The Evolution of the Strategic CFO Eric Brandt

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Arline Simon
5 years ago
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1 The Evolution of the Strategic CFO Eric Brandt Executive Vice President and Chief Financial Officer Broadcom Corporation

2 Average cfo tenure Why? ~9.5 years 1 ~5.5 years 2 CFO CFOs have to be Critical Deftly and finding yes Increasingly Dynamic business requirements Adaptability CEO 2

3 Evolution of the Strategic CFO Skills Required Strategic Index Debits and credits Cash management 1850s Few CFOs 3

Business optimization Financial metrics Portfolio analysis

4 Strategic Index Evolution of the Strategic CFO Industry Trends Skills Required Rise of the conglomerate Business as a science Business optimization Financial metrics Portfolio analysis Capital allocation s/ 1960s 1960 Financially-Oriented CEOs 4

Complex accounting rules Leadership Crisis management

5 Strategic Index Evolution of the Strategic CFO Industry Trends Skills Required Fiscal crisis Rampant inflation Complex accounting rules Leadership Crisis management Asset protection s 1970 Skills Gap 5

Portfolio questions Shareholder value Deliver on valuation

6 Strategic Index Evolution of the Strategic CFO Industry Trends Skills Required Junk bonds Corporate raiders Portfolio questions Shareholder value Deliver on valuation Defense Capital market sophistication s

business models Data and business acceleration Portfolio choices

7 Strategic Index Evolution of the Strategic CFO Industry Trends Skills Required IPO fever Rise of the dot com and Internet business models Data and business acceleration Portfolio choices Investment management Business enabler s

(SOX) Internet (data proliferation) 1850.

8 Evolution of the Strategic CFO Strategic Index Industry Trends Skills Required Volatility/market crash Accounting/ financial crisis Increased regulatory oversight (SOX) Internet (data proliferation) s Capital markets Controls/compliance Process management Governance 2000 Boards Opt for the CPA CFO 8

9 An Epic acceleration of Business Volume/ Pace of Data Diversity of End Points Protection Faster Decisions Better Equipped Adversaries Faster Course Corrections 9

.. 1950 1960 Capital structure Governance/ shareholder friendliness Data management

10 Evolution of the Strategic CFO Strategic Index Industry Trends Skills Required Great recession Globalization Low cost of capital Technology/cyber Activists Capital structure Governance/ shareholder friendliness Data management Performance management 2010s Strategic Capabilities Become Paramount Again 10

11 Strategic and technical requirements Strategic Leadership Data Management Crisis Management Portfolio Choices Portfolio Analysis Business Partnership Financial Metrics Business Optimization Performance Management Asset Protection Capital Structure Capital Allocation Technical Investment Management Defense Capital Markets Deliver on Valuation Governance Compliance Process Cash Management Shareholder Friendliness Debits and Credits 11

12 The partnership Will Strengthen Strategy Pace & Protection of Information Organization CEO Business Complexity Innovation Compliance/Process Customers Investor Engagement CFO Neither Can Do Both Jobs Anymore 12

Strong team extends capabilities Deep Technical Skills Strong Process Skills Formidable Business Partners Technical accounting Controls Sophisticated analytics Cash management and capital markets Tax

13 Strong team extends capabilities Deep Technical Skills Strong Process Skills Formidable Business Partners Technical accounting Controls Sophisticated analytics Cash management and capital markets Tax Business processes Negotiating skills Investor relations Performance metrics Organizational development Portfolio management IT and cyber Quality of People WhatYou is Your Attract Legacy? and Their Success 13

14 Cfo success It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is most adaptable to change. Charles Darwin 14

15 Style and skills depend on Business Needs Facilitator Enabler Investment counselor ROI Portfolio Capital deployment M&A Scalability Leader Cost management Capital management Adaptability Drives Longevity 15

16 In any moment of decision, the best thing you can do is the right thing, the next best thing is the wrong thing, and the worst thing you can do is nothing. Theodore Roosevelt Numbers Don t Make Decisions People Do 16

17 THANK YOU

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