New Roles for the Old Financial Bosses

Chief Financial Officers at organizations of all sizes have seen their roles expand over the last three years.  In light of the recession, the heads of finance and investment decisions at everywhere from Fortune 500 companies to small non-profits are now more engaged with sustainable business strategy.

Once the keepers of financial books, CFOs now help organizations decide where to invest capital and they manage projects in departments not traditionally associated with finance.  Some CFOs, for instance, are responsible for technology and human resource decisions now, especially as larger companies downsize to save resources.

While these changes in financial management are quite literally the result of the recession, business theorists also point out that a focus on sustainability is the natural course business management is taking in the twenty-first century.  Companies are concerned increasingly with controlling cots and investing in projects that their consumers and partners view as green-friendly.

Paul Reilly, the CFO at Arrow Electronics, notes: "I think this greater influence has a lot to do with the fact that CFOs have a deep understanding of the business, and they have a pretty good feel about whether the business is going in the right direction, both long and short term."  The Chief Financial Officer, then, can be seen as the backbone of the organization's sustainable infrastructure.  In other words, CFOs help CEOs develop strategies for investing in initiatives that not only reward in dividends, but are also environmentally-conscious.  Reilly continues: "So what you've seen is the role expand beyond the traditional scope of finance and go into strategy, technical execution, and acting as advisor on how to create value in the long term ..."

Are you the CFO at a large or small organization?  How has your role changed?