A Chief Financial Officer is a person who assists the organization with his financial expertise and takes charge of managing the monetary aspects of the company. The duties assigned to a Chief Financial Officer sometimes go beyond just finance and also treads into overall company management. Project management is an integral part of developing and delivering strategic initiatives, as it creates a structure for ensuring that the company’s goals are met appropriately.
Here are seven things that a Chief Financial Officer should do for a project manager –
1. Create a sense of structure and consistency
One of the main responsibilities of a CFO would be to ensure that there is a sense of organization and structure with regards to achieving certain targets within the company. When a CFO actively encourages the undertaking of projects and communicates effectively with the Project Manager as to how the process should be carried out, it instils a sense of responsibility for the Project Manager as well as their team.
2. Assist Project Manager with Data
The CFO should extend his assistance to the Project Manager by providing them with the required financial data such as income statements and cash-flow statements that concern the current project at hand. Presenting financials and going over the different expenses and limitations makes the financial aspects clearer to comprehend for the entire team.
3. Take initiative
The CFO should always take the initiative to become involved or stay updated with regards to projects that carry a major financial impact. The Project Manager should be allowed to communicate with the CFO about the project, and also create a plan to ensure that the final product accurately and objectively reflects the need of the hour.
4. Build relationships with outside financing sources
Oftentimes, banks and other financial institutions have an impact on the company’s ability to finance its operations. The CFO should be aware of the financial requirement of the different projects being undertaken, and also create relationships with external financing sources based on the need of the organization.
5. A key advisor to company management
The CFO plays a significant role in formalizing organizational capability in terms of project management. The CFO is also responsible for overlooking the finances of different projects that drive the strategic goals of the company.
6. Financial risk management
When there comes a project that carries major financial impact, the CFO should go over the different scopes for risk with the Project Manager in order to create an appropriate financial strategy that minimizes risks.
7. Visibility to measure overall project success
Lastly, the CFO should have the foresight to determine the probability of success for a project and handle the finances accordingly, so as to avoid any waste of money that would be attributed to the poor execution of the project strategy.