In today’s corporate landscape, many ambitious CFOs find themselves aspiring to ascend to the coveted role of CEO. Transitioning from a role deeply rooted in finance to one requiring a holistic company-wide focus involves more than just a shift in responsibilities; it requires a fundamental change in mindset and skills.

Recently, I had the opportunity to sit in on a conversation between a retired CEO, who made the leap from CFO, and a current CFO on the verge of pursuing the CEO role. Their insights shed light on the path to the top and the challenges that come with it.

From Numbers to Strategy: Expanding Beyond Finance

One of the key takeaways from their conversation was that stepping into the CEO role demands more than expertise in finance. While a solid financial foundation is invaluable, the CEO’s responsibilities extend far beyond the balance sheet. As one of the retired CEOs emphasised, “You have to transition from being a numbers person to being a people person.” He added that the CEO is ultimately responsible for shaping and managing the culture of the organisation—an aspect often overlooked by those with purely financial backgrounds.

It was clear that success as a CEO involves mastering cross-organisational understanding and behavioural management. The shift from a role focused on managing financial performance to one that involves overseeing all business operations and inspiring a diverse range of departments is one of the most challenging aspects of the transition. The retired CEO pointed out that once in the top role, “The buck stops with you,” making it crucial for aspiring CEOs to develop a balanced approach between achieving results and managing people.

Fostering Organisational Culture and Leadership

The CFO-turned-CEO highlighted that his first order of business was to assess and foster the company’s culture. “It was my responsibility to define and drive the company’s culture from the top,” he explained. This involved setting clear performance goals but also ensuring that employees at every level of the organisation were aligned with the company’s values and objectives. Achieving the right balance between being results-driven and people-focused, he said, was essential for sustainable success.

This highlights a key distinction between the roles: while a CFO may focus on optimising numbers, a CEO must ensure the alignment of behaviours across the organisation, creating a coherent culture that drives performance. Building and maintaining this balance, along with a strong leadership presence, was described as fundamental to leading an organisation effectively.

Standing Out Among Your Peers: Making Yourself the Obvious Choice

One intriguing question during the discussion centred around how to manage the competition among peers for the CEO position. The advice given was straightforward: make yourself the obvious choice. The aspiring CEO was advised to analyse the current CEO’s role, identify gaps, and act early to address those areas. “Study the role, and take action before you’re even considered for it,” was the advice given.

The conversation revealed that those who struggle to transition often fail to step out of their comfort zone. The retired CEO remarked that his peers, who were equally competent financially, couldn’t move beyond their narrow focus, preventing them from adapting to the broader scope required of a CEO. He added, “It’s not that they couldn’t do it, it’s that they were not willing to embrace the challenges of stepping outside their previous experience.”

Lessons for Aspiring CFOs Aiming for the CEO Role

For CFOs looking to make the leap, several key takeaways emerged from this conversation:

  1. Develop a Broad Understanding of the Business: While financial acumen is crucial, a CEO must understand every aspect of the business. This includes operations, marketing, human resources, and more. Learning how all these parts interconnect is essential to leading the entire organisation effectively.
  2. Focus on Culture: Leading the company’s culture is as important as managing its financial health. A successful CEO ensures that employees are aligned with the company’s vision and that the culture promotes both productivity and employee satisfaction.
  3. Adopt a Strategic Mindset: CEOs need to think beyond the short-term gains that often define a CFO’s role. Visionary leadership and long-term planning are key characteristics that distinguish effective CEOs.
  4. Be Willing to Take Tough Decisions: A CEO must not shy away from hard decisions that ensure the long-term success of the company. Whether it’s reshaping teams or steering the company through tough times, the CEO must have the resilience to lead.
  5. Be Proactive in Filling the Gaps: Analyse the role you aspire to, identify gaps, and work on filling them long before you’re in the running for the position. Taking early initiative can position you as the obvious choice for leadership.

The CEO Role is Not for Everyone

Finally, it’s important to recognise that not every CFO is suited to becoming a CEO. As the retired CEO noted, “Not everyone is willing or able to take that next step.” The role demands an openness to change, a willingness to leave behind the comfort of past expertise, and a strong capacity for leadership across the organisation. For those up to the challenge, the rewards are not just financial but also personal and professional growth at the highest level.

The path from CFO to CEO is not easy, but for those who can master both the financial and leadership aspects of business, it can be a deeply rewarding journey. Make yourself the obvious choice by developing a broader business perspective, leading the company culture, and acting proactively to bridge any gaps in your experience.