Moving from Chief Financial Officer (CFO) to Chief Executive Officer (CEO) is a big career leap that many finance leaders aspire to. The journey may seem daunting, but with the right focus and professional development, it's entirely achievable.
As the CFO role continues to evolve beyond traditional financial management to include broader strategic responsibilities, more organizations are recognizing the value of elevating their CFO to CEO. Leaders such as Best Buy’s Corie Barry, Citigroup’s Jane Fraser and UnitedHealth Group’s Andrew Witty are examples of former CFOs serving as CEOs.
If you want to progress from CFO to CEO, here are six key areas to focus on.
1. Expand your business acumen
To be an effective CEO, a CFO must expand their knowledge beyond the realm of finance. This is essential. Strive to deeply understand all aspects of the business, from operations to sales and marketing. CEOs need to have a holistic view of how each department contributes to the company's success. Expanding your business acumen will help you make decisions that move the entire organization forward.
2. Create a strategic vision
As CFO, you're involved in the strategic planning process. But as CEO, you're the lead actor, developing and expressing a clear strategic vision for the company's future. Your vision should cover not just financial success, but also growth opportunities, market positioning, and long-term sustainability. Your ability to communicate your vision effectively will inspire your team.
3. Build strong leadership skills
Leadership is about inspiring others and motivating them to perform at their best. If you're a CEO candidate, you probably already have some talent in this area. But to succeed in the C-suite, you need to be a master at leading people, and developing your emotional intelligence is a key part of that. Aim to be a visible, approachable leader who can foster a positive company culture and rally the entire organization around a common purpose.
4. Improve your communication skills
A big part of a CEO's job is communicating with employees, board members, investors, customers, and other stakeholders. The ability to communicate complex ideas clearly and concisely is essential. It's also important to be an active listener – understand the concerns of those around you and pay attention to their feedback. Effective communication builds trust.
5. Embrace change and innovation
Successful CEOs are adaptable and visionary. Embrace change and foster a culture of innovation. As a CFO, you may have focused on risk and cost management, but as a CEO, you need to balance those priorities with the demands of innovation and growth. Encourage creativity, embrace new ideas, and be ready to pivot when necessary.
6. Network and build relationships
Finally, building a strong network of relationships is important for any CEO, but especially a new one. This includes relationships with fellow executives, industry leaders, and potential partners. Not only does your network provide opportunities to grow your business, it also offers valuable insight and support that can lead to personal growth. Prioritize connections with people both within and outside your industry, and don't hesitate to seek mentorship and advice from those who are already successful.
