Advisors, Business, Finance, Strategy

Good CFO vs. Bad CFO: Key Differences

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March 1, 2023

- Advisors, Business, Finance, Strategy

A Chief Financial Officer (CFO) is a critical member of any organization’s leadership team. They are responsible for managing a company’s finances, creating financial strategies, and ensuring the financial health of the company. However, not all CFOs are created equal. There are good CFOs and bad CFOs

Here are key differences between a good CFO and a bad CFO:

1. Strategic Thinking
A good CFO is a strategic thinker who understands the big picture and can develop financial strategies that support the company’s overall goals. They analyze financial data and provide insights that can help guide decision-making. In contrast, a bad CFO focuses solely on the financials and doesn’t understand the broader strategic objectives of the company. They may also lack the ability to communicate financial information in a way that non-financial stakeholders can understand.

2. Risk Management
A good CFO is proactive in identifying and managing financial risks. They anticipate potential problems and develop strategies to mitigate them. They also work with other departments to ensure that risk management is integrated into all aspects of the business. In contrast, a bad CFO may be reactive and fail to identify risks until they become major problems.

3. Communication Skills
A good CFO is an excellent communicator who can explain complex financial information to non-financial stakeholders. They also understand the importance of transparency and provide regular updates on the company’s financial performance. In contrast, a bad CFO may be poor communicators who struggle to explain financial information to others in a way that is easily understood.

4. Operational Efficiency
A good CFO is always looking for ways to improve the efficiency of the company’s financial operations. They streamline processes and implement technology solutions that can help the company operate more efficiently. In contrast, a bad CFO may be resistant to change and fail to implement new processes or technologies that could benefit the company.

5. Ethical Standards
A good CFO operates with the highest ethical standards. They are transparent in their financial reporting and ensure that the company is in compliance with all relevant regulations. They also establish a culture of integrity throughout the organization. In contrast, a bad CFO may engage in unethical practices such as misreporting financial information, which can lead to legal and reputational problems for the company.

Conclusion
A good CFO is an essential member of any organization’s leadership team. They are strategic thinkers, proactive risk managers, excellent communicators, and are always looking for ways to improve the efficiency of the company’s financial operations. In contrast, a bad CFO may lack these essential skills and could potentially harm the financial health of the company. By understanding the key differences between a good CFO and a bad CFO, companies can make informed decisions when selecting a CFO for their organization.
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Analytics, Business, Finance, Strategy

Transforming your finance function.

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December 24, 2022

- Analytics, Business, Finance, Strategy

Finance transformation is the process of improving and modernizing the financial systems, processes, and capabilities of a business or organization. This can involve a wide range of activities, including adopting new technologies, streamlining financial reporting, improving budgeting and forecasting, and enhancing risk management practices.


One of the main drivers of finance transformation is the increasing complexity and speed of business operations. In today’s fast-paced, global economy, companies need to be able to respond quickly to changes in market conditions and customer needs. This requires robust and agile financial systems that can provide timely and accurate financial information.


Another key factor driving finance transformation is the need for improved efficiency and cost-effectiveness. As businesses grow and evolve, their financial systems may become outdated or inefficient, leading to increased costs and reduced competitiveness. By modernizing financial systems and processes, businesses can improve efficiency and reduce costs, freeing up resources for other areas of the business.


There are several key steps that businesses can take to successfully implement a finance transformation:

  1. Identify the key areas that need improvement: This can involve conducting a thorough assessment of current financial systems, processes, and capabilities, and identifying areas that are causing bottlenecks or inefficiencies.

  2. Develop a clear roadmap: Once the areas in need of improvement have been identified, it’s important to develop a clear plan for how to address them. This can involve setting specific goals and objectives, outlining a timeline, and identifying the resources needed to achieve success.

  3. Adopt new technologies: One of the most effective ways to modernize financial systems is to adopt new technologies that can automate and streamline processes. This can include implementing financial software, such as enterprise resource planning (ERP) systems or cloud-based accounting platforms.

  4. Enhance financial reporting and analysis: Improved financial reporting and analysis is critical for making informed business decisions. By implementing new tools and techniques, businesses can better understand their financial performance and identify areas for improvement.

  5. Focus on continuous improvement: Finance transformation is not a one-time event, but rather an ongoing process. By continually reviewing and improving financial systems and processes, businesses can ensure they remain competitive and well-positioned for the future.


Overall, finance transformation is an essential part of modern business operations. By improving financial systems, processes, and capabilities, businesses can gain a competitive edge, drive efficiency, and make better-informed decisions.

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Advisors, Strategy

Got an advisor? Listen to their advice.

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June 24, 2020

- Advisors, Strategy

👉 What good is an advisor if you don’t listen to their advice?

 

Advisors are experts that an entrepreneur can use as sounding boards or to fill gaps in expertise and contacts.

 

They bring new perspectives on business that are easy to be overlooked by the entrepreneur, sometimes due to internal bias.

 

Seven months before COVID-19 pandemic, I advised a CEO not to renew their office lease.

 

A fancy office in downtown TO was nice but wasn’t necessary for their business. Clients hardly came to visit, the team was technically savvy and could operate remotely, and on top of that the office was much larger than their headcount warranted.

 

The CEO went ahead with renewing the multi-year lease because (a) “the office exudes our company image” and (b) “the team cannot work remotely”.

 

The pandemic proved both beliefs were misplaced.

 

They are now looking for ways to get out of the lease.

 

According to a BDC study, only 6% of Canadian entrepreneurs have an advisory board for their business. However, 86% of entrepreneurs who have an advisory board say it’s had a significant impact on their business.

 

If you are an entrepreneur, consider having a formal advisory board or informal external advisors.

 

And more importantly, listen to their advice.

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