CFO balancing act

M ost chief financial officers serve a dual role as steward and strategist. According to a recent Deloitte Research survey of board members and executives of large companies in Canada and the US, greater emphasis is now being placed on a CFO's stewardship activities. This is not surprising, given the increased attention placed on corporate accountability.

The survey found almost half (49%) of the CEOs who responded would like their CFO to take on a more strategic role. CFO respondents, however, believed their role should focus on balancing responsibilities as steward and strategist.

At least 70% of board members, CEOs and CFOs give the CFO high ratings as a reporter and analyst. At least 60% of the executives also favourably rate the CFO's performance as a policy enforcer, risk manager, capital optimiser and shareholder manager. Despite the expectation that CFOs emphasize the role of strategist over stewardship, the CFO's performance as a strategic planner is least likely to win a positive rating. Only 63% of CFOs rate their own performance as high in this area, while board members and CEOs were even less likely to give the CFO a high rating (57% and 56%, respectively). 

The findings suggest CFOs will need to emphasize their strategic responsibilities to meet the needs of CEOs in the future.

John Tabone is CICA's manager of innovation