Transitioning from chief financial officer (CFO) to chief executive officer (CEO) is a significant career leap many finance leaders aspire to make. While the journey may seem challenging, it is entirely achievable with the proper focus and professional development.
As the role of CFO continues to evolve beyond traditional financial oversight to include broader strategic responsibilities, more organizations recognize the value of elevating CFOs to the CEO position. Leaders like Best Buy’s Corie Barry, Citigroup’s Jane Fraser and UnitedHealth Group’s Andrew Witty are examples of former CFOs excelling as CEOs.
Here are six key areas to focus on if you want to leap from CFO to CEO.
1. Broaden Business Acumen
To be an effective CEO, a CFO has to expand their knowledge beyond the realm of finance, which is essential. Seek to gain a deep understanding of all aspects of the business, from operations to sales and marketing. A CEO must see the big picture—how each department contributes to the company’s success. Broadening your business acumen equips you to make decisions that drive the entire organization forward.
2. Develop a Strategic Vision
As CFO, you play a part in the strategic planning process; as CEO, however, you have the starring role—developing and articulating a clear strategic vision for the company’s future. The vision should not only address financial success but also covder growth opportunities, market positioning and long-term sustainability. The ability to communicate a vision effectively will inspire your team.
3. Build Strong Leadership Skills
Leadership is about inspiring and motivating others to achieve their best. If you’re a candidate to be a chief executive, you probably already have some aptitude in this area. But to be successful in the CEO seat you need to be a master at leading people. Developing your emotional intelligence is an important part of that. Aim to foster a positive company culture and be a visible and approachable leader who can rally the entire organization behind a common purpose.
4. Enhance Communication Abilities
A big part of the CEO job is communication with employees, board members, investors, customers and any other stakeholders. Your ability to convey complex ideas in a clear, concise manner is vital, as is being an active listener. Seek to understand the concerns of those around you and pay attention to their feedback. Effective communication builds trust.
5. Embrace Change and Innovation
A successful CEO is adaptable and forward-thinking. Embrace change and nurture a culture of innovation. As a CFO, you may have focused on risk management and cost control; as a CEO, you’ll have to balance those priorities with the demand for innovation and growth. Encourage creativity, be open to new ideas and be willing to pivot when necessary.
6. Network and Build Relationships
Finally, building a solid network of relationships is crucial for any CEO, especially a new one. That includes relationships with fellow executives, industry leaders and potential partners. Networking not only provides opportunities to grow the business; it can also provide valuable insights and support that lead to personal growth. Make it a priority to connect with others in your industry and beyond, and don’t be afraid to seek mentorship or advice from those who have already leaped.
