BEST PLACE TO TRAIN FUTURE CEO
In today's business world, it is becoming more and more common to find companies that are promoting their chief financial officers to become their companies' chief executive officer. There are pros and cons of hiring a CFO to be a CEO. The stability of the economy and stock market play a vital role in whether a chief financial officer will make a good chief executive officer. If the economy has slowed down and investors are worried about a companies stability and are taking less risks with their money, most investors will look for a company that has a good financial holding on things with a CEO who knows how to make money and reduce the companies debt, at the same time still making a profit where the investor will make money with little risk. On the other hand if the economy is booming and the market is good, you would not want a former chief financial officer in as the chief executive officer. The reason for this would be that you would want someone who has a vision and can see where the company needs to go, and how exactly the company works and what is the companies limitations by having the extreme knowledge of knowing first hand what each department does by either working in it or dealing with them in a day to day basis
" While most chief financial officers have top notch analytical skills, making the transition to becoming the chief executive officers has several leadership challenges. " With going on these conference calls and road shows the CFO is pretty much in a "train the trainer" situation, consistently learning from the CEO he is traveling with, being mentored constantly and also learning what mistakes not to make from the CEO. This requires the finance chief to not only be articulate on business and financial issues, but to have good presentation skills and to be quick on his or her feet. Indeed, some boards appear to be specifically seeking out experienced finance executives to help lead their companies in the post-Sarbanes-Oxley world. The business will lose out on mass gains and could fall way behind in the market. Some one who has not just been a "bean counter" their whole career is going to be a more well rounded leader and not worry about what the effects of what we are doing right now have on us financially but what we can do now to increase our earnings in the near or distant future. A company that grooms its personnel for the next position even if it never intends to promote will be the best place for a current CFO to become a future CEO. Though it is always a somewhat a gamble with investing, having someone that can maintain a company financially and keep accurate records of the companies day to day business is a priority. "Making the Leap from CFO to CEO", www. Some of those challenges being, having to develop strong interpersonal, leadership and communication skills. In conclusion, a CFO can make a great CEO if he comes from a finance department where the CFO has been a integral part of the company by not just being the head bean counter, but working with the CEO, giving briefs and traveling to all the different functions and meetings the CEO goes to, especially if the company has a great mentorship program. One of the cons to a CFO making the leap to CEO is, "There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things" This quote is over 500 years old and still is articulated as one of the perennial truths about leadership.
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