1. Build: Broaden functional expertise
Many companies start by identifying skill gaps within their finance organization. They then work with high performers to target meaningful assignments that both address the organization’s unmet need and provide top talent with meaningful development opportunities. In some cases, companies have identified existing roles within the finance function that can facilitate this; we have also seen companies combine existing roles or create new positions.
An interesting trend: While the technical controllership skillset has historically been the common route up to CFO, the range of potential paths has widened. In fact, at some leading “academy organizations” — best-in-class finance training grounds — the controller role has become a rotational development opportunity for individuals without a CPA or deep technical accounting background.
We believe that top companies are becoming bolder about their internal rotations within finance, moving more promising talent into developmental roles where they are unproven.
2. Connect: Expand and enhance relationships externally
Exposure to and experience with key stakeholders enhance visibility and build a stronger external perspective for internal talent. These opportunities include chances to engage with the board, investment community, banks, rating agencies and other important external stakeholders.
For example, while a minority of F500 CFOs have come up the treasury route, many academy organizations use the treasury seat as a part of a rotation where top performers can gain valuable exposure to financial counterparties and other external stakeholders. The same stands for investor relations.
Additionally, we have seen top organizations leverage external networking and development programs to get finance leaders more visibility and perspective.
3. Operate: Broaden into different areas of the business
Operational assignments are invaluable for enabling budding CFO candidates to gain a more comprehensive understanding of the organization beyond finance. Not only is this a critical element of becoming a finance leader in the interconnected ecosystem of a Fortune 500 company, but it could also prove a key step on the CEO career path as well.
As of 2024, one-third of Fortune 500 CFOs had previously held an operations or general management-type role.
4. Innovate: Champion growth and transformation through vision for the future
Assignments at the forefront of digital transformation, AI initiatives and the company’s broader innovation agenda offer valuable learning opportunities for finance leaders. Further, this kind of work can highlight the strategic importance of finance in driving organizational evolution.
In some cases, we find top organizations identifying transformation officer roles for potential CFOs — either focused on finance transformation or end-to-end transformation across the enterprise, focused on automating, digitizing, modernizing and transforming processes and systems. These types of roles can be established for a set term with some concrete time-boxed objectives, often technology oriented.
“CFO ready”: Creating deputy roles
In academy organizations with strong succession and development planning processes, where many internal leaders may be “CFO ready,” but upward mobility is limited by established leadership, we’ve seen in recent years a trend to create “deputy CFO” positions with added prominence and duties. It shows the internal candidate that they are indeed valued, even if their path to the top role is, for the moment, blocked, and it also allows room to layer multiple functions underneath them.
While this has proven effective in some cases, we have also seen cases where these individuals have become even more marketable externally—and thus are more actively recruited for external CFO roles.
Embracing a holistic CFO succession strategy
Creating roles that transcend traditional expectations can be helpful for both preparing internal candidates for leadership and for successfully landing top external talent. Our work with leading firms has shown how a holistic approach to CFO succession — addressing not just immediate organizational needs but also long-term strategic objectives with careful planning and strategic foresight — can position companies for a legacy of resilience, adaptability and transformative growth.