The document discusses the evolving role of Chief Financial Officers (CFOs) in a competitive environment, emphasizing the need for CFOs to develop both technical and strategic skills to meet the increased expectations of stakeholders. It outlines a roadmap for CFOs to transition from standard accounting roles to strategic positions while highlighting common challenges and roadblocks they face in their careers. Ultimately, the findings suggest that ongoing professional development and coaching can significantly enhance the effectiveness and influence of CFOs in their organizations.

1. June 2011Confidential and Proprietary to DS&H DS&H CFO Study ReportCFOs: Pathways to become lean & strategic… Seeing clearly ahead is now paramountAndré Du Sault, MBA (LBS), MPA (Harvard)www.dusaulthaddad.com1

2. June 2011Confidential and Proprietary to DS&H 2DS&Hwww.dusaulthaddad.comStudy frameworkINITIAL OBJECTIVES & KEY QUESTIONSIn an environment of hyper competition, accelerated changes, how can CFOs build on their technical expertise to play a greater strategic role?What is the profile of the new CFO incarnation? What new capabilities CFOs need to develop or acquire? What is blocking them?3. What are the new expectations of the key stakeholders?METHODOLOGYWe have interviewed about 50 senior executives from a broad range of perspectives:CEOs, CFOs, HROs, IT specialists, bankers, headhunters, administrators, etc.FOR WHOMCEOs, CFOs, VP Finance, Controllers, keen to build value added in the Finance function.

3. June 2011Confidential and Proprietary to DS&H 3DS&Hwww.dusaulthaddad.comCFO study findings (6)Young CFO candidates are caught between two outlooks:. A narrow view of the job in smaller companies, with standard financial reports as the main output . A demanding role in larger companies, where CEOs increasingly require lean-minded & strategic CFOsCFO candidates are usually not schooled to be CFOs, leading to a poor blend of technical and strategic skillsKey management and strategic skills are often integrated too late in the CFO career path to yield senior influence at the C-LevelThe job of Controller or young CFO stands at a pivotal point: What is integrated at that level (style, learnings, skills, responsibilities) shapes the potential for the CFO position.CFOs receive little or any coaching when handling high stake transactions that will make or break their reputation and credibilityThe pathway from CFO to COO/CEO is misunderstood and misapplied

4. June 2011Confidential and Proprietary to DS&H 4DS&Hwww.dusaulthaddad.comFROM FINANCIAL ACCOUNTING TO CO-PILOT There is increasing pressure on CFOs to perform undertight budgets & means an expanding scope of strategic responsibilities changing structures moulded by globalisation and the need to balance flexibility and efficiency.. Yet the roadmap for improvement and a new skills set is often unclear for many CFOs.

5. June 20115DS&Hwww.dusaulthaddad.comFROM FINANCIAL ACCOUNTING TO CO-PILOTIn many competitive industries, stakeholders require a lean & strategic CFO as co-pilot for the enterpriseControllerCo-pilotLeanTECHNICAL PRESSURESNew accounting standardsNew business processesComplex Information technologyDesigning information architectureFacing budget limitationsCEOBoardInvestorsBean counterBankersStandardFunctionalStrategicSTRATEGIC PRESSURESLeading business transformationsLeading operational excellenceNetworked organisationManaging international venturesOutsourcing, off shoringDeal makerConfidential and Proprietary to DS&H

6. June 20116DS&Hwww.dusaulthaddad.comFROM FINANCIAL ACCOUNTING TO COPILOTYoung CFOs start off with technical tools to address technological challenges, but soon face a wide range of expectations from stakeholders to deliver strategic valuemaster of cash flowbusiness plan - strategyproper controls in placeInvestorstransparency – integrity -controlsfinancing strategyCEO – CFO relationshipBoardintelligent reportsbusiness acumenvalue driven CEOCFOmaster of cash flowfinance skillsbusiness communicationBankersprocessesplanningcontrolsinfoITclear policiesinformationsystems that workEmployeesHead-huntersteam buildingleadership & people skillstechnical & strategic skillsConfidential and Proprietary to DS&H

7. June 2011Confidential and Proprietary to DS&H 7DS&Hwww.dusaulthaddad.comThe roadmap from technical expertise to strategic CFO will include 3 stages :1. standard challenges for good basic performance in reporting & budgeting2. high stake initiatives that lead to senior roles and corporate influence3. continuous learning of technical, managerial and strategic skills

8. June 2011Confidential and Proprietary to DS&H 8DS&Hwww.dusaulthaddad.comFor instance, challenges for a good basic performance include: organizing reporting with high automation developing custom tools for finance & cash flow controlling internal planning and strategic tools capturing in-depth understanding of industry and operations managing international operations from a distance

9. June 2011Confidential and Proprietary to DS&H 9DS&Hwww.dusaulthaddad.comHigh stake transactions shape reputation & credibility: overseeing complex IT projects driving corporate operational excellence programs leading strategic planning implementing mergers and acquisitions negotiating international ventures

10. June 2011Confidential and Proprietary to DS&H 10DS&Hwww.dusaulthaddad.comSenior roles call for sharper people and strategic skills: reading people presenting for impact translating vision into actionleading large value creation projects designing structure & organisation winning investors’ trust

11. June 2011Confidential and Proprietary to DS&H 11DS&Hwww.dusaulthaddad.com Study participants indicated that poor career guidance may lead young CFOs & aspirants to make the following mistakes:not reading challenges well ahead choosing titles ahead of better mentoring relying solely on technical skills for influence letting ego build up a trap for a downfall having no plan B in their pocket losing passion of learning losing track of familySeeing clearly ahead shapes more productive careers* include controllers, VP finance, young CFOs...

12. June 2011Confidential and Proprietary to DS&H 12BUILDING UP A ROADMAP FOR OUTSTANDING CFO SKILLS

13. June 2011Confidential and Proprietary to DS&H 13DS&Hwww.dusaulthaddad.comBUILDING A ROADMAP FOR THE CFO: 5 LEVELS OF COMPETENCESThe potential value added from the F&A function is wide and incremental:from basic financial statements to international fluency, to co-pilot.CEOs can plan to accelerate the CFO’s contribution.StrategicInternationalAdvancedStrategic planningOperational excellenceGrowth & M&ACompany valuationIntermediaryGlobal fluencyForeign exchangePartnershipsForecastsFinancing strategyInvestmentsBasicValue-added reportsBudget planningStrong teamsStandard accountsCOGS

14. June 2011Confidential and Proprietary to DS&H 14DS&Hwww.dusaulthaddad.comEarly roadblocks are mostly technical, but shift rapidly to managerial and strategic.TYPICAL ROADBLOCKSDESIRED OUTCOMESLEVELCo-pilot5Early mentoring of strategic skillsStrategic influenceInternationalexpertExperience in managing risk from a distanceGlobal fluency4AdvancedAdequate finance & cash flow training Finance strategies3IntermediateIntegration of IT platform & accountingBuilding strong teams2Operational intelligenceBasic1Mastering COGS Financial statements

15. June 2011Confidential and Proprietary to DS&H 15DS&Hwww.dusaulthaddad.comOn becoming lean & strategicCFO FOR THE 21ST CENTURYConclusionsLean & strategic finance functions require a match between the CEO’s demand forhigh standards and the CFO’s technical and managerial capabilities.CFO candidates should balance their continuous professional development in amix of technical, managerial and strategic skills.Coaching and training for young CFOs can greatly accelerate their potential.Skills development can be structured for quick pay-offs.

16. June 2011Confidential and Proprietary to DS&H 16DS&Hwww.dusaulthaddad.comEXECUTIVE EXPERIENCE AS CFO:M. Du Sault has accumulated more than 20 years in corporate financial management:Annual consolidated financial statements audited and sent to the head office on 10 January.

17. Having a budgeting and strategic process impeccably integrated to the information systems.

18. Preparing monthly executive reports limited to 10 pages, that speak loud and clear, with insights.

19. Managing international treasury (financing and hedging) programs, over and through financial crises.