I would like to share the thoughts of Stephen Roulac made in response to a question posted about what successful CFOs and Controllers read;
Stephen has offered us a very compelling question: What knowledge is necessary to be effective in the
We wanted to share the great content Stephen Roulac contrbuted in the aforementioned comment posting:
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ACCOUNTING - Given current job responsibilities and
CPA aspirations, for enhancing your technical knowledge and competence - FINANCE - Both internal, esp capital budgeting and financial modulating, and external, emphasizing capital access...at all stages, from venture through bank, IPO, LBO, stock repurchase, M & A, going private. Here, mastering startup financing and investment banking are crucial.
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TECHNOLOGY - Role of information, hardware, software, systems, programming language, important new developments: cloud computing, big data, etc. -
MARKETING - The effective CFO is concerned with the top line...revenue...because that is of greatest concern to the CEO, to whom the CFO reports, and, especially important, because revenue is the source of the funds to pay the business's expenses. This leads to sales,sales management , customer service and related topics. -
HUMAN RESOURCES - Critical to business success, where much of the company's operating expenses are allocated. Compensation programs, benefits and incentive programs, motivation, performance assessment and more are all within the CFO purview. - CORPORATE REAL ESTATE - Often the largest balance sheet item and the second or third largest expense item. Further, the CFO directly is invalid in this function and many times has direct responsibility for overseeing/supervisng the corporate real estate function.
- BUSINESS STRATEGY - Comprehending different schools of business strategy, business models, SaaS, new economy models, etc. are precondition for any exec aspiring to obtain position in and be effective in the C suite.
- INNOVATION - Knowing the literature of change, creativity, and invention makes executive more effective, both in obtaining position and in delivering performance in that position. New ideas, fames, insights shape the future.
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MANAGEMENT DISCIPLINES - The more CFO knows about other management disciplines, the more effective that exec may be. Studyingoperations management, logistics, corporate law, etc. are all highly relevant. - PERSONAL PRODUCTIVITY - Immersion in the knowledge resources related to communications, interpersonal relations, selfmanagement, emotional intelligence, multiple intelligences, persuasion and negotiation, organization/productivity, etc. is crucial to advancing. This extends to health and fitness, for those execs who have highest energy can and do outperform those with less.
- GLOBAL ECONOMICS AND CULTURE - The CFO needs to understand evolving/changing economics theories, models, competitive positions, applicable at local/state/country/global levels. This extends to sensitivity to and knowledge of other cultures.
- COMPETITION - As businesses, governments, places, ideas, business models, and individuals are increasingly competing for ever higher higher stakes, knowing the bases of competition, the preparation and strategies, the focus and attitude is necessary success precondition.
What are your thoughts? How do you "stay on top of your game" in each area?