The Art of Influence: How CFOs Can Inspire Others

In today's dynamic business landscape, the role of a Chief Financial Officer (CFO) extends far beyond managing the financial health of an organization. CFOs can be influential leaders who shape the future of their companies. Their ability to influence people and decisions is paramount to the success of the organization.

During this episode, we will explore the ways CFOs can exert positive influence and provide inspirational examples along the way.

Here is a great podcast featuring the impressive Wassia Kamon on Influencing Without Authority:

The following list contains powerful examples of how CFOs can exert influence and leave behind a long-lasting legacy:

1. Lead with Vision: CFOs should start by setting a clear vision that aligns financial goals with the broader mission and values of the organization. This vision should inspire and motivate others. One of the most iconic examples is Apple's CFO, Peter Oppenheimer. He played a pivotal role in shaping Apple's financial strategy, aligning it with Steve Jobs' vision, and enabling innovations like the iPhone. By combining financial acumen with a shared vision, he influenced a generation of leaders and investors.
2. Communicate Effectively: The ability to communicate complex financial data in a way that non-finance professionals can understand is a critical skill for CFOs. Warren Buffett, known for his approachable communication style, exemplifies this. His annual letters to Berkshire Hathaway shareholders distill complex financial concepts into simple, relatable language. CFOs who can do the same create trust and inspire confidence in their teams and stakeholders.
3. Lead by Example: Influence often starts with personal behavior. CFOs who demonstrate integrity, ethics, and a commitment to the company's values set the tone for the entire organization. An inspiring example is Mellody Hobson, the co-CEO and President of Ariel Investments. As the former Chair of the Board at DreamWorks Animation, she was known for her strong ethical principles and was a driving force in promoting diversity in corporate leadership.
4. Foster Collaboration: CFOs should promote a culture of collaboration and teamwork within the organization. Dr. Lu Yimin, the former CFO of China Mobile, encouraged cross-functional cooperation, bridging the gap between finance and other departments. By breaking down silos, he influenced the company's ability to adapt to the rapidly changing telecommunications industry.
5. Embrace Innovation: In a world that constantly evolves, CFOs who champion innovation can inspire their teams to adapt and thrive. Reed Hastings, the co-founder and former CFO of Netflix, played a significant role in the company's transformation from a DVD rental service to a global streaming giant. His openness to disruptive technologies and risk-taking influenced Netflix's unprecedented growth.
6. Develop Strong Relationships: CFOs must nurture relationships with various stakeholders, from investors and analysts to employees and partners. Charles Holley, the former CFO of Walmart, was renowned for his ability to build strong relationships. He regularly engaged with investors and analysts, ensuring they understood the company's financial strategy and vision. This not only influenced their perception but also positively impacted the company's stock price.
7. Take Calculated Risks: Influential CFOs are not afraid to take calculated risks to drive growth and innovation. A remarkable example is Ruth Porat, the CFO of Alphabet Inc. (Google's parent company). She played a pivotal role in Alphabet's transformation into a more financially disciplined and shareholder-friendly organization. Her strategic risk-taking influenced the company's financial stability and shareholder value.
8. Prioritize Talent Development: CFOs can inspire others by investing in the development of their teams. Joe Kaeser, the former CFO and later CEO of Siemens, implemented an extensive talent development program. This not only contributed to the growth of Siemens but also inspired countless employees to excel in their roles.

In conclusion, the role of a CFO goes beyond managing financial assets; it extends to influencing people and shaping the future of the organization.?

By drawing inspiration from the remarkable examples of those who have already blazed a trail in the world of finance and leadership, CFOs can become inspirational leaders who leave a lasting impact on their organizations and the business world.

"Influence as a CFO is not measured in numbers alone; it's the symphony of vision, communication, collaboration, and innovation that inspires a financial legacy, and the people who build it."

Further Reading:

Influencing People and Obtaining Buy-In: The Essential Guide for Finance Leaders - GrowCFO