How can CFOs build a “future-proof” financial organization? Patrick Villanova has some ideas, and it starts with letting go of fear.
“There has never been a time in history where there hasn't been some degree of macro headwinds, geopolitical instability, or exogenous disruptive forces for businesses,” he told CFO Leadership. “Company leaders must prepare for these issues, but they also need to recognize that ultimately they have no influence or control over them.”
Villanova was promoted to Los Angeles-based Blackline's CFO earlier this year, following the retirement of longtime CFO Mark Partin. Mr. Villanova previously served as chief accounting officer for a software company. He talked about CFO leadership, how to plan, what matters most, and the changing role of finance executives.
Now that you have moved into the CFO role, what are your key priorities for the company's next stage of growth? What initiatives are you leading to ensure financial resilience and operational excellence, and what lessons can other CFOs learn from your approach?
My top priority is to ensure that capital and resources are allocated in the most efficient manner possible to drive growth. This requires a close partnership with other leaders within the organization to understand their efforts and the expected benefits for the company.
Our finance leaders drive ROI analysis of all these initiatives to ensure proper prioritization and drive alignment across the leadership team. To achieve this, we are integrating more data to derive strategic insights for leaders.
Data is proliferating in the corporate world, and the most effective CFO functions can efficiently transform that data into information that can be used in decision-making processes.
How do you think the CFO role will evolve?
As finance automation and AI-driven processes become more prevalent, the role of the CFO is evolving from financial controller to strategic leader. Traditionally, CFOs focused on reporting, budgeting, investor relations, and compliance, but now they need to leverage AI and automation to drive business growth, agility, and resilience.
AI is transforming the way CFOs approach decision-making. AI-powered analytics allows finance leaders to identify trends, predict risks, and more accurately optimize capital allocation. Rather than relying solely on historical data, AI enables predictive insights that give CFOs a clearer picture of future financial performance.
The CFO's role is no longer just about reporting and forecasting financial results, but also about shaping the future of the business.
Given today's economic climate, how should CFOs approach financial planning and risk management? Can you share your insights on how you have adapted your company's financial strategy in response to market volatility and what other finance leaders can learn from your experience?
There has never been a period in history where there hasn't been some degree of macro headwinds, geopolitical instability, or exogenous disruption to businesses. Company leaders need to anticipate these issues, but they also need to recognize that ultimately they have no influence or control over them.
Therefore, my advice is to develop an annual plan to drive growth and increase profits, and factor into that plan potential contingencies in the event of external negative events beyond the company's control. While some leaders try to guess or predict these disruptions, it's important to have an action plan in place that you can jump into when disruption occurs.
In other words, if you plan, focus on what you can control, stick to your plan, execute, continue to deliver a quality product, and maintain financial discipline, you can emerge from market volatility stronger than when you entered it.
What key competencies should finance leaders develop to build a future-ready finance organization? How can CFOs enable their teams to drive strategic decision-making in an increasingly digital and data-driven environment?
To build a future-ready finance organization, CFOs must prioritize three key areas: automation, real-time insights, and cross-functional collaboration.
First, automation is no longer an option, but a necessity. Too many finance teams still rely on manual processes, reducing productivity and creating risk. Incorporating AI-powered automation into your financial operations allows your team to focus on strategic, high-value work.
I've seen first-hand how organizations that implement automation in their close, reconciliation, and accounting workflows not only improve efficiency, but also strengthen compliance and accuracy. Team members can also spend more time analyzing results to provide insights rather than just processing them.
Real-time data and analytics are also important for informed decision-making. Our recent research found that nearly 40% of CFOs do not fully trust their financial data, often working with outdated or error-prone numbers. By implementing a centralized, AI-driven platform, finance teams have a single source of truth, ensuring they have the right data at the right time to drive smarter business decisions.
Next, there is a cross-functional collaboration strategy. CFOs can no longer operate in silos. We need to work with CIOs, COOs, and other leaders to build a connected, data-centric enterprise. For example, by aligning finance and IT, data can be treated as a corporate asset and seamlessly integrated across the business.
