The Emerging CFO

If it's true, as F. Scott Fitzgerald once said, that, "The test of a first-rate intelligence is the ability to hold two opposed ideas in mind at the same time and still retain the ability to function," then CFOs are being tested as never before.

On the one hand, they are devoting serious attention to matters of growth, both in terms of corporate performance and their own role in their companies. On the other, they are being forced to think more tactically and defensively, as global volatility and a long list of mixed signals confront them with plenty of uncertainty.

Much has been reported about the increasingly strategic nature of a CFO's role. However, the commentary on the CFO's migration from scorekeeper to strategist is now in need of an update, or at least, a clarification.

What is the precise contribution that the CFO makes to strategy? Is the role of managing the numbers of less value than strategic advisor? Does developing strategy mean setting the long-term vision, or is this still the domain of the CEO — to be the big "blue sky" thinker?

The CFO is ideally placed to play a central role in strategy formulation. However, there is a wide variation among different finance leaders on the exact nature of their contribution to strategy.

Around one-third of CFOs say they play an active role in developing and defining the overall strategy for their organization. But, for a greater proportion, their contribution focuses on providing insight and analysis to support the CEO and ensuring that business decisions are grounded in sound financial criteria.

For leading CFOs, this goes beyond being an "information provider" or "aggregator presenter." Their commercial understanding and analytical skills mean that this proactive, yet supporting, role is a vital part of understanding how different decisions will lead to certain outcomes.