Corporate conditions ripe for 'strategic CFOs'.

• Author: Heffes, Ellen M.
• Position: FROM THE EDITOR - Editorial

If ever a strategic chief financial officer--well-rounded and willing to move out of his/her comfort-zone--was needed to keep our American businesses going and growing, it's now. The term "strategic CFO" has often been used in the past several years, but what really is required to possess the depth of knowledge and even personal commitment to work with others in the senior management team to steer the business during uncertain and unprecedented times?

In this issue's cover story, Robert A. Howell, the David T. McLaughlin Distinguished Visiting professor at the Tuck School of Business at Dartmouth College, provides a comprehensive analysis of the position and a roadmap for acquiring the requisite skills to become a strategic CFO.

A key element, writes Howell, is the ability to focus forward--instead of looking backward--a departure from the norm for financial executives, who are known to focus on financial in lieu of nonfinancial metrics.

This issue also explores a wide range of other subjects. Take China's financial reporting system. As the world's second-largest economy, it's likely at some point you will need to evaluate a business opportunity there and two professors--one from the United States, the other from China--assess the state of the Chinese system, which though regarded as on par with Western practices, is criticized by some as deeply flawed.

Middle-market companies are said to be the drivers of the U.S. economic comeback, but a majority of them do not have sufficient access to capital. The feature on mid-market companies identifies remedies and what to expect from lenders. Also in this issue, you can discover which behaviors of senior-level financial executives have quantifiable and measurable impact on their teams' engagement and performance.

Other articles of particular interest: IPO practices relating to executive compensation, clarifying...