The innovation gap and the cost of standing still
While innovation is central to CEO strategy, according to the 29th CEO survey, 47% of CEO time is spent on issues with horizons of less than one year, three times more than the 16% dedicated to five-year-plus activities. The CFO must help to fill the strategic long-horizon gap. Companies that avoid acquisitions or bold investments during uncertainty are consistently outperformed by their more agile peers in both revenue growth and profitability.
Read about business model reinvention
A new mandate for the CFO
Our report suggests the CFO must transition from mainly being a financial steward to a strategic architect of reinvention. This involves owning the long-term strategic vision, developing investment frameworks for AI, and directing capital towards emerging value areas — not just traditional ones.
Six critical roles for the modern CFO
We have identified six key roles the CFO should adopt:
- Strategic value pool analyst - Identify where industry profits are heading.
- Capital allocation architect - Develop investment frameworks that balance current performance with future opportunities.
- Business case and value story owner - Turn reinvention into compelling investor narratives.
- Risk and resilience strategist - Assess the financial cost of inertia versus reinvention.
- M&A and partnership strategist - Lead financial evaluations of cross-sector deals.
- Culture and capability catalyst – Ensure finance shifts to being a growth enabler and not a gatekeeper.
The CFO call to action
Structural change is essential. Our report advocates transforming the finance operating model — from replacing static annual plans with rolling forecasts and agile planning cycles, to embedding finance partners within innovation teams, adopting variable cost structures, and ensuring real-time financial visibility across supply chains and partner ecosystems.
Here’s a conclusion with a call to action for today's CFOs:
- Follow the value, not the org chart.
- Reward agility, discourage caution.
- Use the opportunity to own the long-term vision with the CEO
- Use efficiency as a means, not an end.
- Build AI foundations before pursuing AI trends.
- Redefine the CFO role.
- Transform the finance operating model
Value is moving faster than ever. The CFOs who succeed won't be those maintaining the status quo - they'll be those who lead the shift.
Download the full paper to explore in more detail
The role of the CFO in reinvention
