Article at a glance:
What does it take to be a good financial officer in the tech sector? In the boom times, it may have been enough to serve as a strategist, helping to guide companies through mergers and acquisitions and relying on growth rather than productivity to meet financial goals. Many more CFOs limited themselves to the role of controller, staying out of strategic discussions and focusing instead on keeping the books balanced. But as the sector has matured, the demands on financial officers have changed.
The take-away
Technology CFOs must start to become more like financial officers in mature industries by acting partly as strategists and partly as controllers—all the while pressing companies to measure and improve their productivity.
This article includes the following exhibits:
- Exhibit (article): Ratio of share prices to sales for 332 tech companies
- Exhibit (sidebar): CFOs—controllers or strategists?
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