The CFO’s function has evolved significantly over the past few decades. A CFO’s expected success level varies enormously from company to company. These perspectives illustrate how a strategist thinks and how a business can adapt and use its strategy in various circumstances. Gary McGaghey, a former divisional and group CFO with international experience, describes the four steps necessary to become a strategic CFO.
Gary McGaghey, CFO of PricewaterhouseCoopers, has devised four methods for incorporating CFOs into formulating corporate strategies. Responder is the company’s CFO and is responsible for assisting the company’s top business leaders in determining how various strategic paths will impact the company’s finances. This is part of the Respondent’s broader responsibility of developing the business’s strategy.
When determining a course of action, the CFO acts as a trustee of the company’s future value by weighing the pros and cons of each potential course of action. Not only do challengers ensure good returns, but they also reduce the risk of future investments and capital allocations.
In two ways, architects enhance the challenger orientation. First, they assist with financing innovative projects through various financial strategies and contracts with customers, delivery channels, and suppliers. Second, they enhance the challenger orientation. The transformer and the CEO collaborate closely to develop and implement the company’s overall strategy.
How to Develop into an Efficient Strategist
The strategic focus of a CFO should reflect both the organization’s and the CFO’s level of autonomy. This implies that the CFO must be able to think creatively, assemble a strong finance team, and make sound decisions. Depending on the organization, the CFO may be brought in as a strategic partner for the CEO, or they may have to work their way up. With the assistance of a solid finance team, the CFO can devote more time to strategic issues and receive the quantitative analysis and support necessary to develop a winning strategy. More to read: https://gary-mcgaghey.medium.com/