CFOs as CEOs

After Business Times Online posted an article on the rise of CFOs into CEO positions, one of my Linked In colleagues, a recruiter who works with private equity clients, asked for my thoughts on the topic. 

In preparation for my keynote at the Prophix User Conference back in April I did extensive research on this topic. While the article points to the recession as the driver, my belief is that it is a trend not likely to abate once we hit the other side of the recession. So, here are my thoughts …

–Strategic Leaders vs. Bean Counters

I believe the opportunity arose about the time that CFOs began making the transition from bean counter to strategic leader with a seat at the executive table. The hottest CFO prospects today are those with the ability to predict financial trends and who bring an operational background (particularly when they also hold a CPA and and an MBA). From a career perspective, two of the smartest things a CFO can do today are gain operational experience and claim a seat at the executive table.

–Proven Operational Contributions

There is a difference between experience and contributions … and this is particularly true of a CFO with his sights set on a CEO position. In fact, as companies continue to tighten their belts, you may even see a decrease in the role of the Chief Operating Officer, since the accomplished operational CFO can handle both roles.

For example, the COO of oil and natural gas exploration and production company Anadarko Petroleum Corp. is being replaced by the CFO with much broader responsibilities that include overseeing the company’s exploration, development, production, and mid-stream and marketing operations.

Execunet points to the fact that 2 of the 8 most in demand job functions are operations management and finance.


–Networking

While many CFOs are not the best networkers, for whatever reasons, those who are reap great benefits. And the value of internal networking cannot be downplayed. Conventional wisdom says that it is easier to move up internally, than externally, in large part because you are “known and have momentum and sponsorship.” If you’ve grabbed your seat at the table, you have the power to ensure you are known and have the momentum to, perhaps, win that coveted leadership position.

Private Equity CFOs

There is good news and bad news for CFOs in CFO.com’s Today in Finance article, “Private Equity Paints ‘Help Wanted’ Sign.”

Good news because the projection is that things are looking up in this tight market. Top–performing CFOs will be in great demand in the private equity market … translating to the right opportunities for those executives with a clear, compelling, and visible marketable value proposition (MVP).

The potential bad news will be for those CFOs who are under–performing and not positioned to make a move on their timeline … find themselves on the curb may come as a complete surprise and rude awakening. Remember, your MVP is highest when you are perceived as a passive candidate.

It could also be bad news for a top–performing senior finance executive who is invisible to the recruiters seeking such candidates. If you can’t be found, those great opportunities will pass by and go to the “maybe not as qualified” candidate who can be found. A visible, branded online presence is critical to proactively managing a career.

Are you on Linked In? Please join my network. Are you on Facebook? I would love to connect there, too. Be sure to have a public profile that sells your unique and compelling MVP!