Marjorie Lao, a seasoned CFO with extensive experience at both LEGO Group and Tandberg (now part of Cisco Systems), discusses the multifaceted role of a CFO in aligning strategy, finance, technology, stakeholder management, and personal development for value creation.
Key Priorities:
- Strategy and Business Understanding: A CFO must possess a strong grasp of business dynamics alongside finance skills and leadership abilities, especially in managing relationships with various stakeholder groups.
- End-to-End Business Visibility: CFOs are crucial for connecting all aspects of a business, often sharing visibility across functional and divisional lines typically held only by CEOs and CFOs.
Transitioning into the Role:
- Learning Curve: Initially, CFOs may face challenges with accounting rigor, but can leverage their business understanding and strategy-first perspective to navigate these complexities.
- Credibility Building: Establishing finance as a value-creating department is vital. This involves demonstrating deep business understanding, asking pertinent questions, enabling sound decisions, and driving value creation.
Nontraditional Enablers:
- ESG Integration: CFOs can contribute strategically to environmental, social, and governance (ESG) initiatives, aligning finance with broader corporate citizenship efforts.
- Strategic Approach: Viewing finance not just as a control guardian but as a strategic enabler for business growth enhances its role within the organization.
Personal Development and Leadership:
- Team Building: Quickly assessing team capabilities, supplementing with necessary expertise, and fostering a high-performing team is critical.
- Talent Exportation: Encouraging a culture where the finance team is seen as a source of talent and future leaders.
- Continuous Learning: Regularly updating knowledge, providing learning opportunities for team members, and ensuring alignment with business objectives.
In summary, Marjorie Lao's insights highlight the evolving CFO role's importance in integrating strategic, financial, technological, and personal development aspects to drive organizational value. Her emphasis on continuous learning, team empowerment, and strategic alignment underscores the evolving nature of the CFO position in modern organizations.
