What It Takes to Be An Award-Winning CFO

The role of the CFO has changed dramatically in recent years.  No longer are their responsibilities limited to crunching numbers and ensuring accurate financial reports.  Today, CFOs are heavily engaged in the design and implementation of strategic plans, managing risk and delivering shareholder value.

“In the past, award-winning CFOs were judged primarily on their ability to manage the financial side of a company’s house.  Now, however, they must also possess the leadership skills and business acumen necessary to serve as strategic planners and guide operational decisions – skills that are of particular importance in today’s turbulent economic times.  Those are the qualities we looked for in the CFOs nominated for the Pittsburgh Business Times annual CFO of the Year Awards,” said A.J. Ray, market manager for Kforce Finance & Accounting’s Pittsburgh office, which sponsored the CFO of the Year awards.

Brian Zolkos, CFO of RedZone Robotics, Inc., was one of the CFOs who was honored in October by the Business Times.  He was recognized as CFO of the Year: Small Private Businesses in part for his role in helping to guide his company from a start-up to a leading provider of high performance wastewater inspection technology and services for municipalities, contractors and engineering firms.

CFOs today “are moving more toward a COO-type role where they may be making operational decisions on a daily or weekly basis, as well as participating in business decisions,” said Zolkos.  “They are sitting at the table alongside the CEO… and making strategic decisions around product roadmaps.”

The Business Times also recognized Valerie Wheatley, CFO of the YWCA of Greater Pittsburgh, who was honored in the small nonprofit category.  She notes that today’s CFO spends less time handling day-to-day finances and data analytics and more time serving as an integral player in the development of organizational strategies.

“The top priority for today’s CFO is to minimize risk, particularly due to the economic conditions we’re experiencing,” said Wheatley.  “The other priority is to be a key business strategist for the organization.”

Zolkos adds maximizing shareholder value by participating in key business planning processes to the list of top CFO priorities, as well as ensuring the company is compliant with all regulations and standards.

“It’s important for the financial staff to develop good partnering skills to ensure that they are in tune with what’s going on with the business and can help make good decisions, whether that is products, pricing or other business development activities,” said Zolkos.  “On the legal side, it is important to ensure that the company is operating ethically and according to all accounting standards and rules, and ensuring that financial statements are representative of the company’s financial performance.”

So what does it take to be an award-winning CFO today?  First and foremost, it’s important to have strong leadership skills, the ability to tailor leadership styles to the situation at hand, and to set the right example for the finance team and the company as a whole.

“You have to have good business acumen and understand the underpinnings of the business so you can coach the financial staff, whether it’s on the business in general, good financial reporting, or developing good financial controls,” said Zolkos.  “The CFO has to develop good leadership skills and be known as a key part of the company and the executive team.”

CFOs today also have to be strategic in their hiring to ensure the team they build is the right team for the organization.

“If you have the opportunity, hire the best and those who complement the skill sets of others on the team,” said Wheatley.  “A CFO should be someone who can sell in addition to the technical competency, so people skills are important.  You also must manage with integrity.”
 

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Maintaining the Status Quo Characterizes CFO Hiring Plans in 2009

SEC Releases Long-Awaited Roadmap to IFRS