Chief financial officers at present play a vital role in aligning financial strategy with an organisation’s core values and culture.
This is the view of Georgeta Elena Precup (Moran), CPA,CGMA, Operating Partner - Acting CFO, Advisory at Beyond Podiatry, emphasising how CFOs occupy a unique vantage point, overseeing not only financial health but also strategic planning, risk management, and corporate governance.
According to Precup, the CFO role grants a holistic view of the organisation, making CFOs ideally suited to ensure that financial practices and values are seamlessly integrated.
She enumerated ways how CFOs can effectively bridge the value alignment gap:
- Championing Value-Driven Financial Strategies
CFOs can lead by integrating company values into the financial strategy. This involves:
Budget Allocation: Prioritising investments in projects and initiatives that reflect core values, such as sustainability, innovation, or community engagement.
Performance Metrics: Developing key performance indicators (KPIs) that measure not just financial performance but also progress toward value-based goals.
2. Enhancing Communication Channels
Effective communication is essential for value alignment. CFOs can enhance these channels by:
Regular Town Halls and Updates: Utilising forums like town halls, newsletters, and digital platforms to consistently communicate the organisation’s values and their financial implications.
Storytelling and Reporting: Using compelling narratives and case studies in financial reports to illustrate how the company’s values drive business decisions and outcomes.
3. Leading by Example
As role models, CFOs should exemplify the company’s values in their actions and decisions:
Ethical Decision-Making: Ensuring that financial decisions are made with integrity and align with the company’s ethical standards.
Transparent Practices: Promoting transparency in financial reporting and corporate governance, reinforcing trust and credibility across the organisation.
4. Facilitating Cross-Functional Collaboration
CFOs can foster collaboration between different departments to ensure a unified approach to values:
Integrated Teams: Forming cross-functional teams that include finance, HR, and operations to align strategies and initiatives with core values.
Regular Workshops and Training: Organising workshops that bring together employees from various departments to discuss and embed values into everyday practices.
5. Monitoring and Evaluating Value Alignment
Continuous monitoring is key to maintaining value alignment. CFOs can implement systems to:
Conduct Regular Surveys and Feedback Loops: Using employee surveys and feedback mechanisms to gauge the alignment of values across the organisation.
Audit and Review Processes: Performing periodic audits of financial practices and policies to ensure they support the company’s values.
