THE EVOLUTION OF THE CFO ROLE

27.05.2025

Nova Administrator

Three questions to our CFO – by Alessandro Santo

I asked three questions to Franco Colombo, the NOVA-MBA Association CFO.

He is an UCLA Anderson MBA 1994 and spent almost forty years working in Corporate Finance, mainly for the Group CIBA / Novartis / Alcon. He held, among others, positions such as Global CFO CIBA-Vision (Atlanta, GA), CFO Italy Novartis (Milano, Italy), CFO Latin America and Canada Novartis (Miami, FL), and CFO EMEA Alcon (Geneva, Switzerland).

Here is what he told me.

Looking back at your professional journey as CFO, what were some pivotal moments or decisions that significantly influenced your career path?

I started working as an accountant, transitioned to finance planning & analysis and, after seven years in Italy, took my first assignment abroad that resulted in a long international career as CFO of large multinational companies.

I would list as important elements:

·         I was lucky to enter a company where meritocracy and people development were as important as financial results. I am convinced that the first two contribute to achieving the latter;

·         Working and living abroad opened my mind, exposing me deeply to different cultures and providing more visibility and experience;

·         While abroad, I got my Executive MBA at UCLA Anderson, which equipped me better to do my job while strengthening my self-assurance;

·         Managing people, first in person and subsequently remotely when responsible for larger organizations, allowed me to grow through growing my team.

In your view, how has the role of the CFO evolved over the past few years, especially in global organizations?

The biggest change, in my opinion, is the change from business scorekeeper to business co-pilot. In my early days, the CFO spent most of the time—I would say 80%—providing a true and fair view of the business. This has not gone away; on the contrary, stronger internal controls have been introduced after cases like Enron and Parmalat. The "business" was getting only 20% of the CFO's time, and it was left to the "businesspeople." In other words, the CFO was mainly looking into the rearview mirror and only from time to time looking ahead.

This is reversed now: not only have better systems and processes sped up the accounting close enormously, but the focus is now on how we WILL close the month, the quarter, the year. Today CFOs have a fairly good idea of what the result will be because they have a range of possible outcomes based on risks and opportunities weighted by their probability of materializing.

Now CFOs look ahead 80% of the time; the remaining 20% is spent checking variances of actual versus forecast to determine if anything in their model needs to be adjusted. This way of working is only possible if the CFOs are fully immersed in the business: every finance person is now a "business person."

What advice would you give to young professionals and MBA alumni who aspire to a CFO role in an international setting?

Ensure your base is solid—some accounting knowledge is extremely beneficial. You need to be able to read the three statements (P&L, BS, CF) and understand how these interact.

If you want to remain based in your country, have at least an international experience early in your career, when family obligations are easier to handle. If you can, do not limit yourself geographically but go to work and live where the jobs are—you will have many more opportunities.

I personally would target large global companies which have operations everywhere and provide more chance of development. Make sure to pass through their global headquarters; there are functions that are only performed there. You will learn a lot. It comes potentially with more stress, as large corporations merge, spin off, and lay off more often. Eventually, it will touch you personally.

Have an insatiable curiosity about how the business works. Get out of your office, visit the countries, ride with the salespeople, and speak with the customers. I love it when, during a call, one cannot tell who is "finance" and who is "business," as everybody shows a deep understanding of the company's activity.

Maintain a strong network with your MBA colleagues, inside the companies where you work, and with other finance professionals in your industry.