The Evolution of the Strategic CFO - LEAPROS · 2020. 9. 8. · Evolution of the Strategic CFO...
17
The Evolution of the Strategic CFO Eric Brandt Executive Vice President and Chief Financial Officer Broadcom Corporation
Transcript of The Evolution of the Strategic CFO - LEAPROS · 2020. 9. 8. · Evolution of the Strategic CFO...
The Evolution of the Strategic CFO
Eric BrandtExecutive Vice President and Chief Financial OfficerBroadcom Corporation
2© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Average cfo tenure
CFOs have to be Critical− “Deftly” and finding “yes”
Why?
1
Increasingly Dynamic business requirements− Adaptability
2
~5.5 years
~9.5 years
CFO CEO
3© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
Debits and credits Cash management
Skills Required
Str
ateg
ic In
dex
1850 1950. . .
1850s
Few CFOs3© 2015 Broadcom Corporation. All rights reserved. No Distribution.
4© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
4
1850 1950
Rise of the conglomerate
Business as a science
Industry Trends
1950s/1960s
1960
Business optimization Financial metrics Portfolio analysis Capital allocation
Skills Required
. . .
Str
ateg
ic In
dex
Financially-Oriented CEOs4© 2015 Broadcom Corporation. All rights reserved. No Distribution.
5© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
196019501850
Leadership Crisis management Asset protection
Skills Required
Fiscal crisis Rampant inflation Complex accounting
rules
Industry Trends
. . .
Str
ateg
ic In
dex
1970s
1970
Skills Gap5© 2015 Broadcom Corporation. All rights reserved. No Distribution.
6© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
196019501850
Junk bonds Corporate raiders Portfolio questions Shareholder value
Industry Trends
. . .
Str
ateg
ic In
dex
1980s
Deliver on valuation Defense Capital market
sophistication
Skills Required
1970 1980
6© 2015 Broadcom Corporation. All rights reserved. No Distribution.
7© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
1970 19901980196019501850 . . .
Str
ateg
ic In
dex
1990s
IPO fever Rise of the dot
com and Internet business models
Data and business acceleration
Industry Trends
Portfolio choices Investment
management Business enabler
Skills Required
7© 2015 Broadcom Corporation. All rights reserved. No Distribution.
8© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
. . . 1970 19901980 2000196019501850
Str
ateg
ic In
dex
Volatility/market crash
Accounting/financial crisis
Increased regulatory oversight (SOX)
Internet (data proliferation)
2000s
Industry Trends
Capital markets Controls/compliance Process management Governance
Skills Required
Boards Opt for the CPA CFO8© 2015 Broadcom Corporation. All rights reserved. No Distribution.
9© 2015 Broadcom Corporation. All rights reserved. No Distribution.
An Epic acceleration of Business
Volume/Pace of Data
Diversity of End Points
Protection
Faster Decisions
Better Equipped
Adversaries
Faster Course Corrections
9© 2015 Broadcom Corporation. All rights reserved. No Distribution.
10© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Evolution of the Strategic CFO
1970 19901980 2000196019501850
2010s
2010. . .
Str
ateg
ic In
dex
Great recession Globalization Low cost of capital Technology/cyber Activists
Industry Trends
Capital structure Governance/
shareholder “friendliness”
Data management Performance
management
Skills Required
Strategic Capabilities Become Paramount Again10© 2015 Broadcom Corporation. All rights reserved. No Distribution.
11© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Strategic and technical requirements
Shareholder “Friendliness”
Technical
Strategic
Governance
Process
Compliance
Cash Management
Debits and Credits
Portfolio Choices
Business Partnership Business Optimization
Data Management
Leadership
Financial Metrics
Crisis Management
Performance Management Investment Management
Capital Structure Capital MarketsAsset Protection
Defense Deliver on Valuation
Portfolio Analysis
Capital Allocation
12© 2015 Broadcom Corporation. All rights reserved. No Distribution.
The partnership Will Strengthen
CEO
Strategy
Organization
Innovation
Customers
CFO
Pace & Protection ofInformation
Business Complexity
Compliance/Process
Investor Engagement
Neither Can Do Both Jobs Anymore
13© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Strong team extends capabilities
Sophisticated analytics
Negotiating skills
Performance metrics
Portfolio management
Formidable Business Partners
Technical accounting
Cash management and capital markets
Tax
IT and cyber
Deep Technical Skills
Controls
Business processes
Investor relations
Organizational development
Strong Process Skills
Quality of People You Attract and Their Success13© 2015 Broadcom Corporation. All rights reserved. No Distribution.
What is Your Legacy?
14© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Cfo success
It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change.
“ “Charles Darwin
14© 2015 Broadcom Corporation. All rights reserved. No Distribution.
15© 2015 Broadcom Corporation. All rights reserved. No Distribution.
Style and skills depend on Business Needs
Facilitator Enabler Investment
counselor ROI
Leader Cost
management
Capital management
Portfolio Capital
deployment M&A Scalability
Adaptability Drives Longevity
16© 2015 Broadcom Corporation. All rights reserved. No Distribution.
In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing.
“ “Theodore Roosevelt
Numbers Don’t Make Decisions… People Do…
16© 2015 Broadcom Corporation. All rights reserved. No Distribution.
THANK YOU
