Why CFOs Should Lead the Data Strategy and Transformation Programmes

In today’s rapidly evolving business environment, organisation-wide Transformation Programmes are often a key mechanism for executing on business strategies. Such organisations have learned that Data is a critical asset in achieving success. But many enterprises face a common challenge: Who should be responsible for managing and leveraging this valuable resource? The answer may be surprising - the Chief Financial Officer.

In this post, we’ll explore why CFOs are well-positioned to take on this role and how they can help their companies make smarter, data-driven decisions through the development of a Data Strategy.

Why C-Suite Involvement in Data Strategy Matters

In our experience, for businesses to fully unlock the power of data in support of Transformation Programmes, it’s crucial that a member of the C-suite takes ownership of the data strategy. When top executives drive these initiatives, it ensures alignment with broader business goals, breaks down silos between departments, and fosters a company-wide culture that’s grounded in data-informed decision-making.

This high-level involvement is vital because data impacts every corner of the business—from marketing to sales, operations, and finance. While roles like the CEO or CIO may traditionally seem like logical choices to lead this charge, increasingly organisations are finding that the CFO is the best person for the job.

Why CFOs Are Perfect for Leading Data Strategy

When it comes to driving data initiatives in complex businesses, CFOs bring a unique set of skills and perspectives that make them ideal for leading data strategy. Here are five key reasons why:

1. Early Leadership in Data Strategy

In many companies, roles like Chief Information Officer (CIO) or Chief Technology Officer (CTO) don’t usually appear until the business reaches a significant size—often after €100 million in revenue. However, the journey to becoming data-driven should begin much earlier. The CFO can step in to fill this gap, ensuring that data is leveraged for smarter decision-making from the very beginning. They can lead data strategy until the company reaches a size where hiring a dedicated CIO or CTO makes sense. 

2. Broad Financial Perspective

CFOs have a holistic view of the company’s financial landscape. They understand how every department impacts the financial outcomes of the business. This big-picture perspective enables CFOs to use data to drive value across the organisation and support strategic decision-making that aligns with long-term business objectives.

3. Cross-Functional Insight

Because of their involvement in various aspects of the business, CFOs are equipped with cross-functional insights that are essential for effective data strategy leadership. They can connect the dots between data coming from different areas of the company, leading to insights that may not be apparent when data is siloed within individual departments.

4. Profit and Loss Accountability

As the person responsible for managing the company’s profit and loss (P&L), the CFO has a vested interest in using data to improve financial performance. This accountability drives CFOs to focus on how data can enhance efficiency, reduce costs, and increase profitability.

5. Influence and Connections

CFOs hold significant influence within the organisation, and they have the necessary relationships to ensure the success of a data strategy. Their position allows them to advocate for data initiatives and secure buy-in from key stakeholders. As Frank Friedman, former CEO and CFO of Deloitte, famously said, "CFOs are the logical choice to own analytics and put it to work to serve the organisation’s needs."

How CFOs Can Lead Data Strategy

For CFOs ready to take the lead in their company’s data strategy, here are three key steps to get started:

1. Evaluate and Plan

Start by assessing your current data landscape. What types of data does your company collect? Where does it come from, and how is it being used? From there, set clear goals for your data strategy. Whether you want to improve financial forecasting, enhance customer insights, or optimise operations, these goals should align with your broader business objectives.

2. Build a Strong Data Framework

To effectively manage data, establish a unified data management system that consolidates information from all parts of the business. Many CFOs find themselves bogged down by outdated, manual processes like clunky spreadsheets. Choose a platform that will simplify data collection and analysis, helping you create a reliable, single source of truth for your business data. When we consult with clients in the context of designing and architecting data platforms, we typically emphasise that the choice of technology for the data platform is less important than making the correct decisions about what data is most important to the business.

3. Develop and Monitor Key Performance Indicators (KPIs)

With a solid data framework in place, it’s time to develop KPIs that align with your business goals. These KPIs should provide actionable insights across all departments, not just finance. Regularly reviewing these metrics will help you spot trends, uncover opportunities, and address challenges before they become significant issues.

Next Steps: Accelerate Your Data-Driven Journey

By stepping up as the leader of your company’s data strategy, CFOs can help guide their organisations toward smarter, more informed decision-making and long-term success.

At Spark, we specialise in helping companies like yours become data-driven and successfully execute on transformation programmes. Whether you need help assessing your current data landscape, building a robust data management framework, or developing KPIs, we’re here to assist. Ready to accelerate your data-driven journey? Reach out to Spark today, and let’s explore how we can help your business thrive.