How does the CFO bring value to the Board?

For some time I have speculated above the question - how do CFO's add significant value to the company's Board of Directors and subsequently future business success?

I have come to the conclusion that CFO's should not only pass on information, but instead be considered as an essential multifunctional source including both information and strategic competences that provides ongoing value in order for the Board to take decisions based on solid and accurate background.

It isn’t news to report that CFOs make good candidates for the board. But what is interesting is the extent to which the demand for both serving and former CFOs to take on board roles is increasing. In the current economy, shareholders, boards and regulators want board members who have the right skills, perspective and judgment. And, the CFO is uniquely qualified for the job.

All too often, unfortunately, CFO's acts only as "messengers" when it comes to satisfy the informations needs related to the actual financial performance, budgets, KPIs, etc. Companies who understands and encourage their CFO's to act as consultants and in addition involve them in strategic decissions will achieve a much higher yield of the CFO's overall expertise and business insight which will most likely lead to better results - both financial and organisational.

CFO's must be commercial, which for many can be a challenge in relation to the classical tasks such as reporting, audit and control. The value-adding CFO should to a much greater extent focus on enterprise development, IT and technology trends, market development and scalability, risk assessment and management. This is to be seen in conjunction with the classic tasks.

It is therefore without any doubt my opinion that CFO's plays a vital importance for the company's success and future opportunities. However, it is important to emphasize that value only really occurs at the time when CFO's gets involved in daily operations to ensure that the proposals for concrete decisions are anchored in the right context in relation to the company's current situation and position.