The changing role of the CFO: What could it mean for procurement?

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The responsibilities of the chief financial officer are changing and are more diverse than ever which impacts procurement teams more often than not under their wing.

McKinsey has found the CFO’s stocks are rising amid pandemic, the increased uptake of digital technologies, and the impacts of geopolitical restraints and economic uncertainty. 

When it comes to strategic agendas, CFOs are taking on a pivotal role in their businesses’ strategic agendas. 

Procurement roles have had the greatest increase in the reporting portfolio according to McKinsey’s global CFO survey. 

McKinsey delves deep into the role of CFOs in these topics: 

McKinsey says the CFO’s role is rapidly evolving—expanding in scope, requiring new capabilities, and demanding greater collaboration with C-suite peers.

When it comes to talent development, by taking the lead in enhancing financial acumen and other capabilities throughout the company, CFOs can raise their leadership profiles and their organisation, McKinsey said. 

The research alludes to the untapped potential of finance leaders in being able to offer a big ally presence to innovation teams. 

Looking ahead, resource and capital allocation are expected to be prominent topics for CFOs in the next 24 months. 

McKinsey says the focus of the increased workload has increased the need for broad-based talent within finance teams. 

The intersection between finance and strategy is becoming “more acute than ever ” with many CFOs placing more emphasis on linking finance and strategy in the budgeting cycle, McKinsey says. 

Read how the role of the CFO is changing. 

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