CFO Roundup

In Part 1 of our C-suite series, we discussed some of the necessary skills by title as well as across-the-board attributes of successful executives. Part 2 touched upon the importance of communication and collaboration. To wrap up the discussion, we’re looking at the need to develop a global mindset in the C-suite.

Even if you don’t plan on expanding into international markets today, a global mindset is still necessary for your organization to achieve maximum potential,  as noted by the Harvard Business Review.

Keeping an eye on the larger picture allows you to examine trends (whether in supply chain innovations, successful employee retention efforts or novel technology applications, for example), spot opportunities others may overlook and avoid cross-cultural mishaps with strategic partners, new hires and other key relationships.

C-level executives who develop global mindsets have the ability to see and understand different perspectives. They are able to develop trust. And, most importantly, they recognize opportunities for effective collaboration.

Global mindset traits of successful C-suite executives
The Lausanne, Switzerland-based International Institute for Management Development suggests that executives who achieve success working across cultures demonstrate qualities such as:

• Using cross-cultural knowledge to cultivate context-specific actions
• Bridging cultural gaps by managing differences among people and cultures
• Leveraging differences and integrating them into effective strategies
• Playing more of a coordinating than a controlling role and encouraging cooperation among various elements of a team

Steps to developing a global mindset
How do you begin to develop a broader mindset as you enter the C-suite? Various sources suggest these actions to get started:

• Value ongoing learning. Get out of your comfort zone by recognizing your own cultural values and biases and actively building strong intercultural relationships. Developing self-awareness fosters a non-judgmental perspective on differences.
• Expand your circle of influence. Instead of surrounding yourself with people who look, think and act like you, seek out global networking opportunities to connect with C-level executives who face similar challenges. This provides the chance to openly discuss cultural differences with global colleagues to build trust and develop strategies for mutual success.
• Commit to diversity at all ranks of your organization. This requires far more than communicating a statement of support about a social cause; you need to commit to meaningful goals and complete the actions that will fulfill those goals. Focus not only on hiring and retention efforts, but also helping diverse talent move up the ranks into leadership roles.

If you’re a CEO, consider endorsing global mindset as an official corporate value. By fostering “bigger picture” thinking across the board, you’re helping to ensure organizational longevity  as well as a steady stream of diverse thinkers and leaders who’ll be ready for the C-suite sooner rather than later.

 

In Part 1 of our series on the essential qualities of C-suite occupants, we discussed some of the necessary skills by title as well as across-the-board attributes of successful executives. This post dives a little deeper into the importance of communication and collaboration in the C-suite, especially for those new to the CFO role.

Why C-level communication skills are so important
The Wharton School of Business ranks communication and presentation skills close to the top of its list of management skills needed to succeed in the C-suite, second only to leadership.

It may have served you well enough in more junior roles to be adept at talking through a presentation. However, C-level communication skills are more complex and performed at a higher level. You have to be able to understand what’s going on in every department, and how that potentially impacts the organization’s financial, strategic and competitive positions.

In turn, you must be able to communicate departmental concerns clearly and effectively to other members of the C-suite. Your communication skills must be honed to foster understanding and persuasion.

Steps to sharpening your communication skills
Learning how to best communicate at the CFO level doesn’t have to be daunting. These simple action steps will go a long way toward getting you where you need to be:

• Ask clear-cut, thoughtful questions. When speaking with department or business unit management, learn their concerns, ask for recommendations and understand what shapes the basis of their suggestions.
• Listen in a way that makes others want to share. Hear what is being said rather than immediately interjecting a response. An effective communicator encourages open dialog.
• Get to the point. Breaking things down to their simplest terms establishes your knowledge and communicates your message clearly and successfully. Being succinct also best utilizes your time and your managers’ time.
• Know your audience. How you say something is just as important as what you say. Understanding your audience allows you to set the proper pace and tone.
• Consider taking a course in neurolinguistic programming, which can help you understand non-verbal cues and emotional states and lead to a deeper perception of others.

The importance of collaboration
A recent Gartner survey concludes that cross-collaboration among C-suite executives is more significant than it’s ever been, and suggests three methods of honing CFO-level collaboration skills:

• Coordinate your priorities with those of other departments. Doing so can strengthen the impact across the business.
• Learn about and empathize with other departments’ challenges. By doing so, you’ll have a better understanding of the overall business and be better able to participate in overcoming obstacles.
• Communicate interdepartmental dependencies to other C-suite executives to help influence outcomes across all departments.

The role of the CFO has broadened in recent years far beyond number crunching, budgeting and compliance. To be successful today requires using your organization’s financial data to inform and influence operational decision-making. Because that’s more strategic rather than numbers based, you can see why strong communication chops are more vital than ever.

Need an objective opinion from our business advisory team? Reach out – we’re here to help.

Editor’s note: Watch for our final post in this series, A Global Mindset Inspires Success in the C-suite.

 

C-suite positions usually come with big paychecks and plenty of perks, but these benefits are frequently accompanied by huge accountability, mammoth stress and seemingly impossible time constraints.

To quote the Harvard Business Review: “…the skills that help you climb to the top won’t suffice once you get there.”

How can you prepare to manage your new position successfully? In this series of three posts, we’ll explore what you need to succeed at the top:

• Essential skills of a successful chief executive
• Importance of communication and collaboration
• Significance of a global mindset

 Advanced C-suite skills by title
Executives find they must rely more on the understanding of business fundamentals than they did prior to occupying the C-suite. Top execs also find themselves in the position of providing input on key decisions.

According to the Harvard Business Review report mentioned above, C-suite occupants should strive to achieve the following:

• Chief Financial Officer — Understand the meaning of risk and how to balance it with performance. A global rather than regional approach to finance is necessary, as is a firm grasp of the role of technology.
• Chief Information Officer — Possess a universal understanding of the business. He or she must be comfortable with organizational design, be able to process information analytics and know how to use ROI to plan future departmental expenses.
• Chief Marketing Officer — Know how to use new marketing channels as they emerge. He or she must be prepared to be the CEO’s contact point for marketing, sales and e-commerce.
• General Counsel — More important today because of intensified attention to risk management. The GC should have the ability to negotiate with regulatory agencies and industry watchdogs and should have knowledge of environmental regulations.
• Chief Human Resource Officer — Has evolved way beyond administrative functions. The CHRO must understand cultural differences and shifting demographics, excel in change management and take the lead in attracting and developing top talent.

Important skills for all C-suite occupants
If you’ve risen to the C-suite, chances are you’ve already mastered some of the essential executive skills. Now you have to adapt these skills to meet the more rigorous demands of a senior leader.  For example:

• The ability to prioritize is one of the most important abilities a C-level executive must possess, especially in the face of colossal time demands. Only by prioritizing will you be able to focus and devote time to your most important tasks.
• All C-suite executives must be able to lead transversally, or across the entire organization. This enables executives to accomplish company objectives in partnership with other teams.
• C-suite leaders must be able and willing to adapt quickly to changing economic and customer environments.

Personal qualities for chief officers
In addition to the business skills needed to navigate the C-suite successfully, Forbes identifies the personal qualities essential to executive leadership roles:

• Displaying genuine empathy decreases stress and increases morale
• Listening in a way that invites others to share
• Being motivated by what is right rather than what the market demands

In addition, communication skills are critical in the C-suite. According to the Wharton School of Business, “Persuasion and influence are powerful skills for any executives and should be reflected in all aspects of communication.”

That includes asking for help when you need it. Whether it’s coaching to improve your presentation skills, a crash course in the industry if you’re new to it or objective third-party advice on operational matters, remember: You’re expected to be smart, not superhuman.

Editor’s note: We discuss the importance of effective communication in more depth in Part 2 of this C-suite series.

Managing partner Nick Magone recently appeared on The Bold Sidebar podcast. Hosted by Jeff Horn of the Horn Law Group, a family law practice in Toms River, NJ, the show focuses on tips, and techniques for client service and retention.

Listen as Nick shares with Jeff his thoughts on the accounting profession, staying competitive in a changing world, and how not being afraid to say “Yes” led him to become fluent in Italian and launch a successful international tax practice.