Do you aspire to transition from a controller to a chief financial officer? Blazing a path to the pinnacle of the finance profession means embracing the role of a lifelong learner and proactively acquiring critical leadership skills. The skills you’ll need to become a CFO include the following.
Strategic Thinking and Business Acumen
Modern chief financial officers have moved beyond the role of financial stewards and become true business strategists who regularly contribute to C-suite decision-making. If you wish to become a CFO, you need to develop strategic thinking and executive-level business acumen. You also need to:
- Shift your planning processes to include corporate objectives
- Interpret financial data within the broader context of market trends
- Contribute to long-term planning and capital allocation decisions
- Understand the competitive landscape
Reach out to your CFO and identify opportunities to participate in executive discussions. Doing so will expand your focus to consider broader organizational goals and help you develop strong business acumen.
Decision-Making Under Pressure
As a controller, you excel at ensuring the accuracy of financial reports. CFOs are under greater pressure as they must make high-stakes decisions with incomplete information. To transition, you will need to:
- Develop confidence in data-driven decision-making
- Assess both short and long-term repercussions
- Communicate financial trade-offs to executive teams and stakeholders
Gaining exposure to risk management and M&A evaluation processes will help you sharpen your decision-making abilities. For instance, you could sit in on a scenario planning session and identify what decisions you would make as the CFO. You could review your “decisions” with your CFO after the meeting and discuss your reasoning.
Executive Presence and Communication Skills
CFOs must tailor their messaging to ensure the information they are presenting is accessible to diverse stakeholders. Developing versatile communication skills and building an executive presence are some of the most complex parts of your journey. You should focus on:
- Presenting financial data in a clear and compelling manner
- Translating complex financial metrics into actionable business insights
- Building relationships with executives
- Developing public speaking and negotiation skills
Seek mentorship opportunities and participate in leadership training. Be willing to push beyond your comfort zone.
Cross-Departmental Collaboration
Controllers primarily work within the finance department, while CFOs frequently work across departments to support the needs of the business. You can build your cross-departmental collaboration skills and strengthen relationships with other business leaders to prepare for your transition to CFO.
When meeting with other teams, discuss how financial decisions impact their day-to-day functions. The goal is to understand how you can better support other departments while meeting the financial needs of the business.
Emotional Intelligence
Emotional intelligence is a critical skill for every leader. While you likely possess strong emotional intelligence skills as a controller, you should work to enhance these abilities to prepare for the CFO role.
Chief financial officers interact with employees and executives in a different context than controllers. As a result, the way you apply emotional intelligence must change.
Focus on understanding how the numbers and data-based decisions you make could impact others. Use your emotional intelligence skills to demonstrate empathy, especially when announcing budget cuts or reducing funding for popular projects.
Technological Aptitude
Chief financial officers are expected to drive digital transformation and leverage technology to enhance financial operations. During an interview for a CFO position, you may be asked about the latest developments in financial technology and how you plan to adopt those solutions.
Stay informed about cutting-edge solutions like artificial intelligence and automation tools. Collaborate with IT leadership to increase your understanding of technology implementation, including timelines, costs, and staff training needs. Demonstrating a high technological aptitude can position you as a strong CFO candidate.
Risk Management and Compliance Expertise
You already play an important role in financial compliance. However, chief financial officers must oversee broader risk management concerns. As you work to expand your compliance expertise, focus on the following:
- Governance policies
- Cybersecurity and market risks
- Crisis management and contingency planning
- Legal and tax implications of financial decisions
If you are aspiring to become a CFO, you will need to familiarize yourself with the latest risk management best practices and assessment frameworks. These skills will position you as a strong candidate and demonstrate your ability to protect the organization’s reputation.
How to Prepare for the CFO Role
It’s never too early to begin preparing for the chief financial officer role. You can prepare for the next phase of your professional journey by:
- Taking on additional responsibilities
- Pursuing further education and certifications
- Seeking mentorship opportunities
- Networking with other finance professionals
- Shifting your mindset
Intentionally start thinking like a CFO. Look at the broader implications of financial decisions while fulfilling your responsibilities as a controller. Maintain your focus and develop these leadership skills to position yourself as a strong candidate.
