The business model is the foundation of a successful business, and the CFO plays a critical role in building the optimal model for a company. The CFO tests the assumptions and presumptions of the model and will look for potential improvements and enhancements to it. The CFO will help balance the business plan with the company’s evolving culture and recognize when it may come time to revise the model. Evolution does not justify failure to follow the model. A business model adopted and ignored is more dangerous than no model at all.
A business may have a great product or service, but the business model to take the product to market must be designed and executed consistently across the organization. The CFO, with the CEO, should analyze the critical elements of the business model. This will lay the foundation of the company’s strategy and define the key tasks of the CFO. According to Todd Whetstone of FocusCFO, “The CFO must have a strong understanding of the company’s business model and industry to build strategies that create additional value for the company.”