How are CFOs thinking about growth?
For the past decade CFOs have steered their companies through enormous macroeconomic disruptions as well as ever-present pressures on costs and earnings. As the world continues to recover from the late 2000s recession, finance leaders are poised to sharpen their focus on the top line.
According to PwC, 85 percent of CEOs are somewhat or very confident they can grow revenue over the next 12 months. What key decisions are CFOs facing in their growth strategies?
1. To Restructure or Not to Restructure
Regulatory pressures and economic forecasts force many companies to take a harder look at their corporate structure and supply chains. As the market expands, so too does the need for introducing responsive capabilities and execution processes.
2. Investing in Growth
As a general rule, growth doesn't happen without investment. The CFO is uniquely positioned to determine which areas of the business stand to gain most from new investment in R&D, new markets or M&A.
3. New Product Implications
Despite the potential tax and compliance consequences of launching new products, new product investment often leads to corporate growth. The balance between opportunity and risk necessitates the flexibility to adapt to new markets as well as advance planning that accounts for new revenue streams and other changes.
4. Evolving Customer Segments
The combination of technology and customers strikes at the core of corporate strategy and the role of the CFO. One major game-changer in the customer relationship is the use of customer data to segment effectively.