10 commandments for the experienced CFO

It’s more than a year since I posted on LinkedIn about the 10 commandments for the newbie CFO. It got over 4,000 impressions (number of times the post was displayed on a screen), over 250 views (number of times the article has received), and 2 comments, and one killer question from a complete stranger – “Now that you are an experienced CFO , what are your 10 commandments”. So here is my attempt at answering the question.

1.       Thou shalt always have integrity: Uphold the highest standards of honesty and ethics. Be transparent in your reporting and maintain trust with all stakeholders. Your words and actions should be unwaveringly consistent and truthful. There will be times when there WILL be the temptation for a disconnect between words and actions – thou must resist the temptation.

2.       Thou may look backward but thou must think forward: The finance function is not just about looking at past numbers. Actively engage in forecasting, scenario planning, and risk assessment to ensure the organization is prepared for future challenges and opportunities.

3.       Thou shalt encourage cross-functional collaboration: Build strong relationships with leaders from all departments, understanding that finance is interwoven with every aspect of the organization. Encourage open communication and shared goals. In my experience this is one of the hardest things for leaders (not just CFOs) to achieve and requires CFOs to be natural ally builders. In the absent of collaboration, a firm work towards local maximas as opposed to global maximas.

4.       Thou shalt embrace technology: Recognize the potential of technology to transform finance functions. Invest in digital tools, automation, and analytics to enhance efficiency, accuracy, and strategic insights. With more transaction than ever before, technology – cloud, robotics, workflow automations, and big data are getting ever so important to make better financial decisions.

 5.       Thou shalt champion financial literacy: Ensure that team members, and even those outside the finance department, understand the financial dynamics of the business. Promote a culture where financial knowledge is valued and shared. In my view, accounting is the language of business yet many people in business do not know how to speak it. 

6.       Thou shalt balance short-term and long-term views: While quarterly results matter, always consider the long-term health and strategy of the organization. Make decisions that balance immediate needs with long-term growth and sustainability. Sometimes the CFO needs to compromise the short-term value creation for the long-term knowing well long-term forecasts are harder.

7.       Thou shalt protect and distribute resources wisely: Safeguard the company’s assets, ensuring robust internal controls. When allocating capital, prioritize projects and investments that align with the company’s strategic objectives and deliver value. A CFO’s job sometimes can be lonely. With the right support from the Board/CEO, CFOS can transform their image from being considered ‘breaks’ that slow a fast-speeding car to ‘breaks’ that help steer a formula 1 car along bends.

8.       Thou shalt develop and mentor: Recognize that the strength of the finance function lies in its people. Invest in training, mentorship, and succession planning to ensure continuity and growth. The three operating principles that have worked for me are hire leaders who can hire leaders, create an environment where people can challenge your (CFO) decisions try to appeal to people’s heart – not only to the mind.

9.       Thou shalt listen actively: Pay close attention to the market, customers, employees, and other stakeholders. Their feedback and insights can offer invaluable guidance for financial and strategic decisions. Recognise, that our society has unconscious bias to extroverted leaders and speaking up gets many leaders to the position they are in. If leaders/CFOs stop listening, actively, they will only hear what they wish to hear from others make decisions under confirmation bias.

10.   Thou shalt be resilient and adaptable: The business landscape is ever-changing, with economic fluctuations, regulatory changes, and unexpected challenges. Embrace change, remain agile, and lead with resilience, ensuring the organization’s financial health is safeguarded in all circumstances. As one of my mentors once told me, it is important to have a crystal-clear conviction of the long term as long as you are open to changing the crystal if the landscape ever demands. Do not forget of Principle 1.

All views expressed are my own and do not represent the views of the firm I work(ed) with present or past