The Modern Day CFO is also a Great People Leader!

By: Patty Prosser

In a recent coaching engagement, I had the opportunity to interact with one such CFO, as a partner in the development of one of his key leaders. Not only did he embrace his role as a support system for this leader, as a partner in the process, but he also modeled behaviors that other CFO’s I’ve encountered didn’t.  First and foremost, he was a great communicator- he listened thoroughly and responded thoughtfully.  He also made it clear to this leader, that not only did he believe in her, but that he had her back!

There is no question that today’s organizations need CFO’s with demonstrated records of success and financial savvy, but now more than ever, they need something else- highly developed people skills!  The role of the CFO has transformed significantly in recent years, requiring a blend of technical financial expertise and a wide range of soft skills. These soft skills enable CFOs to lead effectively, communicate clearly, drive strategic initiatives, and foster a culture of innovation and collaboration. In an increasingly complex and interconnected business world, the ability to navigate both financial and interpersonal landscapes is what distinguishes successful CFOs.

In one of our regular update meetings on this leader’s progress, I shared this perspective with him and asked him how he had become so “enlightened”. His response was simple, but profound.  He’d witnessed a variety of leaders as he’d come up through the ranks, both in the military and throughout his corporate career and he shared that they had taught him a number of lessons, both good bad. But the great leaders he’d worked for, not only shared their knowledge, but also demonstrated, by their actions, that they believed in him and supported him, but also trusted him enough to do the job that needed to be done.

In today’s rapidly evolving business environment, CFOs need to possess a diverse set of skills that extend beyond traditional financial acumen. Here are several reasons why soft skills are crucial for modern CFOs:

1. Leadership and Team Management

• Inspiring and Leading Teams: Modern CFOs must be capable of leading diverse teams, motivating employees, and fostering a collaborative work environment.
• Talent Development: CFOs are often involved in hiring, training, and retaining top talent within the finance department.

2. Communication

• Clear and Effective Communication: CFOs need to articulate complex financial information to non-financial stakeholders, including executives, board members, and employees.
• Stakeholder Engagement: Building relationships with investors, analysts, and other external stakeholders requires strong communication skills.

3. Strategic Thinking

• Vision and Strategy: CFOs play a key role in shaping the company’s strategic direction. They need to think critically and align financial planning with long-term business goals.
• Problem-Solving: The ability to navigate challenges and devise innovative solutions is critical in a dynamic business landscape.

4. Adaptability and Change Management

• Navigating Change: CFOs must manage organizational change, whether it’s through mergers and acquisitions, technological advancements, or regulatory changes.
• Agility: The ability to quickly adapt to new circumstances and pivot strategies is essential for maintaining a competitive edge.

5. Collaboration and Interpersonal Skills

• Cross-Functional Collaboration: CFOs frequently work with various departments such as marketing, operations, and HR to ensure cohesive strategy execution.
• Building Relationships: Establishing trust and strong working relationships across the organization is vital for effective collaboration.

6. Emotional Intelligence

• Understanding and Managing Emotions: High emotional intelligence helps CFOs manage their own emotions and understand others’, fostering a positive workplace culture.
• Conflict Resolution: The ability to handle conflicts constructively and maintain a harmonious work environment is crucial.

7. Innovation and Forward-Thinking

• Embracing Technology: CFOs need to stay abreast of technological advancements and leverage them to improve financial processes and data analysis.
• Driving Innovation: Encouraging a culture of innovation within the finance team and the broader organization is necessary for sustained growth.

8. Negotiation Skills

• Deal-Making: Whether negotiating contracts, financing terms, or mergers and acquisitions, strong negotiation skills are essential for achieving favorable outcomes.
• Stakeholder Agreements: CFOs often need to balance the interests of various stakeholders and negotiate to find mutually beneficial solutions.

The role of the Modern CFO is a lot about risk mitigation, but the ones that are really making a difference today and driving great success for their organizations, not only impart wisdom and model the way- but they also teach and encourage their people to be innovative and trust them to do what’s right for their organizations.

Patty Prosser is Co-Founder and Coaching Practice Leader at The Center for Leadership Excellence. For more information, please visit our website at www.cleindy.com or contact Patty at 317-727-6464 or at pprosser@cciindy.com.