Ideas and Insights
Evolving CFO Role: Not Just for Finance Anymore
The role of the CFO has seen a paradigm shift in today’s fast-paced, ever-changing business environment. From being a financial record-keeper and controller, responsible for reporting, budgeting, treasury and managing internal controls, to retrospectively analyzing the financial impact of the organization’s decisions; the role of the CFO has evolved to being actively involved at the planning stage and in charting the future course of organization strategy.
Today’s CFO is expected to be part of the executive leadership team, utilize his critical thinking skills in setting the organization strategy and use his financial acumen in executing the same through sound financial and performance management. Simply put, the resources that have the strongest grasp on the organization’s finances need to be part of the thinking process from ground up. Not only should they assess the impact of strategic initiatives like mergers and acquisitions, but also participate in the tactical planning process, by analyzing the likely financial impact of industry trends and related strategic issues of the company. This requires the CFO to have deep understanding of operations, industry trends, competitive landscape and macro environment.