What does (not) CFO do?
Even when there are variations per group and business constructions, CFO leads financial affairs alongside with IT, Law, Risk Management, Direct-Indirect Buying and Human Resources departments and plays an efficient position in strategic administration and planning by focusing on firm sustainability. Basically, CFO has three totally different heads. These are execution, supervision, and counseling. We will explain execution function as providing security of financial charts and managing the money that is the vital point of an organization in an optimum way. Supervision duty includes; controlling the expenses of some departments to see if these are used up based on determined regulations and auditing operational processes by a planned and unplanned way to avoid corruption possibilities. And for counseling duty, we are able to exemplify issuing opinions particularly to the Board, CEO and all other managers about buyer-provider business partners, new enterprise areas and products, incentives, firm and department performances. CFO is the eye of the Board within the company and reliable enterprise consultant of CEO with all these attributes.
Support of the Board and CEO is very critical
Assist of the Board and CEO is probably the most importing thing for CFO to fulfill all these duties and responsibilities in a proper way. Because most of the assignments that sound good and asked to be executed, can’t be finished as a consequence of lack of help on inter corporate conflicts and other reasons. We will kind the side effects of this kind of negative situations as an increase in company risks and miss the opportunities.
How CFO’s can decide priorities?
And this question is a very powerful topic that CFO ought to take note of scientific and structural approach and perhaps is competence in the dedication of a successful-unsuccessful CFO. It’s not a very rational habits to anticipate managing all these mentioned completely different expertise areas and subjects by one individual under regular circumstances until CFO determines the proper priority and use the money supply and workforce of the corporate in a correct way. S/he can still manage his profession in a proper way and, in reality, s/he can still enjoy it. These duties handled by him/her are divided into four teams in accordance with significance and urgency, and CFO ought to distribute these non-stop tasks in a correct way.
Urgent and necessary subjects
Urgent however unimportant subjects
Non-urgent however essential subjects
Non-urgent and unimportant topics
CFO’s certainly give primacy to “urgent and essential subjects” and may never work on “non-urgent and unimportant” subjects. However the level that makes the difference in that’s the time s/he spares time for “non-urgent however essential subjects.” The quintessence for this one can be; observing the personal and professional development of the workers from the lowest to the highest level that is managed by her/him and contribute in person if possible. Even if this duty is extreme and long-termed, the return of it is high. Because the more s/he has a greater and an geared up team, the more they’ll fulfill the advanced duties and responsibilities which are provided.
Lesson: CFO ought to decide the priority in a proper way and will put money into the well-chosen team. Otherwise, the occupation that CFO do would possibly develop into one of the riskiest profession.
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