5 Habits That Set Top CFOs Apart
The role of Chief Financial Officers (CFOs) has transformed significantly. No longer limited to overseeing financial controls, today’s CFOs are key leaders who drive company growth, innovation, and operational success. As expectations rise, CFOs must develop habits that strengthen their organizations and advance their careers. Here are the top five habits that define successful CFOs.
1. Uphold the Highest Ethical Standards
In an era where transparency is paramount, top CFOs lead with integrity. They provide clear, honest assessments of their company’s financial health to stakeholders and the board. By avoiding the temptation to embellish or obscure financial realities, they build trust and credibility. Their commitment to ethical practices extends beyond compliance, influencing the entire organization. This focus on transparency allows them to make decisions that balance immediate needs with long-term growth.
2. Build Strong Internal and External Relationships
Effective CFOs prioritize collaboration. They cultivate close, productive relationships with their CEO and other C-suite executives, as well as with employees across all departments. Engaging with various teams gives CFOs a comprehensive understanding of the company beyond just the financials. Externally, they maintain open lines of communication with board members, investors, and key stakeholders, ensuring alignment on company goals. This network of relationships helps them influence strategic decisions and navigate challenges effectively.
3. Emphasize Opportunities, Not Just Risks
While managing risk is an essential part of the CFO’s role, top CFOs balance this with a focus on growth. Instead of being the ‘CFNo’ of the company, they assess new initiatives with an eye on their potential value. They advocate for opportunities that align with long-term goals, working to quantify both risks and rewards. This growth-oriented approach shifts the CFO’s role from merely protecting resources to actively driving the organization forward.
4. Develop and Empower a High-Performing Team
Great CFOs understand the importance of surrounding themselves with talented individuals. They hire people who not only possess technical expertise but also demonstrate initiative, passion, and a strong work ethic. By building a culture of trust and transparency, they keep top talent engaged and motivated. These CFOs delegate responsibilities confidently, empowering their teams to take ownership of their work, which in turn boosts performance and encourages innovation.
5. Stay Ahead of the Curve
The most successful CFOs are forward-thinking, constantly anticipating industry trends and technological advancements. They embrace data-driven decision-making and invest in technologies that improve efficiency and streamline operations. Whether adopting new software or staying informed about regulatory changes, these CFOs ensure their companies are prepared for future challenges. By staying ahead of the curve, they position their organizations—and themselves—for long-term success.
As the role of the CFO becomes more dynamic, these five habits are essential for staying competitive. Leading with ethics, building strong relationships, focusing on growth, developing talented teams, and staying future-focused are the keys to success in today’s complex business environment.