Roles of a Multi-Faceted CFO in the Finance Industry

Roles of a Multi-Faceted CFO in the Finance Industry

By CFO Tech Outlook | Wednesday, September 18, 2019

It is no less than a challenge for a CFO to choose valuable methods to fit into place, considering their company’s business and leadership.

FREMONT, CA: CFOs are generally considered to have multiple faces that include being an operator, a steward, a catalyst, and ultimately a strategist. The orientations draw better clarity to the role of being a strategist and restore the capacity of a company to restructure and implement the new strategy. There are a few critical orientations that can help the CFOs to balance the strategy procedure. 


When it comes to being communicator, the CFO and the finance company need to support the strategy development of the business. They can lend their helping hands to the business leaders in analyzing the financial suggestions of the possible strategy choices quantitatively. Such CFO orientations are mostly seen in extremely decentralized businesses where the accountability of plans is in the hands of the CEO. In case of a communicator CFO, it is common that the CEO chooses to restrict the role of the CFO to seek quantitative and analytic support. To prove themselves as effective communicators, the CFO needs to consider having an essential financial planning and analysis ability (FP&A). They should be able to successfully deliver the appropriate analyses and data to the businesses, apart from the leaders who carry primary responsibility for creating strategy alternatives.


As a contender, the CFO needs to act as a steward of future value in the planning process by carefully examining the risks and the potential returns concerning the strategies. The role of the CFO as a contender can demand certain limitations in the business, such as working to minimize risks or ensuring ample returns to future investments. A capable contender might also need to have FP&A abilities as the communicator along with the access to vital information from the business units. It is important to remember that the CFO needs to check with the CEO before challenging the business leaders and their strategies. Once they get the green signal from the CEO, they can review the critical investment strategies and decisions of the organization.


As a designer, the CFO mutually works with the business leaders through shaping the decisions and applying finance strategies to balance and extend the value of the specific planning procedure. The designer CFO moves further than the challenger orientation to facilitate the financing of pioneering initiatives with the help of varied economic strategies through different delivery channels. Unlike the contender CFO, the designer makes the limitations work out properly in business investment. They effectively deliver the orientation by establishing joint trust and work collectively for the inception of the strategies. Furthermore, the CFO often requires having a strong finance team within the business to seamlessly partner with the industry leaders all through the strategy development.


A transformer CFO goes hand in hand with the responsibilities and the position of the CEO in determining and accomplishing the future strategy. It is considered that a CFO is key to implementation when it comes to the real operational and economical options for transforming the delivering value and building distinctive abilities. The CFO functionally develops the skills for altering the core strategy options, which is the promotion of the product in the marketplace, by upgrading the systems and allowing efficient extension of divisions in the future. The CFO can also free up expenses to invest in future developments by changing the mix of liabilities to equity and ultimately create better financial options for the coming years. With the help of minutely structured financing and lease models, the organization can modify the methods in which the customers buy or utilize their products. As a result, they can shift the business model into a much better and profitable format. In a nutshell, CFOs as transformers engage in dealing with the core questions in a strategy process and grow as well as perform various preferences that permit the organization to change its strategy effectively.

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