CFO Skills and Abilities: Essential Skills The Modern CFO Should Have
The role of a CFO is complex and ever evolving. As new business trends and technologies arise, CFOs must be able to accommodate these changes to help steer the organization in today’s business landscape.
To accommodate the demands of their jobs, these executives must find ways to learn new skills and reinvent the CFO roles and responsibilities.
Since identifying these skills is hard due to their quantity, here are some suggestions that will be helpful as you continue your quest to become a modern CFO.
Skills a modern CFO should have
- Choosing the right people for your team
Your staff is an extension of your professional self. It is important to develop the skill in choosing the right people from a pool of applicants who want to join your team if you want to get things done correctly.
Remember that your staff will act on the items that you don’t have time for. They should be prepared, versatile and adaptive to the day-to-day demands of your job.
- Communicating efficiently
Let’s face it: not everyone in your company is a “numbers person”. That being said, it doesn’t make your job any easier, especially when it is your primary job to ensure that everyone in the management understands the company’s numbers.
Developing communication skills will help you both in analyzing their queries and in helping them make sense of the numbers from your files.
- Knowing Data Analysis
Companies today heavily rely on data in making crucial business decisions. Thus, data analysis has become a part of the CFO roles and responsibilities. Any modern CFO must be able to mine, organize, analyze and interpret data.
It is also important that the CFO knows how to act upon data, otherwise previous investments made in data analytics and business intelligence will only go to waste.
Fortunately, business intelligence tools help CFOs make sense of the data faster and enables them to act upon data in less time.
- Training employees for Talent Retention
In 2010, EY published a series of research studies on the evolving role of the CFO. One of the key findings is that CFOs believe that they have found internal candidates who can succeed them in their role. While this might seem too far ahead, modern CFOs are forward thinkers, and they focus on the long-term implications of their actions.
Training someone from your team to succeed you in the future does not only help in retaining their loyalty to your organization, but it also saves your organization the trouble of conducting a rigorous search for someone to succeed you once you decide to advance your career inside or outside your company.
The fast-changing business landscape has transformed the CFO roles and responsibilities and will continue to do so in the coming years. We can also count on these professionals that as they develop the needed CFO skills and abilities to accommodate their job, they will also reinvent what we know today as a modern CFO.
What is the most important thing for a CFO?
The most important thing for a CFO is to be able to make sound financial decisions that will help the company achieve its goals. By having a deep understanding of the company's financial data, the ability to analyze and interpret financial data and the ability to identify and assess risks, you as a CFO can make informed decisions that will help the company succeed.
How do you develop CFO skills?
The role of a CFO is becoming increasingly important in today's business world. CFOs are responsible for overseeing the financial operations of a company and they play a key role in making strategic decisions. If you are a CFO, there are a few things you can do to develop your skills and chances of success.
1. Develop your analytical and problem-solving skills.
These are essential skills for any CFO. You need to analyze financial data and identify potential problems. You also need to develop solutions to these problems. There are many online courses and resources available that can help you develop your analytical and problem-solving skills.
2. Stay up-to-date on financial trends.
The financial world is constantly changing, so it is important to stay informed about the latest trends. You can do this by reading industry publications, attending conferences and following thought leaders on social media.
3. Network with other CFOs.
This is a great way to learn from other professionals and get advice on your career development. You can network with other CFOs through industry organizations, online forums and social media.
4. Develop a global perspective.
In today's global economy, it is more important than ever for CFOs to have a global perspective. This means understanding the financial markets and regulations of different countries, as well as the cultural factors that can impact business decisions. You can develop a global perspective by working for a multinational company, studying abroad or traveling to different countries.
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This post was first published 23 October 2017 and edited 13 July 2023. Edited by: Angelica Garcia