The Trouble with Perceptions of CFOs

29 July 2008:

In my professional life I often help CFOs deal with major insomnia-inducing business challenges that they face. Many are concerned, quite correctly, with the cost of complying with ever-increasing regulations, recessionary pressures and being the guardians and distributors of timely, accurate and meaningful business analysis. They also do not want to be seen as only generators of numbers and often feel that they are perceived by others in the business with a lack of respect and as a missing piece of the company jigsaw.

These perceptions have grown over time and in the modern business can hamper a finance director's ability to deliver a high level of service and corporate strategy.

The reality of many companies today is that their finance directors are putting a significant effort into examining elements of company performance and their cost-base. In some cases responses to optimisation are panic-induced, cost-cutting exercises to survive. Those that are better placed are spending time in examining and reshaping their organisations to be able to take market advantage when things improve; some saying early next year, others, later this year.

The good news is that there is a widespread recognition that any reshaping must be focused on the provision of improved levels of customer-service quality and finance is taking a leading role in this recognition. Customer retention is one of the biggest factors in achieving survival and growth.

We also see how fierce global competition is causing us to need much greater levels of control of our businesses and the 'buck stops' with the finance director and chief financial officer (CFO). While many are doing a good job, to be truly effective, CFOs need to overcome and dispel some old myths and prejudices.