# The Future CFO
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2019-08-02
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: The Evolution of Today's CFO Role
Meta Description: Explore how the role of the CFO has transformed into a 'financially literate CEO', with insights from Berwick Partners' Principal Consultant,
URL: https://financedigest.com/the-future-cfohtml

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_By_ **Amy Parkinson**, Principal Consultant and Financial Leadership Specialist at **Berwick Partners**

_With today’s CFO often described as a ‘financially literate CEO’, the challenge for aspiring CFOs is to develop their leadership skills and business acumen as well as their financial intelligence. With guidance on how to achieve this and why, Amy Parkinson, Principal Consultant and financial leadership specialist at executive search firm Berwick Partners, offers insight into the changing dynamic of the CFO role._

![Amy Parkinson](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/amy-450x675-1736839004057-compressed.jpg)

Amy Parkinson

The role of the Finance Director has evolved from an organisation’s financial record keeper, to a CFO who is a ‘Deputy CEO’, a [business leader](https://www.financedigest.com/business-leaders-flexibility-for-everyone-contributes-to-gender-equality-in-the-workplace-without-affecting-your-bottom-line.html "Business leaders: flexibility for everyone contributes to gender equality in the workplace, without affecting your bottom line") with exceptional financial intelligence, and who has proven skills across commercial, strategic, operational and leadership competencies.

For some finance professionals, their first CFO position is secured just fifteen years after qualification.The pressure is on for the [next generation](https://www.financedigest.com/the-fear-of-inheriting-wealth-how-a-philanthropic-legacy-can-burden-and-uplift-the-next-generation.html "The fear of inheriting wealth; How a philanthropic legacy can burden and uplift the next generation") of CFOs to swiftly and strategically develop their skills.

**Today’s CFO**

The evolution of the CFO has been at a [steady pace](https://www.financedigest.com/ecb-should-raise-rates-at-steady-pace-chief-economist-says.html "ECB should raise rates at steady pace, chief economist says"). Years ago, we identified that the [CFO role](https://www.financedigest.com/the-new-role-of-the-cfo-the-de-facto-chief-growth-officer.html "The New Role of the CFO: The De Facto Chief Growth Officer") was becoming increasingly commercial, but the extent to which today’s CFO has become the CEO’s trusted advisor is even greater than expected.

In particular, the role has expanded to involve [real influence on an organisation’s commercial](https://www.financedigest.com/the-professionals-at-real-estate-funding-solutions-helping-you-find-success-with-commercial-real-estate-loans.html "The Professionals At Real Estate Funding Solutions Helping You Find Success With Commercial Real Estate Loans") and strategic decisions. This is especially true within an SME, where the CFO can be responsible for operations, IT, HR and legal, as the roles of CFO and [Chief Operating Officer](https://www.financedigest.com/impact-com-appoints-mike-head-as-cro-and-jenna-mills-as-director-public-relations-promotes-cristy-ebert-garcia-to-chief-marketing-officer.html "impact.com appoints Mike Head as CRO and Jenna Mills as Director, Public Relations, promotes Cristy Ebert Garcia to Chief Marketing Officer") are often combined.

These changes are a consequence of increasing pressures on leadership. The CEO role is increasingly complex, with a myriad of stakeholders to manage, disruptive technologies, economic instability and a heightened level of external scrutiny.  So, the [CEO needs](https://www.financedigest.com/new-uk-pm-will-need-to-take-urgent-action-on-energy-bills-ofgem-ceo.html "New UK PM will need to take urgent action on energy bills – Ofgem CEO") a right-hand person to help negotiate a complex landscape, and a CFO is ideally positioned to fulfil this, because of their broader skills and insight and the trust the CEO and Board have in them.

The [CFO has unique insights across the entire business](https://www.financedigest.com/cfos-its-time-to-own-the-business-model.html "CFOs: It’s time to own the business model").  Financial [systems](https://www.financedigest.com/the-role-embedded-finance-systems-will-play-as-commerce-goes-increasingly-digital.html "The Role Embedded Finance Systems Will Play as Commerce Goes Increasingly Digital") that integrate all areas of the business deliver clear visibility, from purchasing decisions to pricing commercial contracts.  [Data analytics](https://www.financedigest.com/top-5-data-analytics-trends-for-2023.html "Top 5 Data Analytics Trends for 2023") and business intelligence usually sit within finance, and the CFOs analytical skills ideally place them to interpret masses of data when discussing strategy with the CEO.

The CFO is there to support and [challenge the business and to question financial forecasts](https://www.financedigest.com/global-lycopene-market-outlook-business-challenges-investment-opportunities-progression-status-revenue-expectation-and-forecast-2022-2029.html "Global Lycopene Market Outlook Business Challenges, Investment Opportunities, Progression Status, Revenue Expectation and Forecast 2022-2029"). The CFO is also trusted by external stakeholders, and [accountable and reliable in the eyes of the bank](https://www.financedigest.com/how-accountants-can-improve-financial-planning-and-results-through-open-banking-to-help-smes.html "How accountants can improve financial planning and results through Open Banking to help SMEs"), the board and regulators.

**The CFO of the future**

Over the [coming years](https://www.financedigest.com/refrigerated-trailer-market-to-exhibit-increased-demand-in-the-coming-years.html "Refrigerated Trailer Market to Exhibit Increased Demand in the Coming Years"), leadership challenges are going to increase, with the place of the CFO as a trusted, strategic advisor continuing to grow.  This impacts the team below the CFO and focusing on building a [finance function](https://www.financedigest.com/easing-the-burden-of-data-overwhelm-in-finance-functions.html "Easing the burden of data overwhelm in finance functions") that develops talent and that people want to join can really help.

We are seeing a [rise in the number](https://www.financedigest.com/ryanair-passenger-numbers-rise-in-august-to-11-1-million.html "Ryanair passenger numbers rise in August to 11.1 million") of Deputy CFO positions, which is an evolution of the Group Financial Controller (GFC) role.  These additional [roles represent real](https://www.financedigest.com/the-role-of-invisible-real-time-payments-in-fueling-the-future-of-cx-in-business.html "The role of invisible, real-time payments in fueling the future of CX in business") opportunity for the right individuals.

Using process automation and [artificial intelligence](https://www.financedigest.com/types-of-artificial-intelligence.html "artificial intelligence") more broadly will also free up the CFO to be more strategic, whilst also improving the efficiency of the finance function.

**Steps for aspiring CFOs**

Aspiring CFO’s must develop a broad base of financial as well as commercial and ‘soft’ skills to offer credible advice that will be well received.

The foundation is, of course, a good finance qualification.  From there, aspiring CFO’s need to build commercial and [operational finance](https://www.financedigest.com/stellantis-reshuffles-european-financing-operations-through-new-jvs-with-banks.html "Stellantis reshuffles European financing operations through new JVs with banks") skills to improve their understanding of practical business issues.  The role of GFC is critical, and one often overlooked by aspiring CFO’s focused on the more strategic elements, but gives credibility with stakeholders.  Within a listed company, it is unlikely a CFO won’t have undertaken a GFC [role at some point in their career](https://www.financedigest.com/the-importance-of-role-models-and-policy-in-encouraging-more-women-to-pursue-careers-in-the-finance-sector.html "The importance of role models and policy in encouraging more women to pursue careers in the finance sector").

**The Route to CFO**

A recent [study confirms](https://www.financedigest.com/eye-tracking-study-confirms-that-high-impact-formats-outperform-standard-display.html "Eye-tracking study confirms that high impact formats outperform standard display") today’s CFOs agree. We sought the opinions of sixty established CFOs from a range of industries and backgrounds, and their advice for aspiring CFOs is universal:

1. Build a broad base of experience

Efficient career planning makes a difference; a robust career plan is vital, and taking [time to invest in a career path is invaluable](https://www.financedigest.com/modernisation-of-insurance-technology-saves-invaluable-time-and-money.html "Modernisation of insurance technology saves invaluable time and money").There are two roles employers’ [value on a potential CFO’s CV – Divisional Finance Director and Group Financial Controller](https://www.financedigest.com/back-to-basics-for-cost-control-as-the-usual-levers-lose-value.html "Back to basics for cost control as the usual levers lose value"). These give the [opportunity to develop relationships with key](https://www.financedigest.com/vehicle-mounted-spotlights-market-industry-outlook-growth-prospects-and-key-opportunities.html "Vehicle Mounted Spotlights Market: Industry Outlook, Growth Prospects and Key Opportunities") career influencers, and build strategic expertise with a panoramic view of internal and external issues.

2. Seek international experience

As [business continues to operate on the global](https://www.financedigest.com/cup-holder-market-emerging-industries-challenges-and-threats-faced-by-key-vendors-and-global-business-outlook-till-2031.html "Cup Holder Market Emerging industries, Challenges and Threats Faced by Key Vendors and Global Business Outlook till 2031") stage, international experience is advantageous. Working internationally is an effective way to build commercial, strategic, operational, legal and technical expertise, and hone leadership skills in intense situations.

3. [Create opportunities](https://www.financedigest.com/tire-materials-market-to-create-an-incremental-opportunity-of-us-99-99-bn-by-the-end-of-2028-fmi.html "Tire Materials Market to create an incremental opportunity of US$ 99.99 Bn by the end of 2028 – FMI")

Actively seeking [opportunities to positively impact a business](https://www.financedigest.com/fluid-coolers-market-by-covid-19-impact-analysis-volume-and-value-revenue-business-opportunity-future-projections-and-key-trends.html "Fluid Coolers Market By Covid-19 Impact Analysis – Volume And Value, Revenue, Business Opportunity, Future Projections, And Key Trends") is vital. One effective way is to take on problem tasks, especially high risk projects. Aspiring CFOs become known as the ‘fix it’ person and will be trusted at a senior level.

4. Learn to lead

The last piece is to develop leadership skills.  The days of a traditional ‘ivory towered’ FD are well and truly behind us. An effective leader has to be the trusted advisor who leads the [executive and their own teams](https://www.financedigest.com/adnami-strengthens-executive-team-with-jorgen-gosvig-appointed-as-cfo.html "Adnami strengthens executive team with Jørgen Gosvig appointed as CFO").

Finally, be authentic, and don’t try to change behaviours upon [reaching a senior](https://www.financedigest.com/ecommerce-localization-specialist-reach-builds-unstoppable-momentum-with-new-senior-appointments-and-canadian-office-move.html "Ecommerce localization specialist, Reach, builds unstoppable momentum with new senior appointments and Canadian office move") role. It is your personality and style that are a strength and have been a part in achieving the leadership role.

[‘The Future CFO’ Report](https://www.berwickpartners.co.uk/what-we-think/leadership-insights/the-route-to-cfo/) is a collaboration between Berwick Partners and Odgers Berndtson to support aspiring CFOs and finance leaders in navigating the next step in their career.


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