Good morning,
It’s no secret that the role of the CFO has been evolving.
From technology transformation to a focus on ESG reporting, many organizations are expanding the purview of CFOs. This is in addition to managing costs and profitability, investing in growth and talent, and holding people accountable. CFOs are key to driving strategies in their companies.
I recently had three separate conversations with the CFOs of Citigroup, Nanotronics, and Marriott International. I asked them about how the role is evolving and a pinnacle part of the job. Here’s what they shared.
Mark Mason, CFO at Citigroup:
"What I love about the CFO role, in many ways, is the partner role that it plays with the business. And I've been fortunate that every CEO that I have partnered with has viewed the role as a partner, from former Citigroup CEO Mike Corbat to current CEO Jane Fraser, but also when I was a segment CFO. There are some cycles where companies have focused on, 'I want a controller type.' There are other parts of the cycle where they focused on, 'I want someone who is more of a strategic type.' And other parts of the cycle, yet still, where 'I want someone who is adept in financial management,' different from a controller or accounting policy type."
"When I think about those three types, I like to think of myself as a well-rounded CFO. I've held strategy roles. I've held finance roles. I've held CEO roles. And I think having done all of those things, makes me a more effective CFO, and a more credible CFO with my business partners because I understand how the business works. As the CFO role continues to evolve, understanding the processes that exist in a business, or exist in a function, end to end, I think is really important."
Alice Globus, CFO at Nanotronics, a science technology company:
"At Nanotronics, we're dealing with some of the most cutting-edge technology. When considering launching a new product or expanding into a new vertical, my educational background provides me with a better understanding of the potential ROI for ourselves and our customers. By speaking with customers and our R&D teams, I gain insight into their challenges, and I think I have a better understanding of how I can help facilitate them to do their job better."
"I think the role of a CFO has changed pretty drastically over the past decade, and I believe it has changed even more over the past five years. You're no longer looking at just your P&L and balance sheet and making decisions. They must also consider how cultural and technological influences can impact the financial decisions they make. If decisions hinder the company’s ability to improve its products, increase sales, and achieve other indicators of success, they’re actually doing a disservice."
Leeny Oberg, EVP and CFO at Marriott International:
"The CFO role at Marriott has always been one that has been very much connected to the business overall. My predecessor was Carl Berquist. And his predecessor was Arne Sorenson, who's our former CFO and then CEO. He was a lawyer before he became CFO. And he was a fabulous CFO, in terms of really looking at the entire business, not just a certain aspect of it. So, I've been fortunate in that regard. The role has always been considered kind of a broad financial partner, in addition to being absolutely responsible for the controls and processes and the financial reporting, particularly of a public company."
"I kind of knew that as soon as I got to Marriott, it was going to be great to be working in a department where the CFO had that broad perspective on for helping with the strategy of the company. And marrying up this concept of the business strategies and the capital that it takes to make those strategies successful in the long term. Technology is another area of importance. The reality is that technology has only been accelerating in terms of the pace of change, which is something that the company has really needed to step up to the plate for."
Have a good weekend. See you on Monday.
Sheryl Estrada
sheryl.estrada@fortune.com
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