The modern CFO manages more than just money. CFOs are taking broader leadership responsibilities, such as managing customer experiences, hiring and retaining talent, and leading strategic shifts into automation and other areas.<\/p>\n\n\n\n
The CFO is a lifeline for company health \u2014 and becoming more critical as we head into a time of economic uncertainty. What does this mean for today\u2019s CFO? How is this role evolving as businesses face ongoing disruptions and instability?<\/p>\n\n\n\n
Changing characteristics of the modern CFO<\/span><\/h2>\n\n\n\nCFOs are far more diverse in gender and race<\/a> than CEOs (and the rest of the C-suite). This year, 16% of CFOs are women, up from 9.7% a decade ago. And 10.9% are racially or ethnically diverse, up from 3.6% a decade ago. <\/p>\n\n\n\nCFOs also have staying power, according to Salesforce research. CFOs remain in their positions for 4.8 years, on average \u2014 second only in tenure to the average 7.2 years notched by CEOs.<\/p>\n\n\n\n
And they have more responsibilities in their evolving roles. For example, they must be: <\/p>\n\n\n\n
\n- Complex problem solvers<\/li>\n\n\n\n
- (Well informed) fortune tellers<\/li>\n\n\n\n
- Self-aware leaders<\/li>\n\n\n\n
- Expert delegators<\/li>\n<\/ul>\n\n\n\n
\u201cTraditionally, people have thought of CFOs as a steward\u201d and that includes \u201crunning a tight finance ship,\u201d Susan Li, Meta\u2019s new CFO, said at a recent summit<\/a> sponsored by Fortune. But today, CFOs wear many more hats, like \u201cthe efficient operator hat. The CFO is really a partner in steering the business direction and product vision for the company.\u201d<\/p>\n\n\n\nAt some companies, the expanding role of the CFO is removing the need for a chief operating officer, added Tracey Travis, executive vice president and CFO at The Est\u00e9e Lauder Companies, who also attended the summit.<\/p>\n\n\n\n
\n\t\n\n\t\t\n\t\t\tDeliver success now<\/h2>\n\t\t\t\t\t\t\t
Learn how the right technology investments help you increase efficiency, improve results, and lower costs.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t
\n\t\t\t\t\tStart now<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t![\"\"](\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-illustration-layout-one.png\")
\n\n\t\t\n\t\t\t\t\t![\"\"](\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-accent-layout-one.png\")
\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t![\"\"](\"https:\/\/www.salesforce.com\/ap\/blog\/wp-content\/themes\/salesforce-blog\/dist\/images\/offer-block\/offer-cloud-layout-one.png\")
\n\t\t\n\t<\/div>\n\n\n\nCFO challenges in 2023 \u2014 and beyond<\/span><\/h2>\n\n\n\nThe C-suite has relied heavily on CFOs in recent years to help lead in times of economic turbulence, and that will continue in the future. In fact, 75% of CFOs say<\/a> economic disruption is 2023\u2019s biggest challenge.<\/p>\n\n\n\nAnother challenge is how to invest wisely in a downturn, especially in technologies that can help companies become more efficient as budgets tighten. The modern CFO who understands the potential of strategies like automation and platform consolidation can positively affect the bottom line.<\/p>\n\n\n\n
The average company uses 976 applications<\/a> to run its business and store customer data. This isn\u2019t efficient, effective, or affordable.<\/p>\n\n\n\nIf CFOs don\u2019t have access to data across the whole business, how can they make informed decisions? The modern CFO must be a digital native \u2014 and that comes from deep understanding and partnerships with the CIO and tech team.<\/p>\n\n\n\n
The key is focusing on technology investments that deliver value, long-term cost savings, and ultimately, solid ROI. How can companies make the right technology investments during a downturn to deliver long-term value? Salesforce COO Brian Millham suggested the key is to lean into efficiency<\/a> \u2014 simplifying complex processes and creating better productivity pathways.<\/p>\n\n\n\n\u201cIt is possible to cut costs and reduce complexity while creating resilience within your company,\u201d he added. \u201cYou can do this without compromise by consolidating systems and investing in the right technology for your business.\u201d<\/p>\n\n\n\n
Skills for the modern CFO<\/span> <\/h2>\n\n\n\nSpreadsheets are still important, but today\u2019s CFO needs to communicate beyond the numbers<\/a>. <\/p>\n\n\n\n\u201cCFOs are viewed as kind of a deputy CEO,\u201d Alyse Bodine, global head of the financial officers practice at recruiting firm Heidrick & Struggles, told Fortune<\/a> last month. \u201cThe ability to lead a diverse set of individuals, both finance and non-finance, across the organisation takes people skills. So, there\u2019s definitely a heightened demand on that skill set when it comes to the finance population.\u201d<\/p>\n\n\n\nSalesforce completed hour-long interviews last year with 10 CEOs across enterprise and commercial business. Many said they expected to replace current C-suite team members with leaders who had higher emotional intelligence (EQ) and were better equipped to handle not only stressed employees but a more socially engaged workforce.<\/p>\n\n\n\n
\n\t\n\n\t\t\n\t\t\tWhat\u2019s Your EQ?<\/h2>\n\t\t\t\t\t\t\t
Become a better leader by learning self-awareness and self-management techniques that strengthen relationships and boost productivity.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t
\n\t\t\t\t\tVisit Trail<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t\n\n\t\t\n\t\t\t\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\n\t\t\n\t<\/div>\n\n\n\nThis isn\u2019t new news. In 2020, Summit Leadership Partners found that 80% to 90% of high performers in the C-suite were differentiated by high EQ. According to their research, EQ is twice as important<\/a> for predicting performance in executives than technical skills or IQ.<\/p>\n\n\n\nAnd EQ could bridge the Great Disconnect<\/a> between employees and the C-suite.<\/p>\n\n\n\nHow CFOs can evolve<\/span> <\/h2>\n\n\n\nIt\u2019s no longer enough to steer a finance ship well. As CFOs develop new leadership styles, they should ask themselves the following questions:<\/p>\n\n\n\n
Is the way I lead:<\/p>\n\n\n\n
\n- making the company stronger? <\/li>\n\n\n\n
- true to who I am?<\/li>\n\n\n\n
- necessary to get the job done?<\/li>\n<\/ul>\n\n\n\n
It takes a different lens to solve today\u2019s \u2014 and tomorrow\u2019s \u2014 problems. The modern CFO who can think creatively and differently, and develop thoughtful strategies for investing, is well poised for the road ahead. <\/p>\n\n\n\n
Ultimately, it’s the CFO who signs off on major investment decisions and takes the risk of investing in innovation versus tightening belts. Leaders should bet on the CFO that invests in the future versus pausing progress.<\/p>\n\n\n\n
Download our ebook to learn how to Prepare your Business for a Digital Future<\/a> today.<\/i><\/p>\n\n\n\nThis post originally appeared on the U.S.-version of the Salesforce blog.<\/a><\/i>
CFOs also have staying power, according to Salesforce research. CFOs remain in their positions for 4.8 years, on average \u2014 second only in tenure to the average 7.2 years notched by CEOs.<\/p>\n\n\n\n
And they have more responsibilities in their evolving roles. For example, they must be: <\/p>\n\n\n\n
- \n
- Complex problem solvers<\/li>\n\n\n\n
- (Well informed) fortune tellers<\/li>\n\n\n\n
- Self-aware leaders<\/li>\n\n\n\n
- Expert delegators<\/li>\n<\/ul>\n\n\n\n
\u201cTraditionally, people have thought of CFOs as a steward\u201d and that includes \u201crunning a tight finance ship,\u201d Susan Li, Meta\u2019s new CFO, said at a recent summit<\/a> sponsored by Fortune. But today, CFOs wear many more hats, like \u201cthe efficient operator hat. The CFO is really a partner in steering the business direction and product vision for the company.\u201d<\/p>\n\n\n\n
At some companies, the expanding role of the CFO is removing the need for a chief operating officer, added Tracey Travis, executive vice president and CFO at The Est\u00e9e Lauder Companies, who also attended the summit.<\/p>\n\n\n\n
\n\t\n\n\t\t\n\t\t\tDeliver success now<\/h2>\n\t\t\t\t\t\t\t
Learn how the right technology investments help you increase efficiency, improve results, and lower costs.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t
\n\t\t\t\t\tStart now<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t\n\n\t\t\n\t\t\t\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\n\t\t\n\t<\/div>\n\n\n\nCFO challenges in 2023 \u2014 and beyond<\/span><\/h2>\n\n\n\n
The C-suite has relied heavily on CFOs in recent years to help lead in times of economic turbulence, and that will continue in the future. In fact, 75% of CFOs say<\/a> economic disruption is 2023\u2019s biggest challenge.<\/p>\n\n\n\n
Another challenge is how to invest wisely in a downturn, especially in technologies that can help companies become more efficient as budgets tighten. The modern CFO who understands the potential of strategies like automation and platform consolidation can positively affect the bottom line.<\/p>\n\n\n\n
The average company uses 976 applications<\/a> to run its business and store customer data. This isn\u2019t efficient, effective, or affordable.<\/p>\n\n\n\n
If CFOs don\u2019t have access to data across the whole business, how can they make informed decisions? The modern CFO must be a digital native \u2014 and that comes from deep understanding and partnerships with the CIO and tech team.<\/p>\n\n\n\n
The key is focusing on technology investments that deliver value, long-term cost savings, and ultimately, solid ROI. How can companies make the right technology investments during a downturn to deliver long-term value? Salesforce COO Brian Millham suggested the key is to lean into efficiency<\/a> \u2014 simplifying complex processes and creating better productivity pathways.<\/p>\n\n\n\n
\u201cIt is possible to cut costs and reduce complexity while creating resilience within your company,\u201d he added. \u201cYou can do this without compromise by consolidating systems and investing in the right technology for your business.\u201d<\/p>\n\n\n\n
Skills for the modern CFO<\/span> <\/h2>\n\n\n\n
Spreadsheets are still important, but today\u2019s CFO needs to communicate beyond the numbers<\/a>. <\/p>\n\n\n\n
\u201cCFOs are viewed as kind of a deputy CEO,\u201d Alyse Bodine, global head of the financial officers practice at recruiting firm Heidrick & Struggles, told Fortune<\/a> last month. \u201cThe ability to lead a diverse set of individuals, both finance and non-finance, across the organisation takes people skills. So, there\u2019s definitely a heightened demand on that skill set when it comes to the finance population.\u201d<\/p>\n\n\n\n
Salesforce completed hour-long interviews last year with 10 CEOs across enterprise and commercial business. Many said they expected to replace current C-suite team members with leaders who had higher emotional intelligence (EQ) and were better equipped to handle not only stressed employees but a more socially engaged workforce.<\/p>\n\n\n\n
\n\t\n\n\t\t\n\t\t\tWhat\u2019s Your EQ?<\/h2>\n\t\t\t\t\t\t\t
Become a better leader by learning self-awareness and self-management techniques that strengthen relationships and boost productivity.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t
\n\t\t\t\t\tVisit Trail<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\n\t\t\t\t\t<\/div>\n\t<\/div>\n\n\t\t\t<\/div>\n\t\n\t\t\t\n\t\t\n\n\t\t\n\t\t\t\t\t\n\t\t\n\t\t\n\t\t\n\t\t\n\t\t\t\t\t\n\t\t\n\t<\/div>\n\n\n\nThis isn\u2019t new news. In 2020, Summit Leadership Partners found that 80% to 90% of high performers in the C-suite were differentiated by high EQ. According to their research, EQ is twice as important<\/a> for predicting performance in executives than technical skills or IQ.<\/p>\n\n\n\n
And EQ could bridge the Great Disconnect<\/a> between employees and the C-suite.<\/p>\n\n\n\n
How CFOs can evolve<\/span> <\/h2>\n\n\n\n
It\u2019s no longer enough to steer a finance ship well. As CFOs develop new leadership styles, they should ask themselves the following questions:<\/p>\n\n\n\n
Is the way I lead:<\/p>\n\n\n\n
- \n
- making the company stronger? <\/li>\n\n\n\n
- true to who I am?<\/li>\n\n\n\n
- necessary to get the job done?<\/li>\n<\/ul>\n\n\n\n
It takes a different lens to solve today\u2019s \u2014 and tomorrow\u2019s \u2014 problems. The modern CFO who can think creatively and differently, and develop thoughtful strategies for investing, is well poised for the road ahead. <\/p>\n\n\n\n
Ultimately, it’s the CFO who signs off on major investment decisions and takes the risk of investing in innovation versus tightening belts. Leaders should bet on the CFO that invests in the future versus pausing progress.<\/p>\n\n\n\n
Download our ebook to learn how to Prepare your Business for a Digital Future<\/a> today.<\/i><\/p>\n\n\n\n
This post originally appeared on the U.S.-version of the Salesforce blog.<\/a><\/i>