For too long, the roles of CFO and COO have been seen as separate and distinct. The CFO handles the numbers, and the COO handles the processes. However, in today’s complex business environment, this traditional separation is a liability. The most effective leaders, especially in operationally intensive industries, are those who understand the intricate dance between financial and operational decisions. This is the essence of an “operational CFO.”
As an operational CFO, my unique value proposition lies in my ability to connect financial numbers to real-world business realities. I don’t just tell you what the numbers are; I create the “story behind the numbers,” explaining how operational decisions impact your profitability and how financial strategies can be used to optimize your operations.
The Operational CFO Advantage
A fractional CFO with a COO’s mindset is a strategic partner who can drive cohesive and impactful results by ensuring that your financial and operational goals are perfectly aligned. Here is how that integrated approach can transform your business:
1. Driving Enterprise Value through Integrated Decisions. The decisions you make on the factory floor directly impact your financial performance. An operational CFO understands this relationship and can use financial data to identify operational improvements that lead to significant cost savings. For example, my experience in reducing waste and improving efficiencies in a past role saved the company tens of millions of dollars. This demonstrates my ability to connect operational improvements directly to financial outcomes, leading to a more profitable enterprise.
2. Solving Blind Spots and Increasing Efficiency. Many businesses have blind spots in their operations that go unnoticed by traditional finance leaders. An operational CFO knows what to look for, from inefficient inventory problems to a lack of streamlined processes. By implementing lean manufacturing principles like Six Sigma and 5S, and focusing on improving productivity, an operational CFO can eliminate waste, optimize resource utilization, and drive new levels of efficiency.
3. Cohesive Strategic Planning. When finance and operations work in unison, the entire business benefits. An operational CFO can lead strategic planning that is grounded in both financial rigor and operational feasibility. This integrated perspective ensures that your business can accelerate growth, optimize financial performance, and enhance operational efficiency. My track record of tripling EBITDA in a past company is a testament to the power of this cohesive approach.
Don’t let a disconnect between your finance and operations departments hold you back from achieving your full potential. By partnering with an operational CFO, you can drive more cohesive and impactful results and position your business for a future of unprecedented growth and value creation. Your financial house, in order. Your success, realized. Let’s talk about how to integrate your finance and operations teams for maximum value.
