The financial executive's evolving role.

• Author: Cangemi, Michael P.
• Position: President's page

The role of the financial executive continues to expand. The original job requirement related to record-keeping, tax and other regulatory compliance continues; however, growth in the complexity of business has led to a significant expansion of responsibilities.

FEI Canada Chief Executive Michael Conway has been speaking across Canada on the subject of the evolution of the role of the CFO. According to Conway, "Today, the role of the CFO has moved from the position of being a corporate 'bean counter' with responsibility for balancing the books and maybe a bit of budgeting to the demanding position of being a strategic leader."

Conway further explains that financial executives are expected to be "innovative, creative, possessing soft skills, being leaders of transformation and change, and that is in addition to understanding everything from operations, to HR, to technology, while also being the road show man or woman for the organization."

Basic training for most financial executives is in accounting, finance and management. Financial executives must pick up their skills related to people, behavioral science and leadership along the way, while balancing their work in technical areas. It's a clear example of the need for leadership development: A major theme at FEI's Summit conference each year is leadership and people skills, and these sessions are usually overflowing with financial executives looking for education.

Complexity Drove Change in Role

As many of you know, FEI's early meetings involved controllers discussing compliance issues related to the then-recently enacted Securities Acts of 1933 and 1934. Over the many decades, the increased complexity of business caused the role of the controller--and the CFO--to evolve to what it is today.

FEI has expanded with many member services and operations. The original mission of the controllers' meetings, to review compliance efforts, is being carried out by numerous technical committees, including the prestigious Committee on Corporate Reporting (CCR). In addition, chapter organizations have flourished, providing networking opportunities for the expanded membership in most major cities across America and Canada.

As I traveled to many cities carrying the FEI and Financial Executives Research Foundation (FERF) message, I repeated that the brand equity of FEI/FERF has been built up over the years by consistent, rational thinking and dialog with standard-setters, regulators, legislators and other...