Today’s CFOs have two broad and long-term roles: generating and articulating the business strategy and leading the delivery of the financial and operating models to sustain and grow it. In establishing the strategy, it’s critical to ensure it is as prescriptive and directive as possible, with stakeholder feedback and key performance indicators at the forefront. The best finance organizations leverage financial data, information, and decisions to drive a distinct and cohesive business view.
The need to expand the CFO role
Having a financial outlook rooted in corporate purpose can benefit a company in many ways. A clear and compelling financial vision and strategy allow companies to plan their business strategies, creating a positive environment to engage their employees and customers, noted Gary McGaghey.
CFOs can instill the value of corporate responsibility and build a culture of collaboration and teamwork. These steps can accelerate growth as they tie people to purpose and advance employee engagement.
Fiscal strategy for growth
Gary McGaghey: The CFO is at the center of business strategy, innovation, and transformation. Investing in key strategic initiatives through their vision for growth, engagement, and funding across the business helps drive sustainable business models. Innovation isn’t just about product or process development but also establishing new business models.
Innovation isn’t just about product or process development but also establishing new business models. Healthy employees: Employees must be empowered to solve problems. This empowers the business to take risks that extend the team and produce high-value outcomes.
Business process innovations
Several recent instances demonstrate the impact that CFOs can have on innovation within the business. Gary McGaghey: We recently attended a national award presentation at which we saw the impact that one CFO had on a local water utility. Our CFO is a kind man, but he can be challenging and intimidating. We caught a glimpse into the CFO’s perspective during the presentation, as he candidly observed, “You don’t know what this man does for a living.” He quickly pivoted, “But the job he’s doing is pretty remarkable.” Our CFO is famous for turning a two-dimensional sheet of paper into a three-dimensional drawing of how the organization could move faster and do better.
Gary McGaghey is a financial expert and CFO with over 20 years of experience in the industry. Gary specializes in providing solutions to clients’ financial problems through his private equities team at Williams Lea Tag, as well as his forecasting, budgeting, and performance analysis skills. Learn more information about Gary McGaghey