The Chief Financial Officer Competency Framework

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Our CFO Competency Framework is more than just an assessment tool - it's your personalized roadmap to career success.

There are a lot of moving parts to the CFO role and it can often feel impossible to master each one. This is why we’ve curated a comprehensive collection of resources that'll help you gain a deeper understanding of each area of your role and close any skill gaps with laser focus.

Each level of our framework is dedicated to mastering a specific facet of the CFO role from fundamentals through strategic execution and transformative impact.

 

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Part 1: Fundamentals

A strong foundation in core areas like financial control, compliance, FP&A, and operations is essential for CFOs. Mastering these fundamentals will help you to make informed decisions, ensure financial health, and ultimately guide the company towards long-term success.

Control and compliance

Don't underestimate the power of control and compliance. As CFO, you can leverage them to manage risks, build trust with key stakeholders and guide the company towards financial stability and sustainable growth.

Governance (and the CFO’s role)
To help ensure governance within your company, it’s important to establish and maintain robust internal controls and promote ethical conduct and compliance.
Finance AllianceFinance Alliance
Your guide to financial crime risk management (FCRM)
In this blog, we’re not just skimming the surface. We’re diving deep into the true meaning of financial crime risk management and demystifying how you can manage risks around money laundering, fraud, terrorist financing, and other shady activities.
Finance AllianceSabrinthia Donnelly
The CFO’s crash course in finance and compliance
Governance, risk management and compliance. These aren’t exactly the most exciting aspects of a CFO’s role, but that doesn’t stop them from being vital areas of focus. 🎯
Finance AllianceRichard King
CFO cybersecurity: What’s the CFO’s role in cybersecurity?
From crunching numbers to combating cyber threats, the role of the CFO has leaped into uncharted territory, making CFO cybersecurity one of the hottest topics in boardrooms across the globe.
Finance AllianceRichard King
Financial month-end close checklist | Finance Alliance
Whether you’re a seasoned finance pro or just starting, we’re here to guide you through the process. We’ve got some handy checklists, nifty tips, and a few tricks up our sleeve to transform your month-end close from a frantic scramble into a streamlined process.
Finance AllianceSabrinthia Donnelly
3 strategies to slash costs with corporate treasury
An effective corporate treasury department is much more than cutting checks and keeping the books tidy. When managed properly, it becomes a strategic function that optimizes cash flow, mitigates risks, and ultimately, saves your company a fortune.
Finance AllianceSabrinthia Donnelly

Operational excellence

By driving operational efficiencies and fostering cross-functional collaboration, the CFO can optimize business processes, align resources, and deliver insights that fuel enterprise-wide decision-making and growth strategies.

Operations management
CFOs often need to analyze operational data to identify areas for improvement. They can pinpoint inefficiencies that drain resources, like excessive waste in production or redundant processes.
Finance AllianceFinance Alliance
7 data management problems and solutions
Data management plays a pivotal role in driving insightful decisions and ensuring the financial success of a company. But let’s face it – navigating this intricate landscape can feel like a battle, filled with data management challenges like inaccuracies, security breaches, and complex integrations.
Finance AllianceSabrinthia Donnelly
Business process optimization: 5 inefficiencies to eliminate
5 process inefficiencies you should try to eliminate. By streamlining these areas, you can create a ripple effect of efficiency gains across the entire company.
Finance AllianceSabrinthia Donnelly
The ultimate data cleaning checklist for finance
In this blog, we get into the nuts and bolts of data cleaning techniques. We’ll also provide practical data cleaning steps to help guide you through the process.
Finance AllianceSabrinthia Donnelly
5 tips to promote financial accountability across the company
Looking after the company’s money is a shared responsibility that needs diligence, transparency, and accountability from all levels of the organization.
Finance AllianceRichard King
What is big data security analytics?
From network intrusions and malicious insider activity to data breaches and compliance violations, the risks to a company’s sensitive data are at an all-time high. So, how can you protect data from theft and other malicious threats?
Finance AllianceSabrinthia Donnelly

Financial planning and analysis

Sharp financial planning and analysis (FP&A) helps the CFO to make data-driven forecasts, create efficient budgets, and monitor performance in real-time. This translates into strategic decisions, optimized resource allocation, and measurable progress towards achieving organizational goals.

Budgeting vs forecasting: Understanding 20 key differences
When it comes to guiding decision-making, allocating resources, and ensuring an organization’s long-term financial stability. Budgeting and forecasting are two crucial FP&A activities. Forecasting and budgeting are connected but separate activities with differing goals, methods, and results.
Finance AllianceAsif Masani
Multiple on Invested Capital (MOIC): Definition & guide
In this article, we’re zeroing in on MOIC to uncover what it is, its role in private equity, and more importantly, how you can use it to sharpen your investment evaluation skills.r
Finance AllianceRichard King
How to create a simple financial forecast model
Financial forecasting predicts the future performance of the business. But how can you build a financial forecast model from the ground up? Find out here.
Finance AllianceSabrinthia Donnelly
Prioritize investments
Chief Financial Officers (CFOs) prioritize investments by carefully evaluating their potential impact on the company’s strategic objectives and financial health.
Finance AllianceFinance Alliance
Use of data analytics and BI tools in FP&A
Discover several ways that financial planning and analysis (FP&A) teams can increase the use of data analytics and business intelligence (BI) tools to improve decision-making.
Finance AllianceAsif Masani
How to create a driver-based planning framework
Driver-based planning identifies and models the key operational drivers behind your company’s financial performance. With these in place, you can transform budgeting and forecasting from a labor-intensive grind to a seamless, automated process.
Finance AllianceRichard King

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Part 2: Strategic Execution

CFOs must master strategic execution to create value. This includes providing financial insights for shaping strategies, driving change initiatives, and identifying growth opportunities through deals like mergers and acquisitions. Excelling in these areas helps CFOs to become true business partners and agents of change. 

Strategic business partner

A CFO should function as a trusted strategic advisor, delivering essential financial insights that are vital to shaping business strategies and creating value for the company. They play a pivotal role in guiding the company's financial direction and ensuring that strategic decisions are informed by robust financial data.

4 stages of how finance business partners drives value
Want to know how finance business partners can drive massive value for their organizations? Well, buckle up, because Christian Wattig, Managing Director at FP&A Prep, has got a killer framework that’ll help you create value as a finance business partner.
Finance AllianceChristian Wattig
How to become a data-driven decision maker (Part 1)
We all know the saying, “garbage in, garbage out” when it comes to analysis, so it stands to reason that you can’t be data-driven or data-informed if you don’t collect the data. At least not in the way you think.
Finance AllianceOliver Vander Horn
5-step stakeholder communication plan
A stakeholder communication plan is a strategic document outlining how a company will communicate with its stakeholders.
Finance AllianceRichard King
Competitive analysis
The Chief Financial Officer (CFO) plays an important role in competitive analysis, which is a key component of strategic management that involves assessing the strengths and weaknesses of current and potential competitors.
Finance AllianceFinance Alliance
6 steps for your first project as a finance business partner
In this blog post, Srushti Mahamuni, Operation Business Analyst at Bank of America Merrill Lynch, guides you through the six steps to get started on your first project as a finance business partner.
Finance AllianceSrushti Mahamuni
CFO and CEO relationship: 5 ways a CFO can support the CEO
In this post, you’ll learn what a CEO needs from their CFO, and what you can do to support the CEO on a day-to-day basis.
Finance AllianceSabrinthia Donnelly

Change agent

Mastering change management enables CFOs to navigate disruptions, drive transformation initiatives, and foster a culture of continuous improvement.

5 Pillars of CFO leadership | Finance Alliance
CFO leadership isn’t just about flexing your financial muscles. It’s also about inspiring your team, adapting to change, and navigating complex challenges…
Finance AllianceSabrinthia Donnelly
How to instantly improve cash flow forecasting techniques
When done well, a cash flow forecast will accurately estimate money flowing in and out of the business over a set period of time. If you want to improve your cash flow forecasting techniques, keep reading to discover five tips to help you do just that.
Finance AllianceSabrinthia Donnelly
Embed positive change
A successful CFO is often said to be a real agent of positive change. There are a few ways a CFO can do this effectively.
Finance AllianceFinance Alliance
Your Guide to Finance Transformation | Finance Alliance
In this guide, we’ll delve into the exciting world of finance transformation and explore how you can harness its power to take your business (and your career) to the next level.
Finance AllianceSabrinthia Donnelly
Operational finance: A CFO’s guide to leadership styles
Operational finance is an essential aspect of a successful CFO’s skill set. But mastering the operational side alone isn’t enough. You also need to wear your strategic leadership hat too and learn to balance both for maximum impact. But how?
Finance AllianceSabrinthia Donnelly

M&A and fundraising

A CFO's skills in mergers, acquisitions, and fundraising come into play when spotting opportunities for growth, closing deals, and getting the funds needed for strategic expansion. This know-how is crucial because it helps the company not just grow, but do so smartly and sustainably. 

M&A best practices: Navigating successful deals
To help you craft a winning deal, we’ve compiled some M&A best practices that can help you not only survive the ordeal but also thrive, turning potential pitfalls into opportunities for growth. 🚀
Finance AllianceSabrinthia Donnelly
10 risks of mergers and acquisitions & how to mitigate them
In this article, we explore the top 10 risks of acquiring a company and how to mitigate them.
Finance AllianceSabrinthia Donnelly
3 vital things to know about financial performance analysis
Even if you’re experienced at it, there are a few important things about measuring a company’s financial performance that even the experts can overlook. In this blog post, we’re digging into three things every CFO should know about financial performance analysis.
Finance AllianceSabrinthia Donnelly
Acquisition financing explained: Types & how it works
Done right, acquisition financing fuels growth. Done poorly, it can sink the whole ship. The sweet spot is structuring a deal that makes strategic sense and positions your now-bigger company for continued success into the future.
Finance AllianceRichard King
6 proven negotiation tactics to seal the deal
Time is money, especially when it comes to acquisitions. Deal fatigue can drag negotiations on for months and every day a deal remains unclosed is another day of lost opportunities and unrealized profits.
Finance AllianceRichard King
M&A exit strategy
As the CFO, you’ll play a vital role in the exit strategy of an M&A. Some key areas where you can have a great impact include…
Finance AllianceFinance Alliance

 

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Part 3: Transformative impact

Transformative impact requires CFOs to be exceptional leaders inspiring teams and aligning stakeholders with a common vision.

Leadership

Strong leadership is key to motivating teams, getting everyone on the same page, and guiding the company toward long-term success. When CFOs lead effectively, they not only inspire their teams to aim high but also help align different stakeholders with the company's goals.

The finance function of the future: Transform or perish
From digital disruption to economic uncertainties, the finance industry is facing a veritable storm of change. It’s a sink-or-swim moment, and only those who can adapt will make it to the other side.
Finance AllianceSabrinthia Donnelly
The seven Ps of a highly successful CFO
If you want to be a truly successful CFO, you must close the gap or risk losing the front seat as the trusted co-pilot in the C-suite to deliver enterprise value to company shareholders. But what are the distinguishing qualities or characteristics of a highly successful CFO?
Finance AllianceTjendra Halima
Why CFOs need to be great people managers (10 tips)
Being a Chief Financial Officer (CFO) and leading a phenomenal finance team isn’t just about financial management and strategy - it’s about people and being an effective people manager.
Finance AllianceSabrinthia Donnelly
How CFOs drive company culture
When you think about who shapes the culture of a company, the CEO and HR leaders are probably the first roles that come to mind. However, the Chief Financial Officer (CFO) also plays a vital role in driving company culture.
Finance AllianceFinance Alliance
How CFO’s can strategically interact with different parties
CFOs need to build effective communication and collaboration with various parties to be successful in their role. Working closely with the CEO and other top bosses (the C-suite) is key. Regular chats and open communication are a must.
Finance AllianceFinance Alliance
CFOs: Leading by example
Since finance sets the tone for a company’s fiscal responsibility, which means your actions have a ripple effect. If they demonstrate ethical spending and a focus on long-term value creation, it sends a clear message to the entire organization about financial priorities.
Finance AllianceFinance Alliance

Business-oriented mindset

By seeing how different parts of the business interconnect, a CFO can offer valuable insights and strategies that help improve efficiency and boost results across the board. This broader perspective allows them to contribute significantly to the overall performance of the company.

Why business acumen is so important for CFOs
One of the most vital CFO skills is having that sharp business acumen - seeing the company through a wide-angle lens. It’s about understanding the bigger business landscape that exists outside of just the finance department’s four walls.
Finance AllianceFinance Alliance
3 tips to improve your market analysis skills
CFOs need to have a solid understanding of market analysis to make informed financial decisions and contribute to the overall business strategy.
Finance AllianceFinance Alliance
How to tell a compelling story with financial data
Data visualization storytelling is not just about presenting financial data – it’s about crafting a compelling narrative that resonates with your audience.
Finance AllianceSabrinthia Donnelly
8 quick-fire tips to increase shareholder value
Keeping shareholders happy isn’t always easy. Some strategic methods you can use to help boost the value provided to shareholders include…
Finance AllianceFinance Alliance
7 important cash flow drivers in a business
Cash flow drivers are vital to sustaining the life of a business. When cash flow is low, a string of issues arise. From struggling to pay suppliers to potential solvency problems, low cash flow must be avoided at all costs.
Finance AllianceSabrinthia Donnelly
10 proven tips to retain top finance talent
What can you do to keep your best employees happy and prevent them from becoming a flight risk? Here are 11 easy but effective ways to help retain your best finance talent.
Finance AllianceSabrinthia Donnelly

Soft skills

Soft skills are just as crucial for a CFO as their financial expertise. Honing interpersonal, communication, and influencing abilities allows CFOs to build effective relationships, collaborate across functions, and drive organizational alignment.

CFO: Communication skills
If you want to be a successful CFO, it’s time to brush up on your people skills. Communication is a big part of the CFO’s role because they talk to a variety of people. This includes board members, shareholders, investors, suppliers, customers, and employees.
Finance AllianceFinance Alliance
CFO: Emotional intelligence
One of the most important CFO skills that often gets overlooked is emotional intelligence. A CFO with high emotional intelligence (EQ) is gold. They understand their own emotions and can read the room like a book.
Finance AllianceFinance Alliance
CFO: Influence and persuasion
Today’s CFOs are leaders through and through. They’re heavily involved in not only managing and leading a team but also assisting with team building and recruitment. Therefore, successful CFOs must have good leadership skills.
Finance AllianceFinance Alliance
CFO: Critical thinking & problem-solving
Critical thinking and problem-solving are very important CFO skills. After all, the business world can be messy - full of complex problems and unexpected challenges popping up left and right.
Finance AllianceFinance Alliance
CFO: Reliable and trustworthy
For a CFO, being seen as reliable and trustworthy is non-negotiable. It’s an essential leadership quality.
Finance AllianceFinance Alliance
Top 15 must-have Chief Financial Officer skills
The modern CFO wears many hats and must master a variety of CFO skills. But what skills does the CFO of the future need to stay on top of their game? Keep reading as we uncover some of the most important Chief Financial Officer skills…
Finance AllianceSabrinthia Donnelly

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