If there is one factor that has facilitated the evolution of the CFO's role in recent years it has been technology, and with it, the possibility of making a large part of the organisational processes "digital", an action that does not distinguish between specific departments, but rather "extends" throughout the entire company.
This advancement has allowed the CFO to take on more strategic functions, focused on the future evolution of the business he or she manages, and thus broaden the scope of his or her role, which until recently was more focused on "explaining" the past and present of the organisation.
This digitalisation process has become a priority for many organisations, where it is no longer a "differentiating" factor and more something that has become a "standard" that every company must achieve, where choosing the ERP (Enterprise Resource Planning) that best suits your needs is the first (mandatory) step to take during this process of change.
At this point, the role of the CFO becomes more relevant, not only in the selection phase of the solution itself but also beforehand, through the evaluation and analysis of the main business processes, thereby aiming to optimise them, a crucial aspect that must be addressed in such a project.
The knowledge the CFO has of the business and their comprehensive vision allows them to possess an advantage that differentiates them from the rest of the organisation and positions themselves to exercise this type of leadership, an aspect that goes beyond their “traditional” function.
The processes of implementing a new ERP (or replacement) are not easy to manage, primarily due to the significant organisational change they entail, which generates many internal “resistances” that require the CFO to exercise transversal leadership, with the aim of aligning the company’s common objectives with its various departments.
Thus, a key aspect to consider during the initial phase of the project is defining the methodology that the project team will apply, considering the particular needs of the organisation. At the same time, it remains the CFO’s task to “eliminate” any organisational barriers that may arise in the different stages of the project.
However, the main challenge to be overcome, which stands out above all others due to its importance, remains the change management of employees. Interestingly, it is not about the rejection of a "new technology" (ERP), but rather that people perceive the "unknown" as a future "loss" of something they already have. And here the CFO must effectively transform this situation. A key strategy in this process can be the selection of solutions that integrate efficiently with the leading ERP systems on the market.
For example, if the company aims to advance its digitalisation process by automating its treasury management and financial processes, there are solutions like Embat that perfectly meet these requirements. The integration between Embat and the ERP facilitates automatic and precise accounting and reconciliation, as well as the generation of reliable cash flow forecasts.
Additionally, the CFO must take responsibility for the “emotional management" of this change, as this is the critical factor that allows for a successful ERP implementation or renewal, and it extends beyond the project's development period.
At the same time, it is essential to carry out open and transparent communication about the project's scope, which should be combined with adequate training on the use of the new tool.
Lastly, while the implementation of the ERP marks the final stage of the project, the CFO's leadership role in the organisation's digital transformation does not end with the implementation itself. The CFO will continue to guide the transition from the manual world to an increasingly digital one.
It is important to remember that the primary goal of such projects is to provide the organisation with the necessary means to ensure the viability and future growth of the business, and in some cases, even its survival.
Thus, the creation of long-term value by the CFO represents one of the main changes in their role. It would not be surprising if, in a few years, their title includes a new letter, transforming into the CFSO (Chief Financial Strategy Officer) of the organisation.
