A Chief Financial Officer is responsible for a company’s Financial Planning functions.
Including:
- Books and cash flow management
- Operating funds management.
- Investment activities.
- Capital Infrastructure procurement.
- Inventing and allocating capital-raising activities.
The CFO is the bean counter who also decides where to plant the beans.
Keith worked for 3M. The Coatings company. He gives two examples of cash flow management.
IE # 1 R and D at 3M create a shitty Glue. Instead of throwing it out, they put it on the back of the paper and sell it as stickies.
Make a little fortune.
IE # 2 3M makes zink-coated paper better than anyone.
3 M gets into the copier business when zink-coated paper is needed in photocopiers. They make zink-coated paper to sell, buy Japanese copiers and give them to clients providing service to keep them operating. Creating the market for their zink-coated paper.
Make a little fortune.