Why corporate strategy is moving to the CFO's office
Corporate strategy functions are increasingly reporting to CFOs rather than CEOs, reflecting a shift toward finance-led decision-making. This trend is driven by market volatility, geopolitical uncertainty, and the need to quantify the impact of AI on business performance.
Why it matters
This organizational shift signals that modern finance leaders are becoming central architects of long-term corporate strategy and digital transformation.
Good morning. The corporate strategy playbook is increasingly landing on the CFO’s desk.
McKinsey recently held its 24th annual Global CFO Forum, an exclusive gathering that brought together about 100 finance chiefs from over 30 countries representing some of the world’s largest organizations. I spoke with Andy West, a senior partner at McKinsey and global co-leader of the firm’s Strategy and Corporate Finance practice, who shared key insights from the forum.
West conducted an informal poll, asking the CFOs whether the strategy function now reports to them. About two-thirds raised their hands. Five years ago, it would have been less than a third, he said.
“We are definitely in a new era,” West said. Beyond org charts, CFOs are increasingly central to navigating shifting competition, macroeconomic and geopolitical uncertainty, and rapid technological disruption.
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