In our ‘Path to the C-Suite’ collection, we discover how professionals in several 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 professional steerage on transferring towards a seat within the C-Suite.
In our first weblog, we’re taking finance professionals on the journey to changing into Chief Monetary Officer (CFO). Not confined to monetary stewardship, at the moment’s CFO is a strategic accomplice to the CEO, a driver of transformation and a pacesetter in knowledge, expertise, and sustainability.
This weblog explores the completely different pathways to CFO, the abilities 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 find out how to place your self for achievement.
What does the CFO do?
You’re in all probability already accustomed to the essential obligations of the CFO position. Nevertheless, past managing budgets and compliance, the job description has developed to maintain tempo with fashionable developments. 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 accomplice – 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 position offers the CFO higher affect throughout the organisation. With entry to knowledge that impacts all elements of the enterprise, at the moment’s CFO is a trusted voice in making choices 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 stable understanding of how every thing works – and whether or not it’s successful or not.
What are the paths to changing into a CFO?
The important thing to efficiently touchdown your first CFO position 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 important to know success as a finance chief.”
Monetary Management
This perform focuses on accuracy, compliance and safeguarding the monetary integrity of the organisation.
Widespread junior roles embody Accountant and Auditor, transferring as much as the Monetary Controller place. Holding a number of of those will assist to construct your technical experience and regulatory data.
Industrial Finance
Utilizing knowledge to create forecasts, professionals in business finance provide recommendation and assist to different capabilities throughout the organisation.
Working in a business position will make it easier to to find out about strategic decision-making. These roles, comparable to Industrial Finance Supervisor, provide higher 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 accessible.
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 amazing one isn’t technical abilities – it’s the power to have interaction with the broader enterprise. Having the ability to relay the monetary leads to a non-financial approach is de facto vital.”
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 develop into a real accomplice to the enterprise.”
As such, vital human abilities (or delicate abilities) for a finance chief embody:
- Crucial pondering skills
- Drawback-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 range, relying on which of the three finance pillars you’re working in:
- Monetary Management: a proficient understanding of accounting rules, reporting, compliance and inner controls
- Industrial Finance: data of enterprise fashions and operations
- Information Analytics: fluency in SQL, Python and instruments comparable 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.
Tendencies 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: “Expertise is enabling folks 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 choices, RPA excels in automating repetitive, rule-based duties. When used collectively, they’re remodeling finance by enhancing accuracy, effectivity and strategic decision-making.”
In consequence, professionals shall be anticipated to make use of and experiment with these instruments, in step with their employer’s governance and guardrails. It’s a possibility to be on the forefront of innovation, relatively 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 growing 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 develop into accountable for overseeing local weather reporting, whereas Carbon Accountants and different rising roles will quickly assist organisations to trace their environmental affect extra effectively.
Elio Recchia, VP for A&F at Hays USA, predicts: “With roles devoted to sustainable finance, trade 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 via monetary management, business 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 targets and growth plans.
- Assume globally: Take into account worldwide roles to realize broader publicity and speed up development.
There’s nobody path to CFO. Nevertheless, each journey shares widespread traits: it calls for adaptability, strategic pondering and a proactive mindset. By embracing expertise, honing your human abilities and gaining numerous expertise, you’ll be able to place your self as a future finance chief.
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