Leadership Q&A - A Bird's Eye View of Finance

What makes a finance leader stand out? Colleen Cunningham says people skills and integrity are solid fundamentals.

What makes a finance leader stand out? Business Finance editor in chief Laurie Brannen asked Colleen Cunningham, president and CEO of Financial Executives International (FEI), a global association for senior-level corporate finance executives based in Florham Park, N.J., to share her broad perspective. Cunningham is a former senior vice president and CFO, North America, of Havas Advertising, the fifth-largest advertising holding company in the world.

Laurie Brannen: As president and CEO of FEI, you're in a good position to observe the leadership skills of CFOs. Can you name some CFOs you've encountered who you believe are outstanding leaders and explain why you think they're successful?

Colleen Cunningham: I think Keith Sherin at General Electric has done an outstanding job of creating an organization that has a tremendous amount of depth. GE is known for its intensive training as well as providing operational experience for its finance department. Former CFO of Oracle Corp. Jeff Henley, who was promoted last year to chairman of Oracle, is another example of an outstanding CFO. He is a high-integrity individual and has been a tremendous spokesperson for the finance function. Both have the ability to deliver financial goals while recognizing the importance of investing in people.

LB: We're hearing more about CFOs being elevated to the CEO position. Why do you think that's happening, and what qualifies a CFO for the top job?

CC: Over the years, CFOs have become instrumental in strategy-setting along with the CEO, board and other company executives. More and more CFOs have operational experience. Additionally, as you all know, the internal control environment has become a large focus for companies.

Finance executives understand internal controls and are therefore taking a more prevalent role with the board, operations of the company and outside constituents in ensuring that all have a deep understanding of internal controls. The CFO is in the right spot to create a culture of accountability within the organization. I think it is a natural progression for CFOs to move to the CEO role.

LB: What do you think is the single biggest challenge facing CFOs today?

CC: Resources. CFOs have ever-expanding responsibilities, principally as a result of Sarbanes-Oxley. Ensuring that they have the right employee resources and are appropriately motivating those workers has become a top-of-mind issue for most CFOs. It is also vital that CFOs ensure that the company's systems and processes support a culture of accountability to support and motivate people -- making sure that employees feel connected to the strategy of the organization in a way that motivates them to do the right thing and is meaningful to them. A major part of the CFO role is the development of others. They need to surround themselves with top-notch performers.

LB: CFOs are often accused of focusing on the bottom line and failing to address employee bottom-line issues, such as morale, retention and development. How would you advise a CFO who lacks people skills?

CC: I don't know how a CFO who lacks people skills could possibly be effective in today's environment. It is vital that CFOs put appropriate development, training and motivation in place. I would advise them to get out and meet their people, understand their issues and what motivates them. Be visible and accessible. Communicate!