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How can CFOs be at their best?

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CFO chronicles

In the news

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Nonprofit CFO shortage. US nonprofits are grappling with a lack of CFOs and professionals with finance expertise, the Chronicle of Philanthropy notes. Not as many college students are studying accounting or interested in finance jobs. Additionally, nonprofits are generally not able to offer the competitive pay packages that for-profit businesses can, which often means that they attract fewer job candidates. In February 2023, US foundations and nonprofits had nearly 7,000 open jobs in finance. [Chronicle of Philanthropy]

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CFOs lead ESG. CFOs may once have been the gatekeepers turning down their chief sustainability officers’ (CSOs’) funding proposals, an NYU professor reflects in Fast Company. Increasingly, however, CFOs themselves are managing their companies’ environmental, social, and governance (ESG) initiatives. Although CSOs still serve in many organizations, just three in ten globally are included in their companies’ executive teams. Having CFOs lead ESG programs makes sense, experts say, since sustainability practices can generate long-term value. [Fast Company]

The most effective CFOs save time by investing effort to build the tools, reports, and calendars that enable agile change.

On McKinsey.com

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The CFO conundrum. CFOs know it’s their most important mission to create outsize value for their companies. That means establishing themselves as the CEO’s thought partner along with managing the finance function. But between dealing with challenges such as the COVID-19 pandemic and fulfilling other demands, including cash management and scenario planning, many finance leaders wonder how they can find the time to perform their daily duties and also be a thoughtful, tactical leader, McKinsey partner Matthew Maloney and coauthors share.

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Making big moves. By improving in six areas, CFOs can become enterprise-wide leaders, superior decision makers, and value-creating confidants of CEOs. One way CFOs can raise their game is to focus on big moves. CFOs should think in terms of shifting more than 60% of annual capital expenditure to different business units every ten years, but depending on a company’s industry, the time period may be much shorter. See six critical dimensions that can help CFOs rise to the challenges of the role.

Learn what efficient CFOs do

—Edited by Belinda Yu, editor, Atlanta

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How can CFOs be at their best?

CFO chronicles

In the news

The most effective CFOs save time by investing effort to build the tools, reports, and calendars that enable agile change.

On McKinsey.com