CFO Studio Magazine with Dominic Caruso, CFO, Johnson & Johnson

EVENTS 34 WWW.CFOSTUDIO.COM Q4 2016 EXECUTIVE DINNER SERIES TODAY’S CFO THEMODERNCFOMUST FOCUS ON BUSINESS STRATEGY AND GROWTH “A business that is not growing is probably a business that is dying.” Strong words from Arlen Shenkman, CFO of SAP North America, the world’s largest enterprise application software company, and a CFO Studio Business Development Partner. And he’s not done: “The demise rests squarely on the CFO’s shoulders, at least in part, if all he does is stare at spreadsheets.” Mr. Shenkman spoke on “Operations, Risk, and Finance: The CFO as Growth Strategist” at a World-Class Companies CFODinner, part of CFO Studio’s Executive Dinner Series, held recently in the SAP Suite at Levi’s Stadium in Santa Clara, CA. CFOs from select Bay Area companies attended the invitation- only dinner. He opened the discussion by asking those in attendance to join him in recognizing how the job description of a chief financial officer has evolved over the years and across industries to the point that “the CFO is far more than the steward of the assets of a business, or in place solely to ensure compliance and assess risk.” Mr. Shenkman noticed heads nodding rapidly in agreement, so he continued: “These days, anyone who wants to be a CFO must understand that the role is much more multifaceted than it ever has been, and in order to be effective, you need to understand — and be able to explain — your business model, value drivers, competitive differentiators, and your customer needs, as well as the strategies that are in play.” That means today’s CFOhas to stand ready to “help the business determine the most advantageous way to continue growing.” In other words, and “this is key,” he said: “The CFOmust decide on the strategy of the business to ultimately ensure its long-term vitality, while at the same time helping the organization understand the financial ramifications of those strategic decisions.”That’s a heavy portrayal of the job, he acknowledged, and one that, like so many in the current environment, requires a balancing act. “Keeping the company strategy inmind, CFOs have to determine how they can align the financial return for the shareholders with the long-term growth prospects of the business.” Stepping It Up Mr. Shenkman noted that this characterization of the finance leader’s role is a radical shift away from the traditional and stereotypical description of the CFO as the prototypical “bean counter,” and opined that it’s due, partly, to the “automation” of certain aspects of the job. “There is a piece of what, historically, a CFO would do around reconciliation and aggregation of data that is now addressed in our systems and analytics that, frankly, free up the CFO’s time to be more proactive in operating or running a business.” And the best way to be action-oriented with an eye to the future, he said, is to “understand where the business is headed, rather than just merely looking back at the numbers and knowing where it’s been.” Francois Delepine, CFO of Venafi, a cybersecurity software company, attended the dinner and in an interview afterwards summed up Mr. Shenkman’s assessment of the current role of the CFO by simply saying, “The job of the CFO is to be a problem solver and to find solutions,” while Liyuan Woo, former CFO of Bebe Stores, an upscale fashion retailer, went a step further and likened the modern-day CFO’s role to that of a “co-pilot to the CEO and other senior executives.” In her view, “the Board and the CEO are looking to the CFO more and more to really drive strategies and direction for the company.” Ms. Woo had a theory about the The comments made by these guests are their own and may not reflect the opinions and/or policies of their companies or of CFO Studio and/or its promotional partners. BUSINESS DEVELOPMENT PARTNERS