"Many of these estimates have rebounded from survey lows seen in 2012, but they are still, for the most part, below their longer-term survey averages," said Dick Cooper, Deloitte's co-leader of the CFO Program. "As net optimism recently has tended to peak in the first quarter only to decline in following quarters, this survey may suggest that CFOs believe the North American economy still has some way to go before they consider this to be a sustainable recovery."
The Deloitte CFO Signals survey also revealed the following results (estimates are adjusted averages to reduce the effect of outliers):
-- Increased public policy advocacy efforts. About 40 per cent of CFOs said their most significant response to possible changes to public policy has been to begin or increase their policy advocacy efforts, including new or revised government relations strategies, increased lobbying efforts and, for U.S. companies, an increased presence in Washington, DC.-- Boards focused on operational performance. Boards of directors appear predominantly focused on income statement metrics and risks to operational performance. Revenue growth/preservation is a substantial or strong focus for more than 75 per cent of boards; risk management/mitigation and cost cutting are next at just under 60 per cent and 50 per cent, respectively. Boards appear relatively less focused on liquidity and investment.-- Companies mostly on the offensive. Companies are generally more focused on pursuing opportunity than on limiting risk, more on growing and scaling than on contracting and rationalizing, and more on growing revenue than on cutting costs.-- Agreement on government spending. There is general agreement around the need for the United States to cut spending in the largest budgetary areas (Social Security, Medicare, and Defence), but there is considerable diversity of opinion about which areas should be cut, with no single category receiving more than 60 per cent of the vote. Comparatively few CFOs supported cuts to programs that provide aid to primarily low-income individuals and families.-- Finance is focused on planning and strategy. Managing financial planning and analysis (FP&A) is the most common "core finance" focus area, with half of CFOs citing it among their top three. Managing information/IT is an equal priority for Canadian CFOs, followed by managing finance strategy, while U.S. CFOs see managing liquidity and managing finance talent as their other top-three priorities. The top "business support" priority in both countries is supporting strategy, with supporting M&A the next priority in Canada compared with supporting sales as the No. 2 priority in the United States.
To download a copy of the survey, please visit: http://www.deloitte.com/view/en_US/us/Insights/browse-by-role/Chief-Financial-Officer-CFO/CFO-Signals/3188f2d145c3d310VgnVCM3000003456f70aRCRD.htm.
(i)All numbers with an asterisk are averages that have been adjusted to eliminate the effects of stark outliers.
The Deloitte CFO Signals survey was conducted for the first quarter of 2013. Eighty-five per cent of the 106 CFO respondents were from companies with more than $1 billion in annual revenues, and more than 70 per cent were from publicly traded companies. There were 15 Canadian CFOs who took part, representing about one in seven of the CFOs surveyed.
Each quarter, CFO Signals tracks the thinking and actions of CFOs representing many of North America's largest and most influential companies. This report summarizes CFOs' opinions in five areas: business environment, company priorities, company expectations, finance priorities and CFOs' personal priorities. For more information about Deloitte's CFO Signals, or to participate in the survey, please contact firstname.lastname@example.org.
Deloitte, one of Canada's leading professional services firms, provides audit, tax, consulting, and financial advisory services. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte operates in Quebec as Deloitte s.e.n.c.r.l., a Quebec limited liability partnership.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
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