Making the leap from finance and accounting professional to strategic leader is one of the biggest challenges — and opportunities — for first-time finance leaders.
To explore this important transition, the CFO Leadership Council recently hosted a panel discussion with three CFOs at different stages in their careers: Joy Mbanugo, CFO of ServiceRocket; Angela Smoller, CFO of SeekOps; and David Spinola, president and CFO of SproutLoud Media Networks.
During the discussion, they delved into the key areas that controllers aspiring to become CFOs need to focus on to ensure their evolution is impactful and integral to their organization’s success.
Diverse Experience: Foundation
Diverse career experiences help shape a strategic CFO: Mbanugo went from audit and tax jobs to law school, then focused on capital markets at BlackRock, and finally ran finance and tax at Google before taking on the role of financial director at ServiceRocket.
“Having diverse experiences helps you see the bigger picture and understand how different business functions interconnect,” Mbanugo says. “A CFO shouldn’t just be a numbers guy, but a strategic partner who can contribute to the overall vision of the company.”
Smoller began his career as a chartered auditor at Deloitte and Crowley, worked in finance at Xerox and held various roles at private equity-backed software companies before joining SeekOps, which monitors and tests emissions for energy companies.
“It's crucial to seize opportunities and continually learn on the job,” Smolar said. “When I moved to a smaller portfolio company, I had to learn everything from scratch, which gave me a deep understanding of how different systems and processes work together.”
Digital Knowledge
Being tech savvy is no longer a requirement for CFOs. Mbanugo stressed the importance of understanding and leveraging technology in your role, especially in integrating systems and using AI for business operations and forecasting.
“Technology is at the heart of everything we do,” she points out. “From ERP systems to CRM and AI tools, understanding how these technologies work and how they can be leveraged to drive business growth is essential for the modern CFO.”
While at Xerox, Smoller said he learned how to use the systems but didn't understand how they worked or how information got from one place to another, but when he moved to a smaller PE portfolio company, he had to implement and build on existing systems, so he had to learn it all.
“We need to know where information comes from, how it flows and how we can use it effectively,” Smoller said.
Build relationships
Building strong relationships both inside and outside the organization is essential to a CFO's success, and Spinola, who also serves as president and CFO of SproutLoud, emphasized the importance of trust and collaboration.
“Trust is fundamental,” Spinola says. “They need to believe you're on their side. Be a colleague they can rely on and rely on, and you'll be invaluable.” For example, Spinola, a former investment analyst, has worked closely with members of sales teams to analyze data and improve their sales processes. “Helping others in the areas you excel at helps you build strong relationships and become a key player in the success of the organization,” he says.
What's going on outside the office? Smoller moved to a new city during the pandemic, and was able to build a support network and get job information by connecting with local CFOs and attending events.
“You need to build your network before you even need a job,” Smoller says. “People who know you're a good person and know what you're talking about will be more likely to introduce you or recommend you.”
Take the initiative
Building relationships internally is important, but CFOs also need to learn about the business to be better strategic partners, which means attending meetings themselves rather than waiting to be invited.
“By being in the meetings myself, I can see what's going on across the organization and contribute to the discussion,” Smoller explains. “It makes me a more effective, strategic CFO.”
Mbanugo said being proactive, even to the point of being “prying,” can help CFOs as they try to be effective leaders and partners. “You need to be involved in everyone's business to understand what's going on and how you can help,” he said.
Creativity and problem-solving skills
Panelists agreed that creativity and problem-solving are among the most important skills for CFOs today.
“Problem solving is where I can add value,” Spinola said. “Asking the right questions and using data analytics to drive growth and make informed decisions is key.”
For Mbanugo, creativity means encouraging his team to think outside the box and explore new ideas.
“Giving our teams the opportunity to be creative and think about the future leads to innovative solutions and business growth,” she said. “It's about embracing new ideas and using them to move the company forward.”
continuous learn
The transition from traditional controllership to strategic leadership requires continuous learning and preparation. “Continuous learning and adapting to new challenges is key to being a successful CFO,” says Moller.
Joy Mbanugo spoke about the importance of mentorship.
She told her mentor she wanted to be a CFO, and after looking at her background, he explained that she needed more exposure to areas outside of finance and tax. “Having a mentor to help map out and guide your path is invaluable,” Mbanugo says. “It helps me stay focused and prepare for the challenges ahead.”
At ServiceRocket, Mbanugo strives to give controllers and other members of the finance team a chance to air their ideas. “They may have good ideas, but they may not have the opportunity to air them, or they may be afraid to air them because they think their ideas are wrong,” she says.
Future CFOs should look for opportunities to contribute to strategic discussions, providing insight that reflects financial acumen and a deep understanding of the business.
