TODAY’S NEWS. TOMORROW’S INSIGHTS.A daily newsletter from McKinsey & Company
Brought to you by Liz Hilton Segel, chief client officer and managing partner, global industry practices, & Homayoun Hatami, managing partner, global client capabilities
Early birds. Many finance leaders tend to be early risers, judging from the responses to one publication’s request to share their morning routines. To be at her best, the CFO of a drug-testing company sets her alarm for 3:20 a.m. to fit in some exercise. Another leader, the CFO of a US bank, spends the first hour of the day checking email, reading the news, and reviewing key economic indexes. A third CFO in insurance begins the workday at 6:01 a.m. and is often in morning meetings. [CFO]
Price pressures. Last year, businesses contending with steeper costs passed off some of them to consumers in the form of higher prices. Now, with the risk of a potential recession and consumers reining in spending, CFOs in 2023 are pondering how much to increase prices, if at all. Some are considering raising prices one item at a time. Others, however, are keeping certain things the same. For instance, one retailer is continuing to offer a hot-dog-and-soda deal for $1.50. That price is “sacrosanct,” the company’s CFO said. [WSJ]
A big job. It’s a long climb to chief financial officer, and responsibilities look very different once you’re in the lead, explain McKinsey senior partner Michael Birshan and coauthors. CFOs have reported that they increasingly oversee digital initiatives alongside traditional tasks such as budgeting, planning, and risk mitigation. In addition, CFOs are responsible for the human element of a modern finance function, leading a large group of people and partnering with C-suite colleagues.
What works. Based on years of research and experience working with new CFOs and seeing what works, we’ve identified seven key mindsets and practices that new finance leaders can commit to right from the outset, to help jump-start long-term value creation. A critical first step is to form an independent, fact-based view of the resources, support structures, and activities that support and fall short of creating value. Consider all seven key mindsets and practices that will allow CFOs to hit the ground running.
— Edited by Belinda Yu, editor, Atlanta
Was this forwarded to you? Sign up here.
Or send us feedback—we’d love to hear from you.
Follow our thinking
