September 2024
Have you got what it takes to step up as a CFO in the public sector? Joanne Pitt explains what the role really entails.
The role of a Chief Financial Officer (CFO) in the public sector is a daunting task, demanding both resilience and vision. Yet, for those who have what it takes, the role offers not only a wealth of opportunities but also a platform to drive substantial and transformative change.
The public sector is no stranger to headlines dominated by crises in funding, capacity, and capability. These deep-rooted issues, which a new government alone cannot swiftly resolve, are woven into the fabric of the sector’s systemic challenges. If you pull out one thread, there’s a strong chance that you’ll unravel several more. But that doesn’t mean we should accept the status quo.
At CIPFA, we consider CFOs to be pivotal agents of change at national, regional, and local levels. The expertise and professionalism that CFOs develop throughout their careers positions them at the heart of organisational decision- making, driving progress and innovation across the public sector.
The role of the CFO
The CFO role is crucial for the sustained delivery of public services. Every organisation ought to have sat their CFO at the top table because of the value they add. The entire organisation must recognise finance as a key enabler, central to getting the job done. Far from a career about bean counting, it’s a career about delivery, outcomes and achieving strategic goals.
How to step up
CIPFA’s The Role of the CFO in the Public Sector publication explores these multifaceted responsibilities. This essential guide demystifies the role, highlighting not only the need for appropriate qualifications but also the importance of a broader vision. That’s because a CFO must look beyond their own organisation, embracing innovative ideas and best practices from other sectors to drive financial and strategic success.
Leadership and influence
CFOs must take on a proactive leadership role, guiding their organisations through financial complexities. They should have a strong presence in the executive management team, influencing strategic decisions to ensure financial viability and sustainability. For a local authority this includes a political element when dealing with elected councillors, but not every public sector organisation has this dynamic.
Strong financial management
Developing a robust financial strategy is crucial. CFOs need to create and implement policies that align with the organisations long-term objectives, ensuring resources are allocated effectively and efficiently. Effective financial management practices are non-negotiable and managing financial risks is also a fundamental duty.
Governance and assurance
Upholding strong governance frameworks is essential. CFOs should ensure that their councils comply with all relevant legislation and regulatory requirements, fostering an environment of integrity and ethical behaviour. The same rings true for stakeholder engagement. CFOs can leverage relationships between elected members, employees, and the community. Clear communication and consultation are vital to ensure that financial decisions are understood and supported by all parties involved.
Capability building
Continuous professional development is necessary to keep pace with evolving financial landscapes. CFOs should invest in building their skills and their finance teams’ capacity to manage complex financial challenges. One such area surrounds data and technology. Advancing tech can improve financial planning and forecasting. Adopting innovative approaches can help identify efficiencies and cost-saving opportunities, ultimately contributing to the council’s financial sustainability.
Insights and support from CIPFA
Many of today’s finance students possess the drive and ambition to become future leaders in the public sector, where they can find both challenging and fulfilling careers. If this inspires you to consider such a role, CIPFA’s publications provide in-depth insights into the role across various sectors.
Additionally, we provide support through The Leadership Academy, which has successfully run for over 10 years. Designed for aspiring CFOs, it enhances skills in working with and influencing senior politicians, colleagues, partner organisations, peers and staff. The programme focuses on developing personal impact, problem-solving and decision-making skills to match the evolving CFO role and support career aspirations.
The journey to CFO may be challenging, but the impact you can make is profound. The public sector awaits your leadership and vision.
- Joanne Pitt, CIPFA Senior Policy Manager
