The truth about successful financial leadership.

• Author: Echevarria, Joe
• Position: Viewpoint

The stock market, job reports and headlines from Europe have all contributed to a lackluster economic outlook in the United States. Complicated tax codes and regulations, along with increased partisanship in Washington, have increased uncertainty about our future. We cannot wait for Washington alone to solve the problems we face.

Financial leaders must act now to help resolve economic challenges--for the good of businesses and the capital markets and the future of our nation.

As financial leaders, we are well-positioned to understand risk and capital strategies. I believe that as financial leaders we are obligated to use that knowledge to help restore confidence in our economy, maximize the use of our assets and facilitate growth. We need to work effectively with government leaders and others to better our economy and improve our collective investments.

There are good things we do every day in boardrooms across the country that can and should set examples for others to follow. Chief financial officers, for instance, are in charge of developing, clearly articulating and then implementing a financial vision and strategy that everyone understands.

We also lead the process for disciplined resource allocation, and see that capital investments go to where they will have the best return. In addition, we develop fund innovations essential to long-term growth.

We drive direction, follow-up and accountability. Ultimately, we are responsible for inspiring everyone in our respective organizations to achieve their very highest potential.

Clear vision, disciplined resource allocation and superior execution are what stakeholders expect from us. But simply delivering on these basics isn't what true financial leadership is all about.

There are three more things we need to be doing now. As leaders we must lead by example toward a better and more confident economy: learn the lessons of history; transparency is one thing, courageousness another; and maintain absolute trust.

Learn the Lessons of History

While there are many theories about what led to the financial crisis of 2007 and 2008, we must now focus on critically examining history to help prevent another crisis of such magnitude.

For one, we should focus on promoting greater transparency so that regulators and investors better understand what is going on inside public financial organizations. We must push hard for increased accuracy in financial reporting, and support those internal and external...