APRIL 3, 2019
The Going Gets Tougher for CFOs
By Mark Loehrke, Editor, Financial Managers Society
Is the job of the CFO getting harder?
Plenty of bank and credit union finance heads would certainly agree that the role has evolved and become more complex than the days of strictly number-crunching, and now a recent study from KPMG backs up the notion that the expectations for CFOs today are indeed more demanding, as evidenced by several noteworthy numbers comparing the job of the present with that of the recent past:
• 40% of existing CFOs had “strategy experience” prior to taking the job, compared to 24% of former ones
• 36% of today’s CFOs had prior operating experience versus just 20% of past CFOs
• 55% of today’s CFOs hold MBA degrees, checking in 11 points higher than their predecessors
While these KPMG comparisons focused mainly on CFOs at technology and communications companies, it’s not a stretch to consider the findings across a broader array of industries, including banking. Because the underlying message is applicable regardless of the specific organization at hand – the broader one’s experience and the greater one’s ability to understand the business beyond the numbers, the greater his or her likelihood of success in the CFO position.