In our ‘Path to the C-Suite’ collection, we discover how professionals in numerous components of the enterprise can take the following step of their profession. Whether or not you’re in IT, HR, or one other perform, you’ll discover knowledgeable steering on shifting towards a seat within the C-Suite.
In our first weblog, we’re taking finance professionals on the journey to turning into Chief Monetary Officer (CFO). Not confined to monetary stewardship, in the present day’s CFO is a strategic associate to the CEO, a driver of transformation and a frontrunner in knowledge, expertise, and sustainability.
This weblog explores the completely different pathways to CFO, the talents required, and the way rising applied sciences like AI are reshaping the finance perform. With insights from seasoned finance leaders at Hays, you’ll uncover extra on easy methods to place your self for achievement.
What does the CFO do?
You’re most likely already conversant in the fundamental duties of the CFO function. Nonetheless, past managing budgets and compliance, the job description has advanced to maintain tempo with fashionable traits. CFOs now more and more lead on Environmental and Social Governance (ESG) reporting, digital transformation and cross-functional collaboration.
“Beforehand the finance perform was seen as a gatekeeper, controlling all monetary exercise. These days, the enterprise is leaning on the finance perform as a associate – in serving to to analyse the problem, driving enterprise progress and making certain the enterprise is worthwhile.”, notes Echo Wang, Senior Director for A&F at Hays China.
This evolution of the function offers the CFO larger affect inside the organisation. With entry to knowledge that impacts all features of the enterprise, in the present day’s CFO is a trusted voice in making selections past merely guarding the purse strings. In addition to a robust working relationship along with your CEO, you’ll additionally work intently with different leaders to information their operations. This requires a strong understanding of how every part works – and whether or not it’s a hit or not.
What are the paths to turning into a CFO?
The important thing to efficiently touchdown your first CFO function is gaining expertise throughout the three core finance pillars. If you happen to haven’t plied your commerce in every of those, your CV will look much less spectacular when in comparison with different candidates’.
James Hilton, Hays CFO, displays on his personal profession: “I’ve been a Monetary Controller and labored in monetary accounting. You don’t want 5 years doing financial institution reconciliations, however publicity to those roles is significant to know success as a finance chief.”
Monetary Management
This perform focuses on accuracy, compliance and safeguarding the monetary integrity of the organisation.
Common junior roles embrace Accountant and Auditor, shifting as much as the Monetary Controller place. Holding a number of of those will assist to construct your technical experience and regulatory data.
Business Finance
Utilizing knowledge to create forecasts, professionals in industrial finance supply recommendation and help to different features inside the organisation.
Working in a industrial function will assist you to to find out about strategic decision-making. These roles, corresponding to Business Finance Supervisor, supply larger publicity to the broader enterprise, growing your collaboration abilities throughout departments.
Information Analytics and Enterprise Intelligence
With knowledge’s significance solely rising within the age of AI implementation, finance groups want consultants who can extract tangible motion factors from the huge quantities of knowledge obtainable.
Roles like Monetary Analyst and Enterprise Analyst concentrate on deriving insights from knowledge to current to the broader enterprise.
Which abilities does a CFO must succeed?
Human abilities
To rise to CFO, professionals should mix technical data with management and communication abilities. As Stuart Martin, Senior Finance Director at Hays Australia, notes: “The distinction between CFO and an awesome one isn’t technical abilities – it’s the flexibility to interact with the broader enterprise. With the ability to relay the monetary leads to a non-financial manner is absolutely necessary.”
Hilton provides: ““The most important transition any finance skilled will make is studying to inform a narrative with the numbers. When you are able to do that, you turn into a real associate to the enterprise.”
As such, necessary human abilities (or gentle abilities) for a finance chief embrace:
- Vital considering skills
- Downside-solving skills
Marc Burrage, Managing Director for Hays Asia, has beforehand shared his tips about growing your communication abilities.
Technical abilities
The technical abilities required for achievement will differ, relying on which of the three finance pillars you’re working in:
- Monetary Management: a proficient understanding of accounting ideas, reporting, compliance and inside controls
- Business Finance: data of enterprise fashions and operations
- Information Analytics: fluency in SQL, Python and instruments corresponding to Energy BI, enabling you to handle knowledge units.
Whereas a CFO won’t want such hands-on experience in databases, they are going to want a willingness to upskill in new applied sciences.
Traits and expertise in finance
AI and automation
As with many components of the enterprise, AI and Robotic Course of Automation (RPA) are revolutionising finance, from managing routine, time-consuming duties to producing strategic insights.
Hilton explains: “Know-how is enabling individuals to assume extra, not simply do extra. AI and RPA improve accuracy, effectivity and decision-making.”
Karen Younger, Finance Director at Hays UK&I, elaborates: “Whereas AI leverages cognitive capabilities to offer knowledge evaluation and make knowledgeable selections, RPA excels in automating repetitive, rule-based duties. When used collectively, they’re reworking finance by enhancing accuracy, effectivity and strategic decision-making.”
In consequence, professionals might be anticipated to make use of and experiment with these instruments, according to their employer’s governance and guardrails. It’s a chance to be on the forefront of innovation, reasonably than catching as much as new methods of working. James Musgrave, Finance Director at Hays UK&I, advises: “Be a change agitator. If you happen to’re not trying to find what’s subsequent, you’ll get left behind.”
Sustainability
ESG reporting is rising in significance for finance groups, from the organisation itself to Scope 3 emissions within the provide chain. Senior members of finance groups, together with the CFO, will turn into liable for overseeing local weather reporting, whereas Carbon Accountants and different rising roles will quickly assist organisations to trace their environmental impression extra effectively.
Elio Recchia, VP for A&F at Hays USA, predicts: “With roles devoted to sustainable finance, business professionals want experience. There’ll be a concentrate on extra moral investing and the place that cash goes.”
Subsequent steps
Listed below are actionable steps to speed up your journey to CFO:
- Broaden your expertise: Rotate by means of monetary management, industrial finance and analytics roles.
- Upskill in tech: Study AI, RPA and knowledge visualisation instruments. Keep present with rising applied sciences.
- Develop human abilities: Give attention to storytelling and communication, stakeholder engagement and alter administration.
- Search mentorship: Have open conversations along with your supervisor about profession objectives and growth plans.
- Suppose globally: Take into account worldwide roles to realize broader publicity and speed up development.
There’s nobody path to CFO. Nonetheless, each journey shares widespread traits: it calls for adaptability, strategic considering and a proactive mindset. By embracing expertise, honing your human abilities and gaining various expertise, you possibly can place your self as a future finance chief.
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