That requires a conscious focus on developing leadership skills that can be applied throughout the organization.
Other important factors include having operational or field experience, handling a variety of assignments and being perceived as someone who is willing to take calculated risks when necessary. Additionally, a CFO must have a strong business sense to avoid falling into the trap of making decisions that are strictly based on numbers. But ultimately there is no substitute for effective leadership, which is the most critical attribute of a successful CEO regardless of prior experience.
Look for strategic opportunities in your existing company to take on new assignments and increase your productivity. Also, be sure to let senior executives know that you have a strong interest in ultimately becoming CEO. Case study To illustrate these themes, here is a brief history of a CFO who was able to diversify his career experience and ultimately achieve his goal of becoming a CEO.
After graduating from a major university in the southwest U. He then spent a number of years with a multi-brand restaurant company in a series of financial positions, moving up to CFO before being named CEO. In addition to his extensive experience with restaurant and retail companies, this CFO-turned-CEO was able to develop a broad-based background working for companies from coast to coast in the United States as well as globally.
These expanded roles provided opportunities for this CFO to grow as a businessman and a corporate leader, developing the attitudes, skills and behaviors necessary to guide a fast-paced restaurant company. The questions covered a wide range of topics relating to their career paths, as well as the key role CFOs play in the C-suite. Regulatory compliance, managing financial relationships and managing cash flow were other important roles cited by respondents.
This indicates that companies are seeking CFOs with varied exposures and experiences. The survey also indicated that small companies tend to hire more from outside than large companies. The top three reasons cited were insufficient exposure to multiple functions in a large organization, insufficient years or depth of experience, and insufficient global exposure. Of those who said no or were unsure, the top reasons cited were:.
A note of caution: CFOs should not confuse technical thinking with critical thinking. This CFO never expected to become a finance professional, but when he was not accepted into a veterinary college, he switched gears, majored in psychology and entered a bank management trainee program after graduation.
Desiring to advance his education and add another credential, he went back to school and earned an MBA. That helped him advance his career as he was recruited by a global manufacturer. He then moved up in the organization, becoming division controller and Asia controller, before joining a smaller holding company as CFO. He held that role for several years and then joined a leading distribution company, serving as CFO before being promoted to President and CEO.
Building leadership skills and attributes A willingness to take risks is one of the attributes that CFOs need to cultivate if they plan to lead a large-scale organization. But to be a strategic leader, you need to understand risk and use your intuition as well as your analytic skills.
Risk is unavoidable in life, but it is taking risks that hones you to become a CEO. But even more important, according to one CFO-turned-CEO interviewed, is the ability to build a strong portfolio of people skills, such as motivating individuals and teams, and strengthening workplace engagement to help the organization achieve its goals and objectives.
Among the personal attributes and skills needed to become an effective CEO are:. Other chief officers interviewed for this article cite the importance of communication skills in being an effective leader in the C-suite. Do I enjoy learning about each and every business aspect of my company?
Am I comfortable communicating with all the people that drive my business? Furthermore, CFOs who aspire to the top spot benefit from having a mentor who has made a similar transition and can provide important guidance from their own experience.
They should make sure they are meeting the performance expectations for their current role and align with the board or headquarters on developmental expectations for the next six to 12 months. Ideally, a CFO who is making the leap to the CEO role will do so within the same industry; making the transition to a new industry on top of changing functional roles is very challenging. Once viewed as a hindrance to moving into general management roles, financial experience has become an increasingly hot commodity for Asia Pacific companies looking to fill senior leadership positions.
Doors that not so long ago were mostly closed to senior finance executives are opening throughout the region — but the route to the top is by no means an easy one to take. CFOs who aspire to be a CEO must be willing to move beyond the numbers and embrace every opportunity to expose themselves to the situations and challenges that will help them prepare for a top leadership position — and as their own experience confirms, finance has become an increasingly stronger launching pad for future CEOs.
Candidates Client Login Find a Location. What We Do Through our portfolio of services, we help you make informed decisions about the leadership you need to build an organization that outperforms, inspires and grows. Learn how we can help you. Consultants We help you find and develop outstanding leaders, improve team and board performance, and align culture with your strategy. Find a Consultant. View All Results. View our latest insights. Point of View Our Future of Leadership series looks at the highly complex and dynamic world organizations are operating in today.
Learn more about us. Elevate Your Career We are committed to building relationships with exceptional leaders who may qualify as candidates, now or in the future. By: Sherry Ding and Malini Vaidya. Authors Sherry Ding Shanghai. Malini Vaidya Singapore. The climb to the top Though each of the executives we interviewed took distinctive steps in their climb to the top leadership roles of their respective companies, they shared common attributes.
The upside of a financial background The continued uncertainty in the global economy requires business leaders with a strong grasp of financial issues. The downside of financial credentials Though strong financial leadership has become a more essential skill-set for CEOs, common perceptions about senior financial executives can stall their climb to the top.
Conclusion Once viewed as a hindrance to moving into general management roles, financial experience has become an increasingly hot commodity for Asia Pacific companies looking to fill senior leadership positions. Download Download. Contact Us. Email Facebook Twitter LinkedIn. Share Download Contact. Cookie Policy Contact Us. Digital Be informed with the essential news and opinion. Delivery to your home or office Monday to Saturday FT Weekend paper — a stimulating blend of news and lifestyle features ePaper access — the digital replica of the printed newspaper.
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