I got interested in exploring Finance angle so picked this book up from a local library (TK Park). This gives a good summary of the evolution and changing nature of CFO role, with quotes from various CFOs on how they see their function.
From the book, here are the 10 qualities of a good CFO:
- Strategic. Able to add financial perspective on company strategy and be sounding board with CEO
- Conservative. Dealing with money means it pays to not be risk-taking
- Paranoid. The one to assume the worst in everything
- Detail-oriented. Ability to take in all the details and know what to look for
- Diplomatic, tactful. Dealing with investors and board members require a deft touch
- Independent. Need to show they are not influenced by any party
- Pragmatic. Be realistic about situation
- Consistent. Everyone wants to see someone who doesn’t have high ups or downs in this role.
- Trustworthy. Needed as they are trusted with money
- Analytical. Fluent with numbers and insights that can be extracted
The role of a CFO also expands over time. Here are the key roles needed:
- Accounting & reporting
- Tax management
- Financial planning & Analysis
- Investment analysis
- Merger & Acquisition
- Leadership – reporting line, hiring, maintaining talent
- Risk management
- Treasury & Financing
- Strategic contribution alongside CEO
- Communications with Board of Directors and Investors