We’re not talking about damages such as people stealing from the cookie jar or number leaking.
It’s actually shown by the research from business software provider Epicor, which surveyed financial leaders in 11 countries, that strict traditional CFOs could be holding your business back from progressing.
The downfall of Tesco will have been a major wake-up call for business across the country, and indeed the world, as the supermarket has spent the past year recovering from severe financial injuries.
Reporting a £6.4bn loss in April 2015, the worst in its 96-year history, the firm has fallen into the realm of the worst financial scandals of the past 15 years.
Of course, British leaders will want to avoid such disaster striking and they may have felt compelled to breathe down the necks of finance departments and CFOs for a spell.
So who is really leading the financial departments of the world’s businesses, and are they tech-savvy or do they just do what their gut tells them
It turns out the six distinct groups they can be defined by include:
1. Politicians 27 per cent
At 27 per cent, the politician is the most common type of CFO, according to the study. Described as possessing a cautious and methodical team-based approach, politicians consult widely with staff for big decisions and would rather delay instead of experience a mistake. Additionally, they’re more likely to believe collaboration is a challenge that needs to be addressed, ahead of CFOs overall.
Read more on the financial leaders:
- CFOs embracing leadership skills can head for the top
- Diluting grey hair to create the next generation of finance leaders
- The role of the FD and its power to influence the board
2. Revolutionaries 19 per cent
The revolutionary CFO is happy to embrace changes in corporate culture and structures when required, while they also welcome the introduction of tough goals. Given this, they’re also happy to adopt a less structured approach to their work and look beyond formal systems and processes. Interestingly, revolutionaries were found to be linked to the companies with the largest profit growth compared to all CFOs.
3. Carers 19 per cent
The carer would sooner push back on making choices instead of rushing ahead and failing. The biggest concern among this group is a lack of data accuracy, as they tend to worry that they don’t have enough solid information on the finances of product lines.
Continue reading on the next page to find out more on the remaining three CFO types and the implications for businesses.