Your relationship with the CEO and Board
CFOs need to develop the capability, skill sets and experience levels to operate at Board level, regardless of whether or not you actually sit on the Board. An increasing number of CFOs are becoming a member of the Board, which helps to increase the effectiveness of your role.
For a modern-day finance leader to thrive, it is essential to achieve the optimal balance across the vital roles of the CFO, CEO and the Board. These three roles need to be fully joined up and provide clarity towards responsibilities and boundaries, plus to complement one another by ensuring that each individual is fully equipped with the necessary knowledge and resource to maximise their personal effectiveness.
A strong CFO possesses robust knowledge of the company strategy and can confidently articulate this to both their team members and key stakeholders. They are fully aware of the activities taking place across the Board and they know exactly how to provide vital support to each team leader.
During the above video, Patrick Dunne provides his perspectives on the importance of the CFO’s relationship with the CEO and the Board. Patrick has written a fantastic book on this subject called “Boards”, which explores many of these issues in great detail from his vast career experience during a number of roles including 26 years at 3i Group plc, a member of the FT NED Club Advisory Board and Chair of Boardelta.
The modern-day CFO needs to build strong skill sets and experience levels across a range of activities and will spend a significant percentage of time supporting the Board with strategic initiatives and driving change across the organisation.
It is essential to create a robust career development plan and to constantly monitor this to ensure that you are progressing across each of the responsibilities of your role.