Professional Development for the Modern CFO and Emerging CFO's - Part 1

Believe it or not there was a time when the CFO was simply a glorified bookkeeper who closed books, paid bills, managed collections and ensured that the company stayed compliant with taxes. Well those were the stone ages and time has evolved quickly. Such CFO’s have either lost relevance or are mostly extinct in modern day finance.

The Modern CFO is a "Co-Pilot":

These days CFO’s are expected to be strategic partners to the CEO, The Board and the Rest of the Leadership Team. They are expected to be solid functional leaders, capable of identifying and honing talent, building world class teams and deploying best in class financial processes and systems that meet the needs of the business.

Today, CFO’s are expected to have deep financial expertise, but those are table stakes. Beyond that CFO’s are expected to have very thorough understanding of their business and the drivers.

CFO’s are seen as “Co-pilots” to the CEO and are often the ‘early warning system’ in the organization who can see both risks and opportunities well in advance of anyone else in the organization. The CFO has to not only be a very visible, active and strong internal leader but they also have to be savvy with external stakeholder especially investors, auditors, regulators and even the media. Add to this the need to be long terms focused and be on top of current and future governance needs and the onset of dynamic and powerful technologies like Artificial Intelligence.

The Case for Professional Development:

With that backdrop and the fact that CFO’s operate in a dynamic environment shaped by internal and especially external factors, it is imperative for every CFO to be on the top of their game. It is also on the CFO to make sure their deputies have the same mindset.

This has led to a boom in professional training programs that are tailored for CFO’s and emerging CFO’s. These training programs are offered by a range of institutions dominated mostly by Top Universities such as Harvard, Stanford, U Penn, Columbia and others. But that is not all. There are professional organizations that also offer CFO training programs and these include consulting firms such as Deloitte and also private organizations that offer more specialized and practical training such as the McCracken institute and others.

Different programs have different designs. Some are designed to be intensive 1 week programs and all in person while others stretch to several weeks and months with the pacing needed to enhance the skills set and thinking of the CFO or the emerging CFO.

What do these programs cover - broadly:

Broadly though these programs and their curriculum tend to cover the following topics in various levels of breadth and depth

1. Strategic Mindset: Moving beyond transactional finance to become a true strategic partner to the CEO and the board.

2. Leadership and Influence: Developing skills to lead diverse teams, influence stakeholders, and drive organizational change.

3. Communication: Mastering the ability to translate complex financial information into clear, actionable insights for various audiences.

4. Technology and Data Analytics: Understanding how to leverage new technologies (AI, machine learning, cloud) and data for better decision-making.

5. Risk Management and Governance: Deepening expertise in identifying, assessing, and mitigating financial and operational risks, as well as upholding strong corporate governance.

6. Capital Allocation and Value Creation: Optimizing capital deployment to maximize shareholder value and drive growth.

7. Networking: Building a strong peer network for ongoing learning, support, and collaboration.

8. Adaptability and Innovation: Navigating a dynamic business environment and fostering a culture of innovation within the finance function.

What factors to consider before choosing a professional development program:

1.     Time commitment – The length of programs varies from 1 week to 12 months. Almost all of them require some classroom time ranging from 1 week to several weeks. That means you have to ensure the time to attend the program online, complete assignments and be on-site for classroom training. This requires the candidate to either have paid time off OR have their employer be completely on board to support them through this process. The latter obviously is the best and most preferred route, but many motivated candidates take the initiative on themselves to make it work if their employers are not sponsoring.

2.     Cost – These programs are not cheap. They range from 12k to 30k. Add to that the cost of travel and missed work. So, every candidate has to analyze the value of professional development to their career progression. The best way to get around this to work with your employer and have them pick up the tab. Many employers will be willing to sponsor their top finance leaders for well-deserved professional development programs. Some companies have structured, and prescribed processes that layout how and who they sponsor while others are not structured but depending on the candidate, companies may choose to sponsor upon request.

While this may not be an option for everybody, if you have an employer that is willing to invest even partially behind your development, that benefit must be availed.

3.     Location – All of the programs are US based except for the one with London Business School. Some candidates might prefer to take their courses at a West Coast university like Stanford while others might lean towards the many options available on the east coast including programs at Harvard Business School, Wharton or Duke etc.

4.     Brand – While no one quite talks about this, many candidates choose programs based on their brand strength. Brands carry much weight. Good news is that many top universities offer CFO professional development programs. These include best in breed universities like Stanford, Harvard, Penn, Columbia etc. Understandably the brand is a consideration and candidates must choose the program that will sit best with their career goals.

5.     Specialized Skills and focus – Not every program on the block is offered by a large university. Some private organizations also offer world class CFO programs. These include programs at Deloitte as well as more focused programs from organizations like the McCracken institute or the PE-excelerte program which focuses on developing CFO’s for the private equity space.

We cover more of CFO Professional Development Training in part 2 of this blog.