While 81 percent of CFOs agreed that accurate revenue and earnings forecasting is either a "high or the highest priority" in the present business climate, and 93 percent believe they are complying with all external reporting requirements, 63 percent indicated they are saddled with inadequate budgeting, forecasting and decision support IT systems.

Respondents cited a number of roadblocks that hamper their efforts to improve the quality of information delivered by finance: near-term pressures such as operating in the weak economy; increased scrutiny of accounting and reporting practices; greater demands for up-to-date information that can be acted on immediately; and demand for almost immediate positive return on investment.

When asked what tools were needed to fully deploy financial transformation, many respondents cited shared services, outsourcing and Web enablement. The most common finance activities for shared services included cash management, fixed asset management and payroll; benefits, tax and payroll activities represent those that are mostly outsourced.

Although CFO roles have shifted somewhat over time, finance transformation has taken on a new urgency for many companies. Many of the most pressing issues CFOs face -- including greater forecasting accuracy and transparency, which 58 percent cite as a top priority -- depend on enhancing finance's capabilities, according to the survey respondents.

Cap Gemini Ernst & Young collaborated with CFO Research Services to conduct the survey in May 2002. Respondents included chief financial officers, corporate controllers and other senior financial officers of large companies in various industries, including manufacturing, retail, chemicals, energy, telecommunications, financial services and healthcare. The findings are reported in "CFOs: Driving Finance Transformation for the 21st Century." Click here to download the complete survey.