Mitch Peipert, CPA’s Post

This very insightful McKinsey article is great advice for CFO's who need to increase their value to an organization, but also a guide for what companies should be looking for in their CFO and what finance professionals should be striving for.

It often seems like there aren’t enough hours in the day for CFO's to both run a buttoned-up finance department and be the CEO’s strategic thought partner. In the latest from CFO Dive & McKinsey & Company - here are 5 time-saving strategies that CFO's can implement to unlock greater potential! #cfo #ceo #collaboration #leadershipmatters #csuiteconversations #strategy #2024trends #executivefunction #finance #growthmindset https://lnkd.in/gYn995YA

HOW CFOS CREATE VALUE CFOs create value by assuming four distinct roles. ✅Co-creator of Strategy. The CFO, along with other C-level executives, helps create the company´s overall strategy and drive the achievement of strategic objetives across the entire organization. CFOs create value through their capabilities for assessing the risk and reward of potential objectives and conducting financial due diligence. The CFO´s role in strategy creation is in some ways similar to the role o fan activist investor who applies an analyst´s perspective to assess a company´s strategy and performance. The CFO should also have a role in the creation of the company´s digital strategy. Technology enables the integration of finance into the day-to-day operations and enhances insight and transparency across the organization. The CFO, as the steward of financial data, must consider how best to leverage technology tools, dashboards, and other digital accelerators to improve business parthering and value delivery. ✅Effective Business Partner. CFOs need to enable the business to achieve its goals, while pushing the business to achieve higher levels of performance and growth. In successful companies, the CFO and business leaders share joint responsibility for ensuring alignment with strategic priorities, enforcing compliance with standards, driving cost efficiency, and enhancing business productivity. ✅Trusted Finance Custodian. CFOs have a mandate for delivering value and growing the bottom line, often expressed through metrics such as total shareholder return 💵or total societal impact. As stewards of the finance organization, CFOs lead the development of the company´s equity story and investor strategy. And under the CFO´s leadership, the finance function is responsable for managing financial resources and adding value through expertise. ✅Risk management is another critical aspect of custodianship. This includes identifying risk factors and monitoring risk, exposure across the organization. CFOs also need to take an active role in addressing macroeconomic uncertainty developing responses to adverse market, scenarios and designing business continuity plans. Best-in-Class Finance Operator. CFOs must ensure that the finance function collaborates internally to fulfill its responsibilities to the resto of the organization. This includes, building an organization structure that balances flexibility and accountability, ensuring clear roles and responsibilities, streamlining processes to reduce the number of activities that don´t add value, and establishing the right skills and talent to achieve the vision for finance.📈 How does your company´s CFO create value? #CFO #Finance #Business Boston Consulting group

Decade-high CFO turnover is creating potential opportunities for those who aspire to lead the finance function. But with a growing scope of responsibilities, the job is also harder than ever. During this session, my colleagues Ankur Agrawal, Chris Halmy, and Karolina Sauer-Sidor will discuss our new article on how CFOs can best prepare for success in this multifaceted role. If you would like to request an invite: https://lnkd.in/eHTbUgqm #CFO #CorporateFinance #FinanceFunction

【"】Call it the CFO conundrum. As your company’s most senior finance executive, you understand that your most important mission is to enable significant value creation. That means finding a way to shift from “just” keeping a complex finance function on the rails to establishing yourself as the CEO’s principal thought partner. For some CFOs, the challenge can be even more intense. Urgent requirements, including cash management, internal and external reporting, talent development, risks and controls, and scenario planning, cannot be wished away. Yet some CFOs do rise to the challenge. McKinsey’s article explores how they raise their games above functional expertise to achieve real strategic impact. By improving in six critical dimensions (amply described in the attached article), they solve the time-crunch challenge to become enterprise-wide leaders, superior decision-makers, and value-creating confidants of CEOs—all while running a more efficient, dynamic, and farsighted finance function. 𝐒𝐢𝐱 𝐰𝐚𝐲𝐬 𝐂𝐅𝐎𝐬 𝐟𝐢𝐧𝐝 𝐭𝐡𝐞 𝐭𝐢𝐦𝐞 𝐭𝐨 𝐮𝐧𝐥𝐨𝐜𝐤 𝐭𝐡𝐞𝐢𝐫 𝐟𝐮𝐥𝐥 𝐩𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 1️⃣Crystalize your strategy—and identify where technology can be an enabler 2️⃣Focus on big moves 3️⃣Radically simplify 4️⃣Keep up the tempo 5️⃣Overcome cultural inertia 6️⃣Mind your microhabits “CFOs face an extraordinary set of concurrent challenges—to carry out company strategy enterprise-wide; manage a complex, detail-based function; and serve as the confidant and critical thought partner of the CEO. It takes exceptional discipline and focus to find time for it all, particularly for CFOs who find themselves thrust into the role. Yet by minding these six critical sets of actions, the most effective CFOs do find the time to make it all work and help the company create outsize value for the long term.” McKinsey & Company ▶️ https://lnkd.in/d6Yhh8P3 #CFO #Csuite #executiveleadership #valuecreation

This article is a valuable resource for anyone in the finance industry, whether you're an experienced CFO, a junior executive, or aspiring to the role. It provides in-depth insights into the expanded responsibilities of modern CFOs, which now go beyond financial stewardship to include acting as a strategic partner to the CEO, shaping portfolio strategies, and making critical investment decisions. The piece delves into the complex nature of the CFO-CEO relationship, highlighting potential conflicts and the need for a delicate balance of power and collaboration between these two pivotal roles. It also offers practical strategies for resolving disputes, ensuring alignment with the company's vision, and driving the organization towards its financial goals. This research is a study of challenges and a roadmap to harmonizing the CFO's core responsibilities with the broader executive mission. As a result, it is an essential read for finance professionals at any stage of their career. #CFO #CEOCFOConflict #Financecareer

As CFOs, we’re uniquely positioned to drive strategic decision-making and create value across the organization. The key? Effective finance business partnering. CFO Dive shares how finance chiefs can be better finance business partners and what they can do to elevate this skill with their finance teams. #leadershipmatters #csuiteconversations #finance #executive #strategy #csuiteimpact #leadershipmindset #teamwork #business #partner #organization https://lnkd.in/en4HMS2P

4 Most Common CFO Personalities PS. Get my CFO Cheatsheet for free here: https://lnkd.in/dvkBTxHw Which one do we see the most? CFOs play diverse roles in driving business success. Here are the four most common CFO personalities Each with unique strengths and challenges. 1. Catalyst Drives change and innovation, focusing on business transformation and process improvements Strengths: Highly innovative, forward-thinking, and an effective change agent Weaknesses: May push for rapid changes causing disruption, often perceived as aggressive 2. Strategist Shapes long-term direction by aligning finance with business strategy and exploring growth opportunities Strengths: Highly strategic and visionary; excellent at identifying and leveraging growth opportunities Weaknesses: May overlook operational details and seem disconnected from day-to-day tasks 3. Steward Safeguards company assets, ensures financial compliance, closes books accurately, and communicates value and risk to stakeholders Strengths: Reliable, detail-oriented, and excellent at maintaining internal controls Weaknesses: Can be seen as overly cautious and resistant to risky changes 4. Operator Manages finance functions like planning, treasury, tax, and other operations to enhance performance Strengths: Operational excellence, cost management, and system implementation Weaknesses: May prioritize cost-cutting over strategic growth and appear less visionary Which CFO personality do you identify with?

Decade-high CFO turnover is creating potential opportunities for those who aspire to lead the finance function. But with a growing scope of responsibilities, the job is also harder than ever. During this session, my colleagues Ankur Agrawal, Chris Halmy, and Karolina Sauer-Sidor will discuss our new article on how CFOs can best prepare for success in this multifaceted role. If you would like to request an invite: https://lnkd.in/eEzfTiMC #CFO #CorporateFinance #FinanceFunction

Decade-high CFO turnover is creating potential opportunities for those who aspire to lead the finance function. But with a growing scope of responsibilities, the job is also harder than ever. During this session, my colleagues Ankur Agrawal, Chris Halmy, and Karolina Sauer-Sidor will discuss our new article on how CFOs can best prepare for success in this multifaceted role. If you would like to request an invite: https://lnkd.in/eKZHqyyj #CFO #CorporateFinance #FinanceFunction