Chief Branding Officer: The new role for today's CFO

Senior corporate and financial executives are today focused on a defensive game (rigorous financial controls, Sarbanes-Oxley compliance and a cautious, almost limited approach to investor disclosure.)

Of course, corporate financial integrity and the resulting confidence it inspires among investors is a good thing.

Yet even in this current conservative accounting climate, management has an opportunity -- even an obligation - to focus attention on actions that maintain and grow the value of a company's intangible assets.

Maximizing corporate valuation goes well beyond solid operating performance, transparent reporting and shrewd management of a portfolio of hard assets. Brands, reputation, organizational culture, business strategy, intellectual property and core competencies are all vital "soft" assets that are not valued on any balance sheet. Effective corporate management teams consider and manage the value of soft assets and zealously and professionally as their tangible assets.

Proactive, targeted campaigns to promote these intangible assets can enhance the overall effectiveness of current operating plans as well as helping improve company valuation. In a sense, this is a corporate finance responsibility, not a mere marketing task.

CFO's can play a crucial role in this process by forging alliances with marketing departments. The "soft" artists (creative and innovative types) are greatly helped and encouraged by the patrons (CFOs). CFOs should relish this role and provide a mandate (senior management endorsement) and structure (accountability and metrics).

A brand (or corporate reputation) is one of the few balance sheet items that can increase in value through shrewd management and active cultivation. CFOs can lead this process by creating a corporate culture that measures the value of a brand and encourages all employees to care for it as they would any other asset.