An expanded skill set can create fresh opportunities for CFOs
In the latest installment of our NU Leadership series, we explore the ways in which expectations and recruitment strategies have evolved for Financial Leadership talent. For more industry-focused insights from NU Advisory Partners, visit our News and Insights page.
By Greg Brown and Jen Ringoen
One of the many things we enjoy about recruiting financial leaders — whether the title is Chief Financial Officer, Chief Accounting Officer, Vice President of Finance, or Board Audit Chair — is how the role has evolved in recent years. Yes, the CFO is still the ultimate steward of revenue and budget, but these days, the role goes far beyond “just the numbers.” From strategic vision and M&A to deploying technology tools to serving as the Chief Executive’s closest advisor, today’s CFO is integral to a company’s overall strategy, operations, and direction.
What’s NU in Financial Leadership?
One of the key challenges facing CFOs today is the mandate to do more with less. Although in recent years many organizations have been sitting on significant cash reserves, they’re often hesitant to deploy capital in an uncertain market. As a result, CFOs are tasked with allocating resources more efficiently than ever, while maximizing returns. They must be selective in their financial modeling and predictions, using data-driven insights and scenario analysis to inform decision-making.
CFOs are now tasked with growing profitably, rather than pursuing top-line growth at any cost In the wake of pandemic-related disruptions and macroeconomic uncertainties, organizations are putting a renewed emphasis on the bottom line. In addition to classic skills like fiscal discipline, candidates for CFO opportunities must demonstrate a track record of driving profitable, sustainable growth while also demonstrating a solid understanding of their organization’s business model, key performance indicators (KPIs), and top priorities.
A Financial Leader’s strategic skill set must include technology. While CFOs may delegate some operational responsibilities to a more technical ‘deputy,’ a thorough understanding of their tech stack is table stakes for achieving goals. This can include: leveraging software and AI-powered tools to automate FP&A and back office tasks such as AP and AR, streamlining operations, optimizing financial processes, mitigating risks, and identifying emerging opportunities.
Finding Talent in Financial Leadership
Finding the right CFO requires more than matching technical skills and experience — it requires creativity For this reason, we may look beyond traditional CFO experience to candidates from diverse backgrounds. For example, investment bankers and investors from private equity (PE) and venture capital (VC) possess a unique skill set and perspective that can translate well into the CFO role, especially for organizations seeking aggressive growth or looking to go public.
It’s a candidate’s market.In most cases, we’re still seeing CFO candidates with multiple offers in hand. To attract top CFO talent in a tight hiring environment, organizations must differentiate themselves and create a compelling value proposition. This could include opportunities for growth, autonomy, and impact, and a strong commitment to culture and values. We also recommend that organizations streamline their hiring processes and provide clear communication and feedback throughout.
Clients seeking CFOs often emphasize the need for a diverse slate of candidates. Whatever you might read about a DEI “backlash,” most organizations still value diverse leadership teams. While the business case for diversity is well-established, it’s becoming increasingly important to be intentional about leveraging new networks and channels for sourcing candidates, and proactively seeking out individuals from underrepresented backgrounds.
Careers in Financial Leadership
An increasing number of CFOs are transitioning into the CEO role. In 2023, 8.4% of Fortune 500 and S&P 500 CEOs were promoted directly from CFO positions, up from 5.8% in 2013, according to the latest Crist Kolder Volatility Report. Especially in times of challenge or transition, CFOs are sometimes seen as natural candidates for an open CEO role because they can bring a comprehensive understanding of an organization’s financial health and strategic priorities. More and more CFOs aspire to be viewed as the “right hand” to their CEO, not only due to succession aspirations but also because fostering an effective CEO-CFO partnership is crucial for driving profitable growth.
We see CFOs playing a more active role in talent-related decisions. They may work closely with HR leaders, hiring managers, and other stakeholders to develop talent acquisition strategies that align with the organization’s goals. From justifying the need for new hires to ensuring that hiring investments align with strategic objectives, CFOs can enhance the hiring process and outcome.
NU + Financial Leadership
We have worked with financial leaders across a wide range of industries, including technology, private equity, venture capital, sports and entertainment, media, retail, financial services, and many more. Our high-touch, immersive approach to client service and ability to tap our unmatched networks means we ultimately recruit, assess, onboard, and deliver exceptional candidates and leadership services. Get in touch with us to learn more. Get in touch with us to learn more.
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