The modern CFO is expected to wear many hats

Written by

Kenneth Okholm
T: (+45) 7191 9842
M: klo@atlab.at

In recent years, the responsibilities of the CFO have expanded significantly. Both the CEO and the Board of Directors now expect a broader and more versatile profile for this role.

Previously, the CFO’s primary responsibility was financial management and reporting. Today, CFOs are also required to excel in strategic leadership, digitalization, risk management, ESG, M&A and more. This requires the CFO to have a broad perspective and interact with all levels of the business with a deep understanding of both financial metrics and business goals.

The super CFO?

Back in March, Egon Zehnder published the report The Super CFO, with a global survey of nearly 600 CFOs. 82% of respondents stated that their role has grown significantly over the past five years. In the survey, the CFOs describe how they are not just taking on the role, but also embracing more responsibilities and managing demands that go well beyond finance. They are stepping outside their traditional tasks and have become the go-to person within the organization.

A quote from a CFO in the report, that really struck me was: “CFO is not a finance role. It is a strategic business role whose mandate is finance. CFOs should continue to be seen as a full partner to revenue-generating business lines and used as a counterpoint to ensure the right level of challenge, investment, and productivity is achieved to maximize long-term business strategy and financial outcomes.”  (page 43 in the report).

I see this as a clear indication that CFOs are no longer “just” focused on numbers but have gained a central role within the company, which requires a broader profile than before. This brings me to my next point.

It’s impossible to be an expert in everything

It’s a challenging time to be a CFO. I don’t believe the perfect CFO even exists, as no one can master everything alone – especially if you’d like to maintain somewhat of a work-life balance. There are simply areas where even the most experienced CFO must accept the need for external support.

In those situations where the CFO may lack certain expertise, I think using consultants with specialized knowledge can provide significant value – whether it’s in digitalization, risk management, ESG, or complex transactions.

Having a trusted advisor with expertise in specific areas can help reduce risks, ensure that solutions are scalable and aligned with the company’s goals, and most importantly, allow the CFO to focus on the core responsibilities and strategic decisions the company really depends on.

Think flexibility into your organization

To meet the complex demands of the CFO role, I see it as essential for the CFO to integrate flexibility into their organization. With rapidly changing market conditions and increasing expectations from management and the board, the finance function must be able to adapt and respond quickly.

A flexible structure enables the CFO to prioritize resources based on the company’s current needs, ensuring dynamic and robust financial management. It’s equally important for the CFO to look inwards and assess whether specialized skills are needed for some of the tasks that have landed on their own desk.

A key part of this flexibility is finding a reliable collaboration partner who understands the company’s goals and the specific needs of the CFO. A qualified partner, who has the right expertise, can serve as an extremely valuable advisor/consultant across projects, providing an unbiased perspective.

More than that, an adaptable partner is essential when it comes to maintain momentum and ensure projects and initiatives progress at the right pace, without overburdening the organization.

I hope this provided some food for thought.

Feel free to reach out to Atlab if you’d like to discuss whether we can assist you and become your trusted adviser/partner.