It's a great time to be CFO.

AuthorKuehn, Kurt
PositionFROM WHERE I SIT - Chief financial officers

These days, wherever chief financial officers gather for conferences or symposiums, you notice the blanched faces and drawn lips and understand the toll of the past couple of years. Credit crises, liquidity crunches, a nasty recession, shrinking revenues and equity declines--another day, another crisis.

Yet, for me--and I mean this without an ounce of sarcasm--it's a great time to be a CFO.

Before you think I'm disconnected from reality let me hasten to add that I don't deny these have been particularly trying times for financial professionals. CFOs have never worked so hard to help keep their companies afloat. And I certainly don't mean to downplay the economy's assault on the livelihoods of employees and shareholders.

However, never before has the chief financial officer had the opportunity to play a more central role in the success of his or her company.

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Now, in part because of the overwhelming financial pressures of late, CFOs are positioned to be key drivers of corporate strategy.

The worst of the financial crisis seems to be behind us, but I suspect that the role of the CFO has been permanently reshaped. In a way, our jobs have evolved to become like that of a skilled gardener, who helps choose where to prune and where to fertilize for future growth.

As Dickens might have described it: These are the worst of times and the best of times for CFOs. If you're not convinced about the sunnier half of that claim, consider these five reasons why CFOs have more clout:

CFOs Get to Help Cultivate Strategy

At a time when cost-cutting and cash-flow optimization are at the top of the boardroom agenda, CFOs now have a seat at the strategy table. Many are deeply involved in strategy formulation--not necessarily as a proponent of any one strategy but as an arbiter of various strategic options.

Consider, every business strategy decision is an investment decision. It might involve working capital or an investment of time or people. In a challenging economic environment, the financial discipline has an especially key analytical role to play.

Armed with financial models, the CFO can help fellow executives understand the financial implications of any strategic decision. To help general managers avoid relying primarily on gut decisions, the CFO can make sure the financial implications are fairly evaluated, that hidden capital requirements are discussed and options weighed.

In fact, it's the CFO's duty to present and evaluate multiple...

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