The role of a CFO is no more confined to only finances it is evolving every day and nowadays it has become essential in driving new business models for the concerns. Most of the US leading companies are focusing on cost control mainly after the recession. Now they are ensuring that the cash reserves are growing along with a strong balance sheet. In this quest for growth the CFOs of the organization plays an important role so that they may help their concern gain a steady growth.
Ensuring the foundation
Before starting up any new growth model it is necessary that the foundation is made fine as without it the growth cannot be supported. The finance function should be more strategic rather than just being transactional. Hiring before the growth strategy is necessary to ensure that the steps are taken with the right talent in hand.
Bring in agility in finance function
The financial system should be flexible. The CFO must understand the growth model and design his finance functions according to it so that they can support the growth of the concern completely. There should be accounts for different parts of the business that deals with each business model and helps them in growth. Now, cloud based business models are there that will help in reconfiguring finance.
Have processes to absorb different paths of growth
While any growth initiative is taken, the CFO needs to concentrate on the total processes and understand the capabilities that will be required for giving the organization the competitive advantage it is looking for. By assessing the current strength and weakness of the organization a CFO can help and collaborate in the change management that will be required for successful implementation of the growth plans.
Spot and eliminate biases
Sometimes bias in decision making may ruin the decisions and hence one of the important aspects of the finance team is to understand the bias in decision making. Until and unless the company is able to evaluate the environmental objective it is not possible to come out of these biases. Any growth process is undertaken by a team and then if the leader takes a wrong step the whole thing is ruined. Thus, a CFO needs to root out the bias and see that it does not affect the decision making.
Hence, the CFO plays a major role when it comes to driving a new business model. They need to collaborate with other teams of the organization and make sure that the organization is achieving the growth it is aiming for.