Understand why the CFO's role has changed over the past few years and what it takes to become a successful professional in the field.
With the accelerated technological advancements of recent years and the expansion of new businesses, many professionals have identified the need to stay up-to-date and adapt to the changes that the new era demands.
Observing these changing scenarios and behaviors, one of the main characteristics of successful professionals today is the relentless pursuit of knowledge and daily improvement. However, in the financial market, specifically for the CFO position, this has been a reality for a long time.
The CFO (Chief Financial Officer, The CFO (Chief Financial Officer), which translates to Chief Financial Officer in English, can be considered the right-hand person of the company president (CEO). This role requires that this professional not only control cash flow and prepare monthly financial results reports, but also be responsible for developing strategic management metrics as a whole. To better illustrate this, here are some skills a CFO should master to stand out and succeed in their journey in today's market:
- Market Knowledge and strategic vision
Knowledge and the pursuit of new information are some of the main characteristics of a successful professional. This is independent of field, position, function, and age. The pursuit of learning should be daily and is the great differentiator of a professional today.
Mastering the world of accounting and finance is a basic task for a CFO, but it's also necessary to stay updated on overall market trends and be aware of any opportunities that could bring benefits or risks to the company.
In the past, the workflow began with strategy, reaching the CFO only during the budget execution phase. Today, processes are more intertwined. The CFO plays a more central role in strategic business decisions, actively participating in the entire planning process. This format has highlighted the understanding that company leaders should not make isolated decisions that impact business results.
- Financial knowledge and being an investment expert
A successful CFO must be an expert in finance, particularly in investments. Typically, professionals in this field have degrees in economics or accounting. Anyone aspiring to this position must be completely up-to-date on these topics.
Knowledge of investments and all their profitability indicators is essential for a CFO, as they must have a very clear understanding of how to manage the company's money, as well as knowing where and when to invest. Paying attention to all the latest news on mergers and acquisitions between companies operating in the same market or even in other markets, and having knowledge of the procedures for launching an IPO on the stock exchange, also complete the necessary attributes of a CFO today.
- Knowing how to manage information
All management positions handle confidential information on a daily basis. The CFO plays an important role in defining what information can and should be disclosed to the entire organization.
In the past, CFOs were accustomed to maintaining absolute secrecy regarding all company figures, such as revenue and profitability. Modern institutions, however, have a very different profile regarding the disclosure of information: they are more open and seek greater participation from all employees, as they understand that not disclosing company financial information can lead to delays, errors, and in many cases, employee dissatisfaction. Knowing how to share and manage information is part of a CFO's responsibilities today.
The profile of today's CFO is that of an executive with a strategic vision of the business and a focus on the future. It is important that the professional has a deep understanding of the company they work for, the market in which they operate, and always seeks innovation to outperform the competition.
Constant change and the pursuit of daily professional development tend to increase more and more, not only in the financial field, but for any professional who aspires to great achievements.
- Leadership role
Professionals who aspire to succeed as CFOs must act as leaders of their team and company. This means that, in addition to fresh ideas and market knowledge, a CFO must possess empathy and be a good listener. It's a long and continuous process that begins at the start of their journey and develops daily. To create new projects, it's essential to inspire confidence.
- To conclude the matter…
Professionals in all fields need to pursue technical and intellectual development daily if they wish to achieve success in their careers. This is no different for company chief financial officers (CFOs). Changes happen rapidly, and a CFO who aims for great goals must be prepared for them.
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