Where most Virtual CFO’s fall down: the balancing act of strategy vs implementation

In the world of business finance management, the role of a virtual Chief Financial Officer (CFO) has become increasingly pivotal. As businesses strive for growth, the need for a robust financial strategy coupled with effective implementation is more critical than ever. Yet, this is where many businesses encounter their most significant challenge – the delicate balancing act between creating strategic plans and actualising these plans through concrete actions.

The critical importance of financial strategy

At the heart of every successful business lies a comprehensive financial strategy that is linked with all areas of the business. The role of a virtual CFO must go beyond mere number-crunching to ask the foundational ‘why’ behind each financial decision. This involves a deep dive into the business goals, challenges, and opportunities, and should result in a financial blueprint that aligns with the overall business strategy.

• Asking the ‘Why’: Understanding the motives and objectives behind financial decisions is crucial. It’s about looking at the bigger picture and aligning financial goals with the business’s long-term vision.
• Making a plan: A well-defined financial strategy acts as a roadmap, guiding the business through each phase of growth and development. It identifies potential pitfalls, opportunities for growth, and avenues for revenue generation.

The Importance of Implementation

A strategy, no matter how well-crafted, is only as good as its implementation. This is where many businesses stumble, finding it challenging to translate strategic plans into actionable steps. Implementation requires a hands-on approach, monitoring progress, and making adjustments as necessary to ensure the strategy’s successful execution.

• Driving Change: Implementing a financial strategy often requires changes in processes, systems, and sometimes, organisational culture. Having someone dedicated to overseeing these changes is vital for seamless execution.
• Team Engagement: Effective implementation is a team effort. It involves coordinating with various departments, understanding their needs and challenges, and ensuring that the financial strategy is implemented cohesively across the board.

How to choose the right Virtual CFO?

When seeking support for your finances, finding a partner who excels in both strategy and implementation is key. Strategy is nothing without implementation, but implementation is impossible without a strategy, which is why having this balance is critical. This balanced approach is not only essential but also what Beyond CFO clients love most about their financial strategy. Business owners who team up with Beyond CFO always feel confident in knowing that their financial strategies are not only well-thought-out but are also pragmatically implemented, bridging the gap between planning and action.

• Outside perspective: Bringing in an external expert like Beyond CFO can be transformative. An outside perspective uncovers blind spots, introduces new best practices, and fosters innovation.
• Team collaboration: Beyond CFO believes in working closely with the entire team, from the top management to customer-facing team members, ensuring that the financial strategy is understood, embraced, and executed by all.

Thinking about hiring a Virtual CFO?

Working with a Virtual CFO can be a transformative experience, giving you confidence in what you need to do to reach your business goals. But if you find the right person who can balance strategy and implementation, you will not only receive a plan to improve your financials but also a seamless implementation. Rather than being handed a long list of action items, you will have someone to guide you every step of the way so that your goals can become a reality.

Learn more about working with Beyond CFO