four CFOs share their stories and advice

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four CFOs share their stories and advice
four CFOs share their stories and advice

It’s becoming increasingly common for CFOs to move up to the CEO role. The proportion of chief executives who used to be finance chiefs rose to 30% in 2023 from 21% in 2019, analysis from executive search firm Heidrick & Struggles has found. 

Asset managers Schroders and Abrdn are two companies that have recently announced they will be appointing former finance chiefs as CEOs, following periods of underperformance.

Boards often rate CFOs highly when appointing a new CEO because of their financial acumen and ability to boost investor confidence. The majority of finance leaders also feel well prepared for the top job. Seven in 10 CFOs surveyed by leadership advisory firm Egon Zehnder believe they are ready to be CEO.

But the shift from managing numbers to managing a company requires new skills and approaches. Finance leaders still experience obstacles along the way, the most common being limited networking opportunities and visibility and a lack of market knowledge and operational experience, the Egon Zehnder survey found. Failing to prepare properly can cause former CFOs to remain too focused on costs when they become CEO, potentially hindering innovation and harming financial performance.

Four former CFOs share what challenges they faced in adapting to the role of CEO and provide advice to those eyeing the top job. 

Andreas Zartmann 

CEO, DigitalRoute 

As CFO, I had primarily focused on supporting the CEO. Stepping into the position myself demanded a complete shift in perspective. After years of being a part of a collaborative C-suite, I suddenly found myself in a position of full accountability. This transition from shared responsibility to individual leadership was undoubtedly the most significant adjustment in my journey to becoming CEO. The realisation that I was now the final decision-maker marked a definitive turning point in my career.

Zartmann’s path to CEO

For CFOs, leadership often revolves around maintaining financial frameworks and ensuring compliance, which can feel like chasing people to meet targets and adhere to budget constraints. As CEO, the primary focus is on unifying people and aligning them with the common goal. 

This transition involves a significant element of change management. It’s about helping the entire organisation understand the ‘why’ behind the strategic decision and what we aim to achieve. The emphasis moves away from the ‘how’ of execution and more towards the overarching vision and purpose. 

This requires a substantial change in leadership approach. You have to move from a detail-oriented, operational focus to a more strategic, big-picture perspective. I initially made the mistake of being too involved in the ‘how’ – delving too deeply into the details rather than focusing on the broader strategic direction.

Learning to step back from the details of operations and trusting your team to handle the ‘how’ is a crucial part of a CEO’s journey. It’s about setting the direction, communicating the vision clearly and then empowering your team to execute that vision in their own ways. This transition is a learning process and recognising when you’re overstepping into operational details is a skill that develops over time. 

That change in leadership style won’t happen overnight but it’s essential for effectively navigating the broader responsibilities and challenges that come with the role.

Katherine Chan 

CEO, Juice 

As a CFO I never had to worry about growing a network, building my profile or even advocating for the business. I had no interest in building relationships beyond those which were absolutely necessary – I only had about 100 LinkedIn connections. 

Chan’s path to CEO

This all changed when I became CEO. As the face of the company I need to build deep relationships in order to foster credibility, drive brand perception and attract talent. A lot of investment, time and energy goes into building those connections and developing trust – something I had underestimated prior to stepping into the role.

As someone who does not enjoy networking and is naturally more comfortable remaining in the background, I found this new responsibility quite daunting. Since becoming CEO, I’ve had to push myself to attend more events and be more visible in the industry. As a woman in the fintech industry, where a lot of the events are male-dominated, it has felt particularly challenging to step out of my comfort zone.

However, finding value through the connections that you make is one of the most important skills you can have as a leader.

A CEO also has to prioritise the vision and culture of the business. This is something I’d been quite detached from as a CFO. Defining what values and attitudes I wanted the company to embrace and deciding what kind of leader I wanted to be was a huge undertaking. 

CFOs tend to be productivity-driven and output-orientated. But when it comes to managing people, as CEOs must do, this is not always the best approach. You have to be more sympathetic to how people work and what motivates them, as opposed to simply focusing on the outcome you want.

Kevin Samuelson 

CEO, Infor 

The biggest challenge for me was adapting to the wider remit of a CEO. I had to shift from focusing primarily on financial metrics to balancing innovation, customer engagement and employee morale.

Samuelson’s path to CEO

As the leader of a technology company, I had to develop deeper level of technical knowledge. I also had to improve my understanding of our customers, products, sales and marketing, which all contribute to business success. 

The emotional aspect of leadership – being responsible for the livelihoods of 18,000 employees – was also a significant challenge I hadn’t fully anticipated. But it’s become a part of the role I love.

While financials remain the commercial scoreboard, I had to learn that leaning too heavily on numbers can stifle creativity and innovation. Finding the balance between economic insights with commercial opportunity was crucial.

The differences between the CEO and CFO role were greater than I expected. You’re dealing with a very diverse set of perspectives, personalities and capabilities that you won’t encounter in the finance team.

My advice for new CEOs is to step into the role with a view to spend time with your teams. Understand how they work and how they collaborate and gain insight into customer perspectives and team dynamics. Spending dedicated time with your people will be key to your success. 

Julie Cunningham 

Founder and CEO, Portend 

 There are two main challenges I’ve faced in my transition from finance leader to CEO. The first is letting go of my obsession with financial details and pure profitability. Learning to delegate properly has been difficult and taking risks has been even harder.

Cunningham’s path to CEO

As CEO I have to be more aware of the business as a living, breathing entity, with demands other than balancing costs. It requires emotional resilience, an understanding of people and a ruthlessness which I probably owe to my years in finance. Learning to focus on the bigger picture has allowed me to let go of unnecessary burdens and free up precious time for decision-making. 

I took the time to prepare for the CEO position by taking on additional responsibilities within my previous role, including people management, deal structuring, business operations and market development. 

I knew that leadership, management, communication and diplomacy skills would be invaluable in my new position so focused on improving in those areas. As a female founder I also sought inspiration and insight from fellow women who have overcome challenges and broken down barriers. 

There are a number of transferable skills finance leaders possess which position us well for the role of CEO but there will still be challenges along the way. The most important element to focus on is the change of mindset that’s required – this can be the biggest barrier to success.

If you’ve set your sights on the top job and want more insights on how to get there, subscribe to our six-part course Path to the CEO. Practical advice and tips from leaders who have made the move, delivered to your inbox every week.

Four pieces of advice for soon-to-be CEOs 

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