Finance can help in planning for volatility: whether robust recovery or recessionary relapse, the decade ahead provides an opportunity for CFOs and finance organizations to bring much-needed rigor planning and forecasting process.

• Author: Mekrut, William
• Position: FINANCE BEST PRACTICES - Chief financial officers

The recession appears to be over, but the future is far from certain. Economic predictions range from a robust recovery driven by emerging markets growth to a double-dip recession. Writing recently in the Harvard Business Review, professor Pankaj Ghemawat of the University of Navarra's IESE Business School in Spain makes a convincing case that whatever the short-term outlook, the decade ahead is likely to be characterized by weak economic growth globally, overcapacity in many segments of the economy, persistently high unemployment, costlier capital and an expanded role for government. This, along with increased regulation, greater protectionism and higher taxes.

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C-suite executives weighing these various scenarios face a dual challenge: First figuring out which economic forecast they consider most realistic. Then, determining how that should drive their company's strategic direction.

How fast should it ramp up to meet the opportunities presented by a recovering economy, and where? Which existing products will generate the greatest returns? Which products no longer have appeal and should be scrapped? Which new products or markets show the most promise? Which competitors might be acquired, including any that may have been out of reach prior to the market upheaval of the past three years?

Where does the company need to invest in new technology, enhanced product design or more efficient delivery systems, and how will it fund those efforts?

Lastly, how will the company allocate capital generally to its best advantage? Chief financial officers and finance organizations have a special role to play in this exercise. With their analytical background, financial market insights and front-row view of the company's revenues and cost structure, they can bring much-needed rigor to the planning and forecasting process.

Here are 11 areas where CFOs and finance organizations can help their companies navigate the uncertainty of the decade ahead:

* STRATEGIC PLANNING

The CFO should serve as the architect of the strategic plan--if not author--then as someone who has added at least as much input as anyone else in the organization. The CFO has unparalleled insight into the performance of each of the company's business units, a deep understanding of the company's capital structure and resources, a trained analytical mindset and professional proximity to developments in the financial markets and in tax and accounting policy.

All of this gives the CFO an un-equaled vantage point from which to gauge and shape strategic direction.

For companies that struggled through the latest recession, this is a time to review what worked...