How A CFO Adds Strategic Value Across Key Industries
Jan 27, 2025
At its core, the role of a CFO is universally necessary across industries, as it includes financial strategy, compliance, and performance optimization. However, the demands of different sectors require a nuanced approach, with CFOs adapting their strategies to address specific market dynamics, operational complexities, and regulatory landscapes. By combining universal financial principles with deep industry knowledge, CFOs deliver tailored solutions that drive results.
In this blog, we will compare and contrast the nuances of a CFO’s role by industry sector, outlining the distinct focus areas that require specialized knowledge and attention.
Industry Spotlights: How CFOs Create Value Across Sectors
An effective CFO possesses a strategic mindset, adaptability, and a deep understanding of both financial metrics and industry-specific challenges. They excel at leading cross-functional teams and nurturing innovation. With the ability to balance short-term needs with long-term goals, the right CFO provides organizations with a solid foundation for growth and resilience. We’ll shine a spotlight on several major industries below, including:
Manufacturing
In manufacturing, CFOs are vital in optimizing pricing and supply chain efficiency, managing production costs, and planning capital investments. By identifying bottlenecks and streamlining processes, they help reduce costs while ensuring quality standards. Additionally, they play a key role in leveraging automation and technology to maintain competitiveness in a fast-paced market.
ProCFO Partners client GES-AGM hired a fractional CFO to help address inefficiencies and introduce automation to their financial management practices. Owner Baker Kearney said that after bringing on their part-time CFO, their administrative departments are better able to scale with acquisitions, and they’ve introduced software to help automate HR and IT processes, freeing up Baker’s time to pursue new initiatives.
Real Estate
The real estate sector relies on the role of CFO for strategic property acquisitions, portfolio management, and market risk mitigation. They provide financial insights to guide decisions on development projects, leasing strategies, and market timing, ensuring profitability even during economic fluctuations.
CFOs can also drive the selection and adoption of property technology, or “proptech”. Proptech platforms have the ability to safeguard accuracy in financial reporting, prevent real estate wire fraud, and automate recurring tasks such as screening applications and processing monthly rent payments.
Construction
Construction CFOs excel at managing cash flow for long project cycles and navigating regulatory compliance. Before a construction project is awarded, they are involved in the bidding process, evaluating market data and calculating the costs of labor and materials. Next, they must secure the necessary financing for the project, technology, and equipment, whether through loans, lines of credit, or investor funding.
In an interview with American Express, our ProCFO Partners CEO and co-founder Nelson Tepfer explained, “Today, their role has evolved. They are pivotal in risk management, digital transformation, and ensuring sustainable growth. Their insights are invaluable in making informed decisions, be it in expanding into new markets or pioneering innovative construction methods.”
During a project’s lifespan, the CFO must manage financial, contractual, market and operational risks. In the sustainability space, they may develop reporting tools that calculate the project’s environmental impact. They regularly update financial forecasts based on progress and any changes to the project’s scope, costs, or schedule, then securing additional funding if needed while ensuring timely invoice management. Project closeout is the last stage, as the CFO ensures final payments are made to subcontractors, suppliers, and employees. They prepare the final cost report and assess whether the construction project met its profitability targets by reviewing any cost overruns, scope changes, or unforeseen expenses that impacted profit margins.
Professional Services
In the unique terrain of the professional services industry, CFOs focus on pricing strategies, operational efficiency, and profitability. They play a crucial role in managing the financial health and strategic direction of firms, which often have unique challenges such as revenue tied to billable hours, project-based earnings, and talent as their primary asset.
CFOs often lead the charge in scenario planning, preparing for future shifts in demand for certain kinds of professional services based on economic downturn or industry disruption. They also make strategic decisions about service lines, evaluating which offerings are the most profitable. Talent and compensation management is another critical focus area, as CFOs lead the design of competitive pay models and optimize benefits to retain top talent.
Healthcare
Healthcare CFOs navigate a complex regulatory environment while managing reimbursement models. They optimize resource utilization, manage operational costs, and implement strategies for sustainable growth in a highly competitive sector. A 2022 Deloitte survey of 61 finance leaders of U.S.-based healthcare organizations highlighted the broadening of a CFO’s role in their industry.
Not only did the survey find the majority were focused on the traditional areas of financial performance and talent management, the CFOs’ responsibilities largely now include evaluation and prevention of cybersecurity threats, as well as organization-wide efforts in environmental, social, and corporate governance (ESG).
Media, Marketing, and Entertainment
The fast-evolving media industry demands CFOs adept at forecasting revenue and allocating budgets for campaigns. The role of CFO is pivotal in managing cash flow for creative initiatives. Digital transformation often sits at the heart of their efforts, as companies embrace new formats and meet consumers where they are, trending away from traditional media outlets.
Media-industry finance leaders also face unique challenges to protect intellectual property, implementing infringement protection measures alongside legal safeguards such as copyright registration, trademarks, and licensing agreements. Mergers and acquisitions are also extremely common in this sector, as companies align for strategic growth.
Venture and Early Stage
Startups and early-stage ventures benefit from CFOs who build financial infrastructure for scaling operations. They balance growth ambitions with cash runway management, ensuring financial stability during rapid expansion. Early-stage companies often operate with limited capital, so CFOs ensure efficient cash management to sustain operations, and also monitor burn rate to ensure the startup remains solvent until the following round of funding.
In the fundraising arena, CFOs prepare financial models, pitch decks, and valuations to secure funding from venture capitalists, angel investors, or other sources. They build and maintain trust with investors by providing accurate, transparent, and timely financial updates.
Jason Flanders, the executive director for Robert Half Management Resources, explained in a recent post, “Startups and other fast-growing companies can benefit from bringing in a CFO sooner than later because they need to get their processes in place, especially around governance and compliance. Otherwise, they could face significant obstacles that may hinder their future success, whether they are planning an IPO or not.”
Conclusion
The added value of a CFO goes far beyond financial management. As strategic leaders, they play a pivotal role in driving growth, managing risks, and navigating industry-specific challenges. From manufacturing to venture capital, a CFO’s expertise is essential to achieving organizational success. Businesses must assess their financial leadership needs and consider the transformative impact that a skilled CFO can deliver. Ready to explore the ways a CFO can benefit your unique business goals? ProCFO Partners has you covered; our deep pool of experts means that we’ll match you with a fractional CFO who can guide your vision to fruition. Contact us today to get started.
