Several years ago, C-suite executives began to expect more from the chief financial officer. The CFO role transitioned from a financial expert to a true strategic partner. CFOs who successfully adapted to that role have also broadened their career prospects to include the corner office.
Is making a move from CFO to CEO among your professional aspirations? If so, here’s what you need to do to make it happen.
It All Starts With a Vision
CEOs must balance short-term financial goals with long-term growth. As a CFO, you already understand budgeting and forecasting, but success as a CEO requires a broader vision. You have to look at the entire picture to align financial strategies with marketing and investment opportunities.
Now is the perfect time to begin expanding your vision. Explore opportunities to enter new regions or take the lead on major projects. Showcase your flexibility and diverse skill set. Building a portfolio of successful projects will position you as a strong candidate when it’s time to put your name in the hat for the next chief executive role.
Building Leadership and Communication Skills
As a chief financial officer, you already possess a solid foundation of leadership abilities and communication skills.
You are also accustomed to wearing different hats. A prime example is when you transition from your department to the boardroom. During this shift, you have to break down complex financial topics into more generalized language and frame insights in a way that’s relevant to organizational decision-makers.
Stepping into the corner office means taking these communication skills to the next level. CEOs wear many hats and interact with everyone from line-level staff to board members, investors, and executives from other organizations. They have to adapt to every conversation while pushing the company’s goals forward.
Leveling up your communication and leadership abilities will require discipline and focus. The good news is that you are already in a prime position to do this. Build up your confidence every time you present to the board and employees. Shadow executives in other roles or sit in on meetings to gain experience in communicating with different audiences.
You’ll also need to demonstrate your prowess as a leader. Fortunately, you have an entire finance department to shape and support. Work on creating a collaborative culture and invest in your team. In this way, you can showcase your ability to nurture talent and bring out the best in motivated professionals.
Gaining Operational Experience
Chief executive officers oversee all business functions, so operational experience is nonnegotiable. Seek opportunities to widen your impact by managing projects like product launches or supply chain optimization.
This experience in leading cross-departmental initiatives will demonstrate your ability to communicate with and support employees from different backgrounds. The board of directors needs to see that you are agile and adaptable. What better way to show them than to present a breakdown of all of your wins?
Overcoming Challenges in the Transition
Think back to when you moved from controller to CFO. Reflect on all of the challenges you encountered along the way. Now multiply them.
The hurdles you’ll face during the transition to CEO are more numerous and complex than those you encountered during your climb up the finance ladder. Prepare to take on the following challenges.
Break the Number-Cruncher Stereotype
No matter what you’ve achieved, you may be typecast as a detail-oriented number cruncher. That perception can overshadow your full potential. Don’t let it.
Actively engage in high-level discussions beyond finance. Get involved in product development, market expansion, advertising, and other projects. Be willing to listen and trust executives in each of these areas, but also add value.
Develop Risk Tolerance
CEOs often make bold decisions with incomplete information. That practice represents a stark contrast to the data-driven precision of finance roles.
Risk tolerance and decision-making under pressure are skills that are developed; they are not innate. To build risk tolerance, lead high-stakes projects with uncertain outcomes, such as digital transformations or mergers.
Expand Your Cross-Functional Skills
Building cross-functional skills to win the job is only the beginning. The best CEOs are lifelong learners who continually push their limits, step out of their comfort zones, and work to acquire new skills.
Remember, being the CEO doesn’t mean having all of the answers. It means putting a great team around you, learning as much as you can, and leading the way.
No matter where you are in the journey, continue to collaborate with other C-suite leaders to gain exposure to diverse perspectives. You already understand finance, but you may need to expand your grasp of operations, security, compliance, marketing, and information technology.
Preparing for the Corner Office
Are you ready to step into your next role? Seek mentorship from current CEOs and participate in leadership development programs. By combining the financial expertise you already possess with new operational and strategic skills, you can successfully transition to the CEO role.
