One of the key Chief Financial Officer's jobs is to protect the assets of the organisation. And while innovation can generate a lot of value, it is without a doubt the riskiest investment class.
If we take into account that a majority of new business ideas fail miserably, it is no wonder that CFOs are reluctant to invest in innovation on a regular basis. It also doesn't help that traditional accounting systems provide little means of controlling innovation investments.
Because of the above, CFO and corporate finance are often seen as innovation blockers. I do not agree with that. They are simply doing what they think is best for the organisation.
In fact, in my experience, they can become the greatest internal innovation enablers once they are provided appropriate tools, methods, and systems for measuring the performance of innovation investments.
Innovation accounting system complements existing financial accounting system, whilst providing means of measuring innovation at strategic (ecosystem and portfolio), managerial (funnels), and tactical (teams) levels.
That in turns allows the CFO to make an informed investment decisions, as well as their people to leverage their subject-matter expertise and assist innovation teams to be even more successful.
Here are select resources CFOs and other financial professionals might find useful:
Subscribe to get the latest posts delivered right to your inbox. No spam. Only Bruno.