9 Essential Words for a CFOs Dictionary

Introduction  The days of Chief Financial Officers being merely number-crunching bookkeepers are long gone.

 When both profit and sustainability carry equal weightage when measuring a business’ value, you must renew your dictionary and lead your charge to thrive even in the future.  In this presentation we will see 9 essentials words every CFO must bookmark and practice.

1) Balance  Show the bright side when others are pessimistic and be cynical when they are optimistic  A CFO’s job is to learn the truth from every angle and produce an informative, balanced report for the CEO.

2) Capital Work out capital requirements using the 4Ws-1H system: why, when, where, how, what?  Why do you need capital?  When do you need it?

 Where exactly will it be employed?  How will you raise it?

 What will be the cost of raising it and what will it deliver?

3) Collaboration  You are directly or indirectly answerable to all stakeholders: customers, the CEO, the Board of Directors and your team.

 Create robust reporting strategies and flows of information.  Work synergistically to create maximum output and profitability at minimum cost.

4) Growth  Make or buy?  Create or outsource?

 Spend or borrow?  Accelerate or brake?

It’s your job to make the decisions that will drive the organization towards enduring growth.

5) Insight ď‚™ Large volumes of data are of little use if they cannot be interpreted to deliver useful outcomes. ď‚™ A CFO is responsible for analysing financial data and offering insights for top-level decision-making.

6) Investment ď‚™ Continuously work upon cutting costs and raising quality standards. ď‚™ Invest wisely in talent and technology to optimize both for enhanced profitability.

7) Learning ď‚™ Learn continuously, through both formal study or informal discussions. ď‚™ Encourage regular training so your team remains up-todate with the latest in the financial arena.

8) Renewal ď‚™ Escalators made stairwells look ancient; revolving, glass doors replaced iron gates. The advent of television made the radio almost obsolete; the Internet seems to be doing the same thing to television. ď‚™ Newer media and devices will arrive in the future. ď‚™ Remain open to change and embrace them quickly and productively to meet your end requirements.

9) Troubleshoot  Bad debts, fraud and breaches of trust are not uncommon in large companies.  While you already do your best to minimize risk, you must also know how to manage crises when they arise.  Maintain contingency funds and stay ready to tackle challenges.  Your business’ goodwill – and your job – may well be on the line.

To Conclude…  Remember, that your job involves counting beans as well as shaking hands; analyzing past trends and predicting the future; following tradition as well as doing away with stifling processes.  More than anything else, it is your job to find a way – or make one – to lead your organization to a flourishing tomorrow.

Maureen O'Connell Maureen O’Connell is currently the Executive VP, CFO and CAO for Scholastic Incorporation (NASDAQ: SCHL). Finance and Accounting are her forte.

She also excels in Administrative Functions such as Strategic Planning & Business Development, Global Operations & IT and Human Resources.