How the CFO Role is Changing

The past few decades have witnessed significant growth in the demands on and expectations of finance leaders, particularly as they have become central to helping their organizations navigate an increasingly complex business world.

The role of CFOs continues to be stretched and scrutinized in addition to being financial gate keeper, the CFO is also expected to participate in driving the organization toward achieving its objectives.

In forward-looking organizations, the CFO and the F&A function are evolving from a transactional and cost efficiency focus to an increasingly value-adding strategic focus.

In addition to overseeing the F&A function and related information systems, CFOs’ responsibilities typically include:

? demonstrating ethical leadership and business integrity;

? balancing short-term concerns and pressures, such as managing cash, liquidity, and profitability, and long-term vision and sustainable organizational success;

 ? fulfilling stewardship responsibilities by ensuring effective compliance and control and responding to ever increasing regulatory developments, including financial reporting, capital requirements, and corporate responsibility;

? sharing strategic leadership responsibilities with the CEO and other senior managers and ensuring the F&A function supports the business at a strategic and operational level;

? driving and managing change and innovation within the organization; and

? engaging and communicating effectively with colleagues, investors, customers, suppliers, regulators, and other internal and external stakeholders.

A good CFO will always be at the elbow of the CEO, his shadow.

Is There a Typical CFO Role?

The expectations of CFOs change over time and are influenced by various external and internal drivers that affect organizational circumstances and requirements.

Organizations shape the CFO role to meet current needs and expectations, particularly in terms of the expectations the CEO and chair have of the CFO, and in relation to the existing composition and skills of senior management.

The type of organization, whether it is in the public or private sector, and its history and culture will also influence the type of CFO required.

Principles Guiding the Role and Expectations of a CFO

A. Be an effective organizational leader and a key member of senior management;

B. Balance the responsibilities of stewardship with business partnership;

C. Act as the integrator and navigator for the organization;

D. Be an effective leader of the finance and accounting function; and

E. Bring professional qualities to the role and the organization.

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