Strategic CFOs in High Demand
The role of Chief Financial Officers is changing with the times. In addition to fulfilling the traditional role of financial tactician, CFOs have evolved into business advisors, according to a panel of Chief Executives hosted by The Financial Management Association of New Hampshire (FMA of NH) reports Reuters. Today, the responsibilities of the CFO extend beyond finance to compliance and risk management. CFOs must also manage business objectives while helping their firms to capitalize on growth opportunities.
The trend has triggered growing demand for CFOs with strategic acumen, according to CFO.com. Executive search firm, A.E. Feldman, is already reporting a sharp rise in demand. The firm reports that CFO jobs are opening up as a growing number of companies and private equity firms are actively seeking finance chiefs who are strong on valuing assets. Flexibility and the ability to adapt to the dynamics of the market are also critical. “The size of the companies and the industries vary completely, but we do see a lot of movement right now,” said Carol Schwam, CEO of A.E. Feldman.
When it comes to the CFO, the requirements of the job are dictated by current macro trends, according to CFO.com. The report states, “In the first years after Sarbanes-Oxley took effect, many companies wanted finance chiefs with technical accounting skills and backgrounds as controllers. When the credit crisis set in, CFOs with capital-raising skills were suddenly in demand. Now, with hope emerging that an economic recovery is on the way, having the strategic bent to identify and exploit opportunities is coming to the fore.”
While participating in the FMA of NH panel discussion, Karil Reibold, Whaleback Systems, CEO, said, “We count on the CFO position to guide the business as part of the leadership team. We are a fast growing enterprise in a competitive market, and the CFO needs to keep us on track with the right financial metrics while I manage the other facets of the business.”
Moreover, Finance Chiefs have emerged as key business partners to the CEO. Directors are leaning on CFOs’ skills and insights more now than ever before. CFOs are stepping up to help shape strategy, improve operations, and drive bottom-line results.
Thomas M. Zarrella, GT Solar, President and CEO, underscored this view at the FMA of NH panel discussion. Reuters quotes him as saying, “My CFO is my right hand, and I need that partnership to be successful. Finance is a critical part of strategy — especially in our rapidly changing industry — and the CFO should be as much a business consultant as a financial resource.”
In short, when it comes to CFOs, firms are actively seeking strategic as well as operational finance chiefs who have proven they are effective at driving value and improving profits. A recent PricewaterhouseCoopers (PwC) report shares this view, stating that CFOs must rethink and adjust their financial strategies in order to ensure that they continue to drive productivity and bottom-line performance. “Undoubtedly, CFOs should take a leading role in re-positioning the business’s finances,” the report states.
Today, CFOs must be armed with the practical insights and strategies necessary to face a volatile global economy and keep their firms well-positioned for success when the economy rebounds, according to Jeremy Seidman, Co-Chair of the MIT Sloan CFO Summit. “The world is changing, and so is the role of the CFO,” he says.
Are you a CFO? If you want to grow your career or discuss your company’s talent needs, contact A.E. Feldman’s President, Mitch Feldman today.
