Only a few years back, chief financial officers were executives who toiled in relative obscurity behind the scenes at the company for which they worked. To say the times have changed would be a gross understatement.
     Today’s CFOs are far more than just glorified CPAs. They have to be savvy about new media, overseas markets, industry trends, programming costs and even human resources. Several key factors have greatly expanded the CFO role both within and outside of the corporate environment.
Some of the major changes that have impacted the broadcast and cable television industry, as well as the role of the CFO, include:

• The growth of business involving the international sector.
• The number of companies going public and the resulting reliance of Wall Street and the financial community.
• Increased merger and acquisition activity.
• Expansion of the Internet and web-related activities.

     Successful CFOs need to be well-rounded executives in the management suite. They must possess an appealing personality that lends itself to the corporate culture. Far from being obscure, today these executives are on the front lines involved with all key financial and corporate policy issues.
     Having conducted many CFO searches for broadcast, cable and new media organizations, we are constantly asked about which attributes make up the perfect candidate. For corporate clients we have crafted a role model. While this sketch may leave one thinking of a bionic human being, at the very least it outlines the broad scope of activities today’s CFO has to carry on his or her shoulders.

The bionic CFO

     In addition to managing the company’s financial resources, the CFO will ensure the integrity of the organization while serving as an integral part of the senior management team. This includes formulating the company’s overall financial policy and plans, as well as seeing that financial transactions, policies and procedures meet short- and long-term corporate objectives and regulatory requirements.
     The individual must manage the company’s financial resources across the board, enabling all pertinent entities from finance and legal affairs, to human resources, programming, sales, marketing and research to operate cost efficiently.
     The CFO serves as the primary financial analytical leader to support the company’s overall business objectives to establish the most unified financial and administrative structure possible.
     As noted earlier, establishing and maintaining close relationships with Wall Street and the investment community are paramount. Today, the job also includes the evaluation of acquisition and joint venture targets in broadcast, cable and related areas.
     Today’s CFO also initiates the re-design and ongoing supervision of the company’s information system including financial, human resources, inventory management, ad tracking and other sales support systems. This executive also provides strong leadership and direction to the rapidly growing data processing area and the vital billing services component; furnishes guidance and input regarding selection and implementation of hardware, software and related staff.
     A senior team player, today’s CFO works closely with department heads to set appropriate annual and quarterly budgets, as well as capital structures in addition to monitoring key monthly and quarterly indicators.
     Management is provided with insights regarding the financial aspects of all programming, production/co-production, union, work-for-hire, merchandising and other company contractual agreements. In this regard, the CFO reviews and interprets relevant portions of such agreements and ensures that the company fulfills its financial commitments.
     Lastly, the CFO travels to industry trade shows, conventions and functions to be the financial spokesperson for the company.

A constant

     Being involved with everything from IPOs to the creation of web sites, today’s CFO clearly has to be the master of a multi-faceted skill set. With more and more CFOs being groomed for the CEO or COO spot, their ability to handle the multiple tasks outlined here will gauge their chances of climbing the corporate ladder. Strong leadership and communications skills have become as important as the position’s financial elements.
     But as times change, one element of the CFO’S role remains constant – these executives are integral to the overall success of their respective companies.

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Brad Marks is chairman and CEO, Brad Marks International, Los Angeles.