Forget Numbers — Here are the Essential Skills CFOs Really Need to Have

Forget Numbers — Here are the Essential Skills CFOs Really Need to Have

In a world that often values tangible, measurable results above all else, it's easy to forget that success doesn't come down to hard skills alone. Sure, analyzing data is important, but it takes more than just a head for calculations to excel in business. It takes emotional, social and strategic intelligence — the so-called "soft skills" — to rise to the top.

And when it comes to CFOs, these intangible qualities are absolutely essential. Why? Because a great CFO isn't just someone who can manage budgets and track finances. A great CFO is someone who can lead a team, communicate effectively with colleagues and stakeholders and make tough decisions in the face of uncertainty.

Strategic Intelligence: Having the Ability to Think Critically

Strategic intelligence is the secret ingredient that separates successful finance leaders from the rest of the pack. It's the ability to look beyond the numbers, anticipate trends, identify opportunities for growth and make decisions that align with the overall goals and objectives of the organization. For CFOs, having strategic intelligence is essential to ensure long-term organizational success.

Here are five examples of strategic intelligence for finance leaders:

  1. Analytical Thinking: CFOs possessing strategic intelligence can analyze complex data sets, identify trends and patterns and draw insights to inform decision-making. They use data-driven insights to develop strategies that align with the organization's goals and objectives.
  2. Risk Management: Finance leaders must identify and mitigate risks impacting the organization's performance. They use scenario planning and stress testing to anticipate potential risks and develop strategies to minimize their impact.
  3. Innovation: Identifying opportunities for innovation and transformation is critical. It allows CFOs to stay current with industry trends and use creative thinking to develop new business models, products and services that create value for the organization.
  4. Collaboration: Finance leaders must collaborate effectively with other departments and stakeholders to achieve shared goals. They should understand the importance of cross-functional collaboration and can build strong relationships to facilitate cooperation and communication.
  5. Continuous Learning: Executives with strategic intelligence are committed to continuous learning and development. They stay up-to-date with industry trends, attend training and development programs and seek feedback to improve their skills and capabilities.

Social Intelligence: Understanding the People Around You

Social intelligence is the key to navigating the complex web of relationships that finance leaders must manage. After all, most CFOs work with various stakeholders, including clients, colleagues and regulators. It's not just about being able to network effectively or communicate with different groups – it's about truly understanding the needs, aspirations and motivations of others.

CFOs with strong social intelligence can build relationships, manage conflicts and achieve better results. They know how to read a room, adapt their communication style to fit different audiences and create a workplace culture that fosters collaboration and cooperation. In short, social intelligence is the foundation of effective leadership in the finance world, and it's a skill that every finance leader should strive to develop.

Here are five ways a CFO can fine-tune their social intelligence:

  1. Active Listening: Pay attention to what the other person is saying, ask questions to clarify their understanding and demonstrate empathy by acknowledging the other person's perspective.
  2. Networking: Attend industry events, connect with colleagues and stakeholders on social media, and participate in industry organizations to expand your reach and stay up-to-date with industry trends.
  3. Persuasion: Communicate effectively, tailor your message to the audience and use evidence to support your arguments.
  4. Conflict Resolution: Listen to all parties involved, find common ground and develop solutions that benefit everyone.
  5. Cultural Sensitivity: Understand the importance of diversity and inclusion and adapt your communication and management styles to fit different cultural norms.

Emotional Intelligence: Learning to Work Effectively With Others

CFOs who seek to understand human behavior and emotions via emotional intelligence are better equipped to navigate complex interpersonal relationships and make decisions considering the emotional impact on everyone involved. By reading the room, empathizing with their coworkers and creating a positive workplace culture, leaders with emotional intelligence can engage their teams, manage conflicts and drive organizational success.

Here are a few qualities an emotionally intelligent CFO must possess:

Empathy

Empathy is crucial for CFOs because finance is ultimately about people, not just numbers. Empathetic CFOs understand that there are real people with real needs and emotions behind every transaction. By putting themselves in their stakeholders' shoes, CFOs can make decisions that consider the human impact of their choices.

For example, when a company needs to downsize, an empathetic CFO will consider the impact on employees and their families and find ways to implement compassion-driven strategies. By demonstrating empathy, CFOs can build stronger relationships with stakeholders, inspire trust and create a workplace culture that values people as much as profits.

Self-Awareness

Self-awareness is critical for CFOs because it allows them to understand their strengths, weaknesses and biases. By knowing their emotions and reactions, CFOs can make better decisions and lead more effectively.

For example, when faced with a challenging situation, a self-aware CFO will be able to recognize their own biases and take corrective action, rather than allowing their emotions to cloud their judgment. By developing self-awareness, CFOs can foster a positive work culture and achieve better results.

Emotional Regulation

Emotional regulation is essential for CFOs because it allows them to remain calm and composed under pressure, make rational decisions and lead confidently. In the fast-paced world of finance, there are often high-stakes decisions to be made, and the ability to regulate one's emotions is critical for making sound judgments.

For example, when the stock market experiences a sudden dip, an emotionally regulated CFO will be able to respond with a clear head and focus on implementing a strategy that will mitigate the impact on the organization's financial performance. By demonstrating emotional regulation, CFOs can inspire confidence in their team, build resilience, and achieve better outcomes.

To become a well-rounded finance leader, CFOs must invest in developing these soft skills. It's imperative to seek opportunities to learn and practice emotional, social and strategic intelligence while being open to feedback and self-reflection. With practice and the right mindset, CFOS can strengthen their mindset and become more effective and successful leaders. 


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Forget Numbers — Here are the Essential Skills CFOs Really Need to Havehttps://www.cbiz.com/Portals/0/Images/Hero-ForgetNumbersHereAreThe.jpg?ver=VKIGEdiz6MQg4HxhcxbAEw%3d%3dhttps://www.cbiz.com/Portals/0/Images/Thumbnail-ForgetNumbersHereAreThe.jpg?ver=4lkYd5jFjhwKmEpxtwiMDQ%3d%3dWhen you think CFO skills, financial literacy always comes up. See how emotional intelligence and other soft skills round out the modern CFO beyond finance.2023-05-30T17:00:00-05:00

When you think CFO skills, financial literacy always comes up. See how emotional intelligence and other soft skills round out the modern CFO beyond finance.

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