Why the CFO mindset can clash with CEO demands
In the past decade More CFOS: They moved to the roles of the chief executive directors, as the position is developing greater strategic and leadership responsibilities. This trend reflects the growing demand for coefficients that can navigate economic instability with financial discipline.
In the first half of 2024, 7.1% of Geos Fortune 500 and S & P 500 companies have come from the CFO role to 5.3% of 2013.
But before many Fortune 500 CEOs have financial backgrounds, the transition is not always perfect, as the CFO skills collection does not always match the leadership, vision and risk tolerance.
“Historically, CFOs are considered in black and white and in numbers when the Chief Executive Officer must be navigated through GREF. Successful executive directors can prosper in ambiguity. Capacity often naturally becomes more natural to those with extensive, cross-operational experience than in narrow financial focus.
Hardik Shet, who manages the Center for Excellence in North America, warns that the financial discipline of CFO can be responsible for the role of the Chief Executive Officer. The predominant of numbers and quantitative thinking can create blind spots, vision, talent and company culture.
Hoanna Starek is the main trading official of the leadership, indicating this concern, noting that many CFOs suggest that they are ready for the main role because they worked closely with the General Director.
“I have seen that many CFOs overestimate their willingness,” says Starek. “They sit in the executive director that they feel that they know what to do to drive the success of the company, but they do not have to bear the burden of growth.”
Watching and learning from the CEO is not enough. Those who have successfully transited to the corner of the finances have already been taken on strategy, P & L management and operational responsibilities, increasing strong interpersonal skills. CFOs who can not develop improved business background and communication skills in their career earlier, often struggle to expand their experience.
Katy Patillo, Boyden, accentuates that it is one of the most discussed features of CFOs like a person who is involved in soft skills.
“There are many financial leaders that don’t just have that personality, and you can’t go to school and learn.”
The role of CFO as a cost-effective driver, but also challenges to people who walk to the post of General Director. In fact, CFOS-turning executive director are: On averagemore slowly to drive the upper growth compared to other preferences. Spencer Stewart’s research has found that only 8% of CFOs turn out for the execution of a high quartet, while “Leapfrog” executive directors are significantly higher than two or more subscribers.
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