5 ways chief financial officers can ditch the stereotypes
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
Why do stereotypes about CFOs persist and what can be done to change their brand? In this post, we’ll look at changing the narrative around the role and why it's important to think like a PR company.
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Despite the rapid evolution of the role most CFOs are still caught in the land of stereotype
What’s the first thing you think of when someone mentions “accounting”?
Bean counters, balance sheet gurus, number ninjas, and chief numbers officers are a few of the tired nicknames that spring to mind.
We’ve worked with dozens of CFOs in our time and the only thing that is true about these stereotypes is they’re false.
Of course, any CFO worth their salt can calculate gross margin and earnings per share but you don’t need to be a Finance bot to do that. Only one CFO stereotype is true, in our opinion, and that is behind every great CEO, there’s a top CFO.?
So what can CFOs do to update the myths and fight back against the stereotypes?
How can CFOs reverse these stereotypes to portray a more positive image??
Five strategies any CFO can use to think like a PR agency and showcase the value they bring to the table:
1. Emphasize value creation:
Telling the story of value creation is key. Far from simply being number crunchers, CFOs are strategic partners to the CEO and the board. They have a critical role in driving value to creation right across the organization, not only in Finance.
Creating a compelling narrative plot that shows how successful impacts were made is key. CFOs should practice telling compelling stories that illustrate how they are helping the company succeed.
2. Be seen:
In any crisis or any victory, being seen, being available, and being proactive are the best things you can do.? Being vocal about what you’re doing and how you’re solving the challenge is reassuring to everyone involved.?
Create opportunities to engage with the CEO and other CXO to ensure their views are understood and appreciated. The image of a “trusted business partner” and strong advocate for Finance in the company sets you up for success by showcasing the strategic importance of the CFO.
3. Advocate for change:
Change is not something to be endured, these days, it should be taken as an opportunity and grabbed with both hands. By taking a lead role in identifying opportunities for growth and development CFOs can use their financial insights to help drive the right kind of change.?
Breaking silos, encouraging collaboration, and demonstrating leadership by bringing people from different functions together to work towards common goals will be highly valued by the C-suite.?
4. Tell impactful stories:
Human beings love stories. We’ve been communicating with stories for millennia. Stop communicating complex and sometimes boring financial insights via spreadsheets and instead use a creative and easily understood approach to presenting that information as a story about value creation.?
Data visualization, a compelling narrative, easy to understand metaphors or analogies can bring numbers to life. Effectively selling the value creation story helps CFOs build stronger and more empathetic relationships, and ultimately drives better business outcomes.
5. Focus on technology:
Be at home with data analytics and new technologies in Finance. Leverage technology to improve your decision-making, streamline processes, and glean valuable insights into business performance.?
Being a technology advocate is another strategy to turn the “number crunching” stereotype on its head and change up the narrative. Building credibility as an expert in multiple areas by leveraging data to help leaders make better decisions is a winning combination and adds the perfect foil to the ongoing story of value creation.?
Be outspoken on the issues that will shift the perception of the CFO
The business landscape continues to shift at a rapid pace. And it’s not going to slow down, it’s only going to speed up.
The CFO role has evolved over time, to be nearly unrecognizable from what it was less than a decade ago, the stereotype of the CFO hasn’t changed. It’s up to us to shift that perception ourselves.
Being more vocal about successes doesn't mean bragging, boasting, or being big-headed. It is about giving the right information, in the right way, for the CEO to be able to make the most informed decisions.
Telling success stories is good for the organization, good for morale, and good for the CFO brand.
Highlighting the value they created in compelling stories about change, improvement, and success means CFOs will be more visible.
Advocating for positive change, embracing new technologies to help tell the Finance story of the company, and being a trusted partner to the board will allow CFOs to shift the stereotype from “counting beans” to growing beanstalks.
What do you think, can CFOs change the narrative and create a positive stereotype? Tell us what you think below.
This was the fifth article in our new series "Re-branding the CFO". You can read the previous article(s) below.
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Anders Liu-Lindberg ?is the co-founder and a partner at?Business Partnering Institute ?and the owner of the largest?group dedicated to Finance Business Partnering ?on LinkedIn with more than 11,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk . I am the co-author of the book “Create Value as a Finance Business Partner ” and a?long-time Finance Blogger ?on LinkedIn with 225,000+ followers and more than 275,000+ subscribers to my blog. I am also an advisory board member at?Born Capital ?where I help identify and grow the next big thing in?#CFOTech . Finally, I'm a member of the board of directors at?PACE - Profitability Analytics Center of Excellence ?where I support the development of new analytics frameworks that can improve profitability in companies around the world.
QuickBooks Certified Pro-Advisor, XERO Advisor, MSS, M. Com (Accounting), CMA (Final),
1 年Follow me on LinkedIn: www.dhirubhai.net/comm/mynetwork/discovery-see-all?usecase=PEOPLE_FOLLOWS&followMember=m-shafiul-azam-6358b831
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1 年Thanks for sharing your ideas.
I teach Storytelling to Finance Teams | Course Facilitator | Keynote Speaker
1 年Well I'm no CFO but I recognize what I would recommend for people working in Finance, even before they become CFO's. I especially like the "be seen" part and the "storytelling"
Next Trend Realty LLC./wwwHar.com/Chester-Swanson/agent_cbswan
1 年Thanks for Sharing.
Sales Associate at Microsoft
1 年Great opportunity