Who plays perhaps the most important role in the C-suite? Research often mentions the CFO. But great CFOs aren't isolated in the financial world, says Razak Jallow, head of finance at Los Angeles-based FloQast.
Mr. Jarreau previously held finance positions at Adobe Systems, Apple, and Google. In his four years at FloQast, he took the company to new heights, including last year's Series E funding round that valued FloQast at $1.6 billion.
He spoke with CFO Leadership about what it takes to be a successful CFO, how to interact with an organization's CEO, and why great financial leaders think beyond the numbers.
How can CFOs hone and expand their strategic voice to the C-suite beyond finance operations?
The role of the CFO is critical to modern business. When leveraged correctly, CFOs can provide tremendous financial direction and input to advance the organization's strategic direction. However, siloing the CFO's workload into only financial initiatives limits the benefit the CFO can bring to the organization as a whole and undermines their value as a member of the executive team.
Almost half of CFOs say the two most important competencies for the future of their finance function are operational intelligence and strategy delivery, with both surpassing specialized finance skills. Today's organizations look to CFOs to deliver more value and bring unique perspectives to the table by blending deep financial knowledge with strategic thinking. In fact, today's CFOs must act as business leaders first and accountants second.
What are the business benefits of having CFOs and CEOs working closely together?
CEOs often bring in a CFO when a company needs stronger financial leadership during economic turmoil, needs a new financial direction, or wants to achieve a major goal, such as going public.
In fact, according to IBM, CEOs believe that the CFO will become the most important role in their organization over the next two to three years. The close relationship between these two titles gives CEOs unparalleled visibility into every corner of their organization's finances. It also improves decision-making by combining deep financial knowledge with strategic thinking, while further strengthening the CFO's operational skill set and business knowledge.
CFOs wear many hats, especially when a company goes through a major undertaking such as a series financing round or an S-1 filing. What advice do you have for CFOs who are busy with evolving day-to-day operations?
Additionally, today's financial professionals are increasingly turning to automated technologies to handle mundane tasks so they can spend more time on strategic, long-term initiatives. By putting everyday necessities within reach through AI and automation, CFOs can advance longer-term milestones for their companies, such as initial public offerings and funding rounds.
From a day-to-day operational perspective, CFOs need to keep their eyes on the ball. Maintaining so many important organizational goals at once can be a challenge. This requires an adaptable mind and work ethic, as the CFO must communicate effectively with all levels and roles within the finance team, as well as with members of the C-suite.
Being a jack-of-all-trades is an essential leadership skill, as CFOs can easily be placed alongside staff to assist during busy periods, while also presenting these practical experiences and insights to the broader board. This additional hands-on work experience allows CFOs to further hone their leadership style, resulting in a more beneficial and productive work environment.
What leadership skills should CFOs and finance leaders develop as their roles evolve to fit the current industry?
Evolution is fundamental to success in any profession, but especially in a leadership role like a CFO. If leaders fail to diversify and strengthen their strategic capabilities, their contributions will stagnate and become obsolete.
While most CFOs have years of experience making tough financial decisions and analyzing data, fewer work closely with sales teams, finance teams, or the operational side of non-executive members. In a world where CFOs must be prepared to take on any task that the CEO cannot take on, a focus on operations and collaboration presents a huge opportunity to add value.
As business leaders, CFOs have the opportunity to build teams, surround themselves with the right talent, and execute strategies for greater financial return. This starts with taking a step back and looking at your organization as a whole and asking yourself, “What can we do better?” This broader perspective increases expectations for success and opens the door for CFOs to drive the digital and financial transformation of their organizations.
Both strategic concepts require integrating new technologies and workflows to modernize outdated processes, update finance functions, and improve the overall quality of work for both employees and customers. The ability to seize opportunities for business advancement and adapt to changing times while ensuring the company achieves its financial goals is one of the greatest benefits a CFO can bring to their role within an organization.
