Do Cfo's Make Good Ceo's?

1245 Words Apr 6th, 2008 5 Pages
Introduction
The CFO possesses many significant advantages as well as disadvantages if he/she is chosen to become the CEO.
Recently an increasing number of company boards have decided that in order to best serve shareholders it is prudent to promote the CFO to CEO. CFOs themselves remain reticent about any personal ambitions beyond the CFO role - at least in public. But given this recent string of high profile promotions there is an increasing recognition that they have what it takes to take over the CEO role. To understand why CFOs are more frequently getting the top job it is important to know what the contemporary holder of the post does with his time. Article entitled “CFO to CEO” explains that the Monty Python image of an
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Still they know of what is happening around them in their industry as well as their own company. Successful CFO’s are not at all concerned or interested with these matters. One of the main qualities of a CFO is to look forward, and using forecasting techniques, predict the future, not only for the day-to-day operation of the company, but also for financial presentations for potential investors. One of the main qualities of a CEO is also to look forward, predict the future, but no in the same terms as a CFO. They have to look forward in terms of the market movements and trends.
Traditionally CEO’s have come from fields like management and marketing. Only recently has there been a trend to recruit CEO’s from the finance field but still more CEO’s are coming from the traditional fields of marketing and management.
According to CFO.com the first most important traits for a CFO in terms or importance are Personal integrity, Independence, Communication skills, Leadership ability & Team player. CFOs aspiring to become CEOs need to understand a very different set of skills. CEOs are responsible for the administration and management of an organization, as well as establishing and carrying out its vision. Traits that make someone CEO material are broader in scope and definition than the traits needed to be a successful CFO. The five key qualities a CEO must possess are Diplomacy, Leadership, Delegate and Mentor, Network & Organizational Versus Personal Goals. The roles of

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