The demand for collaboration continues to make its way through companies and their executive boards. CFOs have found themselves heavily engaged in the decision-making process outside of the finance function, especially around technology and labor. CFOs are expected to bring their financial acumen to collaborate with their CIOs and CEOs, but as of late finance chiefs are bringing additional leadership skills to the table.
These skills, some of which have been acquired through regimented routines, rigorous academic journeys and diverse work experiences, make the difference between “bean counters” and strategic planners. According to Travelers' 2024 CFO study of 610 finance chiefs, 62% of chief financial officers said strategic planning for future company success and resilience is the most valued skill for those in their position.
CFOs have plenty to be concerned about right now. A third (33%) of those surveyed named economic uncertainty and market competition as top concerns, tying for the top rank. Talent acquisition and retention, a major issue for accounting and finance with no signs of remedy, was selected by 32% of CFOs as a top concern too.
The skills that make great CFOs are directly in line with addressing some of their most pressing concerns. More than half named the ability to manage a complex network of internal and external stakeholders and relationships, and identifying and mitigating various business risks, as valuable skills (52% for each).
Traits that were not finance-specific also earned a significant portion of the tally. Charismatic leadership and strong communication skills (48%), use of tools and dashboards for advanced data analytics (44%) and using advanced technology for data analytics (44%) were also deemed to add value to a CFO’s skill set.
CFOs who not only bring a strong set of skills to a team of leaders, but use those skills to address the organization's challenges both in and out of the finance function, have a high likelihood of having a noticeably positive impact on the business.
CFO optimism and succession planning
CFOs optimism continues to prevail, and finance chiefs are generally confident in their business. The report indicates that confidence manifests in different ways.
Forty-one percent said they are most optimistic about financial stability around the business right now. Slightly less (37%) said corporate reputation, with just under a third (32%) also adding their customer satisfaction and retention. AI earned only 30% of the tally, with employee satisfaction and engagement (29%) and talent acquisition and retention (23%) trailing behind.
The areas with the least amount of impact on optimism for CFOs were diversity and inclusion. As many institutions continue to drop their DEI programs, CFOs have developed awareness around the legal and social implications of poorly implemented DEI policies.
Regardless of the optimism levels of the CFO, the ability of the company to replace them is pivotal to long-term success. However, nearly a third (32%) of CFOs said they have no plans for succession. Thirty percent have started working on succession plans, and nearly a fifth (19%) have their plans but no successor identified. These numbers, according to surveyors, can leave organizations exposed.
The right M&A fit
In a semi-sluggish market that has growing expectations, CFOs may find themselves in a market with many more buyers than sellers. More than half (54%) said they are open to acquiring a company that “is the right fit.” That right fit may be difficult if getting a favorable deal is a goal on the buyer’s side; less than one in 10 (9%) said they are actively looking to be acquired.
Regardless of whether their company is involved in an M&A transaction, not many worry their jobs will be impacted. Forty-one percent of CFOs said their job would be moderately impacted if such a transaction occurred at their company. Nearly 3 in 10 (29%) said their roles would be highly impacted, nearly identical to the amount that said their role would only be slightly impacted or not at all as a result of an M&A deal.