Mar 27, 2018, 2:41 PM
(from McKinsey & Company) Whether they serve nonprofit independent schools or multinational corporations, governing boards face increasing competitive pressure and regulatory scrutiny. By engaging their boards more effectively, CFOs can help trustees and directors better understand the organization's strategy, define value creation and make sound strategic and operating decisions.
The biggest opportunity may hinge on the CFO's ability to put together an objective view on what the organization's performance has been, how it compares with others in the market, and what the board should expect of future performance. An example is a CFO who, rather than focusing on his organization's current underperformance, "led board directors in a discussion about what performance in two years might look like — and provided a set of historical financial analyses to gauge how much of the company’s future returns would likely come from a recovery. The dialogue changed the board’s focus from a question of whether the company should restructure or shut down to one defined by performance: given a certain measure of performance, when should they start investing again to make the most of the market’s recovery?"
More at McKinsey.com
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