9 Essential Words for a CFO’s Dictionary

Maureen O’ ConnellExecutive VP, CFO and CAO

Scholastic CorporationOct 30th, 2015

Note: The views expressed here are my own.

Introduction

The days of Chief Financial Officers being merely number-crunching bookkeepers are long gone.

When both profit and sustainability carry equal weightage when measuring a business’ value, you must renew your dictionary and lead your charge to thrive even in the future.

In this presentation we will see 9 essentials words every CFO must bookmark and practice.

 1) Balance

Show the bright side when others are pessimistic and be cynical when they are optimistic

A CFO’s job is to learn the truth from every angle and produce an informative, balanced report for the CEO.

 2) Capital

Work out capital requirements using the 4Ws-1H system:why, when, where, how, what?

Why do you need capital?

When do you need it?

Where exactly will it be employed?

How will you raise it?

What will be the cost of raising it and what will it deliver?

 3) Collaboration

You are directly or indirectly answerable to all stakeholders: customers, the CEO, the Board of Directors and your team. 

Create robust reporting strategies and flows of information.

Work synergistically to create maximum output and profitability at minimum cost.

 4) Growth

Make or buy?

Create or outsource? 

Spend or borrow? 

Accelerate or brake?

It’s your job to make the decisions that will drive the organization towards enduring growth.

 5) Insight

Large volumes of data are of little use if they cannot be interpreted to deliver useful outcomes. 

A CFO is responsible for analysing financial data and offering insights for top-level decision-making.

 6) Investment

Continuously work upon cutting costs and raising quality standards.

Invest wisely in talent and technology to optimize both for enhanced profitability.

 7) Learning

Learn continuously, through both formal study or informal discussions.

Encourage regular training so your team remains up-to-date with the latest in the financial arena.

 8) Renewal

Escalators made stairwells look ancient; revolving, glass doors replaced iron gates. The advent of television made the radio almost obsolete; the Internet seems to be doing the same thing to television.

Newer media and devices will arrive in the future.

Remain open to change and embrace them quickly and productively to meet your end requirements.

 9) Troubleshoot

Bad debts, fraud and breaches of trust are not uncommon in large companies.

While you already do your best to minimize risk, you must also know how to manage crises when they arise.

Maintain contingency funds and stay ready to tackle challenges.

Your business’ goodwill – and your job – may well be on the line.

To Conclude…

Remember, that your job involves counting beans as well as shaking hands; analyzing past trends and predicting the future; following tradition as well as doing away with stifling processes.

More than anything else, it is your job to find a way – or make one – to lead your organization to a flourishing tomorrow.

Maureen O'Connell

Maureen O’Connell is currently the Executive VP, CFO and CAO for Scholastic Incorporation (NASDAQ: SCHL). Finance and Accounting are her forte.She also excels in Administrative Functions such as Strategic Planning & Business Development, Global Operations & IT and Human Resources.