Chief Future Officer: A strong, stable leader amid disruption
SOME say the “CFO” of today now stands for “Chief Future Officer.” And perhaps rightfully so. The title perfectly encapsulates how the role of the modern CFO has evolved over the years — from being a bean counter, number cruncher, or tax filer, to a multi-tasker able to navigate disruptions, drive business decisions, and prepare the organization for growth.
The recent feat of San Miguel Corp. (SMC) Group Treasurer Ferdinand “Ferdie” K. Constantino as the 12th ING FINEX CFO of the Year awardee teaches us the value of having a good CFO in every organization. Here are some of these:
1. The CFO has the foresight and isn’t afraid to make tough calls. SMC is not only synonymous with food and beverage (mainly beer). It also heavily bets on the Philippine economy with its heavy investments in highly volatile and regulated sectors such as oil and fuel, power, and infrastructure. Ferdie and his team are quick to manage the volatility by hedging their dollar liabilities, or converting their dollar debts into peso debts before the peso began to plummet hard this year.
The modern CFO also answers the “hard” questions before he even needs to: Is the time ripe to enter new markets? What are the dominant constraints holding back the company’s growth? Is the management having conversations that are strategic and critical to move the company forward?
2. The CFO knows the face of disruption — and what to do about it. Modern CFOs have the ability to recognize the face of chaos and act even before it sheds its veil. Only a few years ago, technologies such as artificial intelligence, machine learning, Internet of things, and blockchain were confined within the realm of the academe and technologists. Today, they have also become the concern of CFOs; demanding competence in data analysis for business, leadership in digital transformation, and strategic partnerships with other players in the IT ecosystem.
“We’re not falling behind, and we cannot afford to,” Ferdie says on tackling digital disruption. He’s also a firm believer of leveraging millennials’ advantages as digital natives, looking to them for creativity and tech-oriented know-how in areas like marketing. “If we think it’s a good idea, we adopt it. The older people don’t provide obstacles,” he says on managing generational issues in SMC.
3. The CFO is a stronghold of leadership. From focusing solely on the balance sheet, CFOs are quick to shift their perspective toward people management and equipping them for a future filled with robots and automation. They are also a key figure in managing workforce transformation and building a finance function with the right people armed with the right skills and emotional intelligence.
Inspiration is free, so the CFO should give it away freely. “Right now, the younger ones are more competent than me in accounting, treasury, financial planning. I shouldn’t tell them in specific terms what to do and simply allow them to do their job well,” says Ferdie, who has been with SMC for 44 years now and has mentored generations of finance leaders.
The modern CFO goes by many names — from chief future officers to analytics wizards to savvy risk-takers. At the end of the day, he is both the anchor that keeps the ship stable and the sail that’s unfurled to propel the vessel forward.
Ma. Victoria C. Españo is the President of the Financial Executives’ Institute of the Philippines (FINEX) and the Chairperson and CEO of Punongbayan & Araullo Grant Thornton, one of the leading Audit, Tax Advisory and Outsourcing firms in the Philippines.
marivic.espano@ph.gt.com
