Strategic thinking
The path to becoming a CEO varies from CFO to CFO. Unexpected opportunities often arise.
The CEO included Bertucci's accounting manager, who included Bertucci's accounting manager, not to mention the CEO, who included Bertucci's accounting manager, a Boston-based high-speed Italian restaurant chain.
Instead, the role chose him. In 2009, after the sudden departure of the CFO of Burrito Chain Boroko, A Boston-based company He hired Renna as interim financial chief. Five years later, Renna was appointed CFO and added the COO title for a while. He gained valuable operational experience.
“I went out to the restaurant, met people within the four walls, understood what was going on at the ground level, became a visible leader, sat at my desk,” says Renna. “I also started working alongside CEOs in developing future strategies.” When John Pepper, founder and CEO of Boroco, resigned in 2014, Renna became CEO.
His second CEO at Wahlburgers came four years later. Renna was the CFO of the burger restaurant chain owned by actor Mark Wahlberg and his brother, but stepped into the role of interim CEO when the company began searching for external leaders. “As CFO, I felt that the business needed an outside CEO and agreed to a tentative spot until we found it,” he says.
“It's lonely at the top. You're the one everyone sees. Something I didn't notice until I got there.” – Patrick Renna
Renna's advice for CFOs who are aiming to become CEOs is to develop strategic thinking and develop analytical thinking about future goals. “Think big and long-term about what business will look like in three or five years, beyond today and tomorrow. Be interested,” he says.
The time spent at trench listening to employees is essential to understanding and shaping the operational aspects of your business, he adds. “You can appreciate the work that everyone does for the business and encourage them to become their own leaders while mentoring them with feedback,” he says.
His stint as CEO taught Renna that the indomitable spirit of decision making is an important ability to develop. “It's lonely at the top. You're the person everyone sees. Something I didn't notice until I got there,” he says. “I was worried about the impact of my decision. Board members helped the leader realize that they had to be decisive. Whether your decision is right or wrong, you have to own it.”
Give everyone strength
Steve Horowitz's Carecentrix journey to the top of Carecentrix began as a 1,700 employee provider of home care services and a controller for the healthcare sector. He joined Carecentrix as finance chief in 20212 and became CEO in 2022.
Like Renna, Horowitz didn't expect to become CEO.
“It wasn't on my radar,” says Horowitz. “I'm generally quite introverted and a good CEO who has worked for many years has spent a lot of time managing boards, employees, sales prospects and investors.
After moving from CFO to CEO, Horowitz adopted a leadership model focused on enhancing everyone in the organization's superiority in their roles and promoting collaboration beyond more effective functions. Every week, he has one-on-one conversations with people across the company's value chain. He asks if the obstacles are hindering their work and whether he is blocking anything he can do to remove them. “Sometimes all you need is for people to speak up and openly,” he says.
Horowitz also learned to be more aware of his comments at group meetings and to minimize them. “As soon as I had an opinion about something I had on hand I realized that I would change what the rest of the room thinks,” he says. “I purposely let them go first and gave them my opinion based on what I heard. At the beginning of the meeting, I don't speak at all.”
That approach is what Horowitz learned in his time as the head of the finances. “I started making this pivot and thinking more broadly and strategically, and decided not to be the typical CFO who always said “no,” he explains.
According to Horowitz, the impact was instantaneous. “When I said something, they listened. People opened up. I was the same person, but I felt strong.
“When I said something, they listened. People opened up. I was the same person, but I felt strong.”—Steve Horowitz
To map the organization's paths, Horowitz needed the support of the board. His predecessor gave him valuable advice on how to handle his first board as CEO. “He said he's going to do it in my way that it's real, not the way he did it,” Horowitz says. “You don't have to be Jack Welch. You have to be Steve Horowitz,” he said. It resonated with me. ”
Every company needs a CEO whose leadership attributes seem dedicated to the times, says Horowitz. “Tesla is very different without Elon Musk's personality, energy and the ability to make people believe in his vision, but many companies aren't like that. Charisma alone doesn't guarantee success,” he says. “A flash can be better, but sometimes you need more material than a flash.”
Inheritance issues
Even CFOs ready to take on the responsibility of being CEO can encounter obstacles. Promotion to CEO may have been delayed or missed due to the lack of a clear financial successor. The pipeline feeding finance chief for the role of top leadership is The gap in financial staff skills development, says the search company.
“The financially adequate controller and the vice president are not ready to step into the CFO's shoes,” says George Pentalis. Division of Redgent and Roth Staffing Companies. “As the finance directors become promoted or retired, the talent behind them to fill that role is behind them.”
He attributed it to the growing gap between the evolving skills of modern CFOs and the traditional focus of the finance controller or vice president. The latter roles usually include cash flow management, accounting, financial analysis, compliance, cost management and key responsibilities, but not at the strategic skills required by CFOs.
“Continuous professional development is required to develop the next wave of CFOs to become CEOs. Controller and Finance VP,It offers opportunities to promote leadership, strategic thinking, communication and risk management,” says Pentalis.
However, the shortage of CFO-enabled controllers and Vice-Presidents of Finance paves the way for alternative paths to CFO rolessays Steve Garucci, Deloitte's CFO practice leader. “I used to be an accountant, but now This is someone with a financial, technology or investment banking background or a collective career experience, or a CFO upskills product of opportunity given them. ”
Important ingredients
How do boards and search companies think about the most important skills needed to become a CEO?
“The ability to inspire and motivate people based on human elements rather than spreadsheet data is what many companies are looking for.NA CFO will become CEO.” Pentaris on Redgent. “Finance Chiefs taking the next step should shift from relying solely on market data. Listen to insights and critical perspectives from staff and others within the organization. ”
Deloitte Fini believes that curiosity is the key ingredient. “It's not something CFOs have researched or learned about what businesses need today to lead their business. That's the beginner's mindset they bring to learning,” he explains. “The situations new CEOs encounter in a world where knowledge is accumulated very quickly. [and] It's very uncertain. Some people know that there are not many answers to what they know purely. ”
Instead, the right leader is someone who gets caught up in a role with questions that stimulate critical thinking, he says.
An aspiring CEO also needs honesty, optimism and confidence, Finni says. “These qualities may sound soft, but they are attributes of steel,” he says. “Integrity gives CEOs the right to be optimistic and confident in the face of continuous uncertainty, doing better than doing nothing, and can be the fate of other CEOs who are overwhelmed by ambiguity and indecisiveness.”
Modern Finance Chiefs are readY Will you become this leader? “if CFOs are already curious, open-minded, and know how to listen. The answer is yes. My advice is to do the same thing. It's just a big job.” Finji says.
That may sound oversimplified. However, the functional gap between the CEO and the Treasury Chief is narrowing. “The title never fascinated meRenna says. “Whether you're a CEO or CFO, if the company isn't working well or your decision doesn't work the way you wanted it to, you're responsible. It's called the “Executive Leadership Team” for a reason. ”
