Successful CFOs need to articulate their plan and make them happen. CFOs are the people who conceptualize and use knowledge-based tools that are becoming more and more important in today’s business world. Successful CFO needs to have the ability to understand any situation or opportunity that comes their way, with skill in planning so they can take charge of situations as they fly by while having all the information at their fingertips. Private Equity specialist Gary McGaghey outlines various ways to transform into a Strategic CFO.
Decisions that Influence the Strategic Process
Gary McGaghey’s cash improvement strategies are based on the understanding that for an organization to maintain a competitive advantage in an environment of “increasingly rapid change,” it needs to have a solid financial strategy with the CFO at its center. This can only be accomplished when the CFO has financial expertise and a good understanding of the strategic direction they are expected to guide their organization.
A Responding and Challenging CFO
McGaghey suggests that a CFO who is in charge of a company’s financial strategies must be someone who can respond to constantly changing environments. A well-designed strategic process gives the CFO the power to make the right decisions regarding the organization’s performance. However, this process takes time and effort from all involved parties. CFOs must understand that they will be challenged on many levels if they want to transform their organization into a financially strong team.
The Architect and Transformative CFO
Gary McGaghey explains how to build and lead great teams by emphasizing the importance of leadership, strategic planning, management development, and financial thinking. A strategic CFO aims to make positive changes and try to get control of operations through the proper application of resources and to understand the value chain from a global perspective. The transformation process evolves as your company moves from local competition to global business, leading you towards increased investment efficiency and effectiveness by managing your cash flow.
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