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Joining a company\u2019s executive committee is a significant milestone for senior leaders. However, CFOs cannot rely solely on their expertise if they want their voice to be effectively heard.<\/p>\n\n\n\n
Becoming a member of the executive committee is far from a trivial addition to a CFO\u2019s business card. It reflects the importance of the function they represent, on a par with the group\u2019s other key leadership roles. Yet joining this governing body is not a mere formality\u2014especially when it is their first experience in such a role. And still, the implications of this new status are sometimes underestimated.<\/p>\n\n\n\n
\u201cThis phenomenon is typical of expert roles,\u201d notes Anne-Laure Pams, Managing Director of the Leadership Advisory practice at Grant Alexander. \u201cWhen CFOs join a leadership body, their instinct is often to showcase their expertise above all else. But the executive committee is not just a collection of experts. Its members are expected to contribute to a collective reflection on the company\u2019s strategy.\u201d<\/p>\n\n\n\n
Within the executive committee, CFOs must learn to make decisions that may seem counterintuitive\u2014accepting riskier projects that may not be profitable in the short term, but could deliver value over the longer term.<\/p>\n\n\n\n
CFOs often continue to behave solely as finance leaders in front of their executive peers. \u201cEven if they represent a support function, they must understand that they are joining a new team and position themselves within a broader management role,\u201d continues Anne-Laure Pams. \u201cThat said, they are still expected to provide financial insight on the matters discussed before decisions are made.\u201d<\/p>\n\n\n\n
However, this input should not be perceived as a veto by their peers. Finance professionals may naturally be inclined to favor the most prudent approach from their standpoint, sometimes becoming overly resistant to innovative projects and quickly being seen as \u201cthe one who says no.\u201d<\/p>\n\n\n\n
\u201cProfessionals from finance\u2014as well as those from IT or R&D\u2014are exposed to a wide range of risks, which they are tasked with mitigating,\u201d emphasizes Anne-Laure Pams. \u201cWithin the executive committee, they must learn to make potentially counterintuitive choices, accepting projects that carry more risk and may not be immediately profitable, but will create value over time.\u201d<\/p>\n\n\n\n