2017 CFO SENTIMENT STUDY - United Ag · PDF filedelved into Data Security and the Value of the...

2017 CFO SENTIMENT STUDY

Published January 2017

®THE CFO A L L I A N C E

© 2017. The CFO Alliance. All Rights Reserved. TheCFOAlliance.org

THE CFOA L L I A N C E


TA B L E O F C O N T E N T S

®THE CFO A L L I A N C E

Overview 3

Demographics 4

Executive Summary 5-8

Expanding Relationships with Existing Customers 9

Impacting Marketing Execution as the CFO 10

Adding, Retaining, & Motivating the Right Talent 11

Impacting Operational Efficiency as the CFO 12

Data Security & Information Governance 13

The Value of Your Board of Directors 14

What Keeps CFOs up at Night 15

The CFO Priority List for 2017 16

Top Financial Challenges in 2017 17

Top Risk Management Challenges in 2017 18

Top Operational Challenges in 2017 19

The Evolving Role of the CFO 20

Industry Insights 21-22

Where Company Size Matters 23-25

Conclusions & Implications 26

About the CFO Alliance 27

®

3 THE CFOA L L I A N C E


2017 CFO Sentiment Study Report

ABOUT THE STUDY

The 7th Annual CFO Sentiment Study was distributed among private and public market organizations to over 6,000 CFO Alliance members, and other senior financial leaders around the country. As a result, over five hundred organizations participated.

This study is truly unique in that it not only benchmarks the sentiments of CFOs going into 2017 from a diverse population of companies in terms of industries and company size, but also focuses on how CFOs are going to impact key drivers of company performance in 2017 to deliver results.

The CFO Alliance is a global community of senior financial leaders and decision makers who come together to share their experience, knowledge, and wisdom. Through in-person events, virtual interaction, and a rich knowledge base. The CFO Alliance helps financial leaders build relationships and share knowledge that is unique to CFOs which empowers them to act effectively and decisively, driving continued success as finance leaders.

To discuss study participation, customized survey analysis, or obtain more information about The CFO Alliance and discuss the benefits of membership, please contact:

Nick AracoFounder & [email protected]

O V E R V I E W

42017 CFO Sentiment Study ReportTHE CFOA L L I A N C E


D E M O G R A P H I C S

CFO Alliance Members from a broad spectrum of company sizes and industries were invited to participate in this study. The graphs and charts below illustrate the key demographics of study respondents.

ORGANIZATION TYPEINDUSTRIES REPRESENTED

ANNUAL REVENUE

Manufacturing

Wholesale/Retail

Technology

Healthcare

Other

Banking/Financial Services

Construction

Business Services

Not for profit

Education

9%

20%

5%

6%

6%11%

6%

5%

7%

5%

5% 16%Private

Public

Not for profit

13% 13%

74%

GEOGRAPHIC DISTRIBUTION OF SURVEY RESPONSES

Over $1 Billion

$10M- $49M

$50M - $249M

Under $10M

$500M - $999M

$250M - $499M0% 5% 10% 15% 20% 25% 30% 35%




E X E C U T I V E S U M M A R Y

The 2017 CFO Sentiment Study, our 7th annual, was more ambitious than ever. There were certainly more survey questions. This to get to what CFOs really think about their role, key challenges and risks, along with expectations for 2017 and beyond. This year’s study delved into Data Security and the Value of the Board of Directors. Insights were gathered by type and size of organization. The results of the 2017 CFO Sentiment Study are decidedly optimistic. It is clear that CFOs view the impending regulatory environment in 2017 to be much more business-friendly.

The following represent key findings of the 2017 CFO Sentiment Study.

CFOs 2017 Economic and Political Outlook is Positive, if not Bullish • 65% of CFOs expect to achieve higher top line revenue growth in 2017 • 58% of CFOs expect to realize higher company earnings in 2017 • 74% of respondents categorize the state of the US economy as strong (vs. 60% in 2016) • 90% of respondents reported that results of domestic political elections will impact business strategy in 2017

Impacting Growth and Profitability in 2017 - CFOs identified these key factors • Expanding relationships with existing customers • Marketing execution • Adding the right talent and upgrading existing talent across the organization • Operational efficiency

Key drivers for 2017 company success • 40% of CFOs reported that their involvement in developing and managing

customer relationships will increase in 2017. • 37% of respondents reported that they will be pursuing a significant upgrade

in their company’s information, data, and communications systems. • 66% of Finance Leaders characterized human capital acquisition retention

as of concern or great concern in 2017, so they will get more involved. • 55% of Finance Leaders reported that they are involved in the professional

development of their employees. • 90% reported that they would invest in acquiring and/or upgrading finance

talent in 2017. • Over 57% of respondents indicated they will be hiring new full time finance

employees in 2017.




2017 CFO Priority ListIf CFOs were given $1M in additional budget to allocate • 40% would heavily allocate funds to marketing and sales. • 25% would allocate all funds to improving financial technology.If CFOs were given $500K in additional budget to allocate to Marketing • 44% reported they would allocate the funds to market research to

improve the company’s understanding of addressable markets. If CFOs were given $500K in additional budget to allocate to Sales • 38% of CFOs reported they would focus spend on upgrading talent. If CFOs were given $500K in additional budget to allocate to HR • 39% of CFOs reported they would allocate spend on developing

in-house training programs.

2017 vs. 2016: Notable Comparisons in CFO Sentiment Study results • 39% of respondents reported they will be pursuing a significant upgrade in their

company’s information, data, and communications systems in 2017, up from 29% in 2016.

• If CFOs were given an additional $500K budget to allocate to their marketing department, 44% reported they would allocate spend to market research to improve the company’s understanding of addressable markets, compared to 26% in 2016.

• 90% of respondents reported that the results of domestic political elections would impact business strategy in 2017, up from 78% in 2016.

Industry InsightsA Brighter Outlook for the US Economy in the Banking/Financial Services Industry • 86% characterized the current state of the US Economy as strong compared

to all respondents percentage of 74%.Marketing & Sales Talent Shortfalls are Not a Key Concern in Healthcare • If given $1M to invest in talent across the enterprise, only 8% would allocate

these funds heavily to upgrading Sales & Marketing talent, while 40% of all respondents would allocate these funds heavily to upgrading Marketing & Sales talent.





Industry Insights (continued)Technology Matters to Finance in the Technology Industry • If given an additional $1M to allocate to Finance, 42% of respondents would

allocate all funds to upgrading financial technology, compared to 26% reported by all respondents.

Currency & Commodity Risks Matter in the Retail Industry • 15% reported the top financial challenge they will face in 2017 is uncertainty

in commodity and currency markets, which compares to only 4% for all respondents.Strategic Agility Matters More in the Manufacturing Industry • 22% reported the top risk challenge they will face in 2017 is a lack of strategic

agility, compared to 9% for all respondents.

Where Company Size Matters Customer Retention is Most Important for Companies with less than $10 Million in Annual Revenue • 37% reported customer retention as the top risk challenge they will face in

2017, which is 60% higher when compared to all respondents.Organizational Culture is Most Important at Companies with Annual Revenue between $49 Million and $240 Million • 15% reported the top operational challenge they will face in 2017 is improving

the organization culture, which is 25% higher when compared to all respondents. Regulatory Risk Matters at Companies in with Annual Revenue between $250 Million and $999 Million • 16% reported regulatory compliance as the top risk challenge they will face

in 2017, which is 33% higher compared to all respondents. M&A Activity is a Top Growth Priority for Companies with Annual Revenue over $1 Billion • 17% reported that M&A activity is a top priority for company growth in 2017

compared to 6% for the respondent population.International Market Expansion is a Top Growth Priority for Companies with Annual Revenues over $1 Billion • 17% reported that expansion in new international markets as the top

priority for company growth in 2017, compared to 11% for all respondents.




FROM CFO TO CFO: Insights from our Roundtable Discussions

Having discussed these topics across the country in our CFO Alliance Roundtable Series, finance executives have much to offer each other. Through a sharing of ideas and challenging decision making, our CFO Alliance Members offer these insights:

1 The CFO and Finance department need to engage in customer relationships throughout the customer life cycle proactively, not just when there are issues.

2 Finance aims to collaborate and assist all functional areas through the deployment of finance talent to provide analytics and reporting.

3 Finance Executives seek to embrace millennials and provide opportunities to work on various projects.

4 Finance Executives adopt a mindset of changing “Business Efficiency” to “Business Agility”.

5 Finance Executives are focusing on the need for talent and the upgrade of systems.

To access the full report, please visit https://thecfoalliance.org/reports

To learn more about our roundtable discussions, or to register to attend, please visit: https://thecfoalliance.org/events




E X PA N D I N G R E L AT I O N S H I P S W I T H E X I S T I N G C U S T O M E R S

The most important strategy for CFOs to execute effectively in 2017 will be improving and expanding relationships with existing customers. Twenty-two percent (22%) of CFOs identified expanding existing relationships with customers as the strategic factor that would have the greatest impact on their company’s growth and profitability in 2017. Twenty-four percent (24%) of CFOs identified expanding relationships with existing customers as their company’s top growth priority for 2017. Meeting changing customer needs was most frequently identified as the top operational challenge. CFOs plan to leverage 4 key tactics to expand customer relationships in 2017:

1 More involvement in developing & managing customer relationships • Almost 36% of CFOs reported that their involvement in developing and

managing customer relationships will increase in 2017.

2 Improve relationships with sales & marketing leaders • Over 51% identified the Sales or Marketing Department as the department

they find most challenging to align with as a Finance Leader.

3 Promote investment in the acquisition and training of sales & marketing talent • If CFOs were given an additional $1 million budget to improve the talent at

their organizations, over 40% would heavily allocate funds to marketing and sales.

4 Promote investment in a better understanding of addressable markets/ customer behaviors

• If CFOs were given an additional $500K budget to allocate to their marketing department, 41% reported spend would focus on market research to improve the company’s understanding of addressable markets.



I M PA C T I N G M A R K E T I N G E X E C U T I O N A S T H E C F O

Effectively collaborating with marketing colleagues to optimize execution is a top concern for CFOs in 2017. CFOs ranked expanding relationships with existing customers, followed by marketing execution as top strategic factors that will have the greatest impact on growth and profitability in 2017. Furthermore, when asked to identify the department with which they found it most difficult to collaborate, over 50% identified sales or marketing. Finally, if CFOs were given an additional $1 million budget to improve the talent at their organizations, over 40% would heavily allocate funds to sales and marketing.

CFOs plan to leverage 3 key strategies to strengthen relationships with marketing colleagues and impact marketing execution in 2017:

1 Facilitate a better understanding of addressable markets • CFOs will help marketing colleagues obtain funds to better understand

addressable markets to fuel organic growth. According to the aforementioned CFO Priority List for 2017, if CFOs were given an additional $500K budget to allocate to their marketing department, 41% reported spend would focus on market research to improve the company’s understanding of addressable markets.

2 Facilitate a better understanding of customers’ needs • 37% of CFOs reported their companies will be pursuing a significant

upgrade in their company’s information, data, and communications systems in 2017.

3 Make more time to collaborate with marketing colleagues in 2017 • 30% of CFOs reported they will be spending more time leading within and

beyond finance.




A D D I N G , R E TA I N I N G , & M O T I VAT I N G T H E R I G H T TA L E N T

The role of the Chief Financial Officer continues to evolve; 70% reported the CFO role will change materially in 2017. CFOs realize now more than ever they need to have top talent player in every position within the Office of the CFO. 66% of Finance Leaders characterized human capital acquisition & retention as of concern or great concern in 2017. 78% of Finance Leaders identified the ability to motivate and challenge millennials as a concern in 2017. 56% percent of respondents indicated they would be hiring new full time finance employees in 2017. 90% reported that they would invest in acquiring and/or upgrading finance talent in 2017.

CFOs plan to leverage 3 key strategies to optimize human capital within the Office of the CFO in 2017:

1 Acquiring new talent within the Office of the CFO • Over 56% of respondents indicated they would be hiring new full time

finance employees in 2017.

2 Upgrading the skills of the existing talent with the Office of the CFO • 90% of CFOs reported they would invest in acquiring and/or upgrading

finance talent in 2017. • 22% of CFOs reported the one thing that will cause them to lose the most

sleep in 2017 is the worry that their teams do not have the skills needed to fuel and support company growth.

3 Improve engagement with employees within the Office of the CFO • 78% of Finance Leaders identified the ability to motivate and challenge

millennials as a concern in 2017. • 37% of CFOs reported they will be pursuing a significant upgrade in their

company’s information, data, and communications systems in 2017.



I M PA C T I N G O P E R AT I O N A L E F F I C I E N C Y A S T H E C F O

The breadth and depth of responsibilities that fall under the umbrella of the CFO continues to increase along with the complexity of business relationships. Leading across the enterprise effectively requires CFOs to enable a level of operational efficiency across the enterprise. Operational efficiency was identified as a top factor that will impact their company’s growth and profitability in 2017.

CFOs plan to leverage five (5) key strategies to impact operational efficiency in 2017:

1 Ensure that people, processes, and technology are aligned optimize operational agility • 35% of respondents reported their top operational challenge would

change in 2017 relative to 2016.

2 Upgrade their company’s analytics, data, and communications systems • 37% of CFOs reported they will be pursuing a significant upgrade in their

company’s information, data, and communications systems in 2017.

3 Pursue improvement in the strategic alignment within company management • Only 56% of CFOs characterized the strategic alignment of their management

teams as satisfactory.

4 Pursue improvement in the alignment of operations with the company’s strategic mission

• 30% of CFOs characterized the alignment of their employees with their company’s strategic mission as less than satisfactory.

5 Instill more of a culture of accountability across the enterprise • Only 50% of CFOs characterized the culture of accountability at their

companies as satisfactory.




D ATA S E C U R I T Y & I N F O R M AT I O N G O V E R N A N C E

The increased availability of data, the number systems used in analyzing data, and the use of mobile devices make data security and governance a top concern for CFOs in 2017. The good news is that seventy-eight percent (78%) of CFOs would characterize the effectiveness of data security and information governance as good and improving. 76% reported that data security and information governance is discussed by the management teams at their companies at least quarterly. The bad news is that the results of the study suggest that CFOs may have blind spots relative to cyber security risks. These blind spots can leave companies unprepared to mitigate the damage of a data breach as evidenced in the charts below.

Formal Cyber Readiness Standards Formal Definition of Sensitive Information

Cyber Intrusion Response Plan Cyber Attack Business Continuity Plan

Yes

Yes

Yes

Yes

No

No

No

No

65%

62%

63%

47%

35%

38%

37%

53%



45%

T H E VA L U E O F Y O U R B O A R D O F D I R E C T O R S

A board of directors can play a key role at any company. A well-informed board of directors can have a meaningful, positive impact on shareholder value. However, a board of directors that does not receive proper information from company management could have detrimental influence on company success. CFOs were asked questions to benchmark how they assessed the value of their Board of Directors, and what level of investment should be made to improve the value they offer.

How well prepared is your Board to address key company challenges?

What level of investment should be made to ensure Board effectiveness?

A moderate investment

A small investment

No investment A sizeable investment

39%

36%

8%

17%

Somewhat well prepared

Not very well prepared

Very well prepared

36%

19%




W H AT K E E P S C F O S U P AT N I G H T

Financial Executives face pressure on many fronts, and as such, the study asked CFOs to identify the one thing that will cause them to lose the most sleep in 2017.

The Top 5 Things that Keep CFOs Up at Night

3 key actions CFOs plan to take in 2017 to sleep better at night:

1. Focus on impacting operational efficiency. This will help CFOs free up more time, and help mitigate the most commonly identified top source of CFO stress, too much to do and not enough time to do it.

2. Invest in acquiring talent and upgrading the talent of each member of the Office of the CFO. Delivering on optimistic expectations in 2017 is not possible without the right talent.

3. Pursue a significant upgrade in their company’s information, data, and communications systems in 2017. This will improve strategic focus and alignment among company leaders.

To much to do, not enough

time

My team does not have the

skills we need for growth

Our organization

lacks strategic focus

Our systems are inadequate and

out dated

Our company lacks strategic

agility

43%

22%

15%

21%

13%



T H E C F O P R I O R I T Y L I S T F O R 2 0 1 7

In order to add some depth regarding what CFOs believe their company’s really need to succeed in 2017, we asked participants to share how they would allocate additional funds within Finance and to other departments.

CFO Priority List

1. If CFOs had an additional $1 million budget to improve the talent at their organizations

• 40% would heavily allocate funds to upgrade sales and marketing talent. • 20% would heavily allocate funds to upgrade operations talent.

2. If CFOs had an additional $500K in budget to allocate to Marketing • 44% reported spend would focus on market research to improve the company’s

understanding of addressable markets.

3. If CFOs had an additional $500K in budget to allocate to Sales • 40% of CFOs reported spend would focus on upgrading talent.

4. If CFOs had an additional $500K in budget to allocate to HR • 40% of CFOs reported spend would focus on developing in-house

training programs.

5. If CFOs could spend more time in one area in 2017 • 50% reported that they would spend more time on strategic activities. • 25% reported that they would spend more time leading within and

beyond Finance.




T O P F I N A N C I A L C H A L L E N G E S I N 2 0 1 7

Chief Financial Officers will face obstacles in delivering on optimistic expectations in 2017. CFOs were asked to identify the top financial challenge they would face in 2017, and if that top financial challenge had changed from 2016.

Top Financial Challenge in 2017

Did the Top Financial Challenge in 2017 Change from 2016?

No

Yes

74%

26%

O B S E R VAT I O NCFOs once again identified

increasing top line revenue

growth as the top financial

challenge they will face in 2017.

Increasing top line revenue

growth

Improving EBITDA

Increasing gross margin

Generating free cash flow

Increasing shareholder

value

Uncertainty in currency and commodity

markets pricing

37%

18%

15%

17%

5% 4%



T O P R I S K M A N A G E M E N T C H A L L E N G E S I N 2 0 1 7

Did the Top Risk Challenge in 2017 Change from 2016?

O B S E R VAT I O NExpanding customer

relationships was identified

most often by CFOs as the

factor that would have the

biggest impact on growth

and profitability in 2017, so it

only makes sense that customer

retention was identified most

often as the top risk concern.

CFOs will face obstacles in delivering results in 2017. CFOs were asked to identify the top risk challenge they would face in 2017, and if that top risk challenge had changed from 2016.

Top Risk Challenge in 2017

Current retention

No

Yes

Unknown risk exposures

Retain top talent

Regulatory compliance

25%

12%14%14%

72%

28%




T O P O P E R AT I O N A L C H A L L E N G E S I N 2 0 1 7

Chief Financial Officers will face obstacles in delivering on optimistic expectations in 2017. CFOs were asked to identify the top operational challenge they would face in 2017, and if the top operational challenge had changed from 2016.

Did the Top Operational Challenge in 2017 Change from 2016?

Top Operational Challenge in 2017 O B S E R VAT I O NA key priority for CFOs in

2017 will be transforming

operational efficiency into

operational agility.

MeetingChanging

No

Yes

Implementation of new

Finding the right talent

Improving organization

Integrating acquisitions

20%

17%

12%14%

10%

66%

34%



T H E E V O LV I N G R O L E O F T H E C F O

The role of the CFO continues to evolve in 2017. 56% of CFOs will play an increasing role in driving the strategic direction at their companies. Twenty-nine percent (29%) of CFOs will see little material change in their role, which is higher than the 25% reported in 2016 and 2015. The role of the CFO in 2017 will involve more ownership of customer relationships, human capital optimization, and operational efficiency across the enterprise.

How the CFO Role Will Change in 2017

How the CFO Role Changed in 2016 How the CFO Role Changed in 2015

More Strategic

More Strategic More Strategic

Greater Ownership of Projects

Broader organizationalresponsibility

Broader organizationalresponsibility

Little change - role in 2016 will not change materially

from 2015


from 2014

56%

50% 50%

29%

25% 25%

19%

20% 20%


from 2016




I N D U S T R Y I N S I G H T S

A deeper analysis of study results was done relative to the top five industries (Banking/Financial Services, Healthcare, Technology, Retail/Wholesale, Manufacturing) represented in the study all respondents. Key industry results that differ significantly from results relative to the all respondents are as follows.

Banking/Financial Service Recruiting & Retaining Top Talent in Finance Matter

• If given $1M to allocate within Finance, 50% reported a heavy allocation would go to recruiting & retaining top talent, which is 39% higher than all respondents.

Talent Shortfalls in Sales & Marketing is Most Important in Banking/Financial Services

• If given $1M for invest in talent across the organization, 59% reported heavy allocations would go to upgrading Marketing & Sales talent, which is 48% higher than all respondents.

Less Concern for Expanding Relationships with Existing Customers

• Only 14% reported expanding relationships with existing customers as the top growth priority, which is 36% lower than all respondents.

A Brighter Outlook for the US Economy

• 86% characterized the current state of the US Economy as strong compared to all respondents percentage of 74%

HealthcareSales & Marketing and Sales Talent Shortfalls are Not a Key Concern

• If given $1M to invest in talent across the enterprise, only 8% would allocate these funds heavily to upgrading Marketing & Sales talent, while 40% of all respondents would allocate these funds heavily to upgrading Marketing & Sales talent.

Unknown Risk Exposures Matter

• 20% of respondents identified unknown risk exposures as the top risk challenge they will face in 2017, compared to only 14% for all respondents.



I N D U S T R Y L E V E L I N S I G H T S

TechnologyTechnology Matters Most in Finance in the Technology Industry

• If given $1M in additional funds to allocate to Finance, 42% of respondents would allocate all funds to technology compared to 26% reported by all respondents.

Product Innovation Will Drive Growth in 2017

• 26% reported that product innovation is the highest priority for driving growth in 2017, compared to only 11% for all respondents.

Wholesale & RetailRecruiting & Retaining Top Talent in Finance Matter

• If given $1M to allocate within Finance, 46% reported heavy allocation would go to recruiting & retaining top talent, which is 28% higher than all respondents.

Customer Retention Matters

• 31% reported Customer Retention as the top risk challenge they will face in 2017, compared to 25% for all respondents.

Currency & Commodity Risks Matter Most in Retail/Wholesale

• 15% reported the top financial challenge they will face in 2017 is uncertainty in commodity and currency markets compared to only 4% for all respondents.

Manufacturing

Technology Matters in Finance

• If given $1M to allocate to Finance, 39% of respondents would allocate all funds to technology compared to 26% reported by all respondents.

Strategic Flexibility Matters More

• 22% reported the top risk challenge they will face is a lack of strategic flexibility compared to only 9% for all respondents.

Expansion into International Markets is a Top Growth Priority

• 14% reported their top growth priority is expanding into new international markets compared to 6% for all respondents.




W H E R E C O M PA N Y S I Z E M AT T E R S

A deeper analysis of the study results was conducted relative to five (5) annual revenue categories (<$10M, $10M - $49M, $50M - $249M, $250M - $999M, > $1 Billion). Key results by company size that differ significantly from results relative to all respondents are as follows.

Less than $10 Million in Annual Revenue

Marketing Execution Matters

• 27% reported that marketing execution will have the biggest impact on growth & profitability in 2017, which is 22% higher compared to all respondents.

Generating Free Cash Flow is Critical

• 27% reported generating free cash flow as the top financial challenge they will face in 2017 compared to only 15% for all respondents.

Customer Retention is most important for companies with <$10 Million in Annual Revenue

• 37% reported customer retention as the top risk challenge they will face in 2017, which is 60% higher compared to all respondents.

$10 Million to $49 Million in Annual Revenue

New Technology & Effective Implementation is Key for Operational Efficiency

• 21% reported implementation of new technology as the top operational challenge they will face in 2017, which is 20% higher compared to all respondents.


Meeting Dynamic Customer Needs Matters

• 25% reported meeting changing customer needs as the top operational challenge they will face in 2017, which is 25% higher compared to all respondents.

Organizational Culture is Most Important for companies with annual revenues between $50 Million and $249 Million

• 15% reported the top operational challenge they will face in 2017 is improving the organization culture, which is 25% higher compared to all respondents.





M&A Activity Will Drive Company Results in 2017

• 20% reported that M&A activity will have the greatest impact on company growth and profitability in 2017, which is 4x higher compared to all respondents.

Regulatory Risk Issues Matter

• 16% reported regulatory compliance as the top risk challenge they will face in 2017, which is 33% higher compared to all respondents.

Sales & Marketing & Sales Talent Shortfalls are Not a Key Concern

• If given $1M to invest in talent across the enterprise, only 14% would allocate these funds heavily to upgrading Marketing & Sales talent, while 40% of all respondents would heavily allocate these funds to upgrading Marketing and Sales talent.

$1 Billion or Greater in Annual Revenue

M&A Activity is a Top Growth Priority for Companies with Annual revenue over $1 Billion

• 17% reported that expansion in new international markets as the top priority for company growth in 2017, compared to 6% for all respondents.

International Market Expansion is a Top Growth Priority for Companies with Annual Revenues over $1 Billion

• 34% reported that expansion in new international markets as the top priority for company growth in 2017 compared to 11% for all respondents.





$1 Billion or Greater in Annual Revenue (continued)

Integrating Acquisition Efficiency is Key to Operational Efficiency in 2017

• 30% reported the top operational challenge faced in 2017 will be integrating acquisitions which is 200% higher, compared to all respondents.

Strategic Agility is a Key Risk Exposure for Companies with Annual Revenue > $1 Billion

• 20% reported that the top risk exposure they would face in 2017 will be strategic agility, compared to 9% for all respondents.

Unknown Risk Exposures are Important for Companies with Annual Revenue > $1 Billion

• 17% reported that the top risk they would face in 2017 will be unknown risk exposures, compared to 14% for all respondents.

Geopolitical Risk Exposures Matter

• 17% reported that the top risk would face in 2017 will be geopolitical risk exposures, compared to 7% for all respondents.



453

C O N C L U S I O N S & I M P L I C AT I O N S

The outlook of Chief Financial Officers going into 2017 is optimistic. In order to deliver on these expectations, CFOs and their companies need to devote more attention to impacting existing customer relationships. Finance executives need to focus on owning the optimization of human capital within the Office of the CFO, and empowering financial/operational agility across the enterprise. The analysis of the 2017 CFO Sentiment Study offers CFOs key insights and actionable advice for Finance Executives to identify and capitalize on opportunities, while being mindful of risk exposures that can impact financial results and shareholder value.

Four (4) key tactics to expand customer relationships in 2017

1. More involvement in developing & managing customer relationships

2. Improve relationships with sales & marketing leaders

3. Promote investment in the acquisition and training of sales & marketing talent

4. Promote investment in a better understanding of addressable markets

Three (3) key strategies to optimize human capital in 2017

1. Acquire new talent within the Office of the CFO

2. Upgrade the skills of the existing talent with the Office of the CFO

3. Improve the level of engagement with employees within the Office of the CFO

Five (5) key strategies to impact business agility in 2017

1. Upgrade information, data, and communications systems

2. Ensure that systems, data, and analytics optimize operational agility

3. Pursue improvement in the strategic alignment within company management

4. Pursue improvement in the alignment of operations with the company’s strategic mission

5. Instill a culture of accountability across the enterprise






The CFO Alliance is a leading network of over 6,000 CFOs and other executives in middle market organizations, both private and public. The CFO Alliance is both a collaborative online community platform, and the host of frequent learning and networking events in more than 15 cities across North America. In addition, The CFO Alliance conducts several important studies each year including this CFO Sentiment Study, frequent “Pulse” surveys on timely topics, and the Annual Mid-Market Executive Compensation Survey. For membership or sponsorship information, visit www.TheCFOAlliance.org, or call 484-437-2750.

A B O U T T H E C F O A L L I A N C E

https://thecfoalliance.org/

2017 CFO SENTIMENT STUDY - United Ag · PDF filedelved into Data Security and the Value of the...

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