A Business strategy is quite a broad area that lies at the core of business decision making with a goal to enhance the value of stakeholders. When it comes to a long term business strategy, that is where a CFO or an outsourced CFO can prove to be an ideal choice for quality contribution towards the strategic leadership group.
The strategy may not be the brainchild of the CFO, but, he / she could still play a pivotal role in getting it fine-tuned and implemented. So, how does the CFO contribute? In one or more ways as described under:
- Real-time Execution: A strategy has no meaning till it is not implemented, and that too in the most efficient manner. Your CFO ensures smooth execution of the overall strategy, without interfering into the operations side.
- Assessment and Reporting for the business heads or top management: The CFO will act as the comprehensive source of all information related to strategy. CFO will always be concerned with the numbers and present the real picture.
- Reformulation: Once a strategy is formulated at the start, it is not mandatory that the same will be followed irrespective of the business circumstances or expansion requirements that your firm may face in the long term future. The strategy may have to be reformulated or restructured based on different scenarios, and a CFO would be the go-to person for such requirements.
- M&A Transactions: If you foresee any Merger and Acquisition deals for your business, do not stress out considering the magnitude of that deal! A CFO will be able to handle such M&As with ease right from their involvement in the strategic thinking for that deal, to validating the deal’s key drivers and structuring the deal, to finally conducting due diligence and getting all necessary approvals.
A decisive factor in having a winning long-term business strategy is the ability of your company to continuously evaluate its pros and cons. And by nature, CFOs possess this unique capability to get particular number-based outcomes from most of the operational scenarios.