The following is a guest post from Eric Russell, CFO at Studio Enterprise. Opinions are the author’s own.
Stepping into the role of CFO is more than a career move — it’s a transformation. This role demands not only a firm grasp of financial principles but also the ability to shape an organization’s strategic trajectory. Yet, at its heart, succeeding as a CFO requires a balance between embracing one’s unique strengths, addressing organizational gaps, and maintaining a deep understanding of the business’s economic fundamentals.
When I reflect on my journey as a CFO, I realize that many of the most valuable lessons were not what I initially expected or did not manifest the way I expected. The typical advice — mastering compliance, managing risks, leadership and relationship development or good communication — is undeniably important.
However, what stands out to me now are the personal and unexpected learnings that shaped my approach to this role. These insights get into the mindset of what helped me be more effective as a CFO. Here are a few of those learnings.
Understand the full scope of financial leadership
While the responsibilities of a CFO are often described in terms of financial oversight, compliance and strategic planning, the true essence of the role lies in the approach you take to fulfilling these duties. Every organization expects its CFO to manage budgets, align financial strategies with company goals and mitigate risks. However, success is often determined by what isn’t explicitly stated in the job description.
The most impactful CFOs go beyond the technical requirements, focusing on the nuances of leadership, collaboration and adaptability. It’s about navigating the gray areas of the role — identifying unspoken expectations, building trust across the organization and ensuring that financial decisions are seamlessly integrated into the broader operational and strategic context. Understanding this dynamic is critical to thriving as a CFO.
Finding your niche and develop a team to support it
To excel as a CFO, it’s crucial to identify your unique strengths and build a framework that allows those strengths to shine. Are you an exceptional communicator, adept at fostering cross-departmental collaboration? Or perhaps your forte lies in analytics and problem-solving? Recognizing what brought you to the table and not losing the essence of that genius is important as so many other responsibilities come to bear.
The first CFO I worked for had a particular genius in communication but struggled with the nuances of analysis and information flow. That person needed to attract a team of independent, detail-oriented analysts who could provide critical insights, allowing him to focus on leveraging his communication skills to guide organizational strategy. Conversely, I’ve worked with a CFO who possessed a deep understanding of business operations and could translate those insights into profitability but needed a highly independent team to keep other responsibilities on task.
There is no single blueprint for a successful CFO. But staying true to the particular value add you bring while meeting all the needs of the organization similar challenge all CFOs face. Diluting time away from that value add is a surefire way to make your overall performance mediocre. Concentrating time on your value without adequately structuring your role to support all the responsibilities leads to the same mediocrity.
The CFO must deliberately and thoroughly map out where they need best spend their time and very deliberately and meticulously build support structures that allow that allocation while still adequately completing all other responsibilities. This is where good leadership development comes into play. It is not just about providing the elements of a good leader (insert usual and prosaic characteristics of good leadership), it is about ensuring that the team is capable of handling the tasks necessary for you to fill the role the best way you can.
Identifying and addressing organizational gaps
While the responsibilities of a CFO might be largely consistent across organizations, the needs for that role in each business are unique. To thrive, you must assess your organization’s specific challenges and proactively fill the gaps that hinder its success. Flexibility and adaptability are essential traits to navigate these unique challenges.
For example, if your company struggles with operational inefficiencies, consider how you can drive process improvements that benefit all stakeholders. Alternatively, if a lack of strategic direction is the primary issue, guide long-term planning initiatives. Or perhaps communications are sub-optimal and priorities unclear or objectives conflicting, find ways in planning processes to facilitate dialogue and collaboration to defuse conflicts and align teams toward shared goals.
Building strong relationships across departments is critical to identifying and addressing these gaps effectively. The purpose is not to step on toes but to approach each interaction with the mindset of “How can I help?” and to ensure that your help is perceived as genuine and valuable. Success isn’t about taking credit; it’s about making the organization more effective. When relationships are grounded in trust and mutual support, your colleagues will gravitate toward your assistance and insights.
Understanding business dynamics
At its essence, the CFO role is not just about understanding financial flows, it’s about understanding how the underlying business operations and structures impact those flows. The financial numbers are the observable universe, but the true drivers — the operational dynamics — are the laws governing that universe. To influence financial outcomes, you must impact the actual running of the business.
This requires a deep dive into operational mechanics. How does the supply chain impact cash flow? How do customer acquisition strategies translate into long-term profitability? These are the deeper questions a CFO must engage with to move beyond surface-level insights.
By embedding yourself in the operations and learning how different parts of the organization create and consume value, you can identify levers that truly affect financial outcomes. For example, rather than simply tracking expenses, analyze how workflow inefficiencies contribute to unnecessary costs and redesign processes to eliminate those inefficiencies. Leverage data analytics and technology not just to monitor metrics but to model and predict how changes in operations can ripple through to financial performance.
In my experience, the most impactful CFOs are those who understand that the numbers are a reflection of the business itself. To change the numbers, you have to change the business. This mindset fosters a level of strategic engagement that drives both immediate and long-term success.
Becoming a successful CFO involves more than mastering spreadsheets and compliance — it’s about shaping the financial and strategic future of your organization. By staying true to your unique strengths, proactively addressing organizational needs and continually deepening your understanding of business dynamics, you can navigate the complexities of this role with confidence and impact.
Remember, the journey of a CFO is as much about personal growth as it is about professional achievement. Embrace your niche, address gaps with precision and never lose sight of the operations that underpin your organization’s growth. These principles will not only guide your success but also ensure your legacy as a transformative leader.
