Book Review: The Chief Financial Officer: What CFOs Do, the Influence They Have, and Why It Matters

Introduction

The role of the Chief Financial Officer (CFO) has evolved dramatically over the years, transforming from a back-office accountant to a front-line executive with influence rivaling that of the Chief Executive Officer (CEO). The Chief Financial Officer by The Economist provides a comprehensive look at how CFOs have achieved this elevated status, their expanding responsibilities, and what the future holds for them. In this review, we’ll explore the key insights from this book and its relevance for finance professionals, aspiring CFOs, and business leaders.

The Chief Financial Officer

Is approximately 120 fast read book, that spelss out the essence of the modern CFO’s role through a combination of research, real-world anecdotes, and insights from current and former CFOs. It is structured into five chapters:

1. Origins: From the Back Office to the Front Line – Traces the historical journey of the CFO role.
2. Role: Ensuring Control, Driving Strategy – Highlights how CFOs balance financial control with strategic leadership.
3. Responsibilities: Internal Affairs – Examines the day-to-day duties and internal operations managed by CFOs.
4. Relationships: Colleagues, Partners, Friends, and Foes – Discusses how CFOs interact with various stakeholders, from CEOs to investors.
5. Prospects: A World of Possibilities – Looks at the future trajectory of CFOs and their growing influence.

If you’ve worked in corporate, I promise it is effortless to understand. It is especially useful for aspiring CFOs, finance professionals, and senior managers who want to deepen their understanding of the CFO’s strategic role. Additionally, it serves as a valuable reference for board members, non-executive directors (NEDs), and service providers like banks, accountants, and consultants who want to build better relationships with finance leaders.

Key Takeaways

1. CFOs Are No Longer Just Number Crunchers

The book effectively illustrates how CFOs have shifted from traditional financial oversight to being key strategic advisors. They are the right-hand partners of CEOs, balancing optimism with financial realism. Their influence extends beyond finance into decision-making, corporate strategy, and risk management.

2. A CFO’s Skill Set Is Broad and Ever-Expanding

Modern CFOs require a diverse skill set, including financial acumen, strategic thinking, leadership, and the ability to communicate effectively with investors and stakeholders. The book details how CFOs serve as both advisors and consultants to other departments while ensuring the company remains financially healthy and growth-oriented.

3. Career Opportunities for Finance Professionals

The book sheds light on how the rising importance of CFOs has expanded career prospects for finance professionals. It offers guidance for those aspiring to move into executive financial leadership roles and provides insights into how CFOs can maximize their impact within an organization.

4. Strategic Thinking in Challenging Times

One particularly insightful takeaway from the book is the concept of not letting bad news go to waste. For example, if a company’s financial struggles become public, CFOs can leverage the situation to renegotiate better terms with suppliers. This demonstrates the CFO’s ability to turn adversity into opportunity through strategic financial management.

Who Should Read This Book?

• Aspiring CFOs and finance professionals looking to understand the evolving nature of the role.
• Senior managers with little financial experience who want to work more effectively with their finance teams.
• Non-Executive Directors (NEDs) seeking to gain insights into what a CFO does.
• CEOs and board members who want to better understand the value a CFO brings.
• Service providers such as banks, accountants, and consultants who need to navigate relationships with CFOs.

Final Thoughts

The Chief Financial Officer is a must-read for anyone looking to understand the growing influence and responsibilities of CFOs. While it does not delve into technical financial models or corporate finance strategies, it provides a strategic overview of what it truly means to be a CFO today.

With its engaging writing style, well-researched insights, and real-world examples, this book is a valuable resource for finance professionals at all levels. Whether you are an aspiring CFO, a senior executive, or someone working closely with finance teams, this book offers a compelling perspective on why the CFO role is more critical than ever in today’s corporate world.

Rating: ★★★★☆

Is this book in your CFO Book list? And if you’re looking for more book reviews on finance, strategy, and leadership, be sure to check out my other posts on BrainThrough.co.uk.