I recently read an article on how the Finance function needs to evolve from the keeper of the books to a partner of operating management and then to an active driver of the business in its own right. (Unfortunately, the piece has been removed from public view, so I can’t share it with you.)
It had me thinking of the CFOs I had worked with over the years.
Some were excellent and assets to the company, making serious contributions to its success with their insights, wisdom, and leadership. They helped make the right hard decisions and seize the right opportunities at the right price. They made sure the company invested at the right time in the right technologies and people.
Others were less than excellent.
One was a fine technician, but not very assertive. This was perceived by others as weakness, even a lack of interest in operational matters.
- The partners at EY took advantage of his lack of challenge to strut in front of the audit committee at his expense.
- The members of the audit committee sensed a problem and asked more probing questions than usual, indicating a lack of confidence in the CFO. In a one-on-one discussion with an audit committee member, I was able to confirm my suspicion that while they liked and respected the CFO, the directors didn’t have full confidence in him.
- Other executives either…
