New strategies = new CFOs.

• Author: Heffes, Ellen M.
• Position: CAREER TRACK - Chief financial officers

Along with the unprecedented change in the global economy, new research from KPMG reveals that companies are moving toward chief financial officers whose skills align with their corporate strategy.

It found that companies bring in new CFOs based on the firm's immediate needs--a move designed to help them successfully execute on their current strategy and, thus, improve performance, particularly during these challenging times.

Understanding the evolution of the CFO role could help management to choose the right executive for the current needs of the business as well as cultivate future leaders with the diverse capabilities the company will likely be seeking later.

The research also shows a trend of companies changing CFOs more frequently. As many in five Fortune 1000 CFOs were replaced in the 12-month period ending June 30, 2008; while CFO turnover has increased 19 percent year-over-year and 38 percent compared with two years ago.

One might attribute the high CFO turnover to the individual's underperformance or even burnout--which KPMG research has identified as a key reason for turnover in the past.

Yet, the new research supports a perspective that CFO change may align with shifts in company strategy as new CFOs with needed capabilities are brought in to carry out new strategies.

The CFO role has expanded over the past few years to include functions not traditionally associated with the title. Researchers organized CFOs into six categories:

* Internal Growth Leader. Works mainly toward...