When looking at the contemporary business infrastructure, it’s easy to be struck by the phrase, ‘too many chiefs…’ CEO, CFO, CRO, CTO, and the other ten to twelve that make up the full gamut, dependant on the organisation. There are chief officers for every department – which can make sense. But where there is an overlap of interests and responsibilities, it can seem like the appointment of additional executives is merely an exercise in spending money. One area where the questioning of this doubling up of talent could be justified is in the application of separate CFO and CRO role creation.   

Do businesses need both a CFO and CRO?

What does a CFO do?

As the title implies, the Chief Financial Officer (CFO) is responsible for an organisation’s finances. They work closely with the Chief Executive Officer (CEO) to create and analyse the business’ financial strategy, managing funding, expenses, cash flow, and all aspects of accounting. Consequently, the role is one of the most important within any business. 

What does a CRO do?

On the other hand, the remit of the Chief Revenue Officer (CRO) is revenue generation. Their role is to create and manage a strategy to drive sales, including the oversight of marketing and customer experience, price positioning, and the business’ longer-term approach to revenue creation. 

Where do the two roles meet?

The primary similarity between the CFO and CRO is money. The two roles approach the subject from completely different angles, but money drives them both. So, is there scope for the two roles to be combined?

Is it possible to merge CFO and CRO roles?

A good CFO is always looking for ways to economise without impacting upon the operational efficiency and productivity of their business. So, the potential to combine two expensive roles has its appeal. However, it would also bring significant challenges. Because although the CFO and CRO share the goal of efficient money creation and management, their actual areas of work are entirely separate. As are their skillsets. This provides ample opportunity for collaboration but makes role merging more difficult. If not without advantages. 

Bringing the two roles together has the capacity to create a truly cohesive financial strategy. One which combines both budgeting and revenue growth, risk management and sales investment, marketing and accounting. It makes financial decision-making simpler, because one person doesn’t just have all the necessary numbers at their fingertips, but an in-depth working understanding of all affected areas. However, that’s a lot of responsibility for one person to manage, a lot of data for one person to process and stay on top of. Particularly for larger, or rapidly growing businesses. And it’s when an organisation is scaling that both the CFO and CRO are at their most vital.

Another significant benefit of merging the two roles is that in many companies the relationship between CFO and CRO is uneasy. The hazy boundaries between the roles can lead to decision-making conflict and lines being crossed. Speaking from experience, CFOs feel that we’re in control of the money and the buck should stop with us. Which can leave CROs frustrated and with stepped on toes. With one person conducting both roles, that potential for dispute is removed, creating a calmer, less hostile working environment of benefit to the entire team. But it comes at the very real cost of expertise. Creating an ethos of cooperation can be a much more productive way forward. 

Building a strong CFO-CRO relationship

Because of their differing remits, most CROs and CFOs have differing management styles, and different skill sets. A strategy of collaboration that allows both to thrive is the shortest route to a financially successful business. And the best way to achieve this is through open communication. And a strategy that clearly defines and values the roles of both. In a way that not just allows but facilitates the growth of both business and individuals. 

So, do businesses really need both a CRO and CFO? I would say, ‘yes’. It is possible in smaller businesses or those companies where growth is not a priority, for the two roles to be covered by one person. But it would need to be the right person with a broad skillset. For those organisations planning for growth, searching for new opportunities, and looking to build a strong foundation for the future, an infrastructure that utilises and unites the expertise and experience of a dedicated CFO and CRO is currently the most sensible pathway.