Providing your unique perspective

The things that are obvious to you are not always obvious to others. This is very much the case for CFOs who have a unique perspective that nobody else will have in your company.

It can be very easy to forget this when you are the finance leader within your business and have a very different background and CV compared to most other people.

During this lesson, we discuss the unique perspective that a CFO offers to their company and share examples of how you can use this to influence strategy.

Unique perspective

Here are five ways in which the CFO has a unique perspective compared to most other people on your executive team:

1. Financial background: This may seem obvious, but it’s worth stating. The CFO has a very different perspective compared to most other people in the company as they often have a financial, investment banking or strategic background. This means that you are used to looking at things from a financial perspective and can provide valuable insights when it comes to strategic decisions.
2. Understanding the numbers: Another obvious point, but again, it’s worth mentioning. The CFO understands the numbers better than anybody else in the company and this gives you a unique perspective when it comes to making decisions. You can help to identify areas of potential cost savings or growth and offer advice on how best to achieve these goals.
3. More risk-averse: This is not always the case, but CFOs tend to be more risk-averse than other members of the executive team. This means that you are often more cautious when it comes to making decisions and this can be valuable when it comes to ensuring that the company doesn’t take on too much risk.
4. A long-term view: The CFO has a longer-term view compared to most other people in the company as you are responsible for managing the financial stability of the business. This means that you are less likely to make short-term decisions that could jeopardize the long-term health of the company.
5. Awareness of investor expectations: The CFO is usually very close to the investors of the company and as such, has a good understanding of their expectations. This means that you can provide valuable insights when it comes to decision-making that take into account the needs of the investors.

These are just five examples of how the CFO has a unique perspective that can be used to influence strategy. Other examples include knowledge of the bigger picture, a strong understanding of each department’s biggest challenges and insights into current market trends.

Examples

Here are three examples of how the CFO can provide a unique perspective during a strategic decision:

1. Launching a new product: help assess the financial risks and opportunities involved.
2. Targeting a new market: evaluate the potential return on investment and identify any financial risks.
3. Considering the acquisition of a competitor: consider the financial impact of the deal and provide guidance on how to best structure it.

In each of these cases, the CFO plays a critical role in providing insights and analysis that can help shape the company’s strategy.

Summary

CFOs have a unique perspective within your company and must share this on a regular basis to help influence strategies and ongoing decision-making. Your combination of background, experience and knowledge places you in a powerful position to become a critical voice in the board room and be