LEADERSHIP
How Will Soft Skills Give CFOs a Sharper Edge? BY RANDALL TAVIERNE
D
ealing with the unexpected is an occupational hazard for chief finance officers (CFOs) of private companies, but they have been sorely tested during the past year as the priority has moved to responding to the unprecedented health and economic impacts of the COVID-19 pandemic. Practical concerns — such as overseeing the health and safety of finance teams, supporting virtual working and communicating with stakeholders — have been balanced by financial management issues including maintaining liquidity, securing supply chains and managing fraud risks. With some countries having experienced a second wave of COVID-19 and continuing economic turbulence, uncertainty remains. It is perhaps understandable then that having “the agility to adapt to continuous change” has been identified as the most important personal and leadership quality required for a private company CFO to succeed in the future. More than 400 private company respondents to the 2020 EY DNA of the CFO survey, comprising CFOs, finance directors and heads of finance, were each asked to identify two preferred qualities needed by CFOs. Adapting to continuous change was the top response, identified by 62 percent as one of their two choices. The second most important quality was “a willingness to experiment and take calculated
risks,” which was selected by 54 percent. This, again, has resonance in the COVID-19 era, given that many companies have had to rethink their business models to survive the economic consequences of the pandemic.
The CFO: from cost gatekeeper to business partner So, how do perceptions match reality? Respondents were also asked which two attributes were most commonly associated with CFOs in their organizations. The top attribute associated with a private company CFO is a “big thinker and strategist” and the second is “an inspirational leader and strong communicator.” These results fit with the modern image of a CFO as a business partner to the CEO, fully involved in strategy and decision-making. However, the more traditional image of the CFO — as the gatekeeper of the numbers — has not been completely superseded. Being “costfocused and risk-averse” ranked equal fourth in the attributes associated with private company CFOs. When asked to respond to the statement “Our finance team is seen by many people in the organization as too risk-averse and costconscious,” 73 percent of private company respondents agreed. Seventy-five percent also agreed that “traditional back-office behaviours and mindsets in finance are slowing the modernization of the function.” The survey results highlight that private
“Agility to adapt to continuous change” is most important quality for a successful CFO. Question: Which two of the following personal and leadership qualities are most important for a CFO to succeed in the future? 62%
The agility to adapt to continuous change
54%
A willingness to experiment and take calcualted risks The intellectual humility to admit when you do not have all the answers
47%
The courage to challenge entrenched interests and beliefs
31%
Emotional intelligence
6% 0%
18
TOTAL FINANCE
5%
10%
15%
20%
25%
20%
35%
40%
45%
50%
55%
60%
SUMMER 2022
