Driving Better Business Results Through Financial Services
Maximizing Long-Term Corporate Growth And Shareholder Value
Having access to a variety of business information, Finance leaders and their teams typically have an in-depth understanding in the company’s overall performance. With a bird’s eye view
of how the organization runs, they are probably better positioned to contribute meaningfully to strategy development and execution and go beyond being an “information provider” to understanding the impact of different strategic options through “what-if analyses”. CFOs are
being asked to utilize their traditional analytical, reporting and control skills outside of the traditional finance function to assess the impact of various strategic initiatives in the business.
CFOs Skill Sets
One of the most important characteristics of a CFO is the ability to communicate financial matters to non financial stakeholders. He or she needs to answer the questions that are asked and also be able to provide context to the relevant audience. To be even more effective, the
team should be able to explain numbers in a way that is easy for their stakeholders to understand. Thus, important skills to develop include the ability to spot trends, ability to write reports that read well, and the ability to drill down into the details without losing sight of the big picture.
"For the finance team to have an impact within the organization, key requirement for the CFO is to be able to have the conviction and confidence"
Finance Team’s Impact Within The Organization For the finance team to have an impact
within the organization, key requirements for the CFO is to be able to have the
conviction and confidence to:
1 Challenge management decisions and question numbers and assumptions thrown up by business.
2 Communicate the implications of decisions taken in an unbiased manner. Value will be perceived from being able to interpret numbers and explain them in a “story” like manner to catch the attention of management.
The CFO-CEO Pair In An Organization
The CFO-CEO pair can be a deadly combination in business. Some CFOs actively develop and define the overall strategy, while most provide insight and analysis to support the Chief Executive Officer (CEO) and ensure that business decisions are grounded in sound financial
criteria. The CFO also needs to strike a balance between being the “Independent voice” of the business and assuming a broader responsibility for being actively involved in strategic outcomes in the business.
Thus, the finance function across organizations and sectors is increasingly being recognized as:
(a) An “enabler” to the business by playing a key role in identifying and evaluating opportunities for organizationa change.
(b) Acting in the interests of the company’s stakeholders at all times.
