When it comes to business strategy, there’s no denying that the CEO takes center stage. However, the CFO plays a significant role in shaping the future of a company as well. CFOs are responsible for an organization’s financial health, management, and planning, and their insights are vital to setting effective business strategies. In this blog post, we’ll take a closer look at the role of a CFO in strategizing and learn from , CFO of global communications firm Williams Lea Tag, on how he successfully plays this part in his company.

First and foremost, a CFO plays a strategic role in setting company goals and objectives. Gary McGaghey states that CFOs need to have a deep and comprehensive understanding of the company’s business model, market, and financial situation. This understanding allows the CFO to advise on allocating resources and developing strategies that can help achieve the company’s goals. CFOs also help establish metrics for measuring progress and success. Listen to this article

Another key aspect of the CFO’s role in business strategy is risk management. CFOs are responsible for identifying key risks and opportunities that may impact the business. They analyze data and information to identify potential financial and operational risks and advise on ways to mitigate them. This requires a holistic understanding of the business, market, and competition.

CFOs also need to be forward-thinking when it comes to planning for the future. They must identify opportunities for growth and investment. Gary McGaghey emphasizes investing in technology, automation, and innovation. CFOs must also consider global trends and geopolitical risks to anticipate changes that may impact the business.

Lastly, CFOs play a critical role in communication. CFOs must communicate effectively with both internal and external stakeholders, including shareholders, board members, and employees. They must explain financial results and forecasts in a way that is easy for non-financial people to understand. This requires excellent communication skills and the ability to create and maintain positive relationships.

CFOs play a central role in setting company goals and objectives, assessing risks and opportunities, planning for the future, and communicating effectively with stakeholders. CFOs like Gary McGaghey, succeed in this role by having a deep understanding of the business, the market, and the competition.