Tony Jarjoura is CFO of Gigamon.
Any executive, regardless of their area of focus, needs a well-stocked toolbox. In today’s climate, I have found that chief financial officers (CFOs) are reaching for entirely different tools than what they used in the past. While the CFO role has been evolving over the last couple of decades, the pace of that transformation has drastically accelerated in recent years. Once viewed primarily as financial controllers, CFOs are now key drivers of strategy, innovation and digital transformation. Though the fundamentals of the role remain the same, the responsibilities, areas of focus and expectations have shifted significantly.
CFOs: Stepping Up To The Challenge
Several factors have contributed to the shifting priorities of the CFO role in recent years. For starters, the global pandemic created widespread economic uncertainty and fundamentally changed how businesses operate. Coupled with increasingly unpredictable geopolitical and economic landscapes, these disruptions have pushed CFOs to take on a more proactive role in crisis response and long-term stabilization, as well as leading risk mitigation strategies for their organizations.
At the same time, the rapid adoption of digital technologies, especially artificial intelligence (AI), has made data an even more integral part of the role, transforming how financial leaders analyze trends, forecast outcomes and drive decision-making. The growing importance of environmental, social and governance (ESG) initiatives has expanded the CFO’s responsibilities beyond financials to include broader stakeholder priorities and sustainability goals, while increasing pressure from boards and investors has further elevated expectations for CFOs to serve not only as financial stewards but also as strategic partners fully aligned with the rest of the C-suite.
Adapting Skill Sets To Align With Business Needs
Of course, there is a laundry list of financial, mathematical and technical requirements for any responsible CFO, but to truly succeed in the role today, there are a few additional requirements that are just as important:
Strong Communication And Storytelling
CFO leaders must connect the dots from a macro level down to a singular line item, which requires expert communication skills. CFOs are also speaking to multiple audiences, from boards to tax attorneys to employees, often needing to deliver the same information in various forms. Having the ability to distill complex or technical information for each audience is paramount to CFO success today. The reality is that CFOs likely have more data at their fingertips than any other leader, yet there’s an art to connecting the right need-to-know information with the right need-to-know individuals.
I was once in a very technical, intense board meeting discussing a very in-depth tax strategy. After going through the policy and looking through all of the memos and research, the entire boardroom was still fairly confused. I realized I needed to simplify the story, and in just a couple of sentences, I was able to clear up the confusion. It was as if one hundred light bulbs went off at the same time, and I realized the power of effective communication and translating complexity into clarity.
Data Fluency
Today, with the rapid advancement of AI and the vast amount of data and analytics available at our fingertips, it has become increasingly important for finance professionals to be proficient in data science and automation. These tools enable us to streamline processes, make better-informed decisions and operate with greater precision and efficiency if we are using them correctly. By leveraging AI and data-driven technologies, teams can move faster, respond more effectively to challenges and ultimately drive stronger results for the company.
Risk Management And Crisis Response
As organizations increasingly adopt AI and advanced technologies, the role of the CFO is evolving beyond traditional financial oversight to encompass a broader range of responsibilities, including cybersecurity, data privacy and regulatory compliance. With digital transformation comes risks and governance challenges, and CFOs must be prepared to handle them. By safeguarding the company’s financial health and reputation, CFOs who can adapt and lead in these areas are better positioned to support sustainable growth for the organization.
Strategic, Forward-Thinking Oversight
In business, every decision and function ultimately impacts the bottom line, which means the CFO plays a role in virtually every part of the organization. As a result, CFOs must sit at the heart of strategic planning, helping them to shape business direction and drive sustainable growth.
Modern CFOs are increasingly proactive leaders who partner across departments to ensure the company’s initiatives align with financial goals and deliver measurable results. By leveraging their unique vantage point and data-driven insights, CFOs are able to anticipate challenges, optimize performance and guide smarter investments.
Although it seems more daunting now that the responsibilities have changed, in addition to the pace of the role, I have never felt stronger about the abilities of the CFO because of the information and tools at our fingertips. As long as CFOs progress and prioritize the newer skills required of them, they’ll be able to perform their jobs better than ever before because they have more information at their disposal, a seat at the table and impact on the overall health of the organization beyond simply the bottom line.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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