Once upon a time, a CFO was seen as a company’s number cruncher - the risk-averse policy officer responsible for bookkeeping and cash flow. As the Australian Financial Review reports, the role of CFO has undergone a major transformation. The article, titled, ‘Beyond bean counting: the rise of the CFO’, says, “These days, the CFO role is about much more than the numbers. The modern-day CFO is likely to look over functions such as mergers and acquisitions, strategy and investor relations, in addition to risk management. Furthermore, he or she sits alongside the CEO, seeing everything that comes across their desk.”Working “hand in glove” with the CEO, modern CFOs “will be trying to deliver on the strategy. The good ones are helping to drive performance.”It is broadly known the breadth of a CFO role is larger than ever as they now split their time to include driving strategy, while also addressing budgeting and financial planning.Related:The 6 technical skills in finance needed to progress to CFOIt’s safe to say, the traditional path to CFO is no longer the only route. But what truly sets an aspiring CFO apart? Is it their educational background or their hands-on experience?As discussed in Robert Half’s fourth session of the Aspiring CFO Series, the answer is ‘both’. However, for those striving to land their first CFO role, the question of which carries more weight becomes blurry. To shed light on this important topic, Robert Half was fortunate to have three exceptional CFOs join the conversation. While all have reached the peak of their financial careers, their journeys have been diverse.Peter Massey (Ex-CEO, Calibre Group) is a qualified CPA, holding a double MBA from both the National University of Singapore and UCLA. He brings over 20 years of experience in the operations, maintenance, and infrastructure services industry across multiple sectors. He held several leadership roles across ANZ, Americas, and Asia, including the role of Calibre Group CFO and Company Secretary for nine years. Sarah Alder (CFO, Fetch TV) has 25 years of diverse senior experience in media and entertainment, financial services, and education. Having worked for the likes of Network 10 and Fox Sports, Sarah found herself as the CFO of Sky News Australia at the age of just 30. A firm believer in the power of experience and reputation, Sarah is proof that MBAs aren’t always essential when jumping to the executive level. Justin Sebire (Interim CEO, Cover-More Group) has 25 years of diverse insurance and financial leadership experience across the travel, health, life and general insurance sectors. His career has seen him hold international positions at Suncorp Group, Bupa Health Insurance, PricewaterhouseCoopers, Aviva and AXA. Justin recognises the value of pursuing an MBA or a master's degree to advance one’s career. However, he can also vouch for the power of short courses to pave an impressive path to CFO. Facilitating the discussion was John O’Leary (Director, Robert Half). With almost 15 years of extensive recruitment expertise, John specialises in delivering high-calibre senior interim finance resources. In his current role, John spearheads a dedicated team that provides temporary recruitment services to ensure the seamless day-to-day operations of finance functions and pivotal C-suite positions. As the panellists showed, there is no standard path to C-suite success. But, is experience more important than education? Join us as we unpack this dynamic debate, explore the importance of continuous learning and mentorship, and uncover the secrets to becoming a successful CFO.
“Is experience more important than education?” It’s the question on the lips of every aspiring CFO. Sure, education provides the technical knowledge necessary for understanding complex financial concepts, regulatory requirements, and strategic planning. Experience, however, provides real-world operational experience relating to financial principles, team management, and strategic decision-making.As John O’Leary says, “Education gets you the interview, but experience gets you the job.” Put simply, a proven track record of success is instrumental in opening the door to the C-suite. As John explained, the right balance of experience and education is key. “The ideal candidate possesses both the theoretical knowledge gained from formal education and the practical wisdom acquired through real-world experience. An MBA or similar qualification can provide a solid foundation and enhance your understanding of business concepts, but it's your ability to apply that knowledge in practical situations that truly sets you apart. Ultimately, experience trumps an MBA, but when combined, they form an unbeatable duo in the pursuit of a CFO position,” he said. A staunch believer in the power of practical experience, Sarah Alder believes it’s what earned her first CFO role. She says, “While my qualifications demonstrated my theoretical knowledge and commitment to the field, it was the real-world experience gained through various roles and challenges that ultimately convinced my employer of my ability to effectively lead a finance team and navigate complex business situations.”“I showcased my relevant experience, leaving no doubt in their minds about my capabilities, my operational experience, and my understanding of business issues,” she said. The panellists agreed that aspiring CFOs need exposure to diverse areas within the finance function to succeed in the role. As John explained, it’s real-world challenges that accelerate learning and development while boosting a candidate’s appeal. “A candidate with a stagnant career history, lacking in challenges and achievements, won't be as attractive as someone who has navigated complex situations and implemented successful solutions. For instance, an executive who has spent the last five years in a stable role at Lendlease, performing routine tasks without significant growth or involvement in major projects, will likely be less competitive than a candidate who has thrived in a high-powered environment, tackling a variety of challenges and driving tangible results,” he said. Sarah agreed, advising aspiring CFOs to develop a balanced scorecard of their experience to assess their strengths and identify development areas. She said, “When I transitioned to a GM of Finance role for a listed broadcaster, I knew the company was facing significant insolvency issues with a complex debt profile. This was a stark contrast to my experience at Sky News, which had consistently generated cash flow and reinvested profits for growth. Despite this, I strategically chose the role to gain exposure to a larger, ASX-listed company and develop my expertise in debt management and capital structures.”It cannot be argued that on-the-job, practical experience across different aspects of finance is crucial for developing a well-rounded CFO skill set.The panellists offered some important tips about how aspiring CFOs can do so: Justin Sebire emphasised the importance of “tackling multifaceted challenges that extend beyond one's area of expertise. True value is derived from collaborating across different functions within your organisation, not just within finance.”John suggested getting involved in "one-offs". He says, “These are one-time projects, such as ERP implementations, acquisitions, or integrations, that hold immense value due to their unique challenges and learning opportunities. Unlike recurring tasks like statutory tax, one-offs don't occur annually, making them instrumental in accelerating professional growth.”John cautioned against being lured by well-established brands and companies. He says, “While they might seem appealing, they may not offer the same level of challenge and development potential as a smaller, more dynamic business. Smaller companies, with their rapid growth and constant evolution, tend to offer a richer learning experience, albeit with potentially less established processes and infrastructure.”Peter Massey emphasised the value of divisional CFO roles. He said, “I earned my first divisional CFO role at Transfield, a company where I had already established myself over my 12-year tenure. The internal promotion demonstrated the company's confidence in my abilities and my knowledge of the business. The well-rounded skill set that I developed in this role was instrumental in my promotion to Group CFO at Transfield Canada.”One thing is certain, practical experience is sure to pay dividends.Related:How to build my personal brand to become CFO
Each panellist offered unique insights when asked, “Is experience more important than education?” However, one thing that could not be disputed was the statistics around how many current CFOs have a Master of Business Administration (MBA).The panel reviewed the top 200 ASX-listed CFOs from 2023, exploring the education details of 178 of them. The results showed: 127 were CA-qualified34 were CPA-qualified17 were not qualified accountants35 held MBA’sIn the context of listed businesses, the panellists shared some important insights and observations: The preference for Chartered Accountants (CA) in CFO roles is overwhelmingly high, likely reaching 90%. When looking at the current CFOs of ASX-listed businesses, about 75% of them are CAs. This inclination stems from the CA's strong background in investor relations and ASX external reporting - both critical skill sets for publicly traded companies. In commercial businesses, the preference for CAs is less pronounced, with only 20-30% of companies explicitly seeking this qualification. While it's a generalisation, it's often observed that the most sought-after talent gravitates towards the Big Four accounting firms to become chartered.Currently, 20% of ASX-listed CFOs have a CPA qualification. Ultimately, while the CA pathway might offer a more direct route to certain roles within listed companies, individual talent and capabilities can transcend qualifications, leading to diverse representation at the CFO level.Related: Are finance skills at the top of chief executive requirements?When asked about the benefits of formal education in building a solid foundation in finance, Justin recognised the value of pursuing an MBA or a master's degree. However, he cautioned professionals to be very clear about the reasons behind their formal education choices. He said, “Think very hard about why you’re pursuing this educational path, how it aligns with your career ambitions, and what you have to gain from something that may well be a significant undertaking, requiring substantial time and commitment.”Justin said, “I recognised that programs (like an MBA) demanded a substantial time investment that I couldn’t commit to. Pursuing a full online master's degree wasn't a realistic option, instead, I opted for a short course at Institut Européen d'Administration des Affaires (INSEAD). This provided me with another layer of credibility, addressing a strategy work gap in my resume and enhancing the quality of my CV with a prestigious brand name and qualification. The course certainly piqued the interest of Catholic Church Insurance during my CFO interview.” Justin also discussed how the guidance of mentors can impact education pathways. “A mentor once said that having the letters ‘CA’ after your name in a resume can be important in terms of getting your foot in the door for an interview. Ultimately, it’s what led me to pursue this qualification. My mentor then suggested completing the Company Director's course, to enhance my ability to effectively navigate board meetings and anticipate concerns. I followed this advice, completing the course and further enhancing my understanding of corporate governance.” Similarly, Peter’s formal education pathways were also influenced by senior colleagues. He recalled, “When I relocated to Philadelphia to take on the role of EVP Finance and CFO for North and South America, my CEO was very surprised that I didn’t hold an MBA. He was one of the first to highlight its significance in the American business landscape, particularly for securing executive positions. This was a major catalyst in my decision to pursue a unique Executive MBA that offered a double degree, linking the Anderson School of Management at UCLA in Los Angeles with the National University of Singapore.”Peter believes his MBA has had a profound impact on his career trajectory and his journey to CFO. “I’m often asked ‘is experience more important than education?’. What I know for sure, is that an MBA enriches everything from strategic thinking to problem-solving, networking to confidence. It forced me to confront the ‘unknown unknowns’ - the areas outside of finance where I felt less confident. The knowledge gained in areas beyond finance boosted my confidence as a leader, especially when I transitioned to the role of CEO for an ASX-listed company in 2016.” From a recruitment perspective, John agreed with Peter. He said, “Companies like accountants to have an MBA because it equips them with the ability to think outside the box, understand common business terminology, and provides a valuable platform for networking. These networks can be crucial for executives, offering access to specialised skills, references, and talent pools.”As all the panellists agreed, it’s important to acknowledge that learning doesn’t stop when you become CFO. As the role of finance professionals evolves, it’s more important than ever for CFOs (and aspiring CFOs) to stay ahead of the curve. Sarah believes some of the biggest learnings can happen outside of formal education. She says, “I encourage professionals to lean into diverse educational approaches at different stages of their career. It’s fundamental for keeping abreast of regulatory changes and industry developments. Some effective vehicles for continuous learning include roundtables hosted by specialised finance recruitment firms, ‘lunch and learn’ sessions on relevant topics, and free Zoom sessions offered by software companies. Don’t be afraid to seek out informal learning opportunities, such as networking breakfasts or collaboration projects with colleagues from different departments.” Justin echoed these sentiments and believes that learning should never cease, even after reaching the pinnacle of his career. “As a CFO, I constantly evaluate the most relevant educational pursuits for my role. I’m currently learning Spanish to better connect with a Latin American business unit. This is helping me to engage with the team on a more personal level,” he says. “Beyond language acquisition, I actively seek out information that can broaden my insights and expand my business contributions. It’s important for me to regularly consume relevant news, articles, and industry reports to stay abreast of trends and gather valuable knowledge.”
As some panellists emphasised, mentors were an integral part of their career journeys. In the case of Justin and Peter, mentors and advisors helped to inspire the educational pathways that accelerated their CFO trajectories. For Justin, it was important to have a mentor who led by example – someone who served as a muse for the kind of CFO he wanted to be. He said, “I looked up to Steve Johnson, CEO of Suncorp. He wasn't an accountant but he became CFO of Suncorp before he became CEO. He was the best person I've ever seen sitting in a meeting, who can cut through the arguments of two people and get to the core of the issue. And he did it eloquently, took the heat out of the debate, and brought everyone onside quickly. His background was actually in corporate affairs.”Justin said, “Education alone won’t make you a great leader. Putting theory into practice is the only way to excel as a CFO. Having a mentor who you respect and admire will help you to identify the skills, values, and behaviours needed to succeed.” In addition to mentors, Peter believes that solid networks are vital for CFOs and aspiring CFOs. He says, “Completing my MBA was a significant undertaking. I walked away with the credentials, but also a strong professional network. Ten years after completing the program, I still maintain regular contact with my classmates and lecturer. This global network of experienced professionals gives me a direct line to valuable expertise and support.” Professionals often ask, “Is experience more important than education?” While formal education and practical experience boast several unique benefits, it’s important to acknowledge the value of mentors and networks in any career path. As John says, “Mentors and networks are some of the best ways to complement education and experience. Mentors bring a wealth of experience and expertise that can help to shape your career path. Guidance from a mentor is simply invaluable, as is the support of a strong professional network. Don’t discount the importance of a trusted group of professionals who you can lean on for advice, information, and business opportunities.” Robert Half’s latest Aspiring CFO session offered important dialogue around the question, “Is experience more important than education?” As the panel noted, there is no one-size-fits-all approach to CFO success. Each individual's journey is unique, and the best path depends on their specific goals, interests, and constraints. Justin’s message to aspiring CFOs was to “tailor educational pursuits to your aspirations and create a personalised development plan that aligns with your unique career ambitions.” While the panel acknowledged the power of qualifications like an MBA, it was noted that a combination of education, experience, continuous learning, and mentorship is key. As John said, “Ultimately, the value of an MBA lies in its ability to complement practical experience, not replace it. An MBA might open doors, but demonstrating real-world accomplishments is essential for securing and retaining the CFO position.” The changing landscape of the CFO role requires adaptability and a willingness to learn and grow. The overarching recommendation for aspiring CFOs is to be proactive in your development and embrace diverse learning opportunities. Trusting in your unique path is pivotal – as Sarah says, “Sometimes you just have to back yourself. Be confident, be brave and go for it.”
What are the most important soft skills for a CFO?Effective communication Emotional intelligenceLeadership and managementStrategic visionAdaptability and agilityNegotiation and conflict resolutionCollaboration and teamworkTime management and organisationCritical thinkingHow can I develop my soft skills as a CFO?Regular self-assessment Seek constructive feedback Set specific, measurable Goals Engage in continuous learning Leverage mentorship and coaching Foster a culture of reflectionEvaluate and adapt How do I balance my technical and soft skills as a CFO?Recognise the value of both skill sets – Acknowledge that both are fundamental in your role. Look for opportunities to use both skill sets daily. Prioritise continuous learning – Commit to expanding both skill sets through courses, workshops, education, and personal development. Apply a holistic approach to decision-making – Leverage your technical skills to analyse data and leverage your soft skills to present the information to stakeholders. Delegate and collaborate – Know where your strengths lie and leverage team strengths.Set personal development goals – Identify specific soft skills and technical areas that require improvement. Set measurable goals to work towards. How can I use my soft skills to build stronger relationships with stakeholders?Leverage these soft skills to foster enduring relationships with stakeholders:Effective communication EmpathyEmotional intelligenceCollaboration and teamworkConflict resolutionLeadership and influenceTrust buildingRelationship managementAdaptability and flexibilityRecognition and appreciationHow can I use my soft skills to navigate difficult situations as a CFO?Maintain clear and transparent communicationPractise actively listening Demonstrate empathy Stay composed and exercise emotional intelligenceLead by example to foster a collaborative and solution-oriented environment. Employ conflict resolution skills and strategic decision-making to find mutually beneficial solutions
