The role of the CFO is in a constant state of evolution, establishing itself as a key leader responsible for driving growth while fostering a closer relationship with the CEO. This partnership has transformed the CFO into what can be described as the CEO's "intellectual partner," empowering them to lead internal change management while engaging with crucial areas of the business. Additionally, the CFO manages direct interactions with the Board of Directors and shareholders.
To fulfil these new responsibilities, the CFO possesses a distinctive advantage: a 360-degree view of the organisation. This comprehensive perspective allows them to understand critical business variables and quantify the potential effects of strategic decisions, as well as oversee their implementation.
One might liken the CFO to a “drone” surveying the organisation from above, granting them a holistic view that enables them to keep sight of the most relevant parameters when defining and implementing the company's global strategy.
Simultaneously, the CFO continues to perform traditional functions, utilising digitalisation and automation to streamline tasks, thereby facilitating this leap into expanded responsibilities.
When we talk about leading change, we are not merely referring to financial planning or proactive risk management—core responsibilities of the CFO—but also to spearheading digital transformation and its impact on the business.
To achieve this, the CFO must first experiment with new technologies and tools within the financial sector. Once they have gained sufficient experience, they can then extend these innovations throughout the organisation. Their goal is to leverage technological advancements to design new, more agile processes that free up time for users to focus on high-value tasks critical to the business.
The CFO's role is increasingly significant in areas concerning non-financial profitability, particularly in guiding the organisation towards greater respect for environmental and social governance (ESG). This focus is not merely a trend but has become an obligation that affects all company areas, including finance.
Society now demands corporate responsibility, which is reflected in the integration of ESG criteria—environmental, social, and governance factors—that are becoming vital in investment decisions. This reality cannot escape the CFO's responsibilities.
Developing these new roles requires the CFO to engage across various departments. They must collaborate with the HR Director to improve workplace culture, the Quality & Environment Director to implement and monitor ESG criteria, and the CIO on matters related to digital transformation.
In summary, the CFO of the future will increasingly focus on strategic initiatives, acting as a link between the CEO and shareholders, with the central goal of creating VALUE. It would not be surprising if, in the coming years, the role transitions towards that of a Chief Value Officer (CVO), as "finance" will only be one critical aspect of their overarching responsibilities.
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