A company’s Chief Financial Officer (CFO) has great knowledge and understanding of a company’s financial landscape, and they are typically very analytical and strategic by nature. So when a worldwide pandemic occurs and a company is directly impacted by it, the company’s stakeholders will inevitably turn to their trusted CFO to be informed of the company’s current financial standing and to hear how the company plans to persevere despite the pandemic. In short, the way a CFO handles a crisis is crucial. Read on for 5 CFO duties during a worldwide pandemic.
- Communicate Frequently
- When something as serious as a global pandemic occurs, stakeholders will naturally become concerned with the company’s financial future. With that said, it is the duty of the CFO to communicate with all stakeholders on the financial strength of the company at any given time during the pandemic. More importantly than communicating with stakeholders, the CFO must first and foremost communicate with their internal employees. Employees are the lifeblood of an organization and deserve honest and open communication. Don’t worry about having all the answers, often times we don’t. Employees, and stakeholders, want to know they have a leader in place that show up in an authentic and honest way. Honest and frequent communication will help keep the individuals and partners that are most invested in your company updated with the latest financial information that could potentially impact them.
- Reconsider Your Current Business Plan(s)
- Will your current business plans for operation and success sustain themselves amidst coronavirus? If you’re not so sure, it may be time to reconsider. The CFO and finance organization would be well served to adopt a transformation mindset when they are setting targets, managing performance, constructing budgets, or challenging their business on growth or expense actions. If the CFO wants the business to survive coronavirus, reconsidering and potentially changing the current business plans and practices might be the next best step.
- Lead with Positivity
- Worldwide pandemics bring great uncertainty, and the last thing your company needs is a Chief Financial Officer that sees the situation with pessimism and little hope. What your company needs now more than ever is a CFO that is confident that things will get better and that things will ultimately work out for the company. It is imperative that financial leaders demonstrate bounded optimism that the organization and its people will find a way through the crisis. This doesn’t mean the CFO and their team won’t face challenges; it simply means they choose to approach these challenges as opportunities instead.
- Evaluate and Prepare for Various Scenarios
- Preparing for various scenarios will help your odds of pulling your company through this uncertain time. Lack of preparation, on the other hand, will leave your company ill-prepared for if (or when) any abnormal scenarios occur. An article by Forbes notes that the CFO should “work with the rest of the executive team and develop a wide range of possible outcomes, and then a financial plan that will help the enterprise not only survive but thrive”. McKinsey recommends the same, noting that the CFO “should develop a point of view about two or three integrated scenarios that encompass multiple eventualities—for instance, which paths might the pandemic take, and which geographies or industries are poised for faster recovery than others?”. Brainstorming potential scenarios and identifying solutions for them will greatly increase your company’s chances of continued success throughout the pandemic. Ultimately, it is better to be safe than sorry.
- Take Care of Your Company AND Yourself
- Being CFO of a company during a global pandemic is a great responsibility as your actions have a major impact on the financial future of your company and all those involved. But while you are laser-focused on keeping your company afloat during coronavirus, it is equally important that you take care of yourself, too. If you are not in good health at this time, it will be more difficult for you to execute your job duties as CFO. Eat well, drink a lot of water, exercise daily (even for just 30 minutes a day) and get an adequate amount of sleep to ensure you are in great physical and mental health for your crucial role as CFO.
About Omada Search:
Omada Search is a boutique executive recruiting firm dedicated to serving middle market manufacturing and distribution clients in the Carolinas. Omada specializes in Accounting, Finance and Operations. For further information on Omada Search, please visit www.OmadaSearch.com.
