Overcoming Roadblocks on the CFO Career Path

Leadership at the CFO level presents a complex set of challenges that no amount of technical skill could fully address. Management skills and leadership qualities become increasingly important as finance executives pursue their broad, organizational mandate—and work to attract the resources they need to execute that mandate.

A recent research study by CFO Research Services sought to uncover the combination of non-technical business management and leadership skills that finance executives will need to carry out this expanded business mandate. The study sought answers to questions regarding the road to the top of the finance organization, including:

• What business and leadership skills do the most successful CFOs possess?
• What are the qualities and characteristics of the ideal finance leader?
• How can leadership be learned?

The study found that the most successful finance leaders tend to exhibit clarity of thought and of action—and that they bring a level of adaptability and judgment to their work. CFOs cited several skills as “critical” for success:

• Follow through on decisions - 63%
• Communicate clearly and effectively - 60%
• Foresee future consequences of current actions - 59%
• Persuade others - 49%
• Work well with other C-level officers - 49%

“Some of these traits will depend on the organization,” writes the controller of a biotech firm. “For example, in a small organization, it can be critical for a CFO to be more hands-on, while in a larger organization, it can be just as critical for the CFO to prefer to delegate.”

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The emphasis on vision and interpersonal skills makes sense, given the CFO needs to be able to sell and implement ideas. So how does an individual proceeding through the ranks of accounting and finance nurture these softer skills?

According to the study, on-the-job practice and mentoring relationships far outstripped other potential sources of improvement. Outside activities, external seminars and books, company-sponsored workshops and teambuilding exercises all lagged far behind the top two.

The study also sought to identify the greatest barriers to leadership improvement; 48 percent cited “few mentors available for senior finance executives.” Respondents named only the “scarcity of time, attention and other resources” as a barrier more often (52 percent).

“It’s unfortunate, in this world of 24/7 activity and early retirements, that we’ve lost many of the best people to help the rest of us ‘learn’ leadership,” writes one respondent. “Some people are born leaders for whatever reason, and the rest of us could really use the support of mentors to understand how to be effective.”