A modern-day CFO is not just the person handling the finances of a company. Businesses now need a CFO who possesses the necessary skillset to ask the right questions and take the organization to greater heights. While being adept at handling finances is a pre-requisite, it is not the only CFO trait. CFOs are now expected to come in as a strategic partner to provide inputs, work closely with the CEO, and shape the company’s growth. The CFO is also responsible for identifying constraints that hinder the company’s growth and leverage the finances to remove the impediments.
But all CFOs are not made equal. Some possess the skills to become a strategic CFO, whereas others learn it on the job. Curious about what does it take to become a strategic CFO? Here are five key traits you should be looking for:
Exceptional communication skills
A strategic CFO is expected to make the most out of their high-quality relationships. Having excellent communication skills goes a long way in building a solid rapport with people within and outside the organization. As a CFO, you must be a skilled communicator who can breakdown the most complex issues and communicate them to various stakeholders such as investors, financial analysts, employees, and customers. Moreover, given the rapid advancement in technologies, strong communication skills, senior executives such as the CFO can go a long way in helping the organization achieve its objectives.
Superior communication skills also help you seamlessly manage the operations. For instance, finance presentations often fail to make a mark because they do not address the concerns of the audience. A CFO with solid communication skills can create an engaging presentation that strikes the right chords.
Insight about the company value chain
A strategic CFO cannot survive with a one-dimensional view and solely care about the shareholders. It is crucial to have a holistic and unbiased view of the company’s potential and its entire operations. Ask any business advisory consultant, and they will tell you that transparency is one of the most critical factors that directly impact the company’s growth.
A CFO should have the ability to identify the shortcomings in the value chain and devise actionable strategies to overcome the same. By gaining insights into the company value chain, the CFO can successfully assess the company’s current performance and prospects of growth.
Hiring the right talent
Being a successful CFO requires a successful team. It is not a one-person initiative. Hiring people with the right caliber and skill set is essential for the long-term growth of the company.
A strategic CFO actively takes part in the hiring process. Instead of just monitoring the process from behind the scenes, they get directly involved with the recruitment process. They don’t shy away from identifying the shortcomings within their team, allowing successful CFOs to hire the person who fits the bill. They also go beyond the resume and assess the candidates’ other competencies, such as critical thinking, leadership, and communication skills. Simply put, they do everything they can to put in place a team that can deliver results.
Integrity and honesty
This is one of the essential traits of a strategic CFO. According to a 2013 survey, trustworthiness and knowledge have been identified as the core traits a CFO must possess. Given that several CFOs in the past have found themselves in the middle of billion-dollar corporate scandals, the need for increased accountability and integrity is vital for good corporate governance practice.
Integrity is not only about having an internal conscience. A CFO with integrity also knows how to make the right decisions aligned with the company’s overall interests. Such CFOs also treat everyone in the same manner regardless of how they impact the bottom line. Above all, a CFO with integrity is the same person even when the situations are vastly different.
Leveraging the right metrics
Tracking the proper metrics is essential for ascertaining the growth and success of the company. But it is also necessary to pick the right metrics for monitoring, and a strategic CFO does just that. Instead of fussing over too many metrics, such a CFO identifies the core business drivers that truly matter.
They work towards identifying industry-specific and company-specific metrics that actually translate to real value creation. This allows everyone in the organization to streamline their focus and work on the right things instead of chasing vanity metrics.
Are you looking to outsource CFO services for your company in the UAE?
Finding a CFO who has all the traits of a strategic CFO is no cakewalk. Moreover, as a startup, you may not have sufficient budget to appoint a full-time CFO. Nevertheless, a company without CFO is like a ship without its captain. Unless the finances are taken care of right from the beginning, the growth story of your business may be compromised.
If you are looking for CFO services in Dubai, you can always count on Centurion Consulting LLC. We give you easy access to qualified and experienced CFOs who can take care of Payroll requirements, WPS requirements, Accounting, and Treasury Management Services.
Our team of highly-experienced business consultants can also advise you about the various compliance requirements for successfully doing business in the UAE. Want to know how this works? Book a 45 min free online or offline consultation session with us to learn more about our CFO services and explore how our CFO consultants can help you get to the next level.
