Banking On Finance Organization Culture

The CFO As Strategic Partner

With changing business environment and globalisation, the role of a CFO has evolved to require not just subject-matter expertise but leadership attributes with adequate market and business understanding. The expectation from a CFO is no different. CFOs are no longer expected to be just ‘Managers of companies’, financials or ‘cost and process optimizers’ but rather, ‘performance leaders’ and ‘strategic business partners’. Today’s CFO is just coming to terms with this changing paradigm and making a concerted effort to meet or beat this new role expectation.

A good start would be building a capable team and letting go of time-consuming “old world”- CFOs role of maintenance of books, audit and day-to-day financial management. This will free up time and bandwidth to focus on strategic areas of partnering with other business leaders for organic and inorganic business expansion. Working together with the CEO, today’s CFOs can add a lot of strategic value towards managing the most challenging task in the company, i.e., striking a balance between chasing short-term and long-term goals for the company. Enhancing their own awareness around latest technologies and their application to business can also help maximize profits. Taking on additional Non-Finance roles can help CFOs gain greater appreciation of the otherside and take a holistic view of business.

CFOs are no longer expected to be just ‘Managers of companies’, financials or ‘cost
and process optimizers’ but rather, ‘performance leaders’ and ‘strategic business partners’

Driving Better Business Results

One of the most important aspects of the finance organisation that can help drive better results for the business is the culture of the finance organization and the team’s mind set. The CFO
should groom his team to think of the Finance Department as more of a “Business Enabler” than a “Business Auditor”. This is a challenging task since it involves a fundamental change in
thought-process but it isn’t impossible to achieve. Leading by example will help achieve it faster. CFOs have to continue to play the role of a 'custodian', but this changed approach would
actually help them implement these processes (and with lesser pain) by positioning them well within the organisation. Once this fundamental change in approach is made, the team would receive better acceptance from business leaders and more appreciation of their financial impact analysis and ideas than before. The finance team in turn would learn to appreciate  business needs and common company goals. This understanding will broaden their horizons and help them come up with new ideas and solutions.