In an exclusive interview with Asia Business Outlook Magazine, Gerard Chan, President Director & Country Holding Officer at ABB Indonesia, shares how a CFO plays an integral role in defining company culture and building the organizational culture while keeping the entire organization up-to-date on financial matters periodically. He has over 25 years of experience in financial management, business strategy, compliance, and reporting across various industries, from oil and gas resources to professional services. He is a Fellow of CPA Australia and holds an MBA from RMIT University.
Key insights regarding how CFOs shape organizational culture are
By integrating financial decision-making with the company’s mission and values, what role does a CFO play in aligning financial strategy with the company’s core values and long-term vision?
The chief financial officer (CFO) plays a pivotal role in aligning a company’s financial strategy with its core values and long-term vision. As a key executive who deeply understands the organization’s mission, the CFO ensures that financial decisions and actions consistently reflect and support these foundational principles. Through strategic financial planning, the financial officer can identify and prioritize investments, capital expenditures, and resource allocation to align with the company's organizational culture, goals and mission effectively.
Ethical investment decisions are another critical responsibility for CFOs, especially for companies with a commitment to social responsibility, environmental, social, and governance (ESG) initiatives, or other ethical stances. In such cases, the CFO can prioritize investments that reflect these values, ensuring the organization’s financial activities reinforce its broader social commitments.
Transparency and accountability are integral aspects of the CFO’s role. By maintaining financial transparency with stakeholders, the CFO ensures that stakeholders clearly understand the company’s financial health and the allocation of its resources. This fosters trust and demonstrates how the company is meeting its core values and strategic goals by building an organizational culture that embodies trust.
Risk management is another area where the CFO’s role is essential. By proactively managing financial risks in alignment with the company’s core values, the CFO can balance potential risks with rewards in a way that upholds the organization’s mission. This ensures that the company’s financial stability is maintained while staying true to its guiding principles.
CFOs also define and monitor performance metrics to ensure alignment between financial performance and the company’s goals and values. By establishing metrics that reflect these priorities, the CFO can guide the organization toward sustained growth and success while remaining consistent with its mission.
Finally, the CFO plays a key role in shaping the company’s long-term investment strategy. By steering investments that build enduring value and align with the company’s mission, the CFO positions the organization for future success. This strategic thinking and value-driven perspective enable the CFO to make financial decisions that not only drive growth but also reinforce the company’s purpose and vision.
CFOs can break down silos by fostering cross-departmental collaboration. In what ways can CFOs encourage collaboration between finance and other departments to strengthen company culture?
The CFO holds a unique "helicopter view" of the entire organization, overseeing all departments and fostering cross-departmental collaboration. This position allows the CFO to play a pivotal role in breaking down silos and strengthening the company culture through initiatives that promote alignment, communication, and shared accountability.
One key approach is establishing clear communication channels. CFOs can organize regular inter-departmental meetings involving finance, marketing, operations, HR, and other functions. These meetings provide a platform to discuss financial performance, budget updates, and strategic goals, ensuring that all departments remain aligned and informed. Collaborative financial reporting further enhances this connection by extending financial discussions beyond the finance team. The CFO can involve other departments in interpreting financial reports and data, helping them understand their impact on the organization's overall financial health.
Educating non-financial teams is another important responsibility for the CFO. By introducing financial literacy programs and workshops, the CFO can equip employees with a basic understanding of financial concepts like profit and loss (P&L) statements and balance sheets. This knowledge helps employees see how their work contributes to the company's financial outcomes, fostering a sense of ownership and responsibility.
Aligning goals and incentives is equally vital in promoting cross-functional collaboration. CFOs can establish KPIs and metrics that encourage teamwork across departments and create incentive programs to reward collaborative efforts and achievements. Involving different teams in budgeting and forecasting processes further strengthens this alignment. By including business leaders in these decisions, the CFO ensures that departments take ownership of their numbers, including profitability and performance metrics, creating a culture of shared accountability.
CFOs are uniquely positioned to influence a culture of transparency and accountability through data-driven decision-making. How can CFOs leverage financial reporting tools to foster a culture of transparency while aligning teams with organizational goals?
CFOs can implement centralized dashboards that allow teams to access key financial metrics with ease. These tools make it possible for non-financial personnel to click a few buttons and gain insights into the company’s performance in real-time. Utilizing user-friendly, interactive, and intuitive reporting tools enables team members—regardless of financial expertise—to understand and use the data effectively.
Improved cross-departmental visibility is achieved through financial reports that help business leaders track their team's performance against company objectives. Regular financial updates provided by the CFO further enhance this transparency, keeping the organization informed about key goals, progress, challenges, and shifting priorities. These updates, whether through dashboards or direct communication, ensure that everyone remains aligned and focused.
By fostering open discussions about the company’s financial performance, CFOs build trust between finance and the rest of the organization consequently developing a company culture where everyone is made aware of their contributions. This transparency promotes a culture of openness and collaboration. Additionally, CFOs can take proactive steps to improve financial literacy across the organization, helping employees understand how their work impacts financial outcomes. This not only empowers teams but also creates a more unified organization.
With tools, transparency, and clear communication, CFOs lay the foundation for a culture of openness. Regular updates, accessible data, and clear expectations contribute to better collaboration and stronger alignment with strategic goals. This holistic approach positions the CFO as a key driver of organizational success while reinforcing trust, understanding, and efficiency across all departments.
Investment decisions are a reflection of an organization's priorities and values. What strategies can CFOs use to ensure financial priorities reinforce a culture of innovation and long-term value creation?
CFOs play a pivotal role in aligning financial priorities to foster a culture of innovation, ensuring that organizations not only adapt to change but also thrive in competitive environments. By employing strategic financial planning, collaborative processes, and long-term thinking, CFOs can make impactful investment decisions that encourage innovation while aligning with the company’s overarching values.
One key approach CFOs can take is integrating innovation into strategic financial planning. This involves allocating specific portions of the budget toward initiatives like research and development (R&D), technology upgrades, and employee skill-building. An “innovative budget” ensures the organization has dedicated resources to explore new opportunities, experiment with novel ideas, and improve existing processes. By making these financial commitments, CFOs demonstrate that innovation is a strategic priority and a critical element of the company’s long-term growth plan.
Financial leaders can promote sustainability as a core organizational value by aligning budgets with ESG priorities.In what ways can CFOs integrate sustainability metrics into financial planning to drive cultural change toward responsible business practices?
If ESG (Environmental, Social, and Governance) is one of a company’s core values, CFOs play a crucial role in embedding sustainability into financial planning and fostering a culture of responsible business practices. By aligning financial strategies with ESG priorities, CFOs can drive significant cultural and operational change within the organization.
One of the primary ways CFOs can integrate ESG values is by incorporating sustainability metrics into budgeting and forecasting processes. This involves allocating resources specifically to ESG initiatives, such as programs aimed at reducing carbon emissions, improving energy efficiency, or enhancing social equity. By embedding ESG metrics into financial planning, CFOs ensure that sustainability becomes an integral part of the company’s strategic goals and resource allocation.
Additionally, CFOs can align ESG goals with financial KPIs, creating a framework where performance is measured not only in terms of revenue growth or profit margins but also through the lens of sustainability. For example, KPIs can include reductions in carbon emissions, energy consumption, or waste production alongside traditional financial metrics. This alignment demonstrates a commitment to balancing profitability with sustainability, encouraging employees and stakeholders to prioritize ESG objectives.
Investment prioritization is another critical avenue for integrating ESG values. CFOs can evaluate and prioritize projects based on their ESG impacts, such as renewable energy initiatives, carbon offset programs, or waste reduction technologies. By incorporating ESG criteria into investment decisions, CFOs can direct resources toward initiatives that align with the organization’s sustainability goals while also assessing risks associated with ESG factors, including regulatory changes, climate-related risks, and reputational impacts.
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