Verified Document

CFO Due To The Increasingly Complex Nature Essay

CFO Due to the increasingly complex nature

Do you think finance departments are the best place to train future CEOs? Provide two actual examples of CFOs of publicly-traded companies who became CEOs of publicly-traded companies within the past 5 years. Do these individuals have the CPA and/or CFA designations?

CFOs are increasingly asked to engage in strategic planning for organizations, and to interact with other members of the managerial board in a meaningful fashion. According to Brewis (1999), "those who come from a purely accounting background are not generally expected to make such a speedy rise up the corporate ladder, but much has to do with the character of the individual and the mentoring system that the corporates provide." CFOs with an insufficiently broad perspective might simply focus on 'buying' solutions rather than engineering them through the careful and reasoned coordination of people and resources. CEOs must communicate well with members of the executive board and shareholders and provide a general vision for the company. While some CFOs are skilled enough to do so, others still remain locked in the comfort zone of their profession and focus simply on the financial data, not the more holistic needs of the organization (Picker 1989: 47).

Still, given the expanded role...

Good CFOs "need to have both general managerial experience and financial expertise, and must be able to represent the company to the capital markets, serve as a principal sounding board for the CEO and, oh, yes, ensure that the company stays on the right side of today's stringent accounting regulations" (Freedman 2003: 22). A CFO that shifts to the position of a CEO must also assume a different mindset than the one which he or she was accustomed to in his or her former capacity. CEO's "must tolerate ambiguity and intuitive decision-making...It's all about building teams, setting out a vision and demonstrating high energy and confidence. And there are specific responsibilities in sales and marketing" (Young 2012). In contrast, the CFO's love of structure and focus on results and processes rather than people can be an advantage in his or her more narrowly-based position.
The successful transformation of a CFO into a CEO is thus highly dependent upon the personality of the individual in question, and it is difficult to make a sweeping pronouncement one way or another as to whether such a development is salutary, by and large, for corporations as a whole. Also, some organizations show greater determination in…

Sources used in this document:
References

Brewis, J. (1999). How a CFO can graduate to CEO. Corporate Finance, (175), 13-13. Retrieved

from http://ezproxy.fiu.edu/login?url=http://search.proquest.com/docview/210152604?accountid=10901

Freedman, C. (2003). Not just bean counters anymore. Chief Executive, (189), 22-22. Retrieved

from http://ezproxy.fiu.edu/login?url=http://search.proquest.com/docview/212106954?accountid=10901
http://www.spencerstuart.com/research/cfo/1413/
http://online.wsj.com/article/SB10001424052748704013604576247630655985522.html
Retrieved from http://ezproxy.fiu.edu/login?url=http://search.proquest.com/docview/221517990?accountid=10901
http://www.cfo.com/article.cfm/14449005
http://www.cfoworld.co.uk/in-depth/people-management/3242026/forget-the-ceo-job/
Cite this Document:
Copy Bibliography Citation

Related Documents

Nature CFO's Do You Think Finance Departments
Words: 697 Length: 2 Document Type: Essay

Nature CFO's Do you think finance departments are the best place to train future CEOs? Provide two actual examples of CFOs of publicly-traded companies who became CEOs of publicly-traded companies within the past 5 years. Do these individuals have the CPA and/or CFA designations? The reason why the finance departments are such a good place to train CEOs is they are teaching them about: how effectively controlling costs are a major part

Company Boards Have Decided That
Words: 1475 Length: 4 Document Type: Term Paper

However, that does not mean that the COO, for instance, is much more suited for this kind of activities. Analytical skills and community involvement are also qualities that determine the success of a CEO. Executive officers need strong analytical skills in today's fast changing marketplace. The needs of many groups have to be addressed everyday, while the interests of the organization must also be fostered. A CEO, cannot appear distant,

Business Leaders Are Required to
Words: 3030 Length: 10 Document Type: Essay

Accounting Accounting professionals are not often thought of as leadership material, at least until they build a strong background in finance or another discipline. They possess valuable skills, but those skills are viewed more as a staff function, nice to have but not essential to developing competitive advantage and building shareholder value. The accounting skill sets include the ability to monitor and manage costs; in-depth knowledge of the regulatory environment; and the

Market Orientation of Medical Diagnostic Units Dissertation
Words: 21636 Length: 76 Document Type: Term Paper

Market Orientation of Medical Diagnostic Units Dissertation for Master of Health Administration i. Introduction ii. Objectives iii. Description iv Administrative Internship v. Scope and Approach vi. Growth vii. Methodology viii. Hypothesis ix. Survey Questionnaire x. Research Design xi. Observation and Data Presentation xii. Test provided xiii. Analysis of findings Marketability of Patient Satisfaction Importance of Employee Satisfaction xiv. Conclusions and Recommendations xv. Bibliography xvi. Notes xvii. Appendices Market Orientation of Medical Diagnostic Units

Finance Departments Are the Best Place to
Words: 650 Length: 2 Document Type: Essay

finance departments are the best place to train future CEOs? The finance department is one of the best places to train future CEOs. This is because the experience that they will receive will have an impact on their ability to deal with a host of challenges. At the same time, they are learning how to effectively work with others and coordinate with various departments. The combination of these factors is

Financial Managers and CEO's Play Important Roles
Words: 1164 Length: 4 Document Type: Term Paper

Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of patience and experience. The purpose of this discussion is to determine whether being a financial manager is the best preparation for later becoming a CEO. Role of the Financial Manager According to the Bureau of Labor, financial managers must have a bachelor's degree

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now