In recent years, CFOs have moved beyond simply holding the financial reins of their organisations to play a significant part in strategic decision-making. So it’s perhaps not surprising that financial professionals in many parts of the world now see the role as a stepping stone to the top echelons of an organisation, CEO and MD.
Victoria Ajayi FCCA, group MD and CEO of Nigerian media company TVC Communications, chose this route and sees the move as a ‘natural progression’.
‘Finance is the lifeblood of any organisation,’ she says, ‘so if you’re the number-one person in finance, you’re already at a vantage point.’
‘I need to take decisions not just on finance but on every aspect of the company’
Earlier this year, Ajayi stepped up to the top job from the deputy CFO position. The board believed that her knowledge of the media industry, combined with her analytical, strategic and leadership skills, made her the best person to lead the business.
Wide remit
What Ajayi enjoys about the role is the breadth of responsibility. ‘I need to take decisions not just on finance but on every aspect of the company,’ she explains. She’s also conscious of the influence that comes with heading up a media company. ‘As a broadcaster, you cannot be partisan,’ she says, ‘so it’s a balancing act every single day. That’s what makes it exciting. It’s not just straight numbers.’
Inevitably, there are challenges with leading a business, particularly in the fast-paced, 24/7 world of the media. ‘It’s hard to sleep when you have people everywhere trying to extract stories for the nation,’ she admits. She also travels much more than she did in her previous role and constantly monitors TVC’s television channels and radio stations, saying: ‘I don’t want to miss anything.’
Shifting mindset
For Raphael Lekolool FCCA, MD of Postbank Kenya, the stepping stone to his current role was not via the CFO route but senior positions in internal audit. He argues that internal audit brings great exposure to ‘all corners and all aspects of the business’, which is invaluable for an MD.
‘When you step up as an MD, you’ve got to motivate people to produce results’
Nevertheless, he notes that moving to the number-one role can require internal auditors to shift their mindset. ‘You’re moving from taking care of the numbers and advising somebody, to being the one receiving the advice and making the decisions,’ he explains.
Finance professionals who assume the MD role have the great advantage of being able to interpret the company’s numbers. ‘Since you are already comfortable with the numbers, it’s easier to understand why they are the way they are, and what they mean,’ Lekolool says.
Lekolool enjoys the strategic, forward-looking aspects of being an MD. He likes to consider how he can lead his business to success by understanding industry trends, consumer preferences, technological advances and opportunities for workforce engagement.
The shift invariably demands new skills, however. ‘When you step up as an MD, you’ve got to motivate the people in your institution to produce results,’ Lekolool says. ‘You need to be aware of your surroundings and know what you need to do with your people.’
Team player
Faith Mukutu FCCA, CEO of Zambeef Products, held senior finance roles in a number of multinational companies before transitioning from CFO to her current role at Zambia’s largest agribusiness company. Impressed by her in-depth knowledge of the complex business and its operations, the board asked her to take the top job in 2022 as part of a major restructuring of the organisation.
‘If you have the right people, it is much easier to deliver on your mandate’
While knowing that ‘the buck stops with the CEO’, Mukutu believes that having the right people is critical to success. ‘Talent is key,’ she says. ‘If you have the right people, it is much, much easier to deliver on your mandate, because no one person is a repository of knowledge on their own. Since my appointment I have ensured that I am supported by a brilliant team, expert leaders in the functions they operate.’
Mukutu emphasises the huge pressures, demands and responsibilities that come with the CEO role. ‘I am constantly assessing the business environment, evaluating the risks, and weighing the pros and cons of the decisions to be taken and the impact these will have on the business,’ she explains. ‘It can be lonely, especially when tough decisions have to be taken, but that’s what the role entails,’ she adds.
That said, she’s clear that being the boss brings plenty of job satisfaction – in her case, Zambeef’s positive impact on livelihoods and its contribution to feeding the nation. ‘When you go for a CEO role, make sure it’s in a business that ignites your passion,’ she advises.
Secrets to success
So, how can CFOs set themselves up to succeed in these high-powered jobs? Lekolool says it is key to read widely and to develop leadership skills, including the ability to craft and communicate a vision as well as coach and motivate staff. Emotional intelligence, empathy and listening skills are also vital.
‘If you understand the operational value chain, it will be easier to step up’
‘Take a keen interest in operations,’ is Mukutu’s recommendation. ‘A CFO will tend to centre around numbers, but if you understand the full operational value chain, it will be easier to transition into the next role.’
Ajayi believes it’s crucial to have market and industry knowledge and to build relationships with the organisation’s key stakeholders, from customers through to regulators. She also urges CFOs seeking to move up to believe in their own ability to thrive in the top job and focus on developing any skills they may currently lack.
‘Your analytical rigour and financial acumen will make you stand out from others,’ she concludes. ‘Finance is the icing on the cake.’
