The CEO Project Podcast The Surprising Truth: Most CEOs Get Cash Flow Wrong
Apr 21, 2025
28:40
What is the significance of understanding the distinction between operating and strategic finance in hiring a CFO? Oana Labes, a seasoned CPA and MBA originally from Romania, has made significant strides in bridging the gap between controllers and CFOs through her innovative company focused on CFO brain technology. With her entrepreneurial spirit and extensive experience as a senior commercial lender in Ontario, Labes observed the frequent disconnect between company goals and financial reporting, prompting her to develop solutions that enable smooth transitions and informed decision-making. Labes emphasizes the distinction between a controller and a CFO, noting that while controllers focus on compliance and reporting, CFOs are tasked with interpretation, forecasting, and engaging with external stakeholders such as lenders and investors. She advises CEOs to carefully differentiate between operating finance, managed by controllers, and strategic finance, handled by CFOs, to ensure they hire the right individual who can truly drive the company's growth and success. Key Takeaways:
- Financial intelligence is essential for CEOs and executives to make informed decisions and drive growth in businesses.
- Aligning business strategy with financial strategy, especially in terms of capital planning and sourcing, is crucial to achieve long-term goals and maximize shareholder value creation.
- The importance of communication and alignment between CEOs and CFOs in driving business decisions and financial strategies forward is crucial.
- Misaligned objectives between CEOs and CFOs can lead to potential issues in decision-making.
- Jim Schleckser emphasizes the importance of Economic Value Added (EVA) analysis in assessing wealth creation and aligning incentives with long-term value creation.
- Understanding the different levels of financial expertise required when hiring a CFO is crucial.