CFO is CEO's main partner when it comes to conducting long-term planning

CEOs' emphasis on long-range planning means that only CIOs who look ahead will stay ahead.

FP Staff May 09, 2015 10:51:04 IST
CFO is CEO's main partner when it comes to conducting long-term planning

Ninety-five percent of organisations that conduct long-range planning (five to 15 years) are more likely to outperform organisations that don’t plan ahead, according to Gartner's 2015 survey of CEOs and senior business executives.

“Long-term strategic planning can lead to benefits,” said Steve Prentice, vice president and Gartner Fellow. "More than 50 percent of organisations that underperformed did not engage in very long-term planning, and those that did, looked out on average 16 years. In the case of the outperforming companies, over 80 percent carried out planning that was very long term, and they looked even further ahead – a mean of 22 years.”

CFO is CEOs main partner when it comes to conducting longterm planning

Thinkstock

Long-term strategic planning is a collaborative exercise for organisations’ senior management and directors, and the survey revealed that the CFO is the primary choice of partner by far for the CEO.

Overall, almost 40 percent of respondents named the CFO as either the first, second or third choice of partner for the CEO. The next most popular choices were the chief strategy officer (27 percent) and the board of directors (26 percent). The CIO, in contrast, was named as first, second or third choice by just 17 percent of respondents, behind chief marketing officer (18 percent), chief operating officer (20 percent), chairman (20 percent) and president/owner (23 percent).

The CFO is the primary choice for both underperforming and outperforming organisations. The involvement of the board of directors and chief marketing officer declines to 24 percent and 14 percent, respectively, in these organisations. Overperforming organisations tend to increase the contribution of more technical roles, such as CIO, CTO, chief innovation officer, chief risk officer and chief digital officer.

"For CIOs to be seen as key contributors and advisors regarding the changes and disruptions that technology brings, they must seriously assess their position internally," said Prentice. "They should position themselves as informed and objective innovators who understand the disruptive role technology will play in business over the next 10 to 20 years, and who can make an essential contribution to long-term and very long-term planning activities within their organization. They should look to the longer term, and identify, explore and experiment with potentially disruptive technologies and technology-enabled capabilities to understand, and be able to demonstrate and articulate, their likely business impact.”

"CEOs' emphasis on long-range planning means that only CIOs who look ahead will stay ahead," Prentice concluded.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Mumbai court rejects Deepak Kochhar's bail plea in ICICI Bank-Videocon money laundering case
India

Mumbai court rejects Deepak Kochhar's bail plea in ICICI Bank-Videocon money laundering case

Special PMLA judge PP Rajvaidya rejected the "regular'' bail application of Deepak Kochhar filed on merits of the case as against technical grounds

Pakistan invite neighbours Afghanistan on first official cricket tour after Imran Khan's Kabul visit
First Cricket News

Pakistan invite neighbours Afghanistan on first official cricket tour after Imran Khan's Kabul visit

An Afghan national side toured Pakistan in May 2011, although they only played a second-string side and matches were not given first-class status.

Xbox Series X, Series S will not meet supply demands until April 2021: Xbox CFO Tim Stuart
News & Analysis

Xbox Series X, Series S will not meet supply demands until April 2021: Xbox CFO Tim Stuart

As per Tim, new-console hype paired with increased video game interest means supplies will dry up quickly heading into the busy holiday season.