Details
Robert Baker
9th February 2023
Insights
I’m often asked by CFOs how to position themselves for the top job in an organisation. The reality is that CFOs have traditionally been overlooked for the Chief Executive role, with only 18% of current CEOs in the FTSE 100 having a recognised accounting qualification.
However, the CFO role is evolving. As it becomes increasingly business-partnering focused, opportunities to transition from finance chief to business leader are more accessible than ever.
Here are The CFO Practice’s top tips to help CFOs take that step up:
1. Expand Your Scope of Responsibilities
CFOs often oversee key cost centres like HR, IT, and Legal, but broadening your operational and commercial focus is crucial. Identify areas of weakness across the organisation where you can add value and increase your span of control. This demonstrates your ability to think beyond finance and contribute to the overall success of the business.
2. Plan for Your Succession
Convincing the board you’re ready for the CEO role is critical, but it’s equally important to have a capable successor lined up for your CFO position. Boards will be more confident in your transition if you’ve built a strong finance team and identified a CFO designate who can step into your role.
3. Become Market-Facing
Maximise your external exposure by building strong relationships with investors, banks, vendors, and key customers. Take on a non-executive directorship (NED) role to broaden your experience and elevate your profile. Demonstrating your ability to represent the company externally will position you as a credible CEO candidate.
4. Develop Yourself as a Leader
As CEO, you’ll be a leader of leaders rather than a functional expert. Shift your mindset by focusing on delegation and strategic management in your current role. Work on developing leadership skills that inspire confidence and alignment across the executive team.
5. Perform Well in Your Current Role
While planning your next step is important, don’t let it distract you from excelling as CFO. The board will only consider you for the CEO role if you are consistently delivering and performing at a high level in your current capacity.
Final Thoughts
Every candidate’s journey to the CEO role is unique. These insights provide a framework, but ultimately, the answers lie in your personal goals and circumstances.
The CFO Practice
The CFO Practice specialise in supporting Finance Directors and CFOs across the UK with their career progression. Whether you’re looking to take the next step or need help hiring for your finance leadership team, we’re here to help.
Contact rob@thecfopractice.co.uk to explore how we can assist your career journey or your organisation’s leadership needs.