The CFO sat down with Susie Clements, managing partner of the Corporate Officers Practice in Europe & Africa at Heidrick & Struggles to understand what businesses are looking for when recruiting their financial leaders.
From intelligence, both academic and emotional, to a forward-looking strategic orientation, resilience in uncertain conditions, and agility managing evolving priorities, modern CFOs must demonstrate all these traits and more. Effective CFOs also understand the importance of cultivating a strong financial team, processes and systems, and fostering a culture of continuous learning and development.
They should be adept at attracting, retaining, and nurturing top talent, and empowering their teams to innovate and think critically about financial challenges. By building a collaborative and growth-oriented environment, CFOs can ensure that their organisations remain agile and resilient in the face of constant change.
Recently, The CFO sat down with Susie Clements, managing partner of the Corporate Officers Practice in Europe & Africa at Heidrick & Struggles to understand what businesses are looking for when recruiting their financial leaders.
The role of the CFO has been, and is, undergoing continual transformation. Clements points out the increasing demand for CFOs who can go beyond traditional financial management to embrace strategic, operational, and technological leadership. This transformation is not just a matter of adding more tasks to the CFO’s to-do list but involves a fundamental shift in the nature of the role itself.
“The expectation for CFOs to drive business strategy in partnership with CEOs has never been higher,” Clements observes, highlighting a shift towards a more dynamic, forward-looking role.
Today’s CFOs are expected to be not just stewards of financial integrity but also strategic visionaries who can forecast future trends, drive growth, and steer the company through both calm and turbulent waters. Clements elaborates on the changing guard in the CFO role, pointing to the diverse skill set that modern businesses seek in their financial leaders.
“It’s not just about climbing to the next rung on the career ladder; it represents a step change, particularly in personal leadership,” she notes, highlighting the broader implications of this evolution.
This change is reflective of an environment where CFOs are increasingly required to balance cost against service, manage risk, and ensure the strategic allocation of assets, all while maintaining an eye on sustainable growth and technological innovation. The transformation is also evident in the type of experience companies are looking for in their CFOs. “Some organisations, because of the breadth and scope of the CFO role, won’t take a chance on ‘step up’ candidates or first-time CFOs, insisting instead on having seasoned, sitting CFO experience,” Clements points out.
However, she also notes a significant trend where companies are becoming more open to first-time CFOs, driven by the need for specific traits such as diversity, technological savvy, an ESG-led mindset, and the ability to lead and connect with a younger, diverse and demanding workforce and client set. With a 60% increase in the turnover of CFOs in Europe in the last year, it is of note that 30% of these hires were diverse, 50% came from outside the target company’s industry, and a huge 60% of those hired externally were ready-now, step up candidates; an increase of 23% on 2022.
“In order to attract hard-to-find specific traits…companies are now also becoming more inclined to turn to first-time CFOs,” she adds, citing the also staggering 72% of Fortune 100 companies that are currently embracing this new generation of financial leader.
The modern CFO needs a diverse skill set that transcends the traditional boundaries of finance. According to Clements:
“Today’s CFO must be as comfortable with digital transformation and data analytics as they are with balance sheets and cash flow management.” This reflects the broader role CFOs play in steering companies through complex, digitally driven landscapes.
The imperative for technological fluency is a direct response to the digital revolution that is reshaping industries. Clements underscores the strategic partnership between CFOs and CEOs in navigating the company’s direction, a partnership that relies heavily on the CFO’s ability to harness technological tools for financial insight and strategic foresight. But the evolution doesn’t stop at digital prowess. The modern CFO’s skill set is remarkably diverse, reflecting the broadened scope of their responsibilities, and this diversity extends into the realm of soft skills as well. The ability to communicate complex financial data in a clear, accessible manner, foster cross-departmental collaboration, and lead with empathy and agility is increasingly crucial.
“You have to have the leadership skills and the EQ to match the IQ and the technical skills,” Clements advises, pointing to the blend of interpersonal and analytical competencies that define successful CFOs.
Moreover, the CFO’s role in driving ESG initiatives and digital transformation projects underscores the expanding remit of financial leadership. “They’re also…taking on responsibility for enterprise-wide transformation projects,” Clements remarks, illustrating the strategic and operational influence CFOs wield beyond traditional financial management.
Clements emphasises the critical role of technology and environmental, social, and governance (ESG) factors in the CFO’s remit.
“Digital fluency and a strong grasp of ESG issues are becoming prerequisites for the role,” she states, underscoring the need for CFOs to lead in areas previously outside the conventional finance domain. The global push towards sustainability has positioned CFOs as key players in integrating ESG criteria into corporate strategy, risk management, and reporting. With investors and stakeholders mindful of non-financial metrics like carbon footprint, diversity and inclusion, and social impact, CFOs must develop robust frameworks to measure, analyse, and communicate their organisation’s ESG performance.
For those aspiring to the CFO role, Clements advises a broad base of experience.
“A career path that includes roles in group technical, business operational, and strategic and commercial leadership remits, as well as a strong grounding in technology, will equip future CFOs with the holistic view necessary to succeed,” she suggests.
Clements’ emphasis on diversification in career paths highlights the evolving expectations for CFOs to be well-versed in multiple aspects of business operations. The integration of strategic planning, operational leadership, and technological innovation into the finance function demands that CFOs possess a comprehensive understanding of their business beyond the numbers. This multidimensional skill set enables CFOs to contribute to their organisations’ strategic objectives, driving growth and sustainability. Moreover, Clements points to the value of self-disruption and continuous learning as key components of career development for aspiring CFOs.
By actively seeking out diverse roles and challenges, finance professionals can cultivate the agility, strategic insight, and technical proficiency in areas such as Treasury, that are required in the modern CFO role. This approach to career development not only prepares future CFOs for the complexities of the position but also positions them as dynamic leaders capable of steering their organisations through an uncertain and rapidly changing business environment.
Clements also touches on the importance of diversity in leadership roles.
“Diverse perspectives within the finance function can drive innovation and resilience,” she notes, advocating for more inclusive recruitment practices to enrich the CFO talent pool.
This advocacy for diversity is not just about fulfilling a moral or ethical mandate but is rooted in the tangible value that varied experiences and viewpoints contribute to problem-solving, decision-making, and strategic innovation. Clements’ call for more inclusive recruitment practices reflects a broader industry acknowledgement that diversity within the CFO role—and leadership positions at large—enhances the organisation’s ability to navigate the complexities of the modern business environment. By integrating a wide range of experiences, backgrounds, and perspectives, companies can cultivate a more innovative, agile, and resilient leadership team capable of leading through change and uncertainty.
Looking ahead, Clements predicts that the CFO role will continue to evolve, with a growing emphasis on strategic leadership and cross-functional collaboration. “The future CFO will remain a pivotal figure in shaping company strategy, far beyond the financial realm,” she concludes. The CFO of tomorrow will need to harness a broad spectrum of skills, ranging from strategic insight, enterprise-wide project management, commercial fluency, technical proficiency, innate leadership credibility, comfort with technology and emotional intelligence with a commitment to diversity and inclusion. The emphasis on strategic leadership and cross-functional collaboration points to a future where CFOs are deeply involved in all aspects of their organisations, serving as a deputy to the CEO and, quite often, their successor.
