In a fast-changing world, those aspiring to Chief Financial Officers roles face a whole host of challenges - how best to overcome and prepare for them? Read on to discover advice on how to do so from members of WiHTL & Diversity in Retail’s CFO Board, as well as their thoughts on the importance of establishing a diverse talent pipeline to top finance function roles.

‘The role of the CFO has evolved significantly over the past decade,’ explains Raj Sharma, CFO at Saga Travel Group. ‘What was once a custodian role of a company’s finances now encompasses greater breadth and depth across multiple disciplines.’ In light of that point, what attributes do CFO hopefuls need to possess in order to thrive? An ability to make the most of the data - and to then make principle-based decisions as a consequence - is a given. However, it is not just about the numbers. ‘There is an agile blend of art and science to the CFO role,’ notes Selina Butterfield-Mashoofi, CFO at Central Coop.  ‘Your leadership skills become far more important than your technical skills when you make the step up,’ explains Leanne Chamberlain, CFO at McDonald’s.

‘You don’t need to be the expert in everything! Finance careers can be very detail led, and it can be comforting to feel like you have the answers. To progress you need to step out of that. Trust the teams around you, be vulnerable and ask questions,’  adds Alastair Thompson, Vice President, Commercial Finance & Analytics at QVC UK.

Being a good communicator, both internally within an organisation and externally too, is therefore vital. As Robert Moorhead, Group Chief Financial Officer and Chief Operating Officer at WHSmith, pointed out, communication is key to building ‘good relationships with analysts, investors and bankers so that they trust you.’

With the CFO and CEO working so closely together, communication is also an important cog in forming an effective partnership that benefits the organisation. ‘It’s lonely at the top,’ Alastair points out. ‘Being a trusted partner’ for the CEO, ‘allowing them space to ask questions and test out ideas, and then help the wider business see beyond their own areas of speciality can be very valuable.’ 

‘You should be able to debate honestly and constructively with the CEO’, adds Robert. ‘Be the guard, navigator and driver…and schemer!’ Developing these skills throughout a career - to then be able to put them into practice in a working relationship with the CEO is key for any aspiring CFOs.

CFOs play a crucial role in shaping the long-term business success of their organisation. ‘CFO’s have to be leaders and innovators, often blending internal and external factors into day-to-day decision making,’ Raj points out. Therefore an ability to think strategically, and through a long-term lens is highly important. You need to be ‘able to keep one foot in the present and one in the future’, as Alastair put it. ‘Guiding strategy and longer-range planning whilst delivering results today can be a balancing act - being able to sustain that is key.’

This is particularly crucial as CFOs help navigate their organisations through increasingly choppy waters. What are some of the biggest challenges facing CFOs in the HTL and Retail industry, leaving aside global geopolitical risks, change in governments and high funding costs? ‘I think the last few years starting with Covid have shown us that our business is much more volatile on a global scale than in the past,’ says Leanne. ‘Technology is changing how we do business and how we interact with our customers at a faster and faster pace.’

The rise of technology was a common theme within the thoughts of CFOs - ‘the variability in economic backdrop over the last couple of years has introduced more caution at a time when the rate of technological advancement is increasing,’ Selina points out.

Alastair pointed to the rapid development of AI to demonstrate ‘that everything moves very fast, and will only get faster – on top of that I’d say that Covid taught us our organisations, and economies, are more brittle than we’d ever imagined.’ CFOs, and those aspiring to reach that position, therefore ‘need to be on the front foot to embrace these challenges, and more importantly, opportunities,’ says Leanne. 

‘There is significant opportunity for the CFO to strategically innovate and bring new choices into Boardrooms,’ agrees Selina.

Finally, with CFOs playing such a crucial role in the directions organisations take, it is vital that diverse talent fills those roles and so reflects the varying needs and desires of customers. How best to ensure this happens? Getting the fundamentals right - pay equity, fair hiring practices, recognising and developing talent at all levels - is a starting point, as is ensuring that development practices meet the needs of everyone - ‘a one size fits all approach will not create a diverse pipeline of successors,’ Leanne highlights. ‘I’m also a firm believer in organisations like WiHTL & DiR, as well as internal Employee Business Networks, to help women and under-represented groups gain the support they need to excel.’

WiHTL & DiR’s Leadership Development Programmes can form a key part of this process.  From a CFO perspective, WiHTL & DiR’s Aspiring CFO in HTL and Retail Programme is tailored for Finance leaders in the HTL and Retail sectors who come from under-represented backgrounds. ‘The full breadth of the CFO remit was only evident when I was in the role,’ says Raj. ‘I wish in my time there had been access to courses such as the Aspiring CFO programme, as this provides a fantastic overview of the CFO role and its key responsibilities. It’s a real insight into the world of the CFO ahead of the role itself!

‘Supporting diverse talent through additional courses, mentoring and coaching in collaboration with organisations like WiHTL & DiR, and being an advocate and supporter internally is so important,’ adds Robert.

Proactivity is paramount. ‘Embrace and lead that cultural shift within your organisation towards proactive EDI planning and participation,’ says Alastair. ‘Put in place policies that go beyond dealing with active discrimination such as Diverse Candidate Slates which ensure representation through recruitment or flexible working that allows individuals to balance priorities through different life stages’ are just a few examples of what can be done.

It’s clear that CFOs face a whole range of challenges - but that has always been part of the job, says Robert. Ultimately, ‘that is what makes it such an exciting sector to work in.’

Thanks to our CFO Board members who contributed their insights to this article.

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