CFO Leadership

CFOs and their teams are facing a dilemma today. The dilemma is how to embrace the traditional strengths while, at the same time, adopting disruptive leadership strategies and techniques. Can CFOs balance tradition and disruption?  Some believe these concepts are contradictory and that an organization can choose traditional methods or adopt disruptive leadership. Yet, you shouldn't think of it in terms of traditional vs. disruptive leadership.  Instead, consider it a balance of current and former processes while innovation drives procedures forward.  What does that look like? Let's break down what disruptive leadership is and what it means to consider traditional over disruptive strategies and vice versa.     💡 Key Takeaways: Disruptive leadership is a progressive approach that refers to executives who recognize that traditional methods are less effective in an ever-advancing digital world. Traditional leadership makes decisions without considering insights from others, while disruptive leadership listens to and empowers teams during decision-making processes. There are five primary characteristics disruptive leadership experts see in great smart CFOs, including intelligence and a willingness to push boundaries. Smart CFOs are disruptive leaders who know how to look beyond traditional data, ask the right questions and listen to the answers to glean useful insights. What Is Disruptive Leadership?   Disruptive leadership is a progressive approach to leadership. It refers to executives who find that traditional management methods don’t work in an ever-advancing digital world. It requires a mindset focused on the positives of business disruptions as companies integrate new technologies into existing systems.  The functions of finance are gaining further importance while advances in fintech impact how companies manage revenue and cash flow.  Finance disruption leaders must instill a disciplined approach regarding innovation efforts. They hold on to conservative approaches while taking risks and challenging the status quo.   Historical reporting activities will continue to be vital, but require less time due to improved efficiencies from automation, consistent data and end-to-end reporting systems. It will require finance teams to shake up processes and leverage increasingly advanced technologies.   Traditional vs. Disruptive Leadership  Traditional leadership bases its style on the belief that those in power keep up with past procedures and policies, even if they are ineffective. It also rewards seniority over skills, meaning people earn promotions not on merit, but based on office politics and favoritism.  This style does nothing to cultivate a work culture focused on development or expansion, rather it maintains toxic work environments that do not foster growth.  To foster growth, you must facilitate change.  This requires a disruptive leader to step up and be the driving force to initiate this change. Someone with the wherewithal to take what works with traditional methods, to eliminate what doesn't and to accelerate strategies that balance tradition with disruption.   Traditional leadership makes decisions without utilizing or considering insights from the people reporting to them.  Disruptive leadership uses emotional intelligence (EQ) to develop new business strategies and to mobilize and empower top team members while creating even more space for disruptive leadership.   Source: People Puzzles 5 Characteristics of a Disruptive Leader Thought leader and disruptive leadership expert John Furth works with CEOs, CFOs and other C-suite executives to develop disruptive strategies that result in growth.  Over the last 25, Furth has worked with large corporations to develop disruptive and innovative leadership teams. Furth states, "Disruptive leaders like Jeff Bezos and Elon Musk have transformed companies… while generating incredible wealth for themselves [and] their investors."  His time with these disruptive leaders has taught him that they carry many of the same common traits: 1. Intelligence Their friends often refer to them as "brainiacs." While not all have advanced degrees (some business disruptors have never finished or even been to college), many have a Ph.D. from highly ranked universities. Whether educated or not, they all have a commitment to a lifetime of learning.  2. Pushes Boundaries Disruptive leaders are not afraid to push accepted boundaries. However, discretion is necessary to keep from destroying everything they and their teams are working hard to build.  A smart CFO will not only push boundaries within the company, but also disrupt their own mindsets to focus on agility and innovation over static processes.  3. Looks Beyond "Traditional" Data Disruptive leaders in finance are smart CFOs who recognize that data does not always come from traditional sources. They seek insights, information and inspiration in unexpected places.  If you are a smart CFO, you recognize that traditional data sources are, by nature, backward looking, providing a limited view of overall value.  Great disruptors will always ask exceptional questions and listen carefully to every answer. They never know when useful insight could come from an unexpected source.  4. They Ask "Why" Not only are disruptive leaders not afraid to ask why, but they stick around for the answer. Smart CFOs are solutions driven and constantly questioning current processes, business decisions and how to approach new opportunities.  Curiosity leads to exploration and growth. You can remove roadblocks by asking why, provide potential inputs on what to improve in the future and gain clarity when making new decisions.  5. Ready for the Disruption A smart CFO will understand that disrupting an existing ecosystem will cause significant short-term, adverse effects. Companies that cannot remain agile go out of business. Preparing for these temporary disruptions is part of the core competencies seen in disruptive leadership.  CFOs: The Chief Future Officers The responsibilities of the CFO are changing. There is pressure to be more than a leader reporting on the company's historical financial performance.  As the adoption of new technologies and better practices prevail, the CFO leads business strategies and guides future integrations, taking on the role of Chief Future Officer.  “Excelerate” Disruptive Leaders Give your organization's financial professionals the tools they need to balance traditional and disruptive leadership methods as we move into the future. Request a Demo

Sustainability. Inclusivity. Social responsibility. These aren’t just buzzwords. Not anymore. In today’s business environment, they’re more and more of a priority. Customers, partners and employees are more likely than ever to seek out good corporate citizenship from their organizations. Organizations that don’t embrace it can often find themselves lagging behind. As strategic partners to the rest of the business, finance leaders are in a position to prioritize good corporate citizenship—pushing an agenda that supports it through the rest of their organization. But are they ready? In our 2022 benchmark report, Vena wanted to find out. Based on a survey of 132 business leaders and finance and operations professionals coming from organizations across a range of industries, our third annual benchmark report, The State of Strategic Finance: Vena Industry Benchmark Report 2022 is now available for download.  This blog post will explore what it reveals on how finance is standing up for the world at large. Do today’s finance leaders see the importance of good corporate citizenship? And if so, are they doing everything they can to ensure their business is an agent of good? 💡Key Takeaways: The finance leaders we surveyed clearly have the best of intentions, with a majority naming environmental, social and governance (ESG) criteria as important in some way to their business strategy. They’re prioritizing diversity, equity and inclusion (DEI) as well. Where they seem to be falling short, though, is in actually taking action. By reporting on ESG-related metrics, finance leaders can start making better data-driven decisions to fuel their ESG efforts. Sustainable investing is also a way finance teams can make an impact and show what matters to them. To make DEI more of a priority, finance leaders should make diversity, equity and inclusion a part of all of their hiring decisions—with a clear set of guidelines in place. But they shouldn’t stop there. By prioritizing DEI through the top echelons of your organization, you start to make it part of the overall business culture. The Path of Good Intentions The good news? Our respondents clearly have the best of intentions. With 75% of respondents in our 2022 benchmark report calling environmental, social and governance (ESG) criteria “somewhat important,” “important” or “very important” to their business strategy, it’s clear they see the need for good corporate citizenship. Only a scant, (5%) said they don’t consider ESG at all—a good sign that most leaders care. And the same is true for diversity, equity and inclusion (DEI). A large majority of the business professionals we surveyed saw diversity, equity and inclusion as “somewhat important” (17.5%), “important” (28%) or “very important” (45.5%) to their business strategy. That’s a full 91% that show support for DEI efforts—meaning diversity, equity and inclusion are on their minds. The problem is that good intentions only go so far. And where respondents fall short is in taking action: Only 35% said “yes” when asked if DEI informs their hiring strategy. Another 37% said DEI informs their hiring strategy “sometimes.”  Just 21% said their finance team was reporting on ESG-related metrics. Less than a third (28%) were applying an ESG lens to guide their investment decisions. So what can finance teams do to put their good intentions into action and lead their organizations to good corporate citizenship through company-wide ESG and DEI? Leading ESG: What Can Finance Do? Through sustainable finance efforts and a prioritization of environmental, social and governance criteria, finance teams can begin to lead the way on ESG. Here are two ways to get started: 1. Report on ESG-Related Metrics If only 21% of finance and operations teams are reporting on ESG-related metrics, that leaves almost 80% that aren’t. And as all finance professionals know, when you’re not measuring something, it’s harder to make informed decisions around it. If you want to put better ESG efforts into place, start by introducing metrics that will help you better understand where you’re falling short. Some areas to consider might include: Environmental Metrics Consumption of energy Supply chain miles Recycling and waste management Social Metrics Diversity and inclusion  Data protection and privacy Corporate social responsibility Governance Metrics Management diversity  Accounting transparency Executive and board compensation By understanding how you stand in areas like these, you can begin to get a full picture of your overall ESG competency—and use that data to encourage business-wide change. In fact, some businesses even include ESG disclosures in their annual report or have a separate sustainability report to show where their business stands—putting their efforts front and center. 2. Apply an ESG Lens to Your Investments Again, 28% of respondents applying an ESG lens to guide their investment decisions means more than 70% aren’t. And if you want finance to be a leader in ESG at your organization, that isn’t going to fly.  By applying ESG principles to your investment decisions, you put a strong signal out there that you’re ready to put your money where your mouth is. You’re not just telling everyone what they want to hear when it comes to environmental, social and governance issues—you’re putting the work in. And that can go a long way in letting potential employees, partners and customers know it matters to your business—helping to drive their decision to work alongside you.  But ESG investing isn’t just a positive move when it comes to good corporate citizenship. ESG funds are often associated with higher returns and other rewards—meaning they’re also good for your bottom line. Building DEI: Where To Start Of course, some of those same tips apply to your DEI efforts too. You can invest in businesses that prioritize DEI. And if some of those ESG metrics you start following are DEI-related, you’ll be able to apply the same data-driven decision making to your diversity programs as well. But why stop there? If you really want to put your words into action when it comes to DEI, here are two more ideas you can put into action: 1. Apply DEI to ALL of Your Hiring Decisions As our benchmark survey results show, most of the finance and operations professionals we surveyed tried to apply DEI to their hiring decisions. But it wasn’t necessarily codified into their hiring strategy. Almost three-quarters—72%—said they either “always” or “sometimes” apply DEI to those decisions. Not bad, right? Except, it’s the “sometimes” that worries us. That “sometimes” means that for 37% of respondents, DEI was optional—not formally integrated into their culture or hiring practices. But to truly be effective, DEI can’t be a “sometimes” kind of thing—it has to be coded into your culture as a whole. And like ESG investing, DEI-based hiring policies aren’t just “the right thing to do,” either. They also make good business sense. “For diverse companies, the likelihood of outperforming industry peers on profitability has increased over time, while the penalties are getting steeper for those lacking diversity,” McKinsey & Company reported in 2020. Diversity and inclusion introduces a wider spectrum of ideas and perspectives to your business environment—and that’s a win all round. If you’re a finance leader, you can start by introducing a stronger DEI hiring strategy to your own department first. But you can go even further and use your seat at the table to encourage the application of DEI to hiring strategies companywide. 2. Bring DEI Straight to the Top Our 2022 benchmark survey results show us that 40% of finance leaders have a seat at the table where key decisions are being made—and another 28% are sitting at the head of that table. As a strategic partner to the entire business, finance is in a unique position to offer guidance to top executives and board members on all issues—including DEI. By educating your executives and board members, you can begin to align them around key DEI criteria and start to build a company that supports those criteria from the top down. This can help drive everything from hiring choices to compensation decisions. A program that starts at the top will also be more likely to incorporate measurement and accountability measures that are applied throughout the entire business—building an overall culture around DEI. Also keep in mind that a serious DEI culture shouldn’t just permeate through the lower levels of the organization. To see true change, your board and executive team need to be diverse as well. And for that to happen, everybody needs to be on board.  So it’s time to put those business partnering skills to work. Putting Words Into Action “Obviously, more work needs to be done to put action to those beliefs—and finance is in the right position to guide those efforts,” we wrote in The State of Strategic Finance: Vena Industry Benchmark Report 2022. And those are words we’re firmly invested in. After all, finance leaders are business leaders. That means you have the power to “be the change you want to see in the world,” as Mahatma Gandhi is often credited as saying. So don’t just stop at good intentions. Start putting those intentions into action. The good news is that in today’s business environment, being a good corporate citizen is great for business too. 2022 Industry Benchmark Report The State of Strategic Finance What role have finance teams played amid the turbulence of 2022? How are they positioning themselves for the next uncertainty? Find out in Vena’s latest Industry Benchmark Report. Download the Insights

Finance has always been a numbers game. The traditional role of finance, after all, was largely an accounting role: budgeting, cash flow, profits and loss and so on. Jobs were done in a silo, and finance professionals stayed in their lane—poring over manual spreadsheets, making sure the numbers were good.  But that’s not what finance is today. While those accounting duties are just as important as they always have been, technology, automation and more collaborative processes have left finance with more time to spend on other things. And as their role has grown, finance leaders have become important strategic finance business partners—leading their organizations to successfully meet their business objectives. Today’s Finance Leaders Are Helping Their Organizations Become More Agile in the Face of Ongoing Change In our third annual benchmark survey, The State of Strategic Finance: Industry Benchmark Report 2022, we surveyed 132 business leaders and finance and operations professionals coming from organizations across a range of industries. We asked them about strategic planning, risk assessment, relationships, the three elements of the foundational framework for success—people, processes and technology—and more. In the following infographic, discover how this year's survey respondents are working to become better strategic finance business partners and what they’re prioritizing as they aim to make an even greater impact in the future.      2022 Industry Benchmark Report The State of Strategic Finance What role have finance teams played amid the turbulence of 2022? How are they positioning themselves for the next uncertainty? Find out in Vena’s latest Industry Benchmark Report. Download the Insights

If the past few years have taught business executives anything, it's that disruption has become a normal part of the economy.  To remain competitive in the face of this disruption, finance leaders must have a defined vision for working in a digital world. Executives and chief financial officers (CFOs) can put plans in place now to facilitate a financial transformation in 2023.  Over the next year, you can have a financial transformation by putting in the work now to invest in the right technologies and the right people. 💡Key Takeaways: Industry leaders expect CFOs to lead their businesses and financial planning and analysis (FP&A) teams in digital investments. While this may require a cost reduction in other areas, strategic investments can increase customer retention, satisfaction and order size. A crisis presents an opportunity for reinvention. The switch to remote work provides the window for increasing digital investment, which can decrease the cost of business operations. Digital initiatives are not new, but CFOs should continue their acceleration.  As you continue to scale up technological innovation and digital investments, focus on automation and a strategy to mitigate the effects of inflation. This may include increased robotic process automation (RPA), reporting automation and process mining. Financial Transformation in 2023 One study shows that 78% of CFOs expect to maintain or increase enterprise-wide investments in the next few years. Source: Gartner And for good reason—customers may be willing to pay more for quality goods and services when the digital experience is positive. To prepare for a financial transformation in 2023, consider the following trends. 1. Transactions Will Increasingly Become Touchless One technology trend that will become more prevalent in the next year is the use of blockchain in financial automation.  As enterprise resource platforms (ERPs) likely integrate with cloud technology, further automation and innovation will simplify business operations. This will free human capital for other tasks while also causing some finance teams to become leaner.  Operational finance staff (i.e., order-to-cash, procure-to-pay, transaction accounting, etc.) may shrink, but specialized finance (i.e., business partnering, reporting, planning, budgeting, tax, etc.) may grow as expectations from business finance support grows. 2. Providing Business Insights Will Grow More Important Just as businesses have multiple data stores and enterprise programs, many businesses also lack a single source of truth that would collect and house that data.   The FP&A team's ability to control this process and direct other resources will depend on how much the team adds value to the business. This requires the ability to provide rapid insights and top-notch customer service. 3. Periodic Reporting Will Become Less Dominant Today, FP&A teams depend on cyclical reporting schedules. But when financial teams can produce actuals and forecasts on demand, the distinction between operational and analytical data diminishes. Nonetheless, finance teams must continue to meet outside demands, such as providing detailed information to key stakeholders more frequently. Right now, limitations regarding technology or data processing inhibit finance cycles. Once the month-end close process is irrelevant, financial reporting will happen in real time. Agile Scenario Modeling Mitigates Risk See how the decisions you make today will affect your bottom line tomorrow, with Vena. 4. Self-Service Becomes More Normal Employees are becoming increasingly familiar with automated services. Some people even prefer working with a digital assistant or chat service rather than a live person.  Services, including regular budget queries and report generation, will become automated. As stakeholders continue using self-service platforms, FP&A teams can learn to deliver information proactively. Source: Gartner This can replace the function of accessing data in spreadsheets. With intuitive, user-friendly, self-service portals, internal customers will expect quality responsiveness from the finance team. 5. The Business Operating Model Will Shift Once disruptive facets of the workforce are now commonplace. In the next year, expect to see the integration of freelancers, gig workers and crowdsourcing into workplaces.  This integration goes hand-in-hand with further automation. Finance teams can use automation to lower costs, reevaluate organizational structure and include new workers. These changes will also help finance-as-a-service expand beyond mid-market companies.  Expect this process to affect the offshoring and onshoring process. To prepare for market disruption, focus on building a near-term multifunctional and dynamic team. 6. Finance Applications and Microservices Become More Prominent Financial teams will likely continue to rely on ERPs. However, expect that finance apps and microservices will disrupt ERP vendors and usher in more innovation. For instance, many ERP vendors have begun incorporating blockchain technology into their programs. Along with automation and cognitive tools, these vendors will produce a new generation of products.  This change will coincide with new competitors entering the field. ERP vendors will probably incorporate microservices and specialized apps atop the platform. This could reduce the complexity of use and improve access to data. 7. Data Standardization Will Remain Top of Mind Automating financial processes requires data standardization. Most companies who house data across multiple platforms expect to continue to work toward aligning and integrating this data.  For example, mistakes with seemingly minimal descriptors such as commas, abbreviations, data-entry fields, nomenclature and others can have an outsized effect. Improving data standardization will facilitate automation and decrease the CFO's workload. 8. The Workplace and Workforce Will Continue To Change As technology becomes more central to the work of financial teams, the skills you seek will also change.  This could be a significant change for many FP&A teams. Rather than prioritizing folks with an accounting background, consider building your team with data scientists, business analysts and similar professionals.  Key qualities include: Communication  Customer service Flexibility Collaboration Transform Your Financial Outlook With Vena Moving into the new year allows you to evaluate your progress toward your goals and to set new initiatives. Whether you're well into redeveloping your enterprise investments, just starting or somewhere in between, Vena can provide the FP&A solutions you need. Ready to start your own growth journey?

If 2022 taught us anything, it’s that we need to be ready for everything. From supply chain breakdowns and the war in Ukraine, to rising inflation, interest rate hikes and predictions of a recession around the bend, the year has been defined by its unpredictability. And finance teams have been forced to keep up amidst all of that uncertainty. More than ever, then, those teams have to become agile and proactive to empower their organizations to be the same. And for that, finance teams need to take a central role in their business. The question is, are they up for the challenge? We set out to learn exactly that in our newest industry benchmark survey. Now the results are in and available for download in our third annual benchmark report, The State of Strategic Finance: Vena Industry Benchmark Report 2022. It’s based on a survey of 132 business leaders and finance and operations professionals coming from organizations across a range of industries. In this post, we’ll explore five highlights from this year’s findings. 💡Key Takeaways: Both finance leaders and their teams are stepping up to embrace their role as strategic partners to the business. But there’s still room to add more strategic value in that role. To excel as a strategic partner, finance leaders are looking to add technical and non-technical skills to their teams—but there are some critical skills that still aren’t making those priority lists. Excel still plays a central role in most finance departments—even despite the presence of other planning technologies. A tried-and-true technology for most finance professionals, it can become an important building block for additional technology investments. 1. Today’s Finance Leaders Have a Seat at the Table To drive organizations forward, today’s finance leaders need to become strategic partners to their business. But for that to happen, they require a seat at the table when key decisions are made. With this year’s survey, we wanted to find out if that was happening. And the good news is that 40% of our survey respondents said they do have a seat at the table. Even better news? Another 28% have taken a seat at the head of the table. That means they’re leading strategic planning discussions. But how are they using that seat? While the respondents we surveyed said they’re creating value in a number of ways, at the top of that list is still costs and margins, where 50% say they’re adding value. So are finance leaders really providing the top-line value they could be bringing as a strategic partner? 2. There’s Still Room for Teams To Grow While we may have found that financial leaders could be adding more top-line value in their role as strategic business partners, what about finance teams? The data shows that there’s still some growth potential there as well. While 41% of the teams surveyed are influencing and challenging day-to-day decision-making across the business, that leaves almost 60% that aren’t. And even fewer are building relationships with key stakeholders and enabling cross-functional collaboration. It could be that data challenges are still getting in the way. As we’ve seen in past years, data has been a recurring problem amongst the organizations we’ve surveyed, and this year is no exception. Fifty percent of respondents are still focused on improving data-driven decision making and 46% are spending too much time wrangling data. 3. Finance Teams Aren’t Maximizing Their Strategic Value All of the above is evidence that, while finance is embracing its role as a strategic partner, teams aren’t necessarily maximizing that position. And part of the reason why may be that teams are still spending too much time on manual processes—leaving less time for tasks that will let them provide strategic value to their business. In fact, almost three-quarters of the organizations we surveyed said they spent too much time on the manual processes associated with planning and budgeting activities. They were spending time on data entry and validation instead of on activities that will continue to add value at the strategic level. Thankfully, 61% of respondents said they were planning on increasing their technology investment—hopefully to take care of some of those more manual duties. 4. Leaders Are Building Their Teams—But Are They Focusing on the Right Skills? To create that strategic value, of course, finance leaders need to build the right teams. That includes a mix of soft and hard skills that will drive strategy at their business. So, report card time. How are leaders really doing when it comes to gathering the skill sets that will help them continue to build that strategic business partner role? Let’s just say, it depends. On the technical side, it’s clear that data analysis is a top skill respondents are looking for (60% called it a key priority). The same goes for financial modeling (55%). Other key technical skills—including data visualization—were less valued, though. And it looks like leaders aren’t prioritizing non-technical skills in the same way. While 48% put communication skills on the top of their must-have list, not many valued negotiation, empathy or creativity. Yet, to fully establish their role as a guiding force in the business, gain consensus for their decision making and collaborate across departments, finance teams are going to need those soft skills just as much as the technical competencies they most prize. 5. Excel Still Plays a Pivotal Role for a Majority of Finance Teams Would it surprise anyone to know that businesses still rely on Excel to power their planning processes? In fact, an exceptional 86% of respondents are still using Excel, despite the presence of other planning technologies. And 76% say it’s central to their financial and operational planning processes. At Vena, we weren’t surprised at all. Excel offers familiarity and flexibility in turbulent times. It also offers strong modeling capabilities. But that doesn’t mean you shouldn’t add to your Excel environment. Structured, database-centric controls, automations, data integrity and reporting can all add to its functionality and build a more agile, effective planning environment. The kind of environment that lets you continue to evolve your strategic capabilities and stay ahead of market changes. Final Thoughts But that’s just the start of what we found in this year’s Vena benchmark survey. We also delved deeper into the state of finance in today’s turbulent times, examined the processes that are helping teams plan their way through and asked organizations how they’re using data to help them do so. And finally, we explored how finance teams are helping their organizations become good corporate citizens in a world that expects businesses to step up. Want to find out all of our results?     2022 Industry Benchmark Report The State of Strategic Finance What role have finance teams played amid the turbulence of 2022? How are they positioning themselves for the next uncertainty? Find out in Vena’s latest Industry Benchmark Report. Download the Insights

You probably know him as “The FP&A Guy.” For nearly 15 years Paul Barnhurst has been a leader, influencer and educator in the FP&A community.  In finance—particularly the FP&A sector—growing demands from the organization provide an opportunity for CPAs and finance professionals to bring on added value in a business partnering role. In this role, a finance business partner is the trusted individual people go to for objective, well-measured views of the issues facing the organization. They work closely with their business clients to assist the organization in making key financial and business decisions.  Without these valuable insights, the financial impact on companies can be high due to unreliable data that can adversely influence decision-making. But developing a successful finance business partnering model takes a great finance business partner. So, let's evaluate what traits someone in this role should have and how you can leverage those skills to develop your own model within your organization.  💡Key Takeaways: An effective financial partner is courageous, confident, persistent, knowledgeable and analytical and works with organizations on the most business-critical financial issues. The four skills needed for developing a successful finance business partnering model include analytical, business, leadership and people. To be a successful finance partner, you should possess a distinct set of competencies such as strategic thinking, appreciation for technology and negotiation mastery—abilities to help you overcome barriers to gaining profitable partnerships. The video below provides an overview to help you better understand a finance business partnering model and why your organization should consider adopting one. First, let's begin by looking at the traits of an effective finance business partner. Traits of an Effective Finance Business Partner According to the American Institute of Certified Public Accountants® (AICPA) and the Chartered Institute of Management Accountants, accountants are in a unique position to become effective finance business partners.  CPAs work with companies on the most business-critical issues they face. They understand the context of other non-financial functions and observe it through the lens of the finance department. This enables them to give measured and balanced opinions or recommendations. There are specific traits needed to be a successful business partner, including: Courage: A successful finance business partner will be bold enough to speak up, challenge managers and hold people accountable for their responsibilities. Confidence: Business partners must be able to influence those they work with (colleagues and clients) and have skills in developing relationships. They must also have exceptional communication skills and relay messages to start discussions. Persistence: When the message doesn't get through the first time, it's essential to have a finance business partner with perseverance who will ensure effective collaboration. Knowledge: When looking for a finance business partner, it's essential to find one knowledgeable about the industry and business in which they are working or the sector of the organization. Analysis: Finance business partners must be able to tell the financial business story effectively and efficaciously by translating the numbers and analyzing the data. 4 Skills Needed for Developing an Effective Finance Business Partnering Model So what is the high-level competency standard for an effective finance business partner and what core skills are necessary for developing a successful finance business partnering model? 1. Analytical Skills CPAs and other finance professionals are proficient analysts. They must have the analytical skills to collect, source and accurately evaluate data. They must also stay informed of the new tools and methods used today. 2. Business Skills In 2021, nearly 670,000 CPAs were working in the United States. They must have the aptitude to help their clients manage a successful business. Vena Academy Get free access to CPE/CPD accredited courses and certifications, designed to help finance, operations and accounting pros like you excel personally and professionally. 3. Leadership Skills An organization's finance team must be able to take on leadership roles over specific financial aspects of the business. They must be able to give directions and delegate tasks as needed. The CFO usually takes the lead and drives finance business partnering at the company. They must be at the forefront of leading associates. Also, they must observe how other business partners conduct business and what actions they take. 4. People Skills Finance professionals work in a field centered around customer service. This means they should feel comfortable pinpointing issues, articulating solutions, giving directions and addressing concerns. All of which require advanced levels of people skills. They should know how to communicate effectively with colleagues as well as federal, state and local authorities. Becoming a Successful Finance Business Partner Finance business partners work with the company's C-suite members to set the organization's goals. They understand what drives value, key performance indicators (KPIs) and how to retrieve and analyze data for more effective decision making. Source: FM Magazine With these key competencies, finance business partners establish shared expectations, optimize data analytics and ensure resources align with common goals. Developing these competencies requires a clear strategy. However, there are significant barriers that every successful finance business partnership faces regarding these competencies. These hurdles include: Capabilities Resource capacity Business buy-ins Unclear partner roles Uncertainty Financial systems To overcome these barriers, try refocusing your efforts on driving value and providing the best environment to successfully deliver this value. A simple, one-size-fits-all approach won't work. You will need a proven methodology to support your key stakeholders, identify value drivers and define partner roles. If your strategy offers real value, this acts as a springboard for finance to take on further business partnering activities. Contemporary Skills for Strategic Finance Professionals Discover—from "The FP&A Guy" Paul Barnhurst and Vena experts—the modern mix of critical skills you need to provide sound strategic thinking and analysis as an effective and trusted advisor to the business.

As companies pursue strategies for digital transformation in finance, CFOs are the key drivers of this digitalization. Digital technologies will transform every sector by 2026 and will continue to impact the future of finance. As a result, CFOs need progressive solutions to ease the transition.  According to a Garner study of over 2,150 professionals, 69% of business leaders say digitalization projects are increasing. As more organizations adopt digitalization measures, we expect these numbers to continue to grow.  This means CFOs will be called upon to work closely with IT departments as companies progress with their digital transformations. With this in mind, here's what CFOs need to know in order to drive digital transformation within their organization. 💡Key Takeaways: There are several key benefits to making the digital transformation. The most prevalent include streamlined processes, better decision making, lower risks, fewer errors and higher ROI. Roughly 93% of finance experts agree that digitalization must result in readily available data that remains centralized in the finance structure and is the default finance function. Upgrading internal systems and avoiding data silos from legacy platforms will help financial firms overcome roadblocks to growth by providing real-time data for analysis. Modernization of a financial firm's FinOp tools enables scalability. This scalability is essential for accounting professionals, like CPAs, due to the seasonal nature of their work. Key Benefits of Making the Digital Transformation To comprehend the true benefits, we must first understand what digital transformation is exactly and its impact on the financial industry.  In the video below, CEO of Third Stage Consulting, Eric Kimberling, explains what digitalization means and discusses the origins of this corporate buzzword.   According to Kimberling, digital transformation merely means the "use of technology to improve business processes." That includes anything from enterprise resource planning software (ERP) and digital experience platforms (DXPs) to cloud-based data storage solutions. These software programs and platforms simplify the day-to-day tasks of employees and  the daily operations of corporations. Here are the leading advantages of digitalization in the financial industry: Streamlined accounting and compliance Better planning and forecasting   Enhanced decision making  Decreased risk and higher returns Lower costs and fewer errors The Complete Planning Advantage Join Rishi Grover to explore the transformation of finance as a strategic business partner through the power of people, process and technology. 4 Ways CFOs Are Driving Digital Transformation in Finance Roughly 93% of finance experts agree that digitalization must result in readily available data that remains centralized in the finance structure and is the default finance function. Unfortunately, past digital transformation in finance has been unsuccessful. Approximately 39% of industry leaders state that prior efforts failed to deliver the expected benefits, and only 36% report tangible advantages to their organization. Source: Gartner To improve the success of digitalization and automation, CFOs must commit to initiatives that will deliver the value necessary to make the transition feasible. Here are four ways CFOs can drive a successful digital transformation within their organization: 1. Upgrading Internally Built Systems CFOs must advocate for digital upgrades throughout the organization. That includes the company's IT tech stack, computer systems and on-prem servers, especially those that use legacy platforms. In-house technologies, such as CRMs, CMSs, accounting solutions and billing platforms, took an initial investment to improve internal processes. Without proper maintenance and regular upgrades, these resources become sources of revenue loss, data silos and human errors.  SaaS solutions and cloud-based storage services offer flexibility and increased security, and these products publish regular updates to their software. This ensures your finance firm's digitalization platforms remain up to date. 2. Avoiding Data Silos Legacy systems are not the only solutions that can create data silos. Organizations that use multiple digitalization programs must ensure that these systems automatically sync data.  For instance, if multiple users input information into your firm's CRM, this data must sync with your CMS, client portal, ERP, etc. That way, duplicate information does not clog the system.  Data silos create mountains of inaccurate data, creating roadblocks. Digitalization will help financial firms overcome these roadblocks to growth by eliminating data silos and providing better planning and forecasting with real-time data for analysis. 3. Optimizing Finance Operations Financial professionals perform a vast array of duties throughout their day. Digitalization enables the automation of tedious financial tasks to optimize operations. These solutions offer new technologies such as: Automated billing software Expense management tools FP&A software AI-powered client portals And more It's essential to understand what financial organizations can automate and how difficult adaptation would be. The chart below from McKinsey breaks down each task based on whether adoption is possible using digitalization technologies. Source: McKinsey & Company McKinsey Global Institution’s automation research discovered that financial firms can automate approximately 42% of its finance activities and mostly automate another 19%. Keep in mind how this automation potential improves performance. 4. Supporting Business Scalability Modernization of a financial firm's FinOp tools enables scalability. This scalability is essential for specific sectors of finance, such as those in accounting (i.e., CPAs). This is due to the seasonal nature of their work.  Furthermore, a digital transformation in finance allows businesses to scale up or down as needed according to budget. CFOs of small to medium businesses can recommend additions to the company's tech stack that will work for them no matter how many employees work for the organization. Tools To Accelerate Digitalization in Finance A digital transformation in finance is not something your company can tackle overnight. Full integration into your organization's tech stack can take a year (or even longer), and wise CFOs understand that digitalization is an ongoing process. Ready to start driving digital transformation? Vena's award-winning Complete Planning platform provides CFOs with the tools required to accelerate digitalization. We offer a solution powered by Excel, simplifying integration and adaptation to bring data from your legacy systems to your centralized database, giving you the power of unified data.

The CFO is one of the highest-ranking executives in a company. Most hierarchy diagrams will place CFOs on equal footing with other chief officers (e.g., CTO, COO, etc.) and have the CFO report directly to the CEO and board of directors. As a CFO, managing the relationships between your CEO and board is key for the successful leadership of the company. To continue your professional growth in the role of CFO, we compiled some key concepts to consider as you manage the relationship between the CEO and the board of directors. Key Takeaways: The dynamics between a company’s CEO and board is unique due to various factors and identifying these dynamics is key to effective relationship management as a CFO. CFOs need to respect the chain of command between them and their CEO while still developing an independent relationship with their board of directors. CFOs need to communicate with transparency and with attention to the financial background of their CEO and board to build trust and effectively share company knowledge. Identify Current Board and CEO Dynamics The first step in effectively managing the relationship between the CEO and board of directors for your company is identifying the current landscape of those relationship dynamics. Knowing where things stand can help you maintain what is currently working and navigate areas for improvement. This applies regardless of how long you have been with the company or serving as CFO. Take a few moments to evaluate the current playing field at your company. Many factors contribute to C-suite and board dynamics that will result in unique relationships from company to company. Some of the factors to look for in this evaluation process include: Number of board members  Size and nature of the company (e.g., private or public, number of shareholders, etc.) The level of stakeholder interest among your board of directors (i.e., how much of the company do they own?) Personal or external relationships between board members and C-suite officials (i.e., where do loyalties lie?) The history (what prior roles have these people provided for the company that might influence their decision-making lens?) It’s important to continually build your understanding of board and CEO dynamics as it will give you necessary context for communicating information or framing recommendations.  Source: Gartner Respect the Chain of Command With Your CEO As the head of your C-suite and company, the CEO can be your greatest cheerleader and ally when it comes to interactions with your board. Likewise, you are an important reflection of the CEO’s performance as the person who communicates the company’s financial position to the board. A co-dependency exists between the both of you for mutual success and maintaining alignment when possible is beneficial. In many cases, alignment means respecting the chain of command between you and your CEO. It’s essential to building trust, credibility and rapport that can reduce friction and help push your company’s mission along. Demonstrating this respect often boils down to communications with your board of directors and allowing your CEO to lead the relationship between the C-suite and your board. Conflicts and disagreements will inevitably arise, but learning to resolve those disputes without board intervention will help you maintain that united front. Are You a CFO in Training To Be a CEO? The CFO is often a natural successor to the CEO, creating an inherent tension between the positions. If you have ambitions about being a CEO in the short or long-term, you will have a decision to make about sharing that drive with your CEO. Being upfront about your career aspirations could ease that tension by reassuring your CEO that time is in the distant future. Ultimately, that choice will depend on your timeline and other dynamics with your CEO. Develop a Relationship With Your Board While Respecting the Chain of Command Respecting the chain of command with your CEO and board doesn’t mean you can’t have a relationship with the board that is independent of the CEO. You will have moments where you must present information to the entire board, and you will have opportunities to build deeper relationships in communications with related subcommittees (e.g., the audit committee). Be mindful of other dynamics when developing relationships in these opportunities will help you grow while still being respectful to your CEO and other C-suite members. Join the Community Connect with your peers in the Plan To Grow™ member forum and bring your shared passion for finance planning and operations. Learn best practices, lend your expertise and get your questions answered. Lead With Transparency for Your CEO and Board of Directors One of your core responsibilities as CFO is communicating key financial and operational data to your CEO and board along with collaborating on related strategy development. Your CEO and board will expect transparency about the state of the business derived from your data points.  Being transparent will be easier in some cases compared to others—particularly when delivering good news versus bad news. The challenge of transparency will be in times of delivering unfavorable or unexpected results. However, this is when transparency is most important for maintaining trust. Managing this part of the job will be about delivering the news with proper context and demonstrating that you have command over the situation. Know Your Audience When Communicating Financial Information as CFO Being transparent about communicating key financial data also requires a firm understanding of your audience (i.e., the CEO and individual members of your board). Part of this understanding comes from knowing the relationship dynamics discussed above. However, knowing your audience as CFO also means meeting the CEO and board members at their level of financial familiarity.  You likely have mastery of finances that comes with its own set of acronyms and jargon. Communicate more effectively by knowing when these terms will be overwhelming to your audience and identifying opportunities to integrate technical financial concepts to help the board learn and grow. Collaborate More With Your CEO and Board With Vena Complete Planning At Vena, our mission is to help transform how business, finance and operations leaders Plan To Grow™ with the Vena Growth Engine—the SaaS platform and methodology that empowers and inspires your plans guides your growth journey. Our wide range of solutions in FP&A, extended planning, regulatory compliance reporting and other business planning functions can help you and your teams improve processes, increase efficiency and enhance communication throughout your organization, providing numerous opportunities for C-suite members and your board of directors to access valuable data and collaborate on company strategy by leveraging insights derived from that data. Vena Complete Planning can benefit all industries—but we offer tailored programming for banking, insurance, higher education, professional sports, healthcare and many other fields. Transform how you share data with your CEO and board and surprise yourself with what you can build together. Excel at More With Vena Check out how Vena’s Complete Planning platform can help you communicate more effectively with your CEO and board of directors.

A successful Chief Financial Officer (CFO) integrates your business's financial team with your services team. A strong financial background alone, however, isn't enough anymore. In today's market, technology is more integrated with financial services than ever before. This has consolidated services that were performed by multiple departments into one role: the CFO. Successful CFO candidates now need experience with fintech, digitalization and online marketing. While this shift in expectations for the CFO role predates the pandemic, the past two years have no doubt accelerated the change in expected CFO competencies. Key Takeaways: The CFO's function traditionally was to manage the budget and protect critical assets. Today, leaders expect CFOs to play a critical role in charting the company's future strategic performance. Successful CFOs provide value by forecasting future performance, planning how to achieve those goals, monitoring business performance and reacting with agility when changes in market conditions arise. Combining tech skills with financial wherewithal allows the CFO to manage risk, implement new technologies and lead the financial team with emerging strategies. The Role of a 21st Century CFO A recent survey found that over half of CFOs reported increased demand from C-level executives after the first two years of the pandemic. Because of their access to comprehensive information, CFOs can obtain key insights from internal stakeholders even in a remote work environment. Source: Toptal Today, the CFO must wear multiple hats. The rapidly accelerating pace of remote work has further caused business leaders to rely on CFOs to perform multiple tasks. These include roles in human resources, operations, sales, marketing and technological infrastructure projects. The three most sought-after CFO duties include: Increasing digitalization by upgrading technological infrastructure  Integrating new technologies into the organization  Developing the organization's products and services CFOs can perform these duties and hit key performance measures by adopting the following strategies or skill sets. 1. Championing Technology The CFO has a unique vantage point from which to envision the company's future. At peak performance, the CFO supports employee acquisition and retention and enables the business to weather unexpected global or market events.   First, the CFO must serve as a champion of new technology. They must herald new technology implementation and process execution. Using new technologies as appropriate makes the business more adaptable—ready to handle the next crisis.  Similarly, your CFO can implement automation. By automating routine processes, your CFO frees the finance team to perform higher-value tasks. This includes achieving business growth objectives and reviewing comprehensive data.  With a forward-looking CFO at the helm of your finance department, expect tech spending to increase. 2. Encouraging Inter-Departmental Collaboration The CFO has access to comprehensive business analytics data and budget performance metrics. They can play a more visible role by reviewing key insights from all performance levels.  Rather than hoard this information, CFOs can encourage transparency and build employee buy-in by sharing that data. For instance, a CFO should prioritize weekly check-ins with both C-level executives and mid-level management. This creates space for a productive dialogue among leadership.  Your CFO should also provide an overview of critical key performance indicators in at least monthly intervals. This gives employees a broader understanding of business objectives and helps them envision their own achieving company goals.  Every team member has a sense of ownership. Similarly, transparency also improves employee loyalty. Your CFO can use these meetings or other data sharing processes to reduce turnover, increase employee engagement and build higher customer satisfaction.  Finally, the entire finance team—beyond just the CFO—should spend time familiarizing themselves with other business departments and key stakeholders within them. This provides a wider understanding of company goals and assists the finance department in focusing on value creation for the organization as a whole. Join the Community Connect with your peers in the Plan To Grow™ member forum and bring your shared passion for finance planning and operations. Learn best practices, lend your expertise and get your questions answered. 3. Driving Digital Transformation The pandemic facilitated the wide-scale adoption of remote work across industries. This created an opportunity for companies to adopt new technology platforms and services geared toward replicating in-office productivity at home.  CFOs should take advantage of this transformation by increasing digitalization.  For instance, successful businesses have already shifted to data-driven decision-making models. Further adoption of automation and machine-learning technologies by CFOs increases productivity by: Standardizing Workflows: Accurate, real-time information collection enables C-level executives to make more informed decisions Facilitating Remote Closing: Using sophisticated accounting technologies allows geographically widespread financial teams to close accounting periods remotely with ease As a company leader, your CFO can demonstrate that technology is empowering. The CFO can also make the business case for technological upgrades, which provide a competitive advantage. Skill Sets of Successful CFOs The most important skill of a successful CFO is the ability to continue learning.       Source: Andrew Rudchuk An always-learning CFO keeps abreast of business and technological trends, provides insights that drive profits and growth and quickly generates high-quality conclusions.  Other top skills include: Technological Literacy: Adapting to new technologies requires the CFO to understand the value and abilities of new technology. They must also prepare for continuing education and technological management Strategic Planning: The repercussions of the global pandemic have caused inflation and prolonged supply chain woes.  The stock market now reflects this volatility. C-level executives need to rely on your CFO to guide procurement and general business decision making with limited resources and rising costs Digital Adaptability: The role of the CFO traditionally included baseline budgeting and financial management issues. But rather than manage information, today's economy requires the CFO to analyze this information for future planning. This includes strategies like flexible budgeting, forecasting business performance and mapping costs As the Role of CFO Continues To Evolve, So Too Should Your Skillset The CFO position was already in flux, but the past two years have accelerated the change. The role of a successful CFO is no longer limited to budgeting and asset management—today’s CFOs must wear multiple hats, including human resources, operations, finance and more. The Future of Planning Technology Learn how the latest advances in Complete Planning technology are empowering the strategic office of finance to transform FP&A, extended planning and beyond.