While the demands placed on the finance function seem to be increasing all the time, above all else Board members will tell you they want a sense of trust and confidence in the CFO that the basics around financial risk are being carefully managed.
 

Rita Clifton, Chair at Simplyhealth and a Board Mentor with Criticaleye, said: “The finance function is the one that touches everything. The truth shows up in the finance function. Therefore, you want to have a CFO who provides a reassuring presence in the Boardroom, that the right teams are in place to look after all aspects of the money and reporting, to make sure there's active management of risk and compliance, to have done the broader thinking about financial strategy. And often, the critical transformation agenda.”
 

Open discussion in the Boardroom is essential. Rita explained: “I want a CFO who's able to be honest in front of their CEO. That requires not only a good strategic brain, but also someone who is capable of handling conflict and capable of handling themselves. The CFO should act as a complement and counterweight to the CEO when needed.”
 

For less experienced CFOs, the prospect of confronting the CEO may feel uncomfortable. However, for Gregor Alexander, Chair of Aurora Utilities and former CFO of SSE, it’s imperative. “For a Group Finance head, having the confidence and the conviction to challenge the CEO or maybe other stakeholders … is non-negotiable. If you're not challenging [when you disagree on something], you're not being true to yourself, and you shouldn't be in the job with your ethical responsibilities as a Chartered Accountant.”
 

When the partnership is well aligned and supported by an able Chair, the rewards become clear. Michael Tyroller, a Partner and Managing Director at AlixPartners, reiterated this point: “The CFO should act as the counterweight to the CEO, they should work close together but also balance each other. I think this is the core part. They have different perspectives and responsibilities, but a common goal; to make the company successful going forward. I like to call the CFO a strategic copilot to the CEO.”
 

Despite needing to keep a tight grip on spending and other financial-related risk, there is ever greater desire for more commercially minded CFOs at present, according to Andrew Evans, co-founder and CEO of fast-growing, private equity-backed pension platform Smart Pension. He said: “What am I looking for [in a CFO]? Professionalism, discipline, credibility and building a strong team are [a] given. But over and above that, [I’m looking for] a PE-focused mindset around funding and EV [enterprise value] and optimising existing markets.

“[CFOs are] the sounding board for whether or not some of the aspirational plans … can be met,” Andrew continued. “Part of the role is to be, if not risk averse, more able to articulate the risks, both upside and downside, based on data.”
 

Clearly, it’s no longer just about high-quality reporting and governance. The modern CFO needs to focus on ‘lead indicators’ as well as ‘lag indicators’, according to Rita. “I think the old view of the CFO role was to focus on the lag because you're reporting on the money and you're thinking about the financial outcomes. But the third leg of that is you've got to be very confident in the lead indicators that enable you to make better strategic judgments. Examples of those lead indicators are NPS [net promoter score], customer satisfaction and innovation, as well as internal culture.”
 

This comment alludes to the breadth of the role, with the head of the finance function sitting horizontally across the entire organisation and therefore finding themselves increasingly pulled into new orbits, such as sustainability, legal and other big non-operational areas.
 

Criticaleye’s CFO Lead and Account Manager, Neya Patel, also recognised the expanding responsibilities of the finance head: “Clearly, the CFO’s to-do list continues to grow. Not only is financial strategy becoming more complicated in the current market, but Heads of Finance are also being asked to give reassurance around a plethora of issues, from cyber security to ESG and even talent and workforce matters.”
 

The requirements of the role have shifted dramatically during the two decades that Gregor held the CFO position at SSE for, until his retirement from executive life in 2024. However, he summarised: “To be a high-performing CFO, you’ve got to live and breathe the business. Know the people. Know what drives the business forward. If you’re not aligned with [the] CEO, then you tend to get problems. So having a good team at C-suite level and then having a good finance team is critical. You’re only as good as the people that work for you.”


Jacob Ambrose Willson, Senior Editor, Criticaleye