One of the aspects of being a CFO that is particularly rewarding is that a good CFO understands that his or her influence extends across the whole organisation. No other leader has the same umbrella view and touches all aspects in the same way.
During this video, experienced CFO Peter Walsh discusses the importance of confidence in an effective CFO and how to go about exhibiting this:
Like in any senior leadership role, confidence is a critical aspect of being a CFO. Individuals need confidence in their leaders to give them the space to excel. Organisations need confidence in their CFOs to know that they have a safe pair of hands.
Confidence is not about being a snappy dresser or making stirring speeches. It is being professional, consistent and being able to communicate effectively. Confidence is having an inner strength and an aura of certainty and conviction in what it is you are doing. It requires mental resilience.
It is also not about having all the answers. Often, it is knowing what questions to ask and acknowledging when additional help and expertise are required.
Confidence from leaders enhances productivity and corporate reputation. Stakeholders, internal and external, judge the financial security of a company by the confidence they have in the CFO. This is especially the case if a company is going through challenge and uncertainty, as so many are in the current climate.
How do I, a current or aspiring CFO, acquire and exhibit confidence?
- Don’t try to be something you are not. For example, one of the big misconceptions is that confident and effective leaders are extroverts. Consequently, many introverts act like they are extroverts to appear confident. Not only does this result in a lack of authenticity but it also negates the positive and powerful strengths that you, the introvert, naturally bring. Be yourself.
- Know your stuff (subject matter and audience) and be prepared, with data and evidence where possible. It is never a good idea, though, to fake it. If the Chairman asks you a question to which you do not have the answer, say so. Saying I do not have the answer, but I will find out and get back to you is infinitely better than trying to wing it. In fact, the Chairman in this example may well have an enhanced opinion of you as a result.
- Seek out feedback. This could be from colleagues, the CEO or Chairman. Negative feedback (constructive criticism), taken in the right way, is as important as positive. Take initiative in the form of coaching and mentoring.
- Failure is a key part of any journey – as long as it is accompanied by self-reflection and not self-recrimination. Ask any psychologist about the vast ocean between “I am bad” and “I did bad”. The latter can result in learning and growth whilst the former undermines the very confidence you are trying to grow.
Lastly, there are some inherent “agreements” that you can make with yourself that will go a very long way in both giving you confidence internally and in inspiring confidence in others.
The first of these is to communicate with integrity. Say what you mean. Never what you think someone wants to hear.
Secondly, try not to take anything too personally. Listen, reflect, learn and grow. Confidence will come.
Thirdly, be very careful of making assumptions. Have the courage to ask questions and try to avoid misunderstandings.
And lastly, always do your best – but know that your best today may be impacted by current circumstances and be different to your best tomorrow. Avoid self-judgement, self-abuse and regret. These only have damaging consequences for both you and your organization.
