As the role of chief financial officer (CFO) continues to evolve, many business professionals are setting their sights on the top position: chief executive officer (CEO). Buoyed by financial expertise and strategic insight, CFOs are well-positioned to lead organizations. 

However, technical know-how won’t suffice for those hoping to smoothly transition to the upper echelons of the business world. Excelling as a CEO demands leadership vision, operational insight, and the ability to foster growth.

The Changing Role of the CFO

In recent years, many CFOs have moved beyond overseeing traditional financial matters. They now shape strategy and drive value. These expanded roles make CFOs strong candidates to become CEOs—especially as organizations face increasingly complex challenges.

“A CFO’s financial expertise is invaluable,” confirms Joe Concannon, Interim CEO and CFO. “But transitioning to CEO requires adopting a broader, growth-oriented perspective.”

To prepare for the CEO role, CFOs must focus on four essential areas: growth, leadership, team empowerment, and market engagement.

Driving Growth Beyond Cost Control

CFOs have traditionally focused on cost efficiency. But aspiring CEOs must prioritize growth. What does this involve? Understanding markets, collaborating with sales and marketing, and fostering innovation.

“CFOs are uniquely positioned to bring a data-driven approach to driving profitable revenue growth,” Concannon adds. “Analyzing customer acquisition costs and retention efforts are critical steps to growing market share profitably.”

A commercial mindset is also a must for aspiring CFOs. They should be able to identify expansion opportunities and excel at syncing financial strategies with business goals. 

When CFOs focus on growth initiatives, they demonstrate their ability to transcend the financial side of things.

Enhancing Leadership Vision

Effective CEOs are visionaries for their organizations. For CFOs, this means they must step out of their financial comfort zone. The goal? To engage more intimately with broader strategic objectives.

“In decision-making, CFOs often evaluate opportunities based on quantifiable metrics,” notes Chase Gill, Interim CFO. “As a CEO, you need to shift to consider qualitative criteria equally.”

As with all aspects of business, relationship-building is key. CFOs need to establish a rapport with internal and external stakeholders. Communicating a clear vision gains the trust of investors, customers, and partners. As importantly, it also inspires employees.

“Leadership isn’t just about numbers. It’s about creating an environment where people feel empowered to grow and achieve their full potential,” explains Gina Gutzeit, Global Leader of the Office of the CFO.

Empowering the Finance Team

Like other leaders, CFOs thrive when they delegate and build self-efficient teams. This allows them to concentrate on broader initiatives.

Interim CFO Roshan Ressallat explains: “Empowering your finance team goes beyond handing off tasks. It’s about creating a culture where everyone feels valued and takes ownership of their work.”

CFOs can boost their teams’ efficiency by fostering collaboration and providing advanced tools. This shift strengthens the organization and highlights the CFO’s leadership skills—a win-win, to be sure. 

Engaging with Customers and Markets

Transitioning to CEO demands that CFOs engage directly with customers and markets. This involves spending time with sales teams, understanding customer needs, and tracking market trends.

“The modern CFO works closely with all organizational functions to achieve business goals,” says Amir Agam, Interim CFO and CEO. “This involves supporting sales, product development, and customer retention with insightful analysis.”

Actively engaging with customers lets CFOs gain valuable insights. This knowledge leads to informed pricing, product development, and investment decisions. Taking a hands-on approach reveals a leader’s ability to spur growth initiatives.

Preparing for the Next Step

Making the transition from CFO to CEO is challenging. It requires strategic planning, leadership development, and a commitment to growth. 

The good news? CFOs who broaden their focus, enhance their leadership skills, empower their teams, and engage with markets can position themselves as the next generation of business leaders.