Hiring Smart: The Future Chief Financial Officer

The 'F' in CFO doesn’t stand for “Future Proofer”, but it might just as well. Gone are the days when chief financial officers sat in the back office, poring over spreadsheets. The modern finance leader is in the thick of the action, navigating new ESG regulations, masterminding M&As and devising innovative strategies to keep their firms competitive.

By Christopher Knight and Tom Smith

But, don’t just take our word for it. Recent research by Accenture found that the vast majority (93%) of CFOs agree their responsibilities are much greater today than in the past. And 9 out of 10 say they call the shots on business-critical decisions that impact the entire organisation, not just finance.

As executive recruiters specialising in finance, we’ve witnessed this transformation firsthand. Describing the modern CFO as a number cruncher is like describing a skilled diplomat as a professional handshaker. It captures only a fraction of what they do. They need to be nimble, adaptable and comfortable with uncertainty. Relationship-building skills are a must, both inside the company and with external stakeholders.

In other words, today’s CFO needs to be a conscious leader – something we’re a big fan of at Page Executive. Let’s take a closer look at this fast-changing role and explore what it takes to secure visionary financial leadership for your business.

Today’s CFO: Unsung Heroes of Business Transformation

Financial expertise is table stakes for the modern CFO. The most successful ones also:

Get into the weeds: They’re not afraid to roll up their sleeves and understand the company at a granular level.
Influence the influencers: They are trusted as mentors and sounding boards, influencing other decision-makers in the C-suite and boardroom to shape the company’s long-term direction.
Act as the voice of (financial) reason: They’re unafraid to constructively challenge the commercial and operations teams to ensure decisions are grounded in solid financial principles.
Get the most out of a hybrid workforce: They’re tuned in to the expectations of a post-pandemic workforce, creating a supportive environment where everyone can do their best work, regardless of location.
Build bridges and tear down walls: They’re skilled at building relationships with diverse stakeholders, both internally and externally.
Communicate with clarity: They can boil down complex information into clear, actionable messages that rally teams around transformation programmes.

Beyond Spreadsheets: AI and the Tech-Savvy CFO

While the above list covers plenty of critical CFO skills, there’s one glaring omission: technology. According to a recent Gartner survey, leading digital transformation efforts is the top area CFOs are focused on in 2024. And for good reason.

Artificial intelligence (AI) and other digital tools are transforming the finance function. CFOs who welcome these technologies can make more informed, data-driven decisions. AI-powered solutions like Workday, ADP, Business Insights and Power BI offer valuable insights, freeing up finance professionals to focus on work that really moves the needle.

When we talk to finance leaders, we see a clear trend. The most confident CFOs view artificial intelligence as an opportunity, not a threat. They’re excited about using AI-powered forecasting to (say) predict cash flow, spot potential risks and optimise working capital.

They also know AI has its limits. They wouldn’t get on a plane flown by AI (at least, not yet). For everyone who’s had a frictionless customer experience with an AI chatbot, someone else has torn their hair out in frustration. In reality, softer skills like empathy, communication and relationship-building are hotter than ever.

And that’s where conscious leadership comes in. We believe the most effective CFOs in the digital age will be those who can balance tech savvy with emotional intelligence. They’ll leverage AI to make smarter decisions while also training their teams to approach AI insights with a healthy dose of scepticism. They’ll understand that while AI can crunch the numbers and spot patterns, it takes human skill to negotiate a tricky contract or win over wary investors.

The Hunt for the Strategic CFO: A Proactive Approach

When a CFO vacancy pops up unexpectedly, companies often find themselves scrambling to fill the position. In the rush, they might even settle for a candidate who’s not quite the right fit. But there’s a better way. A proactive approach involves identifying potential successors early on and giving them the development opportunities they need to round out their skill set. It’s about exposing them to the bigger business picture and elevating their leadership profile across the organisation and with the board.

Of course, there will be times when an internal successor isn’t available, and you need to cast a wider net. When that happens, don’t just focus on the resume. Look at candidates’ cultural fit, leadership style and ability to build relationships. Pay attention to those with a track record of championing technology and innovation.

What about tenure in previous roles? It’s worth noting that CFO rotations are on the rise, which can impact business stability. According to EY, almost two-thirds (64%) of Fortune 250 CFOs appointed between 2016-2020 left by year five, compared to only 47% of those appointed between 2001-2015. The long-held custom of CFOs staying in their role for 5+ years is fading. Interim CFO hirings per year in Fortune 250 transitions have almost doubled in the last decade, with less than a third moving into a permanent CFO role at the company.

These are essential factors to consider, but remember that the “three-to-five-year” timeframe is pretty common for CFOs. Anything less than 18 months might raise some red flags, but a series of three-to-five-year stints (we believe) can actually be a good thing. It demonstrates a breadth of experience and adaptability.

Diversity: Yes, Everyone Talks About It. Yes, It Really Matters.

Diversity in leadership. It’s the hot topic in every HR meeting and industry conference. Naturally, it can feel a bit like a broken record at times. But it’s not just a fad. It’s a real necessity. That’s why we don’t just nod along when our clients mention diversity. We actively encourage it. “Have you thought about diversifying your candidate pool?” It’s a gentle nudge we give in every search.

And our clients are listening. Just recently, we placed two African American CFOs in top roles. We’re also seeing more women in the CFO seat than ever before. This year, we’ve placed an equal number of men and women in finance leadership roles.

We’re committed to finding the best candidates, full stop. That means looking beyond traditional networks and actively seeking out individuals from underrepresented groups. We tap into resources like LinkedIn groups, professional associations, and organisations such as the National Association of Black Accountants. Our goal is to build diverse pipelines of talent that reflect the world we live in.

We’ve also observed a positive trend in companies’ willingness to hire older candidates, recognising the value of their experience and expertise. While ageism can still be a factor, as it’s often easier to discern a candidate’s age than their race on a resume, many organisations are embracing the benefits of a multi-generational workforce.

A great example of this is our recent placement of a CFO at RH White, a family-owned construction company based in Worcester, MA. RH White was looking to replace their soon-to-retire CFO with a candidate who could seamlessly transition into the role, lead the accounting team and be a trusted partner to the executive leadership team. The ideal candidate would have experience navigating the generational transition within family-owned businesses.

Our multi-pronged search effort resulted in a shortlist of 12 candidates, from which RH White interviewed five and narrowed it down to two finalists. The successful candidate came with an excellent finance leadership track record within the construction sector and, critically, had prior experience managing inter-generational succession planning for family-owned companies. Despite the successful candidate likely to be taking their last full-time CFO role before retirement, RH White recognised the immense value this experience brought to the table.

In the end, finance leaders are judged on their strategic vision and people smarts. Technical expertise is a must, but soft skills often make the difference when candidates get in front of the CEO for the make-or-break final interview. At this point, the chief executive may not be asking themselves, “Can this person leverage AI for financial modelling and forecasting?” They may just as easily be thinking, “Can I see myself getting along with this person for the next few years?”

Page Executive in Action: How We Walk the Talk in Executive Finance Placements

> Empathy & Expertise in the Architectural, Engineering & Construction Industry

CHA Consulting, Inc., a major player in the engineering and construction world, was growing fast. They needed a VP, Corporate Controller to oversee their accounting operations, and they turned to Page Executive to help.

Initially, CHA was looking for someone in the Northeast. But because CHA listened to our advice to look further afield, the standout candidate came from a surprising place: a small town in Alabama, from one of their direct competitors, Hargrove Associates. This experienced finance leader had a proven track record, boasting expertise in everything from technical accounting to M&A due diligence. But what really impressed us was her exceptional leadership skills and ability to connect with people.

After a series of virtual and in-person interviews, CHA were won over by this candidate’s deep understanding of their business, her passion for their growth plans and her genuine desire to mentor their team. Her ability to empathise and listen, combined with her technical expertise, made her the perfect fit.

This hire highlights the value of Page Executive’s extensive talent network, which allows us to look beyond the usual hotspots. The right person can shine, no matter where they’re from.

> When Medical Science Meets Finance: Finding Common Ground

Our client, a pioneering force in the organ transplant industry, found themselves at a crossroads. With a rapidly growing demand for their life-saving organ preservation products, they knew it was time to bring their financial leadership in-house. But this was no ordinary CFO search. The ideal candidate had to be a bridge-builder, capable of connecting the world of finance with the science-driven operations of the company.

After a rigorous selection process, we found our ideal candidate. With a strong foundation in finance, they had already proven their ability to lead accounting teams in the medical field. However, it was their infectious curiosity and eagerness to learn about the world of organ transplantation that truly stood out. They asked thoughtful questions, showcasing a clear grasp of the company’s mission and a sincere desire to be part of something bigger.

The candidate’s down-to-earth nature and openness to new ideas quickly won over the scientists and doctors. They had a knack for translating complex medical jargon into practical financial plans, and their ability to connect with the team on a personal level was key to their success. Finally, their leadership was instrumental in securing a significant Series B funding round, propelling the company into its next phase of growth.

Futureproof Your Business: Partner with the Best to Find Your Strategic CFO

At Page Executive, we understand the unique challenges and opportunities facing today’s CFOs. We’re committed to finding the right fit for your company, whether it’s an experienced industry veteran or a rising star with a fresh perspective. We’re not just recruiters; we’re trusted advisors who are passionate about helping organisations achieve their full potential.

Unlike many of our competitors, we take a hands-on, consultative approach. We pride ourselves on our speed and efficiency, recognising the urgency of filling critical leadership roles. Plus, our unique fee structure ensures that we’re incentivised to find the right fit for your company, not just to keep the search going.

If you’re looking for a CFO who can not only crunch the numbers but also innovate, inspire your workforce and nurture the best talent, get in touch with one of our Principals and Partners now. Connect with us on LinkedIn - Christopher Knight or Tom Smith - and let’s start a conversation about your needs. We’ll help you find the multi-faceted financial leader your rivals wish they had.

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