Is Your CFO Stifling Innovation?

Innovation is the lifeblood of today’s successful businesses, but about 40% of Australian CFOs say their firms haven’t brought a new product to market within the past three years. What is the cause of this stagnancy?

According to a recent survey of Australian CFOs, most say their firm’s approach to innovation is less strategic and more ad hoc. Furthermore, about 70% of mid-sized businesses plan on investing less than $100,000 in innovation during the coming year. With so little strategy and resources being invested in innovation, how will businesses continue to compete?

 

Is Your CFO Stifling Innovation?

Even if innovation is part of your company’s mission plan, you won’t get far if your CFO fails to allocate resources to innovation. CFOs have taken on greater leadership roles in recent years, and in doing so, they have great power over the direction a business takes.

If a CFO is unconcerned about innovation or unwilling to take the risks necessary to innovate, long-term innovation strategies are unlikely to take shape. These aren’t the only reasons CFOs may seem reluctant to pursue innovation, however. In many cases, CFOs are simply overwhelmed.

CFOs May Have Too Much Responsibility

Most of the surveyed CFOs from Australia and New Zealand (82%) said they will be asked to assume greater operational leadership roles above and beyond just finance. Globally, that number is 64%. That means that CFOs in Australia and New Zealand are wearing more hats and working harder than their counterparts in other areas. With CFOs dealing with increased regulation, demanding stakeholders, big data, and frequently evolving computer technology, it’s no wonder that CFOs feel they don’t have the bandwidth to tackle innovation as well.

Change within the global marketplace has been relentless, and CFOs find themselves working harder and harder to keep up with the competition. Data-driven analytics, instant communications with stakeholders, and high-pressure strategic risk assessments keep CFOs tied up and too busy for innovation. What’s the solution to this problem?

 

Delegate Anything That Can Be Delegated

Fortunately, many CFO-centric tasks can be delegated to others within the company or to consultants or contract CFOs. It’s important for your business to have your CFO involved in the strategy and development of innovation, so you should do what you can to delegate some of the CFO’s current responsibilities. This strategy can pay off in big ways.

If your CFO is part of the 82% that reported assuming greater operational leadership roles beyond finance, consider how thin you want to spread him or her. By explicitly defining the CFO role and including innovation as integral to the job, you can help your business to stay on the cutting edge. You can plan for innovation and enjoy the fruits of those plans.

To talk about how you can delegate some of your CFO’s responsibilities, or to discuss any other business strategy questions, contact us at Altus Financial. Our experts can help you to develop solutions for your business challenges.