With Labor Day fast approaching and the holidays coming to an end, CFOs have a month to hit their third-quarter numbers while they adjust fourth-quarter forecasts and lay the groundwork for 2025 budgets (the latter involving adjustments to assumptions about the macroeconomy, political turmoil and capital markets).
The reality is that finance professionals are under constant pressure. Even in the heat of summer, they are constantly aware of their enormous responsibilities. But as the saying goes, it's lonely at the top. A CFO's work and projects are not only impactful, but also usually highly confidential.
As a result, today's CFOs need to look after themselves as much as their organizations. StrategicCFO360 interviewed Sunil S. Deshmukh, Global Board Chair, Institute of Management Accountants, to get his insight on the importance of mental health for CFOs. Deshmukh, a leadership coach, spoke about an underestimated challenge for CFOs and other executives: mental stress and loneliness.
CFOs are facing a growing number of challenges across business functions, from cyber risks to talent shortages to maintaining strict financial and accounting controls. How much of a strain is all this taking on their mental health?
As chief executive officer, the CFO is in a position of great responsibility and usually stress. Of course, this has always been the case. But new challenges bring new sources of anxiety. Today's CFOs have a broader scope of responsibilities and are less predictable than CFOs of the past. Risks and threats to a company's finances and operations are constantly evolving, and CFOs must continually interpret what is happening in the external environment and assess how it will affect the company.
The mental strain is enormous, and CFOs often feel isolated because they are overwhelmed with work and few people understand their problems.
Why do CFOs and other C-level executives often lack emotional, psychological and professional support, and how does this negatively impact their performance?
CFOs, like any other C-level executive, are in a unique category when it comes to responsibilities. You can certainly bond with lower-level employees, friends and family, but do they understand your burden? Can you turn to them for support and practical advice?
That's not to say that personal relationships outside of work aren't helpful — in fact, they're essential to well-being — but senior leaders have a unique role and need the support of their colleagues.
Companies need to recognize how badly their C-Suite executives' mental health can negatively impact performance. Can senior leaders make the best decisions when they're emotionally drained, lonely, or depressed? Probably not. Unfortunately, companies often only address employee issues when there's a business reason for it. But in this situation, there's clearly a business reason: a burnt-out CFO is not the best CFO.
What steps can organisations take to ensure better support to combat mental illness and loneliness among their CFOs, and why is it important to do so?
Organizations can hire professional executive coaches and advisors to improve the well-being of their leaders. Given the potential negative effects on executive mental stress, it's a worthwhile investment.
Organizations can and should encourage work-life balance and promote a supportive company culture for employees at all levels. More and more organizations are beginning to understand its importance. However, there is often an assumption that this is not necessary for C-level executives as they have the responsibilities and are well-paid. However, mental distress can be an equal victim and happens to C-level executives as well as to employees entering the workforce. Organizations' recognition of this reality is a necessary first step.
What is your advice to CFOs? How should they deal with the day-to-day challenges?What are the obligations of heirs?
CFOs should find solace in their personal relationships and peer networks, but also confide in those closest to them. Some professional organizations offer mentoring programs and opportunities for CFOs to network with each other as members. When I worked in Singapore, I set up a corporate networking organization and an external peer support group to discuss issues confidentially.
In these groups, CFOs discuss more personal issues along with best practices in their field. CFOs may be colleagues or competitors, but that doesn't make them any less of supportive friends. I am open to meeting and engaging one-on-one with other C-Suite members to offer insight and a listening ear.
