Over the years of financial reporting, management and accounting, Adam Drew became CFO at software company Kyriba when his road to the CFO office was not getting much better now. Through his financial roles in technology companies, including Linux OS Company Suse and his early career at Deloitte, Drew has seen the evolution of skills essential to CFO sheets during the rapid changes in automation.
“I spend a lot of time learning about all sorts of things that aren't characteristic of CFO roles 20 years ago,” Drew said.
As the finance director for the Treasury Platform Provider, Drew discovers how current economic disruptions are causing liquidity management and other Treasury functions, such as tracking bank balances globally.
Drew spoke with CFO leadership about the skills CFOs need in an age of economic uncertainty, the fundamental capabilities of future CFOs, and the key capabilities of the Treasurer and the financial chief with productive work relationships.
Do CFOs need overlooked or unexpected skills to pilot a company through economic uncertainty?
While solid grasp of experience, decisions and data remains important, it is often overlooked.
First, CFOs need to demonstrate agility in their decision-making. The global economy is very unstable and probably remains intact. This new reality requires leaders who can adapt their strategies in real time while maintaining clarity and confidence. This flexibility allows businesses to pivot effectively when faced with unexpected challenges and opportunities.
Second, technology consciousness is no longer an option. With the rise of advanced analytics, machine learning and the AI-driven tools, CFOs need to understand how to leverage technology to optimize decision-making and uncover actionable insights.
Just as Abacus and Physical Ledgers are no longer our primary accounting methods, we need to say the same thing in simple spreadsheets. A secure cloud-based SaaS solution that ensures higher speed, accuracy and compliance should be a table interest.
Optimizing resources amid uncertainty is not an overlooked ability, but it is important. It means improving cash flow management, strategically managing working capital, maintaining operational efficiency while promoting growth opportunities.
Given the importance of technology flow, what advice would you give to young professionals who will become CFOs one day?
The route to the CFO location has changed. I continued to have been somewhat traditional, from university to graduate schemes, and then through the accounting firm rank before moving on to a series of business roles. These business roles included a commercially focused range of roles.
CFOS of the Future may have different skill sets. I spend a lot of time on all sorts of things that were not characteristic of the role of CFOs when I first started interacting with these corporate leaders 20 years ago. What began as Process Automation and evolved into robotics now leads to artificial intelligence, perhaps not present today but tech in ten years.
A solid foundation of numbers will always be a prerequisite. CFOs need to have a deep understanding of how to record, report and analyze your finances. I encourage young professionals and students to find something they enjoy walking into the door. Once you've got to hug as much as possible about the outside frontiers where the financial experts are heading.
The real niche for future CFOs is to identify the best tools for the hundreds of companies available and extract the maximum values from them.
Given the importance of cash flow and liquidity in this economy, financers will once again gain visibility, as they have been between past volatility. What is the ideal partnership between CFO and accounting?
The relationship between CFOs and accounting can vary widely from organization to organization.
CFOs are ultimately responsible for overseeing all aspects of their finances, including budgeting, forecasting, financial planning and reporting. Accounting focuses on managing cash flow, investments and banking relationships.
Naturally, these roles require close collaboration. CFOs and treasurers must have open and transparent communication to ensure that all financial decisions are made with a complete understanding of each other's responsibilities and objectives. This helps to avoid misunderstandings and conflicts within the team.
CFOs should trust the treasurer's knowledge of cash management and investment strategies. In contrast, treasurers should acknowledge the CFO's expertise in financial planning, reporting, and understanding the nuances of alignment with the organization's broader leadership team. It is all important to the financial well-being of the company.
