The CFO’s Strategic Role: Beyond Targets and Scorecards

The CFO's strategic role in business has never been under more scrutiny. Finance has traditionally focused on setting targets and measuring outcomes — a valuable function, but one that increasingly limits what finance leaders can contribute. 

SAP Concur CFO Insights 2026 research reveals that 57% of CEOs now see the CFO as their strategic partner, and 32% believe the role is evolving into broader enterprise leadership. Yet an expectation gap remains: 83% of CEOs expect finance to drive growth through strategic planning, while only 67% say it is currently doing so. Closing that gap requires a fundamental shift in how CFOs operate.

Why Is the Finance Yardstick Approach No Longer Enough?

The finance yardstick approach is no longer enough because it keeps finance at arm's length from the delivery process — and as AI takes on the data collation that once defined finance's value, measuring outcomes alone is no longer where the real contribution lies. This model effectively divorces finance from delivery, even when finance bears accountability for missed targets. It also positions targets as top-down impositions rather than shared objectives, creating friction with the business functions finance is meant to support.

As AI takes on more of the heavy lifting in data collation, the real differentiator for finance teams becomes interpretation and insight. 

"Understanding numbers is a skill AI won't replace," says Subrata Das, Group CFO at Fluido. "The collation work can be automated by AI. But the value of finance professionals comes from how they analyze the output, read what it's telling them, and explain it to the wider business." 

This is where the CFO's strategic role becomes critical.

How Can CFOs Make Target-Setting a More Strategic Conversation?

One of the most immediate ways CFOs can broaden their strategic role is by reframing how targets are set. Rather than handing down fixed numbers, finance leaders can give business functions a credible range, explain the commercial rationale behind targets, and frame them in the context of organizational goals.

"The moment you hand a colleague a blanket target, you lose the conversation," says Sharon Naidoo, CFO for UK and Europe at TransUnion. "If you give people a range to work with rather than prescribing a set target, then they feel they've got a seat at the table, and you can start looking at solutions together." 

This collaborative approach doesn't compromise financial discipline—it strengthens buy-in and improves the likelihood that targets will be met.

How Can CFOs Stay Close Enough to Coach Business Functions?

Moving beyond target-setting means staying involved through delivery. Finance leaders have a unique cross-functional vantage point, connecting the dots between product, sales, operations, and HR to show how individual contributions add up to the overall results. This broader view lets finance act like a sports coach — adjusting tactics, spotting risks early, and intervening before performance slips beyond recovery.

Rather than waiting until reporting time to flag a missed target, finance teams can communicate regularly with business functions and take proactive measures as needed. Breaking headline targets into component parts — making clear who owns what and how individual contributions affect wider goals — is one practical way to make this coaching role concrete.

How Can CFOs Balance Strategic Support with Financial Discipline?

The coaching role does not mean backing every initiative regardless of results. Finance leaders also need to know when to apply discipline — reviewing whether underperforming investments still hold commercial merit or whether funds should be reallocated. According to Lukas Deutsch, Chief Controlling Officer at SAP: 

"Where an investment has hit its targets, we keep backing it; where it hasn't paid off, it's about reprioritizing or calling it a day."

SAP Concur CFO Pulse Survey 2026 found that even as external conditions deteriorate, finance leaders are protecting spending on AI and automation (66%), cybersecurity (66%), and product innovation (54%) — a signal that strategic prioritization, not blanket cuts, defines the modern finance approach. Knowing when to provide support and when to impose discipline is itself a skill that should be embedded in finance teams at every level.

What Skills Do CFOs Need to Play a Strategic Role?

A third of finance leaders rank business partnering and communication as top three in-demand skills, according to the SAP Concur CFO Insights 2026 report. Yet 49% also cite a weak data culture and lack of data skills as significant barriers to effective decision-making. Developing the CFO strategic role, therefore, means investing in both.

Finance teams need to be data literate enough to interpret what the numbers mean, and commercially astute enough to translate those insights into decisions and conversations that move the business forward. Upskilling juniors — not just senior leaders — is essential, since the judgment needed to switch between coaching and enforcement does not come from frameworks alone.

Frequently Asked Questions

What does the CFO’s strategic role mean in practice? 

The CFO's strategic role goes beyond traditional target-setting and financial reporting. It involves coaching business functions through target delivery, connecting financial data to strategic priorities, and maintaining regular dialogue with function leaders. According to SAP Concur CFO Insights 2026 research, 57% of CEOs now describe the CFO as their strategic partner.

How can CFOs make target-setting more collaborative? 

Rather than issuing fixed targets, CFOs can provide a credible range and explain the business rationale behind each goal. This approach gives function leaders ownership over the route to delivery while maintaining the commercial boundaries finance must uphold. Research cited in the SAP Concur CFO Insights 2026 report shows that giving people a range to work with rather than a prescribed number creates a more collaborative, problem-solving dynamic.

How should CFOs balance strategic support with financial discipline? 

CFOs need to assess each situation individually — determining whether an underperforming investment can be course-corrected or whether budget should be reallocated. SAP Concur CFO Pulse Survey 2026 found that 66% of finance leaders plan to protect AI and automation spending even under external pressure, reflecting a discipline that prioritizes strategic investments while being willing to cut where results do not materialize.

What skills does a CFO need to play a strategic role? 

Business partnering and communication skills now rank among the top three in-demand capabilities for one in three finance leaders, according to SAP Concur CFO Insights 2026 research. Data literacy is equally important — 49% of finance leaders cite weak data skills as a barrier to sound decision-making. Training and recruitment at all levels of the finance function are also needed to build the judgment to switch between coaching and enforcement roles.

Why is there a gap between CEO expectations and CFO delivery on strategy? 

The gap exists partly because finance functions have historically been structured around measurement and reporting rather than active involvement in delivery. SAP Concur CFO Insights 2026 research found that while 83% of CEOs expect finance to contribute to growth through strategic planning, only 67% say it is currently doing so. Closing this gap requires CFOs to invest in skills, change how they set targets, and maintain closer relationships with business functions throughout the performance cycle.