Business decisions are hard, but that is also the beauty of business - the conflicting opinions can grow some really wonderful products, services, and overall changes for our lives and the world. Everyone has an opinion, which makes managing expectations about hierarchy crucial. This hierarchy goes beyond just the management team; it encompasses who has the most knowledge, risk, and relation to the decision.
Historically, much of this responsibility fell onto the CFO and their teams. However, In recent times, the CFO role is expanding, and many accounting and finance professionals can grow into a CFO position or highly supportive positions, such as a CAO by learning a few critical soft skills.
A study by EY found that 80% of HR and financial professionals interviewed agreed that their roles had become increasingly collaborative over the previous three years.
The AICPA in partnership with CMA and Wharton Business Consulting published an article to shed light on finance leaders' perspectives on how the role of the CFO and the finance function is evolving. They found and concluded on four types of CFOs including the connected influencer, authentic disruptor, inquisitive storyteller, and a rational value creator. These conclusions and soft skills embraced by each type of CFO are very insightful and can be applicable to accounting and finance professionals interested in growing their careers.
Andrew Harding notes that the term "chief financial officer" may even become obsolete sooner than we think, replaced by the emerging title of the "chief value officer." This further emphasizes the evolving nature of the CFO role. In my opinion, the perfect CFO exhibits a balance of these skills, although some may be more important than others depending on the size, industry, stage, growth trajectory, and strategy of the business.
This is why it is beneficial to incorporating these skills regardless of your position and level as they will only elevate your role and help you to find more satisfaction in your day-to-day tasks. If you are a CEO or business leader, it is essential to start thinking about these skills as they pertain to your perfect CFO throughout the different stages of your business.
Below is the TLDR of the article for you to begin incorporating into your day to day.
To become more like a connected influencer, it is crucial not to let the same few people dominate discussions. Asking others for their opinions and valuing all ideas and opinions, even if they are not used, can lead to new ideas.
Creating a space to collect team ideas for change or improvement and taking action on the best ideas can help embody the characteristics of the authentic disruptor.
For the inquisitive storyteller, promoting curiosity and improving questioning through "question storming" instead of traditional brainstorming can be effective. When telling stories, drawing on personal experiences but focusing on the message rather than portraying oneself as the hero is essential.
As the rational value creator, considering the perspective of each key stakeholder during decision-making and attempting to reconcile different views is crucial. Acting as an independent advisor to inform business decisions and gaining a broader view of the overall strategy can also be beneficial.
Overall, incorporating these actions into your approach can help you embody the characteristics of the various role types mentioned and enhance your effectiveness in the finance function.
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