The Essential CFO: A Corporate Finance Playbook

STRATEGIC CFO

Without question, the CFO position has expanded dramatically in its breadth, complexity, and criticality. In a word, CFOs have indeed become more strategic, reflecting enhanced opportunities to impact a company's program for delivering shareholder value.

In 2005, CFO Research Services prepared a report in collaboration with Booz Allen Hamilton entitled “The Activist CFO—Alignment with Strategy, Not Just with the Business.” In a prescient conclusion, the report noted the following:

And as CEOs are challenged by the external market and their boards of directors, they increasingly need a trusted adviser to help develop and execute corporate strategy. Thus CFOs are poised to take on an expanded and increasingly activist role within their companies. As part of this activist role, CFOs are increasingly aligning their function not just with the business but with the company's overall strategy. And by doing so, they are not just supporting the business with information and analyses, but also ensuring that the entire enterprise delivers on its commitments.2

This report also classified activist CFOs within four groups:

1. “Growth navigators: CFOs who work closely with CEOs to map out an aggressive course to profitable growth through acquisition or organic channels.”

2. “Execution maestros: CFOs who focus on operational excellence and instill in their companies a value discipline that enables them to do more with less.”

3. “Turnaround surgeons: CFOs who step in under close ...