What the board looks for in a CFO

It is essential that the next generation of finance leaders fully understand what a Board looks for within an effective CFO and how this compares to a number two role.

Within his book called “Boards”, Patrick Dunne, an experienced chair and board member, covers what a Board should look for in an effective CFO.  Patrick compares this to another version of Maslow’s hierarchy of needs:

In a similar manner to Maslow’s triangle, each base level needs to be effectively delivered to provide a building block for the next level of requirements:

Integrity: Strong levels of trust and reliability are absolutely fundamental to the CFO role and hence form the core foundation for future success.

Technical competence: A finance leader needs to be capable of maintaining proper accounting records, making key judgements and ensuring compliance.

Management skills: Robust leadership and project management skills allow a CFO to successfully manage your finance function, project manage operational change.

Sales skills: The modern-day CFO needs excellent influencing and negotiating skills to obtain management buy-in for financial control, to drive new initiatives and to effectively communicate the company’s vision to key stakeholders.

Board skills: A CFO acts as the main Strategic Business Partner to the management team. You need to be fully joined up with the CEO and the Board to help drive forward your organisation.

Strategy: Finance leaders offer a unique financial perspective, along with a strong awareness of risk and governance procedures. These components are an essential part of the strategic decision-making process.

CEO skills: Effective CFOs require many of the same characteristics possessed by the other directors and you may often be regarded as the successor to the CEO.

🔗 Want to learn more strategies to help you step up to the CFO role? Join our next free future CFO preview session:

How to engage with the top table as a CFO

Unlock the secrets to engaging effectively at the top table as a CFO! Here's how you can stand out and excel in your role: 👇

Strategic Partnership: Evolve into the CEO's strategic business partner to drive organizational success.

Future Focus: Shift your focus towards the future, leveraging your financial expertise for strategic decision-making.

Stakeholder Management: Navigate multiple internal and external stakeholders with finesse and expertise.

Objective-Oriented: Monitor and deliver on key company objectives with precision and dedication.

Embrace Change: Dedicate time to driving strategic change and innovation across the organization.

Board Engagement: Actively participate in board discussions and contribute your unique finance leader perspective.

Balanced Approach: Find the right balance in your role to ensure effectiveness and clarity.

Innovative Leadership: Drive financial initiatives, implement new ideas, and lead change within the firm.

Avoid Extremes: Steer clear of operating in parallel universes or getting too involved in each other's roles.

Efficiency is Key: Optimize your efforts by focusing on your core responsibilities with clarity and purpose.

Want to learn more about engaging with the top table in the CFO role?

🔗 Want to learn more strategies to help you step up to the CFO role? Join our next free future CFO preview session: