We often hear about a person’s legacy—what they want to be remembered by and what impact they left on others and the world around them. In fact, for many individuals, leaving a positive legacy is a driving force behind most of their actions and decisions.
But what about business legacy? While we may not hear about it as much, it is equally as important to most businesses.
A business legacy is the lasting influence or impact a business and its leaders leave on their industry, employees, customers, and the community after the business has been handed down to new leadership or has ceased operations. It encompasses the relationships built with all stakeholders, including employees, third parties, and the community, an unwavering commitment to excellence, and a strong vision, mission, and values. It’s about the values, principles, reputation, contributions, and culture that continue to exist even after the founders are no longer in the business. Combined, it’s the story that will be told about the business long after the founders are no longer there to tell it.
Much like an individual, a business legacy is not built overnight. It simply cannot be done that way. Rather, it can only be built over time through consistent efforts in various areas. For businesses, those areas may include, among others, leadership, strategy, social responsibility, and innovation. While many believe that this is all only up to the CEO or CMO, the CFO also plays a critical role in both establishing and protecting business legacy.
How CFO Services Play a Pivotal Role in Business Legacy
Often, when people think about CFOs, they tend to think of financial statements and spreadsheets. They don’t generally think about lasting impact in these ways. However, a CFO’s services go far beyond crunching numbers. Through financial risk management and long-term strategic planning, CFOs provide the very foundation on which a business operates—operations which help ensure success and longevity. Without that strong foundation, it would be nearly impossible for a business to build and sustain a lasting legacy.
Financial Risk Management
As most would agree, the CFO plays a critical role in impacting a business’s bottom line. They do so by controlling costs, improving productivity, and advising on pricing strategies, among other key areas. With oversight of the financial departments and access to comprehensive financial reports, the CFO is well-positioned to make informed decisions that drive both financial performance and legacy in the following ways:
- Identifying, assessing, and mitigating financial risks that could threaten the business’s stability and reputation.
- Implementing robust risk management strategies, safeguarding the business against economic downturns, market volatility, and other potential disruptions, all of which protect its legacy.
- Upholding high standards of ethical governance and financial transparency, which is crucial in establishing and maintaining the trust with stakeholders needed to build strong relationships.
- Ensuring that the business’s financial practices align with its values, reinforcing its reputation and contributing to a lasting, positive legacy.
Long-term Strategic Planning
Beyond current financial risk management, the CFO also ensures the business’s financial health is maintained over the long term through sound strategic planning and guidance. They do so by making strategic decisions that will support sustainable growth (while supporting its legacy at the same time) in the following ways:
- Carefully managing resources, investments, and capital allocation to help position the business for long-term success, preserving its legacy for future generations.
- Influencing priorities and where to direct resources, especially in the planning and budgeting processes.
- Contributing to legacy-building by planning for future leadership, including ensuring that the next generation of financial leaders are prepared to take over to preserve the culture and values.
- Mentoring future leaders and establishing a clear succession plan to help secure the business’s ongoing success and legacy.
A business could do everything right in terms of legacy. It may have the strongest relationships with vendors and customers possible, it may be leaving a positive impact on its community, and it may be the very best in the industry at what it does, but without a strong financial foundation and guidance as to where it can and should go in the future, it won’t last. And any long-lasting positive legacy will go with it.
A business legacy is not just about the wealth or success a business accumulates; it’s about the positive, lasting impact it leaves behind on those it touched and the communities it helped shape. Building a legacy requires vision, commitment, and a focus on creating value beyond immediate profits to help ensure that the business’s influence endures for generations. It takes a commitment from leaders, and it takes work, but isn’t it worth it?
Business owners often dedicate their lives, sometimes risking their personal health and finances, to build their business. No one wants to leave it to chance or open to risk. Rather, they want to protect what they’ve worked tirelessly to build. And the CFO plays a key role in doing exactly that. While most agree that CFOs take the steps needed to increase the value of the business, the impact they have extends well beyond the financial statements. The true value CFOs provide reaches much further than the bottom line into the very value of the legacy itself.
At Agile Planners, we provide strategic guidance and outsourced CFO services to companies of all sizes. We can help provide the strategy your organization needs for the growth you want. We understand that no two organizations are the same. And with our experience and financial knowledge, we can help develop the right strategic plan for your business to grow and reach its goals. Simply, we’ll be your trusted partner, so you can focus on running your organization. Contact us today to learn more about how we can help.
