Finding the right CFO is a pivotal decision that shapes a company’s financial health, strategic direction, and long-term growth. As the economic landscape grows more complex, it’s critical to hire a CFO with both advanced technical skills and key personality traits. Today’s CFOs must possess a unique blend of financial acumen, adaptability, and leadership to navigate evolving market dynamics and drive meaningful change.
This article will explore CFO traits that make a difference, from strategic insight and risk management expertise to interpersonal skills like communication and resilience. Equipped with these insights, companies can approach CFO hiring with clarity, ensuring they find a candidate who aligns with their vision and supports sustainable growth.
Hiring a CFO: Key Technical Skills to Look For
As the role of CFO expands in complexity, mastering core technical skills has become essential for effective financial leadership. Beyond traditional finance competencies, today’s CFOs are expected to be versatile, digitally adept, and strategic. Here’s a closer look at the essential technical skills that define what makes a good CFO.
1. Strategic insight
A modern CFO is more than a financial overseer; they are a strategic advisor aligned with the company’s long-term goals. This skill requires the ability to forecast and plan for the future, often involving high-level scenario planning and aligning financial initiatives with company-wide objectives.
Furthermore, CFOs are essential in driving the company’s strategic direction, whether navigating mergers and acquisitions, leading growth in B2B SaaS sectors, or preparing for IPOs. Their strategic insight allows them to anticipate industry shifts and adjust financial tactics accordingly, capable of ensuring the company’s resilience in a dynamic market.
Their strategic insight also often involves aligning financial resources to support company-wide innovation. In competitive markets, CFOs play a vital role in identifying new revenue streams and helping prioritize investments that drive long-term growth. This approach positions CFOs as strategic partners to CEOs and other C-suite leaders, enhancing the company’s ability to respond proactively to emerging trends and opportunities.
2. Financial acumen
At the foundation of any effective CFO is an in-depth understanding of financial reporting, forecasting, and budgeting. Today’s economic climate requires CFOs to manage cash flow meticulously and provide real-time insights to guide decision-making. Companies increasingly rely on CFOs to present clear, data-backed financial health updates to stakeholders on a weekly or even daily basis.
Expertise in managing detailed financial projections, profit and loss analysis, and budget adjustments equip CFOs to respond quickly to changes, ensuring stability and sustainable growth. These CFO traits are vital for navigating uncertain financial landscapes.
Financial acumen also means maintaining agility with changing financial technologies. Modern CFOs use technology that allows them to generate insights faster and make data-informed decisions quickly. This evolving financial expertise not only ensures smooth operations but also empowers the CFO to pivot when necessary, contributing to a more resilient financial strategy overall.
3. Digital competency and data analytics
Digital transformation in finance is accelerating, with CFOs at the forefront of integrating tools like AI, machine learning, and predictive analytics to streamline reporting and enable real-time data insights. Effective CFOs prioritize automation and advanced data analytics, using these tools to shift finance from traditional monthly cycles to “on-demand” reporting.
With the increasing importance of these tools, CFOs need proficiency in data analytics platforms and the ability to interpret large datasets to support their decision-making. This shift from manual processes to technology-driven insights enables CFOs to provide actionable recommendations that are grounded in data.
But what does a good CFO do beyond basic data analysis? They’re now expected to integrate predictive analytics and machine learning into their workflows. This enables them to forecast outcomes more accurately and make proactive financial adjustments. The ability to use real-time data insights helps CFOs shift from traditional reporting cycles to a dynamic approach that responds to market changes instantly.
4. Risk management expertise
Today’s CFOs must be adept at risk identification, analysis, and mitigation. In 2024, economic fluctuations, regulatory changes, and geopolitical tensions make risk management more critical than ever. CFOs leverage financial risk analysis and scenario modeling to minimize exposure, particularly when it comes to economic uncertainties like inflation or interest rate changes.
Having a CFO skilled in preemptive risk management is a competitive advantage, as they can safeguard company assets and maintain financial stability amidst volatility.
Essential CFO Personality Traits and Soft Skills
What makes a great CFO in the current finance landscape? They’re expected to possess a balanced combination of interpersonal, leadership, and adaptability skills, helping them thrive in complex, rapidly changing business environments. Here are the soft skills and personality traits they need.
5. Leadership and team collaboration
Effective CFOs are more than financial leaders; they are integral parts of the executive team, collaborating closely with other departments. Strong leadership enables a CFO to align the finance department with broader business goals while fostering a culture of accountability and innovation.
A collaborative CFO actively engages with teams across departments, enhancing cross-functional communication and strategic alignment. This ability to unify and guide various teams is essential to driving cohesive, company-wide initiatives.
6. Clear communication
Communication is one of the vital CFO traits, particularly when translating complex financial information for non-finance stakeholders. A proficient CFO can simplify technical data and convey insights clearly to executives, board members, and external partners. These skills include making data-driven insights actionable, helping others understand financial strategies, and fostering confidence in the company’s financial direction.
Clear communicators show what a good CFO looks like—an effective bridge between financial data and strategic action, a quality that executive recruiters such as Recruiting Connection look for in top CFO candidates.
7. Adaptability and resilience
In a world of constant change, from economic uncertainties to technological shifts, adaptability is essential for a CFO. The ability to pivot quickly, implement process innovations, and embrace new digital tools is increasingly valuable in the role.
Resilience further supports CFOs as they face challenges in navigating fluctuating markets, evolving regulatory standards, and digital transformations. An adaptable CFO ensures that the company remains agile, positioning the organization for growth even in uncertain times.
8. Focus on long-term vision
While daily financial management is essential, an effective CFO also brings a strong focus on long-term goals and sustainability. This forward-looking perspective means anticipating market changes, considering growth opportunities, and assessing risks tied to strategic decisions like mergers and acquisitions.
CFOs with a focus on the long term contribute to enduring success. The company’s strategic vision aligns the CFO’s daily actions with a broader company trajectory, ensuring the organization’s growth.
How to Find a CFO: 4 Assessment Tips During Recruitment
To ensure you select a CFO who embodies both the technical and soft skills essential for the role, it’s critical to use targeted assessment methods. The following strategies offer a streamlined approach to evaluating candidates, helping you pinpoint leaders with the vision, adaptability, and financial expertise your organization needs.
1. Conduct behavioral interviews
Behavioral interviews are a powerful tool to assess adaptability, strategic insight, and CFO personality traits. Asking candidates to share specific examples of past decisions or challenges can reveal their problem-solving approach and collaborative skills, offering insight into how they would handle similar scenarios in your organization.
2. Use technical skill assessments
Incorporate practical assessments such as case studies or financial scenarios to evaluate a candidate’s technical skills. These exercises allow you to gauge their financial acumen and expertise in budgeting, forecasting, and data interpretation while also showing how they adapt to real-world challenges.
Case studies or financial scenarios also help evaluate a candidate’s technical skills. For example, present candidates with a cash flow forecasting exercise or a budget allocation scenario that tests their ability to manage financial planning under real-time constraints.
You might also use a risk management simulation, where candidates identify and mitigate potential financial risks, assessing their ability to safeguard company assets during economic fluctuations. These exercises help you gauge their expertise while observing their critical thinking and decision-making skills in action.
3. Focus on digital and analytical proficiency
Today’s CFOs must be proficient in data analytics and digital tools, so consider testing candidates on their familiarity with AI-driven reporting or analytics platforms. This method helps ensure they have the skills to lead digital transformation efforts and interpret data for agile decision-making, which is key to hiring a CFO who can meet modern financial demands.
4. Reference checks
Thorough reference checks can confirm a candidate’s track record in previous roles, particularly their adaptability, leadership impact, and ability to drive sustainable growth. Speaking with past colleagues also reveals insights into interpersonal skills and strategic contributions crucial for long-term success.
Building a Strong Financial Future
A successful CFO helps shape the entire organization’s financial strategy and longevity. Identifying candidates with a balance of the skills above is key to building a leadership team that can navigate today’s challenges and seize future opportunities. Knowledge of these CFO traits can help businesses secure leaders who align with their growth goals and contribute to lasting success.
Looking for recruiting firms in Salt Lake City to help you? Recruiting Connection is a leading finance staffing agency that offers a streamlined approach to finding the right CFO. Let us help you find top finance talent who will drive value and leadership for your organization. Contact us today!
