A within the same market or by diversifying

A very important role can be played by the chief financial officer in the formulation of the strategy from the beginning by analyzing that the vision of the future financial performance of a firm is based on realistic grounds, are in accordance to the market conditions and whether these reflect the requirements of stakeholders or not.The process of developing the strategic plan initiates with the analysis of the market potential and then determining the future growth. There are two main areas where CFO is in a good position to help the firm is through research, analysis, and recommendations.The potential for the expansion of firm’s market can be analyzed with the help of market identification either by offering the similar services or products to a broader customer base within the same market or by diversifying the services or expanding the geographical coverage of the market.The next stage is the determination of growth focus by the firm’s leaders. This process is expertise by CFO. Apart from facilitating the financial information, CFO can help in data analysis, scenario comparison, testing various assumptions and recommend various modifications. The following situations can be taken as an example:-·         If the growth focus is broadening the client base within the existing area, what size companies will the firm be targeting and in what industries?·         If the focus is diversifying services, will the firm achieve that by pursuing lateral hires, mergers, and acquisitions, or significantly developing niche practice areas? Which major practice areas will the firm grow and which will it exit, if any?·         If the focus is a geographic expansion, will the firm open larger offices within the same region or move outside of existing areas, and if so, where?·         After identifying the market potential and determining growth focus, the management team needs to develop a staffing plan, operating plan, and capital financing plan, among others.Being one of the important members of the top management, creating consensus among the management is an important responsibility of CFO by participating them in a strategic planning process. The different stakeholders can be encouraged t get on board by having a free and regular communication related to the plan and opportunities for feedback from the partner group