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How Do You Measure a CFO's Success?

 
  Arthur F. Rothberg, Managing Director, CFO Edge, LLC  
   
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  Article Summary  
Measurable and specific goals and objectives must exist to assess the success of an individual in any job, and the chief financial officer position is no different. Conducting a periodic review means looking at both quantitative and qualitative measuring criteria.

The role of the CFO has considerably expanded from the 1950s and 1960s when early duties focused on overseeing internal accounts, financial recordkeeping and financial reporting. Today's CFOs are as responsible for strategic planning and leadership as they are for the accomplishment of financial and accounting tasks. Indeed, the CFO is usually one of the top three decision makers along with the chief executive officer (CEO) and the chief operating officer (COO).

This article looks at areas that most frequently include CFO participation, as well as a number of the quantitative and qualitative factors that should be included in evaluating a CFO's success.

Los Angeles and Southern California CEOs and CFOs must be able to measure the success of all their current positions - including that of the CFO. An outsourced CFO services firm can help you identify which KPIs your company should be focusing on so that you can fairly and accurately determine how successful your CFO is in performing his or her job duties.

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