Reimagining Role of CFO as Transformative Financial Leader in Indian Higher Education

Abstract

Indian HEIs are transitioning from grant-dependent structures to diversified revenue ecosystems, leading to a pressing need to reimagine financial governance. This research paper explores evolving financial leadership pattern in Indian Higher Education Institutions (HEIs), with a specific focus on the strategic role of Chief Financial Officers (CFOs). The study argues that traditional compliance-oriented financial administration must give way to a CFO-centric model grounded in strategic planning, resource optimization, and risk management.

By leveraging theoretical frameworks such as role theory, institutional theory, and stakeholder theory, the paper examines how CFOs can go beyond transactional responsibilities to become transformative leaders. Role theory sheds light on challenges around role clarity and conflict; institutional theory explains pressures toward standardization and legitimacy; and stakeholder theory highlights CFOs as mediators of accountability and trust. The paper emphasizes the integration of digital tools such as ERP systems and financial analytics, and highlights the CFO’s role in driving branding, accreditation, and institutional reform.

Using Pune, as a regional case study, the paper illustrates the governance challenges and innovation potential in a diverse ecosystem comprising public, private, deemed, and autonomous institutions. Based on this contextual inquiry, a CFO-centric governance framework is proposed, encompassing autonomy, accountability, analytics, and alignment as its core pillars.

The findings highlight the strategic value of CFOs in enhancing institutional resilience, transparency, and competitiveness. The paper concludes with policy recommendations, a call for leadership development, and suggestions for integrating CFO-centric models into national education policy, thereby fostering systemic reform and financial sustainability in Indian higher education.