Richard McBride, CFO of supply chain management consultancy Efficio, has worked in finance across a variety of sectors, including staffing, testing and inspection, pharmaceuticals and media. While these industries have different inputs and outputs, the demand for financial control and accuracy – and the need for trust that comes through reliable financial data – remains the same.
McBride spoke with our own Katie Kuehner Hebert about why finance leaders need a high level of versatility and how trust in financial data can drive its use in strategic decision-making across the organization.
What sparked your interest in corporate finance and what do you find most rewarding about the job?
As a financial manager for a global procurement and supply chain management consultancy, I find the job extremely rewarding. I deal with a wide range of issues including operational activities, corporate transactions, tax and regulatory filings, etc. Working with global companies across multiple geographies with different dynamics and cultures adds even more variety.
Most business activities impact finance, so finance teams need to engage and interact with many different people and disciplines, both internally and externally. Finance is often the intersection of multiple business activities with the management of multiple aspects. The role of a finance leader requires a high degree of versatility to balance financial management with business efficiency, allowing the company to grow effectively.
How do you ensure alignment and maintain dialogue with other leadership members?
We believe regular meetings, whether in person or online, are essential. We are a global company with employees all over the world, so virtual meetings are still important to maintain regular contact, but we encourage face-to-face meetings whenever possible.
To effectively collaborate with other leaders, financial input must be relevant to the day-to-day operations and strategic activities of the business. It can only be applied if the information is timely, reliable, and of high quality. That can only come from high-quality, well-managed embedded systems. When the leadership team understands and has confidence in the information, it is automatically used in decision-making and strategic discussions.
Using high-quality financial information also creates a virtuous cycle of feedback: managers know they need to get the day-to-day processes right or the financial results will be inaccurate.
How are Efficio's clients dealing with challenges such as geopolitical tensions, continued inflation and relatively high interest rates?
The current environment presents significant challenges for our clients to manage and get the most out of their procurement and supply chain activities, but they often lack the skills and experience to do so. Increased geopolitical activity is adding complexity. Although inflation is easing, underlying prices are still rising, putting pressure on Chief Procurement Officers. Procurement departments are under constant pressure to reduce costs every year, and rising prices only increase that pressure.
In a rising interest rate environment, managing a company's cash flow is more important than ever. Efficient procurement and working capital management has a significant impact on cash flow and can make the difference between success and failure in a tough economic environment.
How big a leap do you think AI will be for finance professionals? How will it add value or transform the way CFOs work?
From a finance perspective, no one knows exactly how AI will evolve, but successful financial management always requires consideration of risks and controls. AI can undoubtedly help make processes more effective and efficient, but it should only be used if the processes are well understood and controlled as needed.
In terms of how AI will impact the CFO's job, there is no doubt that it will replace or complement current processes. Still, human involvement will likely be required to control and verify many of the results. There is a risk that AI will incorporate new biases into its output, and in a world awash in false data, AI needs to be focused on where the data is valid. AI can be additive, as long as it is properly understood and managed.
