Chief financial officers (CFOs) may be more visible than ever before, and the alliance between a CEO and his or her CFO has become the most important relationship among managerial teams. But what do CEOs really require of their finance chiefs in today’s business climate?
Naturally, this is influenced by a variety of factors such as company size, sector, geographical markets, and stage of development. Nevertheless, we believe there are five key areas where CFOs can make an impact and contribute significantly to their CEO’s success.
What CEOs Want From Their CFOs
The first is understanding the business model. This means having a clear grasp of how the company makes money – what the revenue streams are, and how they interact with each other. It’s vital for the CFO to be able to explain these revenue streams to the CEO in a way that is simple, clear, and easy to understand.
The second area is forecasting. The CFO needs to be able to provide accurate and reliable predictions about where the company is headed financially. This requires not only a deep understanding of the past financial performance of the company but also an understanding of the current trends in the marketplace.
The third area is cash flow management. The CFO needs to be able to ensure that the company has enough cash on hand to meet its obligations and take advantage of opportunities as they arise. This requires a deep understanding of both the company’s financial situation and the overall economic environment.
The fourth and final area is risk management. The CFO needs to be able to identify and manage the risks that the company faces. This requires a deep understanding of both the company’s financial situation and the overall economic environment.
By focusing on these four areas, CFOs can make a real difference in their companies and position themselves as trusted advisors to their CEOs.
Remote Workforce Management
The COVID-19 pandemic has forced many companies to rethink the way they do business. One of the most significant changes has been the move to a remote first workforce. This shift has been driven by a need to protect employees and customers from the virus, but it is likely to have a lasting impact on how companies operate.
Remote work has become the new norm, which means that many CFOs are now managing their teams from afar. This can be a challenge, but there are some things that CFOs can do to make sure that they’re still effectively leading their teams.
- First, it’s important to keep communication channels open. Make sure that you’re regularly checking in with your team members and that they feel comfortable coming to you with questions or concerns.
- Second, keep your team members engaged by assigning tasks that are challenging but achievable. This will help them stay motivated and focused on their work.
- Lastly, make sure to give feedback regularly. This will help your team members understand what they’re doing well and where they can improve.
Following these tips, CFOs can ensure that they’re still effectively leading their teams even when they’re not physically present. Moreover, by maintaining open communication and giving feedback, CFOs can build trust with their team members, setting the stage for a strong partnership moving forward.