What does (not) CFO do?
Even when there are variations per group and enterprise structures, CFO leads financial affairs alongside with IT, Law, Risk Management, Direct-Indirect Purchasing and Human Resources departments and performs an efficient function in strategic management and planning by focusing on company sustainability. Basically, CFO has three completely different heads. These are execution, supervision, and counseling. We will explain execution function as providing security of economic charts and managing the money that is the vital level of a company in an optimum way. Supervision duty contains; controlling the bills of some departments to see if these are used up in keeping with decided laws and auditing operational processes by a planned and unplanned way to avoid corruption possibilities. And for counseling duty, we can exemplify issuing opinions particularly to the Board, CEO and all different managers about customer-provider business partners, new business areas and products, incentives, company and department performances. CFO is the eye of the Board within the company and reliable business consultant of CEO with all these attributes.
Support of the Board and CEO could be very critical
Support 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 lots of the assignments that sound good and asked to be completed, can’t be executed because of lack of support on inter corporate conflicts and other reasons. We will type 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 query is crucial subject that CFO should pay attention to scientific and structural approach and possibly is competence in the dedication of a successful-unsuccessful CFO. It’s not a really rational behavior to expect managing all these mentioned different experience areas and topics by one individual under normal circumstances until CFO determines the proper priority and use the money source and workforce of the corporate in a correct way. S/he can still manage his profession in a proper way and, the truth is, s/he can still enjoy it. These duties handled by him/her are divided into four teams in line with significance and urgency, and CFO ought to distribute these non-stop tasks in a correct way.
Urgent and vital topics
Urgent however unimportant topics
Non-urgent but vital topics
Non-urgent and unimportant subjects
CFO’s certainly give primacy to “urgent and necessary subjects” and will by no means 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 but essential subjects.” The quintessence for this one could be; observing the personal and professional development of the staff from the lowest to the highest level that’s managed by her/him and contribute in individual if possible. Even when this duty is severe and lengthy-termed, the return of it is high. Because the more s/he has a better and an equipped staff, the more they will fulfill the complicated duties and responsibilities which might be provided.
Lesson: CFO should decide the priority in a proper way and may spend money on the well-chosen team. In any other case, the occupation that CFO do may turn out to be one of many riskiest profession.
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