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CFOs: Driving Corporate Growth
By:  Michael Levine, Principal, Advantage Talent, Inc.
    Many CFOs ask me how to increase their job longevity.  There is only
one answer to this question.  Expand job responsibilities beyond assuring
the financial statements are presented on time.  The senior financial
executive has to be actively involved in the growth of his or her company.

    Through my CFO and Controller Roundtables and direct communication
with many senior financial executives, I’ve learned about ways financial
executives are driving the growth of their companies.  Examples that fuel the
internal corporate growth engine include:

  1. Utilizing a variety of financing vehicles to obtain additional liquidity.
  2. Working with the executive team to develop sales professional compensation,
    which rewards salesmen for focusing on sales with greater profitability.  
  3. Working with sales reps in the field when they encounter perceived internal
    corporate “red tape”.  In many cases, there are opportunities to streamline
    processes by easing overly restrictive controls or eliminating previously
    unidentified bureaucratic bottlenecks.
  4. Initiating meetings with industry specific business strategists to provide
    guidance for growth.
  5. Evaluating and improving health and other corporate insurance policies to
    attract and retain employees.
  6. Developing tax strategies, which produce significant savings to free up cash
    for other productive uses.
  7. Finding value in liabilities by taking aggressive stance on discounts by
    vendors, and getting rebates on credit cards, all of which provide cash for
    growth.
  8. Relocating plant controllers to the factory floor vs. ‘ivory tower’ offices.  
    This allows them to better see what is going on in real time.  They are part of
    the floor team and therefore are more accessible to concerns which
    otherwise would not be communicated to the proper parties for action.
  9. Negotiating with banks to reduce account and credit card fees.
  10. Doing homework on competitive vendors and using information to achieve
    best pricing without necessity of changing vendors.
  11. Securing State tax credits for software installation (training credit) and
    Federal Income payroll tax credits for certain geographic areas.
  12. Developing strategies on timing of inventory purchases to balance tax
    reduction, holding costs, and pricing trends.
  13. Working with the purchasing department to develop policies and procedures
    for inventory, supplies, and even capital expenditures to eliminate waste and
    maximize rebates.
  14. Analyzing sales profitability by vendor, and subsequent vendor selection.
  15. Analyzing sales profitability by customer, and subsequent ‘firing’ of certain
    customers.
  16. Implementing travel and entertainment policy to maximize cash flow and
    eliminate waste.

    By taking on responsibilities that improve profitability and growth of the
company, the senior financial executive should be able to better position his or
herself for a long term relationship with their current employer.  Come to one of the
CFO Executive Roundtable meetings and learn about what your peers are doing to
drive growth in their companies.   Also, contact me with other questions or ideas at
mlevine@advantagetalentinc.com or 770-853-8899.

Join Michael's Linkedin Group: CFO Executive Roundtable Discussion Group

Originally published in the CFO Advocate-The Newsletter for the CFO Roundtables.
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