Delivering Growth and Profitability in 2017: Insights from over 500 CFOs

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DELIVERING GROWTH & PROFITABILITY IN 2017 INSIGHTS FROM OVER 500 CFOS

February 22, 2017


OUR WEBINAR PARTNER


Housekeeping Items• The slides are available under “Handouts.” • We will send you links to the presentation and the recording

via email within 24 hrs. • For CPE credit: Answer all polling questions and remain for the

duration. Questions on CPE credit? Email [email protected]

• We want to hear from you! Ask questions for the Q&A session.• Please take the short survey at the end of the webinar.

mailto:[email protected]


• Benchmark your 2017 plans and activities relative to over 500 of your CFO peers.• Discover what over 500 of your CFO peers view as key

challenges and opportunities in 2017.• Understand specific tactics CFOs plan to leverage to deliver

growth and profitability in 2017.• Discover key take-aways from CFO Roundtable held in NYC, Philadelphia, LA, Orange County, and Denver

Learning Objectives


The 7th Annual CFO Sentiment StudyAnnual Revenue Top Industry Concentrations


CFO Sentiment Study - Key Findings• CFOs will look to 2 primary channels to deliver

growth and profitability in 2017:1. Organic Growth (Innovation)2. Increasing Customer Spend

• Four factors will determine company success in 2017:1. Expanding Relationships with Existing Customers2. Marketing Execution 3. Operational Efficiency4. Adding the right Talent and upgrading existing Talent across

the organization


Economic OverviewRespondents rated their confidence in the US economy as strong or extremely strong. *This is up from 30% in 2014.

The 2017 outlook for the global economy is weak or extremely weak but getting better.

Why is CFO Sentiment trending positive going into 2017?


Notable Year-over-Year Changes

• 39% of survey respondents report that they will be pursuing a significant upgrade in information, data, and communications systems.

• If given $500K to allocate to the marketing department, 44% reported that spend would focus on market research.

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

10% increase

10% increase

12% increase


Polling Question


2017 CFO Wish Lists • If CFOs were given $1M in additional budget to allocate:

40% would heavily allocate funds to sales and marketing. 25% would allocate all funds to improving technology.

• If CFOs were given $500K in additional budget to allocate to Marketing as they see fit: 44% reported that the spend would focus on market research to

improve the company’s understanding of addressable markets.

• If CFOs were given $500K in additional budget to allocate to Sales as they see fit: 40% of CFOs reported that the spend would focus on

upgrading/defining top performer talent.

• If CFOs were given $500K in additional budget to allocate to HR as they see fit: 40% of CFOs reported that the spend would focus on developing in-

house training programs.


2017 CFO Wish Lists- Industry Insights • Recruiting and Retaining Top Talent is Critical in

Retail/Wholesale If CFOs were given $1M in additional budget to allocate in

Finance:o In Financial Services - 50% reported a heavy allocation would

go to recruiting and retaining top talent - 10% higher than other respondents.

o In Retail/Wholesale - 46% reported a heavy allocation would go to recruiting and retaining top talent - 6% higher than other respondents.

• Technology Upgrades Matter Most in the Manufacturing and Technology Industries If CFOs were given $1M in additional budget to allocate in

Finance:o In Manufacturing – 39% of respondents would allocate all funds

to upgrading financial technology - 13% higher than other respondents.

o In Technology - 42% of respondents would allocate all funds to upgrade financial technology - 16% higher than other respondents.


2017 CFO Wish Lists- Industry Insights • Sales and Marketing Talent Needs in Financial

Services If CFOs were given $1M to invest in talent across

the organization:o 59% reported heavy allocations would go to

upgrading Sales and Marketing talent - 19% higher than other respondents.

• Sales and Marketing Talent Needs are Less in Healthcare If CFOs were given $1M to invest in talent across

the organization:o Only 8% reported heavy allocations would go to

upgrading Sales & Marketing talent - 32% lower than other respondents.


Top Factors Driving Growth & Profitability

1. Expanding Relationships with Existing Customers

2. Marketing Execution3. Adding the Right Talent across the

Enterprise 4. Operational Efficiency


Polling Question


Top Factors Driving Growth & Profitability -

Where Company Size Matters• M&A is a focus in 2017 for companies with annual revenue greater than $250M For companies with annual revenue from $250M to

$999M:o 20% reported M&A activity will have the greatest

impact on company growth and profitability in 2017 compared to 7% for the other respondents.

For companies with annual revenue greater than $1B:o 17% reported M&A activity as the top priority for

company growth in 2017 compared to 6% for the other respondents.

o 30% reported the top operational challenge faced in 2017 will be integrating acquisitions compared to 10% for the other respondents.


Expanding Relationships with Existing Customers• Meeting customer expectations was most frequently

identified as the top operational challenge CFOs will face in 2017.

• If CFOs were given an additional $1M budget to improve the talent at their organizations, over 40% would allocate funds to hire sales and marketing professionals.

• Ideas from other Roundtable discussions: Deploy finance talent throughout other business functions The CFO is getting more involved in the customer

experience at an earlier time A focus on “language and data translation” by finance

professional


Key Drivers of Growth & Profitability• Deepening and Strengthening Customer

Relationships More involvement in developing and managing

customer relationshipso 40% of CFOs reported that their involvement in developing

and managing customer relationships will increase in 2017.

Promote investment in a better understanding of addressable markets/customer behaviorso If CFOs were given an additional $500K budget to allocate

to their marketing department per their direction, 44% reported that the spend would focus on market research to improve the company’s understanding of addressable markets (up from 34% last year).


Acquiring the right TALENT, upgrading the skill sets of existing

talent, and motivating each Finance team member

• 66% of finance leaders characterized human capital acquisition and retention as a concern or a great concern in 2017.

• 90% reported that they would invest in acquiring and/or upgrading finance talent in 2017.

• 76% of finance leaders identified the ability to motivate and challenge millennials as a concern in 2017.


Key Drivers of Growth & Profitability• Acquiring the right TALENT, upgrading the skill

sets of existing talent, and motivating each finance team member– Hiring

o Over 57% of survey respondents indicated they would be hiring new full time employees in Finance in 2017.

– Trainingo Over 21% reported that their most meaningful

investment in talent would be additional training and development for existing employees.

– Retentiono 55% of finance leaders reported that they are involved in

the professional development of their employees to a great extent.


Finance Leaders Reported Operational Efficiency as a Top

Factor that would Impact Growth & Profitability

• 39% of survey respondents reported that they were concerned with their company’s information, data and communications systems.

• Business agility is critical – 1/3 of the respondents indicated a shift in the top financial, risk and operations issues.

• Moving operational efficiency to operational agility.


Key Drivers of Growth & ProfitabilityBusiness challenges shift year to year. CFOs are walking the tightrope to mitigate risks and manage constant business challenge shifts.• Regulatory changes• Improve their company’s information, data, and

communications systems– Spreadsheet hell

• Ensuring that employees have access to the right technology across the enterprise.– 83% of companies surveyed are currently leveraging cloud-

based applications• Over 19% of companies surveyed will be fully migrated to cloud

based solutions in the next 18 months.


What You Should Tell Your Board• Data Security/Information Governance: 35% of

companies discuss at least on monthly basis (69% at least on a quarterly basis).

• Cybersecurity Risk Management: 98% of CFOs have responsibility and/or ownership relative to cybersecurity risk management and data breach response.

• Cyber Insurance: 61% have some level of cyber insurance.

• Board Preparedness: 64% feel their Boards are somewhat or not very well prepared to address the important matter facing their organizations.

• Board Training and Resources: 84% of companies are making some level of investment in providing education, tools and resources to board members.


1. Companies need to focus on delivering more value and communicating this value to customers, and show customers they understand their key concerns to expand customer relationships.

2. Companies need to do a better job of aligning sales talent with what customers need. This means market specific expertise is now a requirement for an effective sales professional.

3. Last year, companies were effective in acquiring better talent. This year, CFOs will pivot the focus in collaborative efforts with HR to developing talent and engaging employees to ensure retention.

4. CFOs need to focus on educating their teams on the languages of HR, Sales, Marketing and Operations in addition to educating colleagues who work in these areas on the language of Finance.

10 Key Take-Aways from CFO Roundtables


5. Finance needs to help sales professionals connect information to growth. Sales is accustomed to flying their own plane. Finance needs to act as a co-pilot in sales growth, educating sales professionals on how to leverage information to close deals.

6. Companies would do well to formally define a framework to drive strategic alignment across the enterprise with a focus on employee education relative to key objectives and messaging to customers. Decisions need to be driven by core company values which need to align with strategic objectives.

7. Companies are in a good position to grow in 2017, but there must be consideration given to the dangers of growing too quickly and/or into the wrong markets. Companies need deeper customer relationships and achieve aggressive growth.



8. Companies need to understand customers well enough to recognize and capitalize on signals that they need to purchase products and/or services. Know what companies need before they know they need it.

9. Tremendous insights can be gained from interviewing smarter. Screen for candidates whose motivation is solely the amount of their salary. Make sure that a candidate is running to your company and your culture as opposed to running away from an employer.

10. A CFO needs to serve in the role of Chief Reality Officer. This means that fellow leaders trust the CFO to always offer an honest assessment of situations and issues that matter, and to assist them in averting issues and crises before they occur.



Compete in 2017• Be more engaged in customer relationships.• Understand what marketing needs to optimize

execution and help them get it.• Review business systems to ensure they optimize

strategic agility across the enterprise.• Own the optimization of human capital in the office

of the CFO.• Earn the role of Chief Trusted Advisor.


Q&A


Polling Question


What’s next…

1. CFO Roundtables in DC, Dallas, Chicago, SF

2. CFO Alliance Webinars – • Feb.23:

The CFOs Guide to Controlling Legal Fees- Pt.1• March 15:

The CFOs Guide to Controlling Legal Fees- Pt.2• March 16:

CPM: Enough Hype: How it Impacts the Bottom Line

3. Q2 CFO Roundtables – Human Capital

https://thecfoalliance.org/events/upcoming

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Delivering Growth and Profitability in 2017: Insights from over 500 CFOs

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Transcript of Delivering Growth and Profitability in 2017: Insights from over 500 CFOs