The development of a strategic plan begins with the identification of the company's internal strengths and weaknesses, followed by an analysis of its competitive position. This involves a detailed analysis of the company's financial position and its recent financial results. The CFO should play a lead role in these tasks. The final plan will have both internal and external objectives. The internal objectives deal with enhancing profitability. This is an area where the CFO should lead in analysis and in establishing forward-looking targets. With respect to the external objects, the CFO should be part of a team entrusted to identify alliances or acquisitions and participate in the execution of these objectives. 

Sourcing of Financial Capital

It is the CFO's responsibility to identify the amount of external capital required or the amount of internally generated funds retained for reinvestment in the company. He/She should identify the type of capital raised and decide if the terms and conditions are acceptable. The capital could be any type of equity. The debt may be leases (on or off balance sheet), debentures or bank debt. In all cases, it should be the CFO's responsibility to ensure the firm's capital structure is optimized.

The CFO should identify the types and degree of risk management appropriate for the company’s activities. This may include the purchase of insurance (property, liability, key employee, customer, et al), the appropriateness of its cost or whether the firm should self-insure. The CFO should determine whether some form of hedging is desirable for the monetary assets. This risk management may be in the form of swaps, fixed contracts, natural hedges or derivatives. 

The CFO should determine the application of accounting policies in accordance with GAAP and ensure the firm is in conformance with such policies. The CFO should also develop and ensure compliance with all required financial controls to safeguard the assets of the company.

Since the accounting and information systems are usually the largest part of the MIS system, the CFO must remain abreast of developments in the technologies.

Because a majority of the communications with owners and potential owners is the explanation of the firm's past financial performance or its future expectations, the CFO should take a lead role in this communications program. This will entail a detailed understanding of the firm's profitability, operations and competitive position. The CFO will have to be aware of developing economic and industry trends, and have full knowledge of rules and regulations governing such disclosure, such as the new FD guidelines.

Globalization of the economy and the broadening sophistication of customer demands will lead increasingly to the formation of joint ventures and strategic acquisitions. The CFO should play a lead role in the interaction with these business partners since the agreements and information needs will tend to be financial. The CFO needs to be highly skilled in relationship management and negotiation techniques.