How Strategic Finance Can Drive Business Growth: Insights from a CFO Roundtable

In today’s rapidly evolving business landscape, finance leaders play a pivotal role in shaping organizational success, was a message that was discussed during the roundtable held on November 22nd, 2024, at the GLP office. We collaborated with Kaz Tsutsumi , Managing Director at GLP, to explore the topic "How Strategic Finance Can Drive Business Growth." The discussion was hosted by Luke Palfreeman , the Principal of Executive Search, and Masako Akiyama , the Managing Director of Management Resources at Robert Half. The industry experts shared valuable insights on how strategic finance can contribute to business growth, foster innovation, and align with broader organizational goals. Below is an overview of key takeaways from the discussion

Transforming the Finance Function: From Call Center to Strategic Partner

Traditionally perceived as a support function, finance must now position itself as an equal partner in driving revenue and efficiency. One participant emphasized the importance of cultivating a collaborative office culture to encourage communication across departments. “We want people to come to the office—not because of a policy, but because it’s a place they want to be,” he noted, highlighting the significance of creating environments conducive to innovation and strategic thinking.

To truly drive growth, finance leaders must break silos and align their language with sales and other revenue-generating teams. As one CFO pointed out, “Salespeople often don’t listen to finance because they speak different languages. It’s up to finance leaders to bridge that gap by understanding the drivers of their counterparts.”

Key Strategies for Active Revenue-Driving Roles

1. Collaboration with Departments: Finance leaders should establish personal relationships with key players across the organization, such as sales and marketing executives. Weekly meetings involving sales, the CEO, and finance can foster transparency, remove barriers, and ensure shared accountability.
2. Balancing Risk and Opportunity: By leveraging risk analysis and profitability checks, finance can indirectly influence product development and market entry strategies. As one participant explained, “To provide something valuable, you need to know what’s happening on the ground. Finance can offer insights into funding costs, tax implications, and other factors that drive efficiency.”
3. Data-Driven Decision-Making: Embracing tools like Power BI and AI-powered platforms can enable finance teams to deliver actionable insights faster. However, participants also noted challenges with integrating advanced tools, particularly for senior management accustomed to traditional methods like Excel.

Essential Skills for the Next Generation of Finance Leaders

The discussion highlighted the growing importance of soft skills, alongside traditional technical expertise. Key competencies include:

• Influence and Empowerment: The ability to push for organizational alignment beyond hitting KPIs.
• Strategic Thinking: Understanding long-term business trends and adapting to emerging challenges such as AI and automation.
• Communication: Explaining complex financial data in relatable terms to non-finance stakeholders, as well as the ability to tackle the status quo is important.
• Embracing New Technologies: ?AI is transforming finance functions, including processes like financial closings. Participants predicted that “Within the next 5-10 years, AI will fundamentally reshape how financial functions operate,” which emphasized the growing importance of IT expertise and adaptability.

Sustainability as a Finance Imperative

As ESG becomes a priority for more organizations, finance must play a crucial role in aligning sustainability objectives with profitability. CFOs can contribute by:

• Defining KPIs for ESG Initiatives: Metrics that demonstrate contributions to SDGs (e.g., renewable energy investments).
• Educating Investors: Offering clear, actionable insights into sustainability efforts to garner support.

One participant shared an example of their organization mandating train travel for employees as part of its commitment to reducing carbon emissions—a decision that sparked discussions about balancing environmental goals with business opportunities.

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Pathway to Leadership: From CFO to CEO

For CFOs aspiring to transition into CEO roles, the panelists highlighted the importance of:

• Building Networks: Strong internal and external relationships are crucial for effective leadership.
• Broadening Expertise: Understanding not just financials but also commercial aspects of the business.
• Embodying Leadership: Demonstrating energy, adaptability, and a forward-thinking mindset.

During the discussion, we explored specific instances of CFOs who have transitioned into CEO roles, including some participants of the roundtable. Finance leaders possess a deep understanding of numbers, making them uniquely qualified to balance growth and risk.

Cultivating a Culture of Calculated Risk-Taking

Lastly, finance’s role in fostering innovation involves defining the boundaries within which risks can be taken. Public companies may have stricter risk management frameworks compared to private firms, but all organizations benefit from a culture where failure is accepted as part of the learning process.

One participant summarized it well: “Finance must act as an advisor—explaining why certain ideas may fail while supporting innovative efforts that align with the company’s strategic goals.”

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Ending note

The role of the CFO is undergoing a profound transformation, shifting from a focus on traditional financial oversight to becoming a strategic catalyst for organizational growth. Finance leaders can drive meaningful impact across their organizations by prioritizing collaboration, leveraging technological advancements, and fostering a forward-thinking culture. Insights from this roundtable highlight a clear mandate for the future: finance is no longer just about managing numbers—it’s about shaping strategy, inspiring innovation, and leading with influence.

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