CFO Attributes That Win CEO Approval

Interviewed by Scott Carberry

Ryan Niemann is passionate about building executive teams that deliver results. For the past decade, he has led several private equity backed growth stage B2B companies, holding roles as CEO, Operating Partner, Board Member, and Chairman. Through these collective experiences, he has seen firsthand the impact of effective CFO leadership – and the qualities that distinguish the elite.

While the fundamental responsibilities of the CFO remain much the same today as when he first started shaping C-suite teams, the demands of the job have heightened, Ryan says. Today, CFOs are expected to not only be stewards of the finance function but to be strategic catalysts for growth.

As he further points out, CEOs depend on a more comprehensive skillset in CFOs today, from strong leadership qualities, with the ability to influence and shape strategy, to deep financial expertise.

In an environment where financial agility and foresight are crucial, Ryan lays out his ideas on the evolving role of the CFO as a business partner to the CEO and strategic driver of change.

Scott: Ryan, it has been a pleasure to observe your successes over the last decade, so thanks for sharing your experience with us. As you reflect on the many CFOs you’ve encountered and today’s business environment, which characteristics do you value most in today’s financial leader?

Ryan: Of course. It’s been a privilege to engage with some incredible CFOs throughout my career, especially as CEO of two PE-backed companies, and as an Operating Partner with two funds.

The strongest CFOs are strategic thinkers, collaborative leaders, and effective communicators. Naturally, they must also bring that strong foundation of financial expertise and further data-driven decision-making for companies.

The strongest CFOs are strategic thinkers, collaborative leaders, and effective communicators.

I also really value those who are adaptable and proactive in driving change, while being persistent about keeping financial strategies aligned against the goals and vision we set out to achieve together. Effective collaboration across the C-suite is essential.

It is by exemplifying these qualities that CFOs effectively contribute to value creation – and unlock their full potential, particularly within PE environments.

Scott: As you think of the CFO of the future, let’s say over the next 5 to 10 years, how do you expect the role to evolve?

Ryan: I believe the role will continuously change to match the ever-shifting business environment. This will largely be driven by technological advancements, changes in strategy, and realignment of stakeholder values and expectations.

To succeed, like every leader, CFOs must constantly learn and adapt. They’ll need to get better and better at setting strategic vision, be more proficient with technology, improve their influence and collaboration, and remain focused on environmental, social, and governance considerations.

I think the ability to drive data analytics companywide and improve decision-making will also be paramount. The CFO of the future will not only need to generate insights that influence performance, but also influence strategic direction and risk management.

The CFO of the future will not only need to generate insights that influence performance, but also influence strategic direction and risk management.

Scott: The CEO and CFO partnership is critical to achieve strategic objectives. Which KPIs should CFOs focus on to ensure organizational alignment?

Ryan: Bottom line, a CFO must focus on key KPIs like revenue growth, EBITDA, and operating cash flow to keep the company on track with its strategic goals. However, the true potential for incremental improvement lies in identifying and tracking KPIs that support defining objectives aimed at transforming and improving operations.

By zeroing in on these essential KPIs, CFOs can propel operational improvements and champion a culture of data-driven decision-making.

Consistent collaboration with peers in the C-suite and middle management ensures these KPIs stay relevant and capture companywide performance, paving the way for sustained growth and success.

Scott: As CEO, what are your expectations regarding the CFO’s involvement in decision-making and, ultimately, in influencing strategic direction?

Ryan: I believe the CFO should be highly involved. Being at the helm of the finance function, the CFO must drive data-driven decisions, manage risks, and optimize resource allocation. CFOs must lead the charge in fiscal planning, continuously refining their strategies with insights from other C-suite executives to coincide with overarching strategic objectives.

Additionally, I expect the CFO to help shape the company’s strategic trajectory and ensure its long-term success, again working in close collaboration with other senior leaders. Their leadership should help unite the organization around our shared vision, making financial planning dynamic and responsive to the ever-changing business landscape.

Scott: Earlier this year, you successfully navigated an exit, a process that is both lengthy and challenging. What qualities do you find to be even more important in CFOs to drive success in such a scenario?

Ryan: With late nights, early mornings, and weekend work, the exit process can be exhausting, in addition to operating the business and facing unforeseen challenges that arise. CFOs need determination and grit.

CFOs need determination and grit.

Building trust and fostering team reliance with the CFO is crucial. It's essential for CFOs to cultivate strong strategic relationships across the executive leadership team and with the Board.

As pressure mounts on everyone involved, trust becomes the cornerstone of true teamwork, paving the way for successful outcomes, and the CFO, as a key stakeholder, must be someone the team, especially the CEO, can depend on.