# The Rise of the Digital CFO: From Safe Pair of Hands to Strategic Shepherd
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-01-16
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: The Evolving Role of the CFO in Digital Transformation
Meta Description: Discover how CFOs are transitioning from bean counters to strategic partners in driving growth and innovation amidst digital evolution. Find out more.
URL: https://financedigest.com/rise-digital-cfo-safe-pair-hands-strategic-shepherdhtml

![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/the-rise-of-the-digital-cfo-from-safe-pair-of-hands-to-strategic-shepherd-1736840137391-compressed.jpg)

_**Simon Niesler**, Vice-President and General Manager, UK, Ireland and Benelux, Infor, looks at the Expanding Role of the CFO in an Era of Digital Transformation_

The Chief Financial Officer is often and mistakenly stereotyped as a frugal bean counter, protecting the company’s wallet with an unwavering vow to be prepared for the proverbial rainy day. At least, that is the old-school notion.

**The Evolving Role**

However, the world in which we live is changing at an unprecedented rate, and in tandem, this stereotype is diminishing rapidly. The [role of the CFO](https://www.financedigest.com/the-new-role-of-the-cfo-the-de-facto-chief-growth-officer.html "The New Role of the CFO: The De Facto Chief Growth Officer") has evolved to become one which is focused on strategy, casting a protective eye over security, regulations, and compliance, all critical issues with high stakes attached. Now, as the [digital evolution](https://www.financedigest.com/evolution-not-revolution-digital-transformation-today.html "EVOLUTION, NOT REVOLUTION: Digital transformation today") sweeps through manufacturing, the role of the CFO must evolve again.

It is new hat to wear for some CFOs, but one that is a good fit for individuals who understand the value of investing capital back into the facilities, [expanding market](https://www.financedigest.com/automotive-light-bars-market-expanding-at-a-healthy-5-3-cagr-the-market-size-is-projected-to-total-us-1-3-bn-by-2029.html "Automotive Light Bars Market expanding at a healthy 5.3% CAGR, the market size is projected to total US$ 1.3 Bn by 2029") presence, and growing through modernisation. Many CFOs certainly have the background, insight, and understanding of the market landscape needed to advise the company as it [moves forward](https://www.financedigest.com/life-is-moving-forward-china-declares-new-covid-phase.html "‘Life is moving forward’: China declares new COVID phase") through new terrain.

**Grounded Without Putting on the Brakes**

It makes sense that the CEO is often labelled as the visionary who imagines new revenue streams, [products and innovative ways](https://www.financedigest.com/four-innovative-ways-to-pay-for-products-online.html "Four Innovative Ways to Pay for Products Online") to serve the customer, and the CFO as the one who keeps the company grounded. However, the two do not need to be opposing forces. A CFO can embrace the vision of other C-level officers, or can get in the way. When optimistic, bullish [investors clash head-on with the bears of the company who have their heart set](https://www.financedigest.com/unilever-ceo-set-to-leave-after-gsk-debacle-arrival-of-activist-investor.html "Unilever CEO set to leave after GSK debacle, arrival of activist investor") on hibernating, often, no one wins. Stalemates and dissension cause inaction, until it is too late to seize opportunities that appeared in the narrowly open window. Indecision is another form of saying no.

CFOs must be on the same track as the other leaders of the organisation; willing to [invest in ideas](https://www.financedigest.com/8-best-passive-investing-ideas-which-can-help-you-make-money-in-2022.html "8 Best Passive Investing Ideas Which Can Help You Make Money In 2022"), even if the ideas are still in nebulous stages. Some of the old prerequisites for investing no longer apply. As digital initiatives and disruptive [technologies change](https://www.financedigest.com/how-technology-is-changing-the-game-in-construction.html "How Technology is Changing the Game in Construction") the meaning of innovation, the CFO cannot insist on the same level of benchmark reports, proven Return on Investment (ROI), or guaranteed savings from new concepts. A leap of faith may be necessary. The CFO must be able to make well-informed [predictions of the likely outcome from investment](https://www.financedigest.com/american-igaming-and-sports-betting-is-on-the-rise-with-new-investments-and-regulations-2022-predictions.html "American iGaming and Sports Betting is on the rise with new investments and regulations – 2022 predictions") in new technology. There are no guarantees, and few results-driven surveys which point to clearly defined tactics.

Some of [today’s new technologies](https://www.financedigest.com/cfos-need-to-embrace-todays-technology-for-tomorrows-success.html "CFOs need to embrace today’s technology for tomorrow’s success ") simply have not been in market long enough to have a solid history. Change is happening too quickly and it will not pause to document proven strategies. The rule [books are being written while the game](https://www.financedigest.com/ea-lowers-bookings-expectation-on-strong-dollar-gaming-slowdown.html "EA lowers bookings expectation on strong dollar, gaming slowdown") is being played.

**Ten Tips for [Playing the Role](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital") of Strategic Shepherd**

So, how does the CFO perform his or her due-diligence and ensure the company is not taking careless risks which result in financial losses, damage to the brand, or lost customers? Here are ten tips which will help the CFO [feel comfortable in this evolving role as a strategic shepherd for the company](https://www.financedigest.com/shipping-companies-feel-the-heat-as-investors-shun-coal.html "Shipping companies feel the heat as investors shun coal").

1. **Partner with experienced companies.** You cannot boil the ocean — yourself. Turn to companies, consultants, and [technology providers](https://www.financedigest.com/is-your-technology-provider-holding-you-back.html "Is your technology provider holding you back?") who are serious innovators, committed to new technologies.

2. **Be well informed.** Do your research. Collaborate and network with colleagues who are also figuring it out as they go. Attend conferences. Network. Be a voracious researcher.

3. **Control risk.** Do not bet the whole farm. Understand [risk and set limits](https://www.financedigest.com/omicron-poses-very-high-risk-but-data-on-severity-limited.html "Omicron poses ‘very high’ risk but data on severity limited"). Protect critical assets, equipment, or [intellectual property](https://www.financedigest.com/white-bullet-releases-ad-funded-piracy-report-for-world-intellectual-property-organisation-wipo.html "White Bullet releases Ad Funded Piracy Report for World Intellectual Property Organisation (WIPO)"). Be smart. Think of backups, [safety nets](https://www.financedigest.com/increase-in-investments-in-building-refurbishment-and-new-construction-activities-to-propel-demand-of-construction-safety-net-market-fact-mr-report.html "Increase in Investments in Building Refurbishment and New Construction Activities to Propel Demand of Construction Safety Net Market: Fact.MR Report"), and the ever-important Plan B.

4. **Define goals and how to measure success.** You must be able to articulate what you are trying to achieve. Be sure the entire team is on the same page. Define terms which may be unclear. You will be talking about new technologies, innovative concepts or unexplored terrain. It is understandable that some team members may feel lost. Train as needed.

5. **Monitor progress.You [must track what steps](https://www.financedigest.com/oil-firms-must-step-up-exploration-off-norway-to-unlock-potential-npd.html "Oil firms must step up exploration off Norway to unlock potential -NPD") you are taking, even when you detour or must backtrack. Collect data. Document milestones, even if you are not sure you will repeat the process. Share progress with team members.**

6. **Involve teams.One person or department cannot be expected the carry the compete burden of [large scale](https://www.financedigest.com/facebook-parent-meta-is-preparing-large-scale-layoffs-this-week-wsj.html "Facebook parent Meta is preparing large-scale layoffs this week – WSJ") projects like digitalization. Involve multi-disciplinary teams for a variety of ideas and input from a well-rounded group of stakeholders.**

7. **Stretch.** Be willing to move out of your comfort-zone. Go out on a limb.

8. **Think long-term.** Do not panic if your idea is slow to generate firm results. Be patient. Be willing to finesse your plan and tweak tactics. Adapt as you start to collect early results. Break projects into phases; tackle bite-size portions of a larger initiatives to achieve early successes and [build momentum](https://www.financedigest.com/ecommerce-localization-specialist-reach-builds-unstoppable-momentum-with-new-senior-appointments-and-canadian-office-move.html "Ecommerce localization specialist, Reach, builds unstoppable momentum with new senior appointments and Canadian office move"). Think big, but think of the [steps needed](https://www.financedigest.com/british-pensions-step-up-multi-billion-pound-asset-fire-sale-as-need-for-cash-soars.html "British pensions step up multi-billion-pound asset fire sale as need for cash soars") to reach the summit.

 Be willing to [change lanes.Do not drag a poorly performing idea longer than needed](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry"). If the demise is inevitable, be willing to make a change. Move on. Do not dwell on the disappointment; learn from it.

 Celebrate victories, no matter what they look like.You may not achieve what you set out to do, but will still [learn other skills or tactics](https://www.financedigest.com/brand-strategy-tactics-for-an-online-learning-platform.html "Brand Strategy Tactics for an Online Learning Platform") along the way. Be open-minded to accepting victories wherever you find them. Celebrate the achievements, no matter how small.

**Key Takeaways**

By following these basic principles, CFOs can be a valuable, strategic leader in the company, one who partners with the other [officers on innovation](https://www.financedigest.com/cavai-tests-innovative-new-approach-for-the-home-offices-parentwise-pilot-campaign-helping-parents-and-carers-in-the-west-midlands.html "Cavai tests innovative new approach for the Home Office’s ‘ParentWise’ pilot campaign helping parents and carers in the West Midlands"), while still protecting the mission-critical essentials. Today’s CFO plays an important role in helping the company [manage risk](https://www.financedigest.com/extended-reality-applications-in-risk-management.html "Extended Reality Applications in Risk Management"), make confident investments in technology and keep a results-driven eye on performance. It is a fine [line to walk](https://www.financedigest.com/boe-set-to-walk-the-line-between-inflation-and-recession.html "BoE set to walk the line between inflation and recession"), between protecting the capital reserves and boldly supporting innovation. But, by being well-informed and partnering with [industry experts](https://www.financedigest.com/fiat-republic-the-specialist-baas-platform-that-bridges-web3-and-banks-announces-the-appointment-of-two-industry-experts-as-non-executive-directors-to-the-board-of-its-dutch-subsidiary.html "Fiat Republic, the specialist BaaS platform that bridges web3 and banks, announces the appointment of two industry experts as Non-Executive Directors to the board of its Dutch subsidiary."), the CFO can play both parts of this new role: the bold explorer and protective shepherd.

**Simon Niesler bio**

Simon Niesler is vice president and general manager, UK, Ireland and Benelux at Infor, with responsibility for expanding Infor’s customer base [across the region](https://www.financedigest.com/tea-pitchers-market-sales-will-witness-stellar-revenue-growth-across-top-regional-pockets.html "Tea Pitchers Market Sales Will Witness Stellar Revenue Growth Across Top Regional Pockets"). Simon was previously [chief operating officer](https://www.financedigest.com/impact-com-appoints-mike-head-as-cro-and-jenna-mills-as-director-public-relations-promotes-cristy-ebert-garcia-to-chief-marketing-officer.html "impact.com appoints Mike Head as CRO and Jenna Mills as Director, Public Relations, promotes Cristy Ebert Garcia to Chief Marketing Officer") (COO) and head of cloud for SAP UK and Ireland.


---
This blog is powered by Superblog. Visit https://superblog.ai to know more.
---