📬 On the Outside Looking In: Non-Traditional Paths to CFO

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Markus, a huge fan and weekly reader of SecretCFO from Tallinn, Estonia asked:

How do you deal with difficult people in a work context (which means you cannot walk away or simply ditch them off the boat)?

Thanks, Mark. Great question.

Dealing with tricky people is one of the key skills needed to be a great leader (especially a CFO).

John Doerr said leadership is ‘getting others to want to do, what must be done.’

So, first up, see this as a challenge to relish.

Don’t see it as having to deal with some a**hole from sales. Frame it as an opportunity to grow your skills in influencing difficult people.

Trust me, you will need it. You’d think once you get to CFO and you pick your team, all your people woes go away. They do not.

I have had to eat far more sh*t as a CFO than I ever did in middle management (investors, board members, banks, etc.). Rest assured you are developing a crucial skill.

So, reframing dealing with difficult people in your head makes it feel less painful. And a more worthy pursuit.

But how do you actually deal with these people?

Well, call me an idealist, but I prefer to think of a person’s behavior as being difficult, rather than the individual themselves. Anyone is capable of coming across as ‘difficult’ in certain conditions.

So start with empathy. Understand who you are talking to, what their motivations are, and why they might be behaving the way they are. The more you listen and put yourself in their shoes, the better you will understand where they’re coming from. You don’t have to agree. Just understand.

Once you understand, you can think about how you can frame what you want in a way that appeals to their motivation. If what drives them isn’t obvious, bring it back to time and/or money. Everyone wants more time and money. So show them how the thing you need them to do gives them extra minutes in the day or will help them of the business hit their targets.

There are, of course, more coercive methods too, but try the nice path first…

Chris from the Netherlands asked:

I have a nontraditional background (PhD bioscience) for a career in finance. Do you have any specific tips (other than getting a formal education, which I am studying for) to utilize this “outsider’s” perspective to the fullest?

First up Chris. Welcome to finance. Sounds like you’ll be considerably smarter than any of us… especially me.

That is both your strength and weakness.

It’s a strength in terms of your raw intellectual horsepower. Your reasoning and analytical ability. This will help you break problems down and approach them methodically.

But the watch-out is knowing when to use that. To the man with a hammer, every problem can look like a nail. The most common trait I’ve seen among successful businesses is the speed of execution. More so than the accuracy of decision-making.

The best execs are good at making roughly right decisions today, rather than perfect decisions in two weeks time. They also know when it is time to slow down for the more complex/important decisions.

You’ll need to learn that skill. It’s intuitive once you have experience, but it’s not innate.

Beyond that, try and get yourself into a role and sector where your experience has direct value. Biotech or healthtech would be obvious examples. And if it’s not necessarily the CFO path you are looking for, then an IB role covering the sector. Or even an early-stage investment fund could work.

Thanks for the question.

Asier from Spain asked:

I feel like I am at a crossroads in my career. I am 25 years old and I have been working as a Business Controller for a consultancy firm for the last 1.5 years. I liked it a lot when I started because I knew it was going to be educative for my finance prospects, but now I have doubts whether this job is going to prepare me for the future.

That is why I have been thinking about applying for an MSc in Finance. Which kind of MSc in Finance would you suggest to someone who sees their future both in financial markets and corporate finance? Do you think doing an MSc in Financial Markets would limit the ability to shift into corporate jobs? Thanks for your time and keep up the good work!

Hi Asier,

25 is kinda young for a crossroads.

Reminds me of the first time I heard ‘These Arms of Mine’ by Otis Redding. I assumed he was like some 50-year-old blues singer, soulfully belting out about heartache and loneliness. Then you hear he was only 20 years old when he wrote and recorded it.

My point? There’s no reason for you to be blue, Asier.

Sounds like you have had a nice start to your career, and done well to get experience in a business controlling role while you are young.

But it also sounds like you are unsure whether your future lies inside a business or an investment role. So progressing your development while keeping your options open is the most important thing for you right now.

The best way I can think of for you to do that is by studying for an MBA. Equally applicable to either a business role or IB/investment management side. It’s quite a commitment and expensive, but the evidence is that it pays back. Even still today.

There are roughly the same number of F500 CFOs with MBAs as there are with CPAs, so you’d be in good company.

Just make sure you keep stretching yourself, Asier. Thanks for the question.

PS - here is a link to Otis performing ‘These Arms of Mine’ for no reason other than it is wonderful:

Every week I’ll share a book I loved or found useful.

A few of the biggest stories that every CFO is paying close attention to. This is the section you probably don’t want to see your name in.

Starbucks taps Nordstrom’s Cathy Smith as CFO amid turnaround

Cathy Smith is a heavy hitter. She’s done stints at Walmart and Target before Nordstrom. But she’s got her biggest turnaround in front of her. She’s teaming up with new CEO (and frequent flyer) Brian Niccol to fix the Venti-sized sh*tshow at Starbucks.

KPMG’s US business removes diversity reports from its website after Trump onslaught

Annnnnd it’s gone. Just like that 3 out of the Big 4 have rolled back DEI initiatives. This has surprised me, even despite the political climate. The Big 4 have been pretty central in DEI leadership over the last five year. Not to mention the advisory fees they have earned from it.

PCAOB fines PwC Israel for test cheating

When will these accounting firms learn to be better at cheating just do the right thing? Seems like there is one of these stories every few months… they always make me chuckle.

ICYMI, some of my favorite finance/business social media posts from this week. In the words of Kendall Roy, “all bangers, all the time”:

… neither is your crypto.

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In case you missed it on Saturday, we got into how you should set the overall CapEx budget aka the Capex ‘Envelope’. You can read it here.

Disclaimer: I am not your accountant, tax advisor, lawyer, CFO, director, or friend. Well, maybe I’m your friend, but I am not any of those other things. Everything I publish represents my opinions only, not advice. Running the finances for a company is serious business, and you should take the proper advice you need.