I was inspired to write this article based on a Webinar hosted recently by New and Improved (www.newandimproved.com),where the CEO of the hosting company, Bob Eckert and the former CFO of VirginHealth, Mark Pover, debated the role of the CFO in the “Challenges of 2009 & Beyond”.

Innovation needs investment; it requires money, time and a supporting culture to really work.The person heading up finances (called the CFO in this article to simplify matters but certainly not limited to that specific job title) is normally the person who makes sure that these resources are optimally used. But that does not necessarily mean they are the enemy. In some cases, it is the CFO who suggests innovation backed by a fund.

All business is essentially about solving problems. Even Accounting departments need to focus on solving “problems” that goes beyond keeping accurate records of debtors and creditors. They need to develop processes that are simpler, faster and more accurate.

Solving problems is the essence of innovation, it is just done in an elegant way.

It was strongly recommended at the Webinar that companies provide the right culture to support innovation. Top management buy-in and support for innovation is crucial. This includes introducing a specific unit in the organisation (like an internal Venture Capital unit) that reports directly to the CEO. This should give individuals within the organisation the opportunity to bypass (the sometimes long) line management channel and get straight to people who’s job it is to look for opportunities. This makes innovation much more accessible for both the company and the individuals.

The value of innovation lies not only in new products or services, there is much to be gained in revising processes and policies. Innovation is also about lightening the load through efficiency, after restructuring. Both the company and employees can benefit directly from innovatively (elegantly) solving everyday business problems. It should never be an add-on activity but rather an integral day-by-day process.

The added benefit of companies that provide training and encourage innovation is the fact that trained individuals go home and use these problem-solving skills within their families and communities.

CFOs cannot possibly be the enemy of innovation. Weak business cases, lack of innovation skill, arrogance and lack of measurement is the enemy - if we allow them to be.

Freda Gray is a Director of Mindstir