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Forecast Like a CFO, Not a Fortune Teller If your forecast still fits neatly on a spreadsheet tab and assumes the world will behave, its time for a rethink. Because lets face these days, planning the future on a single-track projection is like betting the farm on a weather forecast. Not every risk deserves a forecast branch.
Before You Forecast the Future, Figure Out Who You Are! Building a personal leadership philosophy is one of the most powerful things you can do as a CFO. Your Leadership Philosophy Is Not for Show, It Is for Survival Your personal leadership philosophy is your rulebook. What do I value more than performance metrics?
Predictive Finance, Ethical Leadership, and Public Sector Innovation: Lessons from SAQA CFO Innocent Gumbochuma In the latest episode of CFO Club Conversations , we had the privilege of speaking with Innocent Gumbochuma, Chief Financial Officer of the South African Qualifications Authority (SAQA) and the 2024 Public Sector CFO of the Year.
In a compelling conversation with Leana van der Merwe, Rajesh Bux , Group CFO of Link Africa and interim CEO of Bitco Telecoms, shared how his dual roles sharpen his focus from pure financial control to strategic foresight and organisational leadership. From Insight to Foresight Rajesh explained that as CFO, his role is to interpret data.
FP&A is an evolving function that falls into the intersection of finance, operations and strategy aimed at driving better decision-making trough insightful analysis, forecasting and goal setting. In this blog post I wont focus on the activities that fall into FP&As scope by default, such as budgeting, forecasting and regular analysis.
Heading into 2025, accurate sales forecasting is more critical than ever. Here are five key ways to align your sales forecasting and budgeting processes for success in the year ahead. Here are five key ways to align your sales forecasting and budgeting processes for success in the year ahead.
Build a Strong Leadership Team with Financial and Operational Accountability Behind every financially sound nonprofit is a leadership team that doesnt just care about the missionbut also owns the outcomes. Why Leadership Teams Matter More Than Ever Over the last decade, our team at The Charity CFO has worked with 200+ nonprofits.
Arellano-Geronimo describes the transformative journey of finance leadership, which is characterised by the need to innovate, be agile, and focus strongly on strategic business insights. This includes scenario planning, advanced forecasting, and data visualisation techniques that help stakeholders understand complex financial data, she adds.
Recognizing the need to enhance my managerial capabilities, I pursued a Postgraduate Diploma in Management, which equipped me with essential leadership skills. First and foremost is financial acumen—understanding financial reporting, budgeting, forecasting, and compliance is foundational.
A CFO takes their financial expertise and channels it into a strategic leadership role to create financial success for the company and its stakeholders. As such, their responsibilities include: budgeting and forecasting, managing mergers or acquisitions, and handling compliance issues.
Joanne Chengs career had already carried her through multiple successful exits and finance leadership roles when an unexpected opportunity arose. Balances long-term vision with operational discipline through collaborative leadership. Bridges cross-departmental gaps by serving as a connector and resource allocator.
For instance, using automated invoicing software could save hours of manual work, enabling your team to focus on higher-value tasks like analysing trends or forecasting. Tools like cloud accounting systems, AI-driven financial analysis, and automated reporting not only reduce costs but also improve efficiency and accuracy.
Elizabeth Burns, CFO of Gas du Cameroon (GDC), exemplifies this balance, demonstrating how strategic financial leadership can support environmental responsibility. Under Elizabeth’s leadership, GDC has achieved remarkable environmental milestones. Elizabeth Burns: My favorite book is The Maxwell Leadership Bible by John Maxwell.
Optimising Budgets: Strategies for Effective Financial Forecasting Financial forecasting plays a crucial role in managing budgets effectively. However, forecasting is not just about guessing numbersit is a structured process that relies on analysing past data, considering present trends, and planning. Allocate resources wisely.
Delegating significant responsibilities, such as leading a budget review or preparing a report for senior leadership, helps them build confidence and skills. Not only does this make your department more efficient, but it also builds problem-solving and leadership skills.
Financial History: Understanding the Past to Forecast the Future. In this role, he leverages more than 14 years of relevant experience consulting for both small and multi-billion-dollar plans. Higgins is the author of Investing in U.S.
These are the three Ps that guide CFO Zach Johnsons data-driven approach to financial leadership. Predictability means setting realistic forecasts, tightening pipeline management, and increasing confidence in decision-making. These are the three Ps that guide CFO Zach Johnsons data-driven approach to financial leadership. []
They should also invest in developing their soft skills , such as communication, leadership, and decision-making. Cultivate soft skills : Focus on developing communication, leadership, and decision-making skills. Embracing the future The future of finance is bright, but it requires a willingness to adapt and embrace change.
You need people who don’t just know how to close the books, but how to forecast outcomes, stress test assumptions, and build the kind of decision-support tools that bring insight to life. Their forecasts have credibility. Data Quality Is Not Just a Systems Issue, It’s a Leadership Issue We love to say that we want better data.
This positions an organization as a leader in financial accountability leadership , setting a standard for others in the industry to follow. This proactive approach not only strengthens financial accountability leadership but also underscores the financial transparency benefits that come with adopting cutting-edge solutions.
Leadership Is What Makes It Stick You can have the most well-thought-out vision and the most detailed financial strategybut if no one follows, youre just talking to yourself. Thats where leadership comes in. The CFO who knows how to set direction isnt just following the strategytheyre leading it. Your role isnt to react.
For Shivam Kumar , finance director for Southeast Asia & Taiwan at pure-play consumer healthcare company Haleon , the future approach to finance leadership boils down to focusing on the fundamentals: consistent, competitive, sustainable and profitable growth for revenue, profit, and cash with equal emphasis on growth of the Finance team.
When the leadership team is debating market expansion, their primary concern is not the minutiae of last quarter’s overheads but whether the new market is profitable and sustainable. You’re a navigator, guiding your leadership team through uncertainty with insight and foresight. Remember, as a CFO, you’re not just a keeper of numbers.
Joanne Chengs career had already carried her through multiple successful exits and finance leadership roles when an unexpected opportunity arose. Balances long-term vision with operational discipline through collaborative leadership. Bridges cross-departmental gaps by serving as a connector and resource allocator.
Accountability Isnt Admin Its Your Performance Lever For all the talk about AI-driven forecasting, real-time dashboards, and digitising the finance function, there remains one cornerstone of high-performing finance teams that no technology can replace: accountability. Forecasting becomes a game of optimism versus realism.
GDP growth is forecast at just 1% for 2024, down from 2.7% Botswana’s ability to navigate the current economic and social storms will determine its future stability and growth trajectory as it embarks on a new chapter in its politics under Boko’s leadership. Significant challenges persist. in 2023 and 5.5%
The most progressive finance teams are investing in business intelligence capabilities, leveraging dashboards, scenario models, and rolling forecasts to guide resource allocation in real time. Shifting from static reporting to dynamic forecasting and real-time analytics. The question is no longer can you report on the numbers?
Companies increasingly adopt digital tools to improve cash flow forecasting, automate reconciliation, and manage liquidity more effectively," he adds. He recommends using advanced forecasting tools integrated with real-time data to improve cash flow predictions and allocate surplus funds more effectively.
However, one of the most powerful and often overlooked pathways to strategic finance leadership is through operational finance. Numbers Need Context to Be Useful Finance teams are trained to work with outputs such as reports, forecasts, ratios, and financial models. Credibility is Earned, Not Given Leadership is built on trust.
Regular town halls where leadership shares the companys position and strategy can reassure employees. For example, explaining how a temporary freeze on hiring will stabilise the business shows that leadership has a plan. Set quarterly reviews to evaluate your budget, forecasts, and strategic priorities.
With over 15 years of experience spanning finance, risk, procurement, and executive leadership, Rajesh brings a unique blend of technical acumen and business foresight to the CFO role. His leadership journey includes senior roles at Liquid Telecom, Neotel, Peresys, and Sheridans in London. What are your interests outside of work?
Companies implementing comprehensive financial technology stacksfrom AI-powered forecasting to automated close processesreport faster monthly closes and reduction in finance headcount requirements. For middle-market companies typically operating with lean finance teams, this efficiency gain directly impacts EBITDA margins.
Implement driver-based forecasting that links operational metrics to financial outcomes. Solution: Implement rolling forecasts to enhance agility and adaptability. Solution: Implement rolling forecasts to enhance agility and adaptability. Leverage AI-driven forecasting tools, ensuring data accuracy and executive buy-in.
Risk management isnt a luxury, its a core leadership function. And when something goes wrongfrom a supplier collapse to a cyber breachfinancial leadership is often the first-place people look for answers. Its what threatens your forecasts, shakes investor confidence, and puts your reputation on the line. Its good leadership.
Forecasts should reflect current conditions, not assumptions from last quarter. Forecasting cycles should be made shorter and more flexible. When it is responsive and focused on outcomes, it becomes a trusted source of clarity and leadership. This does not require massive transformation. It begins with discipline.
Key Financial Readiness Considerations To prepare for the scrutiny of public markets, leadership teams must assess their ability to: Generate SEC-compliant financial statements within required timelines. Implement budgeting and forecasting processes that withstand market scrutiny. Produce comprehensive board-ready financial reports.
Even small-scale fraud can raise questions about your competence or leadership. Fraud Prevention as a Leadership Strategy The best CFOs arent just compliance expertstheyre risk leaders. It means using your analytics team not only for KPIs and forecasts, but also to build a fraud detection dashboard as part of your monthly close.
Along the way, she understood that it was incumbent on finance leadership to make sense of raw data within companiesfinance leaders must connect figures to overarching strategy in a way that resonates with board members, employees, and investors alike.
In this episode of Planning Aces , three forward-looking finance leaders share how theyre transforming planning and forecasting inside their organizations. At Tesla, close alignment with engineering and operations enabled better forecasting and faster decision-making.
The CFO must lead the effort to close it, both through financial rigour and ethical leadership. Short-term forecasts should be conservative and grounded in verifiable assumptions. It requires consistent leadership, appropriate systems, and aligned incentives. A scandal creates a credibility gap.
Use forecasting to show the bigger picture. Post-Merger Fallout Few things test leadership like a post-deal environment. Thats leadership. When department heads lobby for more funding, theyre often defending their performance, their teams, or their legacy projects. And when you push back, it can feel personal.
By aligning products around buyer personas, he and the leadership team created focused business units—clarifying strategy, enhancing go-to-market execution, and reinforcing finance’s role as a driver of enterprise-wide alignment and strategic identity.
Plus, in a rapidly changing environment, shared leadership can be a lifesaver. AI, for instance, can help forecast trends or streamline repetitive tasks, freeing up time for more strategic thinking. Encourage “mini strategy” sessions within departments. But not every tool is the right fit.
As a CFO, your experience, intuition, and leadership play a critical role. This means asking uncomfortable questions, challenging overly optimistic forecasts, and knowing when to walk away from a deal. The Human Side of Risk Evaluation Risk evaluation isnt just about numbersits about judgement. Make risk evaluation a team sport.
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