The CFO’s role has evolved from bookkeeping and record retention, reporting, and compliance to navigating the entire company’s direction. Five Traits of CFO’s to lead for results require resiliency and emotional intelligence. With potentially endless merger and acquisition opportunities in our environment today, as financial leaders, we must understand where additional resources, capabilities, or customers would best serve your company and its stakeholders. To navigate efficiently through expansion efforts, having the ability to recognize operational and financial objectives will help identify initiatives and accelerate completion times.

CFOs must demonstrate the ability to cut costs, drive revenue, guide investment decisions, and facilitate initiatives that increase stakeholder value. They must also be able to collaborate with various leaders, departments, and third parties to achieve organizational goals. These Five Traits of CFO’s are core themes for success in today’s competitive industry.

Understanding Core and Non-Core Business Activities

The opportunities are endless when CFOs dig into the frontline, assess the value chain, and tie in the core business activities. The core business activities are how the company generates income and serves the customer base in a value-added manner. CFOs are change agents in organizations when they learn about their business from the front end through the back end. When engaged CFOs become notified of issues, they can provide efficient and effective decision-making to keep short-term results in line while remaining long-term focused.

Holding Leadership Accountable for KPIs

Leveraging data to make an informed decision is critical for sustainable performance. More importantly, the CFO can communicate the few KPIs the organization will “hang its hat on.” You can track performance, illustrate customer experience and success, and measure operational efficiency with just a few goals. Collectively, these KPIs will tell a snapshot of your company at a particular time, over a specific period, and complement financial statements. Partner with technology leaders and business analysts and capitalize on data-driven insights. Utilize task forces to increase peer accountability.

Read our previous article, “Small Business Financial KPIs.”

Actively Engaged Throughout All Levels Of Company

Driving efficiency and developing enhanced capabilities requires an understanding and constant pulse of all company levels. If we want to innovate and create new products and services or improve our current offerings, we must hear what the customer says and our internal teams. Also, acquisition integration is a complex process that requires transitioning into the controlling company culture. CFOs must be aware if potential acquisition candidates will fit into their culture and create a sustainable environment. Regardless of the initiative, pulling teams together and getting buy-in comes from being an active leader. Lastly, when we recognize internal talent, we must foster and develop our human resources and maximize our return on investment (ROI) in talent acquisition and training efforts.

Read more about, Small Business CFO: What they Are

Ability to Align Strategies

Ultimately, the CFO strives to exceed shareholder expectations, beat internal finance goals, and improve financial statement performance. Guiding the organization’s direction aligns various levels of strategy between multiple functions, teams, and business units. Supporting HR, Sales, Marketing, Operations, and other critical functions to carry out strategic planning efforts is necessary for positive results. The priorities across different business units will vary and must fit into long-term goals. The CFO must ensure an interconnection between internal parties and the target market if the organization plans to invest in a strategic marketing program.

Strong Ethical Compass

As the top fiscal manager, CFO’s have a profound responsibility to ensure the compliance of applicable laws and regulations, regardless of how severe the bottom-line impact. Accordingly, being truthful and forthcoming in communications with all parties and stakeholders is necessary. We are concerned with financial performance, risk management strategy, and execution to mitigate downside risk through rigorous compliance efforts. We set the tone for the organization regarding how we conduct business affairs with customers and handle fiscal matters. Do what is right every time, no matter the circumstances.

Keep hunting for the next acquisition or expansion effort to propel your company forward. Building a healthy balance sheet with adequate cash to optimally structure new deals takes time and discipline. It takes the whole team and company to achieve performance goals. Focus on customer retention and adding new value to the company. Get out into your organization to find new talent, uncover new offerings, learn about your customers, and consistently deliver to your growing market.

Five Traits of CFO’s are not enough to cover all of the unique characteristics needed today.