This is a common and simple definition; however, it circles and brings together several roles of the CFO at once. The CFO has to be the closest person to the CEO. It is highly probable for both to spend numerous hours working together in defining business strategies, putting numbers to the marketing and sales strategies, and performing endless financial scenarios that might impact the financial statements of the firm. Traveling, dining, chatting, videoconferencing. Sounds familiar?  Both will present financial numbers and key business data to the Board of Directors (BoD), and particularly communicate the BoD’s decisions to upper management. The relationship between the CFO and the CEO must be based on empathy.

CEOs are expecting from CFOs among a long list of values to be reliable, flexible, adaptable, commercial oriented, and with sense of humor as well. CEOs expect that their CFOs have a clear vision for improving financial performance, promoting talent in the team, as well as communicating this vision to the different stakeholders. CEOs have strong expectation from CFOs to spot opportunities and risks, and take the necessary measures to pursue growth and protect the business.

Additionally, CFOs now play a role in strategy. CFOs are the ones who shape the operational decisions and strategic direction of the firm. Having company’s KPIs is important, but not sufficient. The CFOs should spend part of their precious time close to the market; understanding customer needs, as well as knowing the distribution channels and the marketplace. One relevant qualification is the sound understanding of company products and services as few incumbents in the company do. CFOs should walk and speak with people at the manufacturing plants, warehouses, maintenance rooms, customer service departments, offices and, why not, security premises.

The CFO’s role as a “business partner” to its peers is critical. In many occasions, the role is misunderstood and seen as the “provider of numbers” or “Mr. No”. This is wrong, since it stops all of his/her peers’ “great ideas” for business growth. As the CFO’s role in strategy is increasing in relevance, the CFO is now seen as the person who puts the equilibrium or balance in the “table”, meaning that the CFO is the person who questions the new business initiatives in terms of financial impacts, future risks, company capabilities and resources. I can personally say that the CFO’s business perspective will help reshape initiatives into becoming successful business strategies.