Each CFO East Africa summit presents perspectives that either affirm or challenge the status-quo that defines the CFO’s role. The CFO Kick-off Summit held on 6 March in Nairobi offered insights around CFOs as a beacon of hope. The pertinent question that follows is: can a CFO give hope without earning stakeholders’ trust and confidence, and how can this trust be earned?
CFOs often find themselves at the centre of uncertainty, which gives them a tremendous opportunity to earn stakeholders’ trust, especially during uncertainty and unprecedented moments. A duty rests upon them to communicate with hope about the effects of global, geopolitical and economic trends on future business performance and survival.
The numbers they run should tell a story that drives authentic communication with foresight that makes economic sense. Their internal and external customers should have a reason to trust them. Every time this opportunity presents itself, the CFO ensures that the individuals or groups not only believe them, but believe in them.
The communication from CFOs should be clear, consistent and proactive. It should also be early and frequent. CFOs are business partners and the CEO’s advisor; stakeholders want to be confident that they have a finance leader stimulating sound business decisions. This opportunity is presented repeatedly when they demonstrate that the vision and strategic cards held by the CEO are supported by metrics, particularly around business growth and increased shareholder value.
In consideration of all of the above, it would be important to appreciate the fact that the CFO does not know everything and therefore does not have the monopoly of knowledge. In this scenario, it is important to demonstrate proficiency in making strategic calculated plans that have factored in risks and opportunities both known and unknown.
Be the voice of reason and hope in moments of turbulence. At the CFO Kick-off Summit, during a breakout session led by Executive Communities MD Joel Roerig, a finance leader who works at an NGO formerly funded by USAID revealed that the organisation was greatly impacted by the US presidential directive to cut funding. It was encouraging to hear her story about how she was the hope that stakeholders, especially the employees, looked up to. As a colleague, I empathised and more so appreciated the importance of building trust, and being truthful and transparent in communication, especially when delivering hard truths.
As CFOs, our leadership skills matter over and above our financial roles. If there is doubt in our integrity, no matter how much influence we have on financial growth, this will not compensate for the negative impact of the lack of trust. From the impact of Covid-19 to geopolitical disruptions like the Gulf wars and shifts in US administrations, periods of uncertainty are inevitable. What meaningful role have you played, or do you intend to play, during such times? Be the trusted partner that is a candle of hope in adversity to fulfil the true purpose of the profession.
