McKinsey tips for the strategic CFO – and what's missing (54)
Kim Warren 
McKinsey finds CFOs increasingly being asked to do strategy work and offers 6 tips for how to up their game. But that's not enough!
I see McKinsey is reporting – based on interviews with successful CFOs – on the increasingly strategic role that CFOs are expected to fulfil.
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McKinsey finds that demands on strategic CFOs include:
- advising on strategy
- tackling performance challenges
- championing innovations
- leading major investments
- convening cross-enterprise initiatives
… and McKinsey offers a few tips on how CFOs can raise their game and offer truly ‘deputy-CEO’ strategic leadership.
But HOW to be a strategic CFO?
Notably missing from these tips is the need for a method and tools finance teams can use that capture how the operating parts of the business work together to drive the system's performance and growth.
For example, here is a digital-twin business model playing out two strategies for an elevator service business. It links:
- sales-driven customer growth
- engineer-driven service quality and customer churn
- the revenue from serviced elevators, staff-driven costs and profit
… all in a simple visual GUI that any analyst can build and any stakeholder can easily follow.
(Hint: a spreadsheet is no use!)
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Categories: : finance, model available, related course, strategy
