariba), Rohit Gupta (CFO, NIIT), Moderator: Pankaj Chadha (Partner in an Indian member firm of EY Global), Bipin Kumar Tibrewal (Group CFO, Airbus India), S. Subramaniam (CFO Titan Industries)

and Madhukar Narayan Hiregange , Chairman, Indirect Taxes Committee & Committee for Cooperatives & NPO Sectors, ICAI)

LEADERS’ CORNER

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� !���"#$�%� CFO, NIIT Ltd

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-%.!#/#.!%��0%���Co-Founder & CEO, iVirtualCFO.com

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� /!���3%"%4�%44%� Managing Director, SASInstitute (India) Pvt. Ltd.

�%-2/!��52�� Managing Director, Concur Technologies

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The Economic Times CFO Summit brought eminent experts together as it sought to understand the evolving role of the financial wizards of the corporate world

�ndia is seeing a slew of startups in to-day's day and age, and even as ven-ture capitalists begin to bet big on

these companies, the role of the CFO hasgrown ever more dynamic in these mod-ern-day organizations. No longer a rolefor those solely concerned with balancesheets and cost analysis, it's now a mul-tidisciplinary position that demands a di-verse set of skills.

Start-up companies demand general-ists who can juggle myriad tasks as op-posed to specialists, which means theCFO must be ready to wear many hats.However, with most start-ups operatingin a sphere that is supremely competi-tive, risk mitigation is often the focus,and this is where a CFO can come uptrumps. By continually analyzing and be-ing vigilant about whether financialnorms are upheld, the CFO can play acritical role in steering the ship by adopt-

ing fiscal prudence. Forecasting, planning and analysis are

also key at the nascent stage of a com-pany's evolution, and thus keeping aneye on Key Performance Indicator's.Thus, the wide spread of pressure pointsto monitor means that the CFO is chal-lenging on multiple fronts, making this acritical role in the formative phase of anorganization. The CFO fulfilling his rolecan mean the company will be able tomake the right move at the right time ornot being able to do so at the right time.

The CFO has to be able to fight theirown corner, with it meaning that theysometimes also have to manage up-wards by getting the best out of the CEO.Very often, a CFO will get push-backwhen he tries to change the set ways ofa business, but sometimes it's a questionof pushing much-needed changesthrough, all for the greater good.

The role of a CFO in modern-day start-ups Navigating a budding enterprise through uncharted waterspresents the modern-day CFO with a unique challenge

�he CFO's role is broader today thanit has ever been. Aligning the CFOwith an organization's broader

strategic imperatives is the need of thehour, and thus the CFO must own ana-lytics and put them to work to serve theorganization's needs.

CFO's are in a unique position to be a

steward of value and an impartial guardianof truth across organizations, and in orderto reduce any resistance to change, theCFO must be able to turn to analytics toproduce insights that effectively debunkcurrently accepted corporate wisdom.

Given that many CFOs and their financeteams strategically leverage data-drivenanalytics, it makes compelling businesssense to allow the finance chief to takecomplete ownership of data. By harness-ing the power of analytics across opera-tional decisions as well, CFOs canstrengthen ties throughout the businessand expand influence outside core financefunctions.

Analytics can help provide invaluable in-sights and highlight opportunities forgrowth, innovation, and competitive ad-vantage for an organization. Thus, CFO'smust take ownership of it to make themost of it.

Harnessing the power of AnalyticsMaking the most of analytics is a must since it can empowerCFO's to drive business growth

��Today's CFOs not only seeks outprofitable growth for the company, butalso helps shape the strategic vision aswell. The Economic Times CFO Summitbrought together leading practitionersfrom across the industry as they dis-cussed the latest updates, innovationsand cutting edge trends that will shapethe way CFO's go about their business.

��������� ������������, PRESIDENT, TIMES CONFERENCES LIMITED

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