Maybe! Sometimes! Depends! Real definitive answers!!! Without any hard data, I suspect that this promotion path, CFO to CEO, occurs more often than it should. I know a lot of great CFO's, and I know of severalgreat CEO's that came up the CFO path. That's not the issue; I'm not being discriminatory. The issue is whether CFO's as a category wind up being favored more for the top spot. Is that true? Why would that be?
CFO's:
- have greater exposure to the board as they are in attendance at all board meetings
- by the nature of their position, have access to and instant recollection of the numbers of the business
- interact more frequently with the CEO than probably any other top-line manager
But a successful CEO must:
- be a leader of ideas, soliciting inputs, being open-minded, encouraging contrary thinking
- be able to think outside the box, keeping contrary and creative arguments going until a decision is reached
- be able to continuously detach himself from past decisions
- be a leader of people, persuading the organization to follow in lock-step
I hate to keep picking on General Motors; but their leadership legacy is laden with ex-CFO's, Roger Smith, Rick Wagoner. The company has had tunnel vision for decades; constantly doing the same thing and expecting different results. Is that a result of ex-CFO based leadership or a coincidence?
When you're picking your next CEO; certainly look at the CFO if his or her credentials merit the look, and if that's the case do put them on the list of finalists; but make sure their exposure, numerical knowledge, and proximity don't give them an inappropriate advantage in the selection process.
Do CFOs Really Make Good CEOs
Do you think finance departments are the best place to train future CEOs? the pros and cons of hiring a CFO to be CEO.
Posted by: Mike Gordon | September 20, 2010 at 08:23 AM