Most CFOs in Health Feel Qualified for a CEO Role
Eighty-two per cent of CFOs in the health and pharmaceuticals industry believe they are capable of taking on a CEO role, compared with just 55% in technology and communications.
The global survey of CFOs, conducted by consulting company Egon Zehnder, also found that a substantial four out of five respondents thought the role of CFO has expanded considerably in the last five years.
While overall 60% seek to move into the higher position of CEO, 70% of this group already feel they are qualified to take on such a position.
Modern CFOs must mirror the characteristics of CEOs, acting as influencers even without executive authority
Career history influences confidence levels
Not only were CFOs in the health and pharmaceuticals industry more confident in their current abilities to be a CEO compared to those in tech and communication, 77% of CFOs with multiple experiences of working in the role were more confident than those who were first time CFOs. Only 69% of the latter group said they were confident.
CFOs working for larger companies also were more likely to be ready to move into a CEO position. Some 74% of CFOs from listed companies were of this opinion, and the percentage rose further if they worked for companies in the revenue range of $US6bn to $US10bn. In comparison, only 56% of those who work for a family business felt the same.
The CEO traits CFOs should display
Lorival Luz, Alloha CEO, highlighted humility as one of a list of key traits to have.
“Self-confidence, determination, and humility to ask for help, listening to the opinion of those more experienced than you,” he said. “Do not try to solve everything alone, especially in challenging times. Understand legitimate management concerns, commit to the company’s culture, and demonstrate the right attitude.”
Kleber Gomes, OuroFino Saúde Animal CEO, suggested that CFOs can show the characteristics of an effective CEO in their current positions.
“Modern CFOs must mirror the characteristics of CEOs, acting as influencers even without executive authority,” she said.
Barriers to achieving a CEO role
Despite the survey revealing that the expansion of the role of the CFO allows many to feel qualified to ascend into a CEO role, those with reservations cite a number of reasons.
For instance, 46% of respondents saw networking and visibility as a barrier, while 30% suggested customer focus and market knowledge as theirs.
A considerably smaller 18% of CEOs cited innovation, while 15% thought their personal style and mindset were holding them back.
The respondents’ views on the barriers presently preventing them from becoming CEOs reveal areas where the role of CFO may not prepare them to take the next step up.
According to Egon Zehnder, the role of CFO is a “school on the way to the top”.
“Despite the growing complexity faced by CEOs, who balance immediate demands with long-term goals, business sustainability, and unforeseen challenges, intentional executive development is the most assertive path for CFOs, both during the journey to the CEO position and to navigate the future challenges of the top role,” it said.
