Gary McGaghey is a Chief Financial officer and private equity expert who understands what it takes to thrive in this position. CFOs can survive and even thrive in this position if they can successfully master four strategies. Read on to learn about those strategies and what McGaghey has to say about CFOs struggling with the challenges above.
- Have a Fact Base for Decisions
One of the biggest mistakes that CFOs can make is to base their decisions on assumptions, opinions, and emotions. These professionals must have facts at hand on which decisions can be based. They should also develop a business plan for their organization to avoid spending money on unnecessary expenses and make smart investments in projects.
- Create Effective Teams
CFOs can do their jobs most effectively by aligning their teams. Team members need to work together, and they should do so in a way that is effective, efficient, and productive. When they have a goal in mind that they want to accomplish, they need to look at every possible angle to ensure that the project will be successful. CFOs also need to ensure that the teams they lead are passionate about their work and be able to inspire them by providing them with the support and guidance needed for success.
- Lead With a Transformation Mindset
According to Gary McGaghey, chief financial officers need to develop a transformation mindset that they use to approach challenges. This means that they should realize that transformational change is an ongoing process, and some changes will require leadership to be managed effectively. CFOs can also help the transformation process by motivating key team members and focusing on the future instead of the past. These professionals can also embrace continuous improvement as well as innovation.
- Understand What Creates Value and Costs
Gary McGaghey said that chief financial officers must understand what creates value and generates costs. With this information, they will be able to do their jobs more effectively and create a solid foundation for their organization. CFOs that understand the difference between their short-term and long-term value and their short-term and long-term costs can develop more effective strategies. They can also make decisions more efficiently since they will better understand how all of these elements work together.
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