This week’s annual MIT Sloan CFO Summit in Newton, Massachusetts, featured hour-long CFO discussion panels on topics like FP&A, generative AI use, CFO best practices, relationships with private equity and legal and more.
However, the one-day event concluded with climate protesters interrupting the afternoon keynote featuring Ziad T. Al-Murshed, the CFO of Aramco. Roughly fifteen climate protesters took the stage during Al-Murshed’s session, abruptly ending the afternoon’s fireside chat. Event organizers made a statement that they were the ones who made the call to conclude Al-Murshed’s session out of an “abundance of caution.” The Newton Police Department is currently investigating the incident.
Before the protest’s disruption, the event provided valuable insights from Sloan alumni and CFOs across several industries. Below are five key takeaways from the event.
1. CFOs who are FP&A-focused must take a goal-oriented approach
During the “smart and savvy” FP&A session, CFOs on the panel agreed that the role of FP&A is changing. As technology continues to eliminate traditional CFO tasks, an unprecedented ability to shift focus and resources to FP&A can be rewarding for CFOs and their organizations. However, CFOs like Derek Warnick of Electric Hydrogen and Ludovic Monchal of Dassault System’s American division noted that the most important thing is laying the groundwork and infrastructure from a people and data perspective to properly build a sustainable and long-lasting FP&A approach.
2. AI is increasing the value of interpersonal communication skills
Much like how CFOs are having their time freed up by technology, members of the finance team are experiencing the same supplementation process. During the luncheon panel on generative AI, CFOs talked extensively about the importance of communication skills not only when evaluating talent but also when performing as finance chiefs. In particular, Moody’s CFO Noémie Heuland stressed the importance of her relationship with her company’s chief people officer to gain a full understanding of the business from various perspectives.
Panelists acknowledged one key challenge many CFOs may face: implementing a balance between ensuring employees are engaged, able to use technology like artificial intelligence and have the expertise required to maintain company standards.
3. CFOs should speak last in meetings
Don McGuire, CFO of ADP, advised CFOs to try and speak last in meetings, a similar approach of Amazon founder Jeff Bezos. He said it’s beneficial if leaders across the company are asking why finance is in a particular meeting, as collaboration from a perspective of developing understanding has become highly effective in expanding finance’s role in decision-making processes across the business.
4. The CFO-CMO relationship’s importance is rapidly growing
Beth Clymer, Canada Goose’s president of finance, strategy and administration, stressed during her session that CFOs must be able to speak the language of marketing to manage costs and have insight into decision-making around marketing efforts. Understanding whether the approach is top-funnel versus bottom-funnel, tackling uncertainty around campaigns, identifying elements designed to drive traffic and determining the metrics for positive conversion and ROI are crucial. When finance leaders develop this expertise, the partnership between marketing and finance can evolve from a push-pull relationship to a genuine strategic partnership.
5. Tech’s ROI depends on labor management
In multiple sessions, CFOs discussed gaining ROI on investments in technology both across the business and within the finance function. The consensus involved a three-step process: first structuring data, then implementing AI where desired and finally calculating progress. Additionally, speakers emphasized the importance of expanding the role of finance without increasing headcount. If finance teams can do more with the same resources, as McGuire and NASDAQ’s CFO Sarah Youngwood explained, ROI on technology can be realized and reinvested into further business progress.
