FEATURE | Recruitment
What makes a great CFO
–A Headhunter’s Perspective
Stacey Nicholl on why today’s finance chiefs require credibility and engagement both inside and outside the organisation
T
he CFO of today is a far cry from the rigid, number crunching executive of old. No longer a
square peg, a great CFO is a rounded leader who can add value beyond the finance function and deliver business results.
ALLY AND EQUAL TO THE CEO From a headhunter’s perspective, the ability to influence and collaborate with the CEO emerges as the #1 skill for any CFO. Like the CEO, the CFO is instrumental in defining company strategy and needs to have the vision, determination and communication skills to gain buy-in and drive the agenda forward. Nobody is better placed to ensure that strategic decisions are based on a combination of solid financial rationale and business context. The CEO wants a business partner
who can help grow the business, turn financial data into actionable intelligence and identify new potential revenue streams, such as, new geographies, new markets or potential
acquisitions. In EY’s study, ‘The DNA of the CFO’, 73% of CFOs surveyed saw their role as a destination in its own right and only 10% harboured an ambition to be CEO. Whether or not the CFO wants to be CEO, the qualities sought by the headhunter are very similar.
DEEP COMMERCIAL ROOTS A strong commercial mindset enables a CFO to go from good to great. The best CFOs are naturally curious and take a wide-angled view on what makes a business tick and drives financial performance. They tend to have a broad education, including an MBA, and not all CFOs come from the traditional accountancy background. The key string to the CFO’s bow is direct experience. While climbing the ladder, some finance executives acquire valuable experience in other functions – such as Operations, IT or Risk Management – where their forensic, problem solving and reporting skills can be put to good use. Having a genuine empathy with other functions, and an
appreciation of the customer, equips the CFO to provide relevant data and insights as well as to make prudent decisions on the use of assets and resources.
STRONG BACKBONE & SOFT SKILLS Much has been written about the need for EQ as well as IQ among C-suite executives and this definitely applies to the CFO. A great CFO must be a persuasive influencer and an attentive listener. They must display strong values, cultural maturity and adaptability to change. To truly partner and challenge the CEO, the CFO requires credibility and engagement both inside and outside the organisation. This involves building strong trusted relationships with investors and opinion leaders, as well as the other members of the CEO’s leadership team. The CFO must also be tough enough to push back on the CEO, to cope with pressure from regulators, investors and the media, and to stand by difficult decisions such as redundancies and cutbacks. It’s a question of balance. R
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DIRECTOR OF FINANCE
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