Beyond the Balance Sheet

LEADERSHIP CONTENT...

Beyond the balance sheet CFO to CEO

In the intricate landscape of corporate succession planning, the journey to identifying and cultivating future CEOs demands a strategic approach, a keen eye for talent, and a deep understanding of organisational dynamics.  

The custodians of talent development and leadership continuity professionals play a pivotal role in shaping the future trajectory of their organisations and their succession planning. 

• But how can one navigate this critical responsibility effectively?
• How can succession planning professionals identify and nurture CFOs as prime candidates for CEO succession internally? 

Here’s a roadmap for succession planning professionals aiming to cultivate CFOs as future leaders: 

1.  Could your CFO be your next CEO

The journey towards CEO succession begins with identifying high-potential leaders within the organisation. As a succession planning professional, it’s essential to assess not only performance but also potential, character, and leadership competencies. Look for CFOs who demonstrate strategic thinking, adaptability, and a track record of delivering results beyond financial metrics. 

2.  Hedge your leadership 

Succession planning professionals should facilitate cross-functional exposure for CFO to gain a holistic understanding of the organisation’s operations and strategic priorities. Encourage CFOs to collaborate closely with other C-suite executives, particularly CEO/COO/CTO to participate in cross-functional projects, and rotate through different business units. This exposure not only broadens their perspective but also enhances their ability to lead multidisciplinary teams effectively. 

3.  Bring your CFO to the forefront of the business:  

Succession planning is as much about relationships as it is about talent development. Encourage CFOs to build strong relationships with the board, fellow executives, key stakeholders, and external influencers. Facilitate opportunities for networking, mentorship, and participation in industry forums to enhance their visibility, credibility, and influence within the broader business ecosystem. Encourage CFOs to embrace change as an opportunity for growth, navigate through uncertainty with agility, and learn from setbacks and failures. Provide support and guidance to help them develop the resilience needed to lead the organisation through challenging times. 

4.  So you have you identified a CFO who wants to step up to be CEO, what next? 

CFOs aspiring to the CEO position must demonstrate strategic thinking and forward-looking vision. Encourage them to actively participate in strategic planning processes, analyse market trends, and identify growth opportunities. Challenge them to think beyond financial metrics and consider the broader implications of their decisions on the organisation’s long-term success. 

Margherita Della Valle at Vodafone, first permanent female CEO, and previously CFO. 

5.  Communicate your succession plans: 

Once potential leaders, including CFOs, have been identified, communicate with them, and invest in their leadership development. Offer targeted development programs, executive coaching, and mentorship opportunities to enhance their strategic thinking, decision-making abilities, and leadership effectiveness. Encourage them to broaden their skill set beyond finance to encompass operational excellence, stakeholder management, and strategic visioning. 

6.  In conclusion  

The journey towards CEO succession requires a strategic and proactive approach to talent development and leadership continuity. As succession planning professionals, it’s our responsibility to identify, nurture, and support high-potential leaders, including CFOs, for future leadership roles. Successful organisations in 2023 prioritise agility in their talent acquisition practices to navigate the evolving landscape effectively, moving away from rigid processes and methods. 

 Murray Auchincloss, bp, first permanent female CEO, and previously CFO. 

By fostering leadership development, facilitating cross-functional exposure, promoting relationship building, encouraging strategic thinking, cultivating adaptability and resilience, and promoting continuous learning, we can pave the path for CFOs to ascend to the CEO position. 

Former CEO, Indra Nooyi’s, PepsiCo journey began in 2000 as CFO