CFO Focus: Strategic chief financial officers lift the c-suite to new levels

If you have a longer-term financial roadmap, you’re one of a growing group of institutions that has discovered the strategic benefits of this vitally important tool. If you don’t have one, it’s a good time to consider creating one.

Financial Roadmaps = Strategic Financial Plans

Much like technology roadmaps, financial roadmaps—also called strategic financial plans—help connect strategy with future outcomes. The costs and benefits of strategic initiatives extend beyond what is captured in a one-year budget. Therefore, a high-level longer-term view that includes the strategy and shows potential year-by-year earnings and net worth provides a necessary preview of the institution’s financial direction.

Most institutions would not operate without a multi-year strategy, which is why building a view of the longer-term potential financial performance of the strategy is so critical to enhancing the entire C-suite’s understanding of the strategic direction.

 

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