Having worked with CFOs of educational institutions for more than 15 years, I have repeatedly seen that schools perform better when their CFO is given an expanded role with a strategic and forward-looking view of the entire enterprise. I was pleased, then, to see supporting data in the form of a recent Accenture study called "The CFO as Architect of Business Value." As summarized in this article on CFO.com, we learn that businesses with "above-average organizational growth, profitability, longevity and consistency of superior performance and positioning for the future" have CFOs whose strategic involvement has grown during the last several years. The study is based on more than 600 senior finance professionals across 10 industries.
This high-performance phenomenon has played out similarly among business officers within independent schools. Since the last economic downturn, heads of schools and trustees have placed a spotlight on finances and strategies for shoring up their schools' financial future. During that same period, according to the biannual NBOA Business Office Survey, the title of "chief financial officer" has increased significantly among independent schools. Coincidence? I think not.
The Accenture study mirrors and supports the trend that I have observed these past five years at NBOA, which is that the business officer is increasingly a strategic partner to the head of school and the board of trustees. Mercifully, long gone are the days of the business officer being just the "number cruncher" or "Dr. No" or, my recent favorite, the "cheap financial officer."
What does it mean for an independent school business officer to serve in a strategic role? The Accenture study identifies five ways for the CFO to serve the organization for high performance. In the context of independent schools:
- Align strategy. Balance a wide range of your school's needs, prioritize scarce resources and evaluate risks.
- Transform operating models. Support truly value-added activities with the flexibility to scale up or down as demands change.
- Manage and measure performance. Track key indicators, take a holistic view and analyze financial outcomes internally and in the context of the environment in which your school operates.
- Embrace digital. Invest in digital technologies with an eye toward ROI, and create a robust evaluation and prioritization process.
- Develop advanced finance capabilities. Keep finances at the core of your responsibilities, but expand your role at a high level into all areas of your school.
The Accenture study is exciting to me, and I hope it is to you as well. It is strong evidence of the importance of your role, as well as a roadmap for you to add strategic value at your school. More than ever, it is my pleasure to help NBOA partner with you on the continued advancement of our profession.
