David Kelley is the CFO at Diesel Laptops, a top provider of diagnostic solutions and repair information for the commercial truck industry.
Today’s CFOs are far removed from the “bean counters” of years past. The role is shifting from a more traditional focus on financial reporting, accounting and treasury to being a more strategic, data-driven advisor to transform the business and build more enterprise value. Modern CFOs are expected to manage risks, analyze complex data and actively participate in key decisions across all departments, including operations and sales, to help drive business growth.
More importantly, CEOs and boards expect CFOs to be catalysts for strategic thinking and orchestrate cross-functional collaboration. This strategic leadership evolution is forcing us to be more proficient in technology and harness a broader understanding of the business and markets—and to be better partners to internal and external stakeholders.
A New Job Description
A modern CFO’s responsibilities extend well beyond finance. At any point in a day, you may be tasked to advise on customer and vendor agreements, discuss sales proposals or ROIs on a possible enterprise deal, and address personnel issues in HR. The next might require weighing in on mergers and acquisitions, capital allocation or risk mitigation strategies. That doesn’t mean you have to be an expert in every area, but you should have a strong enough grasp of each to contribute meaningfully.
Agility is another critical skill. In a typical day as a CFO, I can easily find myself covering a dozen or more different topics, from technical accounting to legal issues to purchasing decisions, in addition to those previously mentioned. That means I have to be able to switch gears quickly. For instance, when I finish a meeting, I must quickly pivot to dealing with something drastically different in the next meeting—or better yet, hear something in one meeting that can be applied two meetings later.
Technology is also reshaping the role. New AI and data analytics tools have transformed financial decision-making, enabling faster and deeper analysis. CFOs can use these tools to generate actionable insights from data to provide more timely financial information and inputs for decision-making.
Develop The Right Skill Set
Being a successful CFO requires stepping out of the finance silo, One of the best ways to build the necessary breadth of experience is to take on responsibilities outside of your comfort zone. In my career, I’ve managed human resources, legal, call centers, operations and a number of other functions to broaden my perspective and make me a more valuable partner to my leadership team. I’m not an expert in every area, and definitely not in diesel engine diagnostics, but when I’m talking with my team about these things, I have at least a basic understanding. That kind of broad knowledge is invaluable. A CFO needs to be able to connect the dots, guide discussions toward strategic goals and ensure teams stay on track. This isn’t something you learn in school—you gain it by immersing yourself in different areas of the business.
Of course, no CFO can do everything all alone. That’s why it’s crucial to develop the ability to build strong relationships, both internally and externally. Good communication is a critical skill in building and maintaining these relationships. I recall helpful advice a friend once shared: “You have two ears and one mouth—use them proportionately.” This means knowing when to talk and when to listen, understanding your strengths and weaknesses and being willing to seek out guidance from experts in other fields.
The Future Of The Role
The CFO’s responsibilities will only continue to diversify in the future. Technology will continue to evolve and get stronger, risks will continue to heighten, and we will face more challenges daily. We must be competent in driving change, developing talent and helping shape strategy. CFOs of the future must be agile and comfortable with developing technology that impacts our business models, products and services—and even our people. AI will play a huge role in this evolution, and as its capabilities expand, so will our ability to use data to drive business success.
CFOs will also be expected to play a bigger role in talent development. A key responsibility will be identifying and nurturing future finance leaders to ensure our teams have the skills needed to thrive in a digital-first world. This shift will require us to be more involved in mentoring, coaching and succession planning.
Ultimately, today’s CFO occupies a role that encompasses far more than financial oversight—but also offers a unique opportunity to make a lasting impact on our profession, our business, the employees and stakeholders, and to the competitive market overall. Are you a catalyst for transformational improvement?
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