New CFOs Are Expected to Have Broader Skill Sets

CFO Magazine
January 8, 2009 | COMMENTS

There's a new kind of sheriff in town—according to CFO Magazine, the preferred skill sets for CFOs is rapidly changing because of the global economic turmoil.

For many companies seeking CFOs, the accounting and financial reporting acumen deemed so crucial in the early years of the Sarbanes-Oxley era has slid down the wish list over the past 12 months—especially recently. The shift is away from the certified public accountant/controller background and toward candidates with MBAs and/or financial analysis backgrounds.

Skills that are being considered top priority for new CFO hires include managing a balance sheet, understands the capital markets, operations experience, and—for financial services—an ability to value assets is in high demand. Companies want their CFOs to be on the forefront of assessing the potential impacts on the organization, and driving and implementing the strategies that follow—in other words, companies want CFOs who can be leaders.

These demands may be contributing to the continuing high rate of CFO turnover.

"I feel sorry for the CFOs. They need to be chameleons," said Chuck Eldridge, managing director of the financial-officers practice at Korn/Ferry International. "One day they're focused on growing the business, the next day on the credit crisis or on how to turn around the company."

It may be that the most valuable trait a CFO can possess today is flexibility and responsiveness to significant swings in the dynamics of the market. "A lot of them will tell you that right now it's all about being calm and measured," Eldridge said.

A marked shift in companies' CFO preferences began to take shape in late 2007 and early 2008, "The pendulum swung to the controllership skill set with Sarbanes-Oxley, and now it may be that treasurers are going to have their day in the spotlight," said Tom Kolder, president of Crist|Kolder Associates.

In many cases companies are opting to hire CFOs with heavy experience in operations. So many companies have undergone such dramatic changes in the past year, they're looking for people who can manage a restructuring and cut costs. "There's a real operational focus for the CFOs we're being asked to find right now," said Michele Heid, co-managing partner of the finance practice at Heidrick & Struggles.

This is a summary of an article entitled “Crisis Demands New CFO Skills” published by CFO Magazine. Read the complete article online here.