.bodytext {float: left; } .floatimg-left-hort { float:left; margin-top:10px; margin-right: 10px; width:300px; clear:left;} .floatimg-left-caption-hort { float:left; margin-bottom:10px; width:300px; margin-right:10px; clear:left;} .floatimg-left-vert { float:left; margin-top:10px; margin-right:15px; width:200px;} .floatimg-left-caption-vert { float:left; margin-right:10px; margin-bottom:10px; font-size: 10px; width:200px;} .floatimg-right-hort { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 300px;} .floatimg-right-caption-hort { float:left; margin-right:10px; margin-bottom:10px; width: 300px; font-size: 10px; } .floatimg-right-vert { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px;} .floatimg-right-caption-vert { float:left; margin-right:10px; margin-bottom:10px; width: 200px; font-size: 10px; } .floatimgright-sidebar { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 200px; border-top-style: double; border-top-color: black; border-bottom-style: double; border-bottom-color: black;} .floatimgright-sidebar p { line-height: 115%; text-indent: 10px; } .floatimgright-sidebar h4 { font-variant:small-caps; } .pullquote { float:right; margin-top:10px; margin-left:10px; margin-bottom:10px; width: 150px; background: url(http://www.dmbusinessdaily.com/DAILY/editorial/extras/closequote.gif) no-repeat bottom right !important ; line-height: 150%; font-size: 125%; border-top: 1px solid; border-bottom: 1px solid;} .floatvidleft { float:left; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} .floatvidright { float:right; margin-bottom:10px; width:325px; margin-right:10px; clear:left;} For almost a decade, corporations’ chief financial officers have been striving to transform their departments from inward-looking units focused primarily on financial reporting and controls to ones that spend more time focused on strategic decision-making and value creation.

Many CFOs have clear aspirations to become a strategic partner to the CEO and play a central role in creating value, which entails providing guidance and insight to the rest of the business.

However, the reality is that CFOs’ transformation to strategic partners has been fraught with challenges and setbacks. Corporate finance departments are increasingly asked to assume multiple new responsibilities, some of which pull them in opposing directions. Pressure to control costs, coupled with regulators’ and investors’ heightened demand for information and tight controls in the wake of requirements imposed by Section 404 of the Sarbanes-Oxley Act, have often forced finance departments back to traditional accountant-like tasks.

The impact of the challenges surrounding CFOs is perhaps best illustrated by the escalation of CFO resignations. Last May, Russell Reynolds Associates announced it had found there was a 41 percent increase since 2005 in the number of Fortune 500 CFOs resigning their posts.

So how can CFOs achieve success given their ever-increasing challenges? How can they gain fulfillment from their role? The answer lies in creating a “leading finance function.”

Many CFOs have until recently had a purely “value preservation” focus, that is, ensuring that their company is compliant with all of the recent regulatory changes. However, with the regulatory changes demanding a closer look at an organization’s potential risks and internal controls, the CFO agenda has undergone a change. With a more holistic view of the business, the CFO is able to use knowledge gained to use more in-depth analysis to focus more on “value creation,” that is, support the CEO in the goal of strategic growth.

Although there is no standard template to success in this effort, distinct trends highlight the path many are taking to equip finance teams for the future. Leading practices include:

Clearly defined objectives that mirror the long-term goals of the organization. Leading finance functions have a clear vision and well-defined objectives that are communicated throughout the organization. This not only helps to keep finance professionals attuned to the company’s wider goals but also increases their value in the eyes of the business.

Providing insight. With more efficient processes and systems in place, leading finance functions spend less time gathering data and performing basic “number-crunching” tasks. This leaves more time for analyzing results to identify and understand key business trends. In turn, this enables finance executives to provide fresh insights to their business colleagues and to investors.

Integrated IT systems. Leading finance functions have completed the process of replacing disparate legacy systems with enterprise-wide systems for high-volume routine processes. These organizations are now beginning to realize meaningful benefits in the form of cost and time efficiencies and improved data quality.

Strong investor and regulator relations based on trust. Finance professionals have borne the brunt of the major regulatory compliance projects of recent years. Inevitably, that has distracted them from other tasks, and many executives feel that regulatory compliance has absorbed time that could have been spent profitably elsewhere. Because leading CFOs are more likely to have put in place strong compliance and financial reporting processes, they are able to provide better-quality information to external parties and give investors forward-looking economic measures of value.

Smarter use of alternative service-delivery models. Leading fi-nance functions have shifted many routine high-volume processes to alternative service providers in order to free up time for activities that drive value. Shared service centers are a popular alternative service-delivery model, while outsourcing, currently less used, is expected to grow rapidly in the next two years.

Developing new skills. Leading CFOs have developed a good understanding of the knowledge, tools and skills needed to succeed in a new role, and they are taking the necessary steps to address any deficiencies. In particular, CFOs are focusing on improving their finance professionals’ experience and understanding of the business and on developing the analytical skills required to turn information into insight.

A centralized, global finance function. Leading global organizations have reorganized the finance function, forming a single centralized group to facilitate optimal resource allocation and consistent procedures, processes and systems. The goal is to create a single, tightly integrated finance function, where information and resources are managed more efficiently worldwide.

Many CFOs are keen to address these individual issues, but one of the real keys to success is being able to juggle the multiple demands placed on the finance function and deliver an effective response. In this way, the finance function can become a valued partner focusing on the future of the business. r

Ali Charanek is a partner in KPMG LLP’s advisory practice in Des Moines. Cindy Brooks is the lead partner in KPMG LLP’s advisory practice in Minneapolis.