Authentic Leadership and the CFO

There are many ways to lead an organisation and many different types of leaders. I’ve been fortunate to meet many CFOs throughout my recruitment career.  Those who have really stood out to me, are individuals who have a deep understanding of themselves, including their strengths, weaknesses, values, and emotions. They can reflect on their actions and motivations, which helps them make better decisions and relate to others more effectively.

This self-awareness is one of the core characteristics of ‘Authentic Leadership’.  These leaders are true to themselves and their values, leading with integrity and a deep sense of purpose.  Acting in the best interests of the people they lead, which then builds trust and naturally leads to stronger teams.

Becoming an authentic leader involves a journey of self-awareness, personal growth, and genuine connection with others. Authenticity is a quality that others must attribute to you and is largely defined by what other people see in you and, as such, can be largely controlled by you.  It’s not about being perfect, but rather about being genuine and sincere in your leadership approach. Research suggests that the following are core components to authentic leadership:

Transparency: Openly communicate financial data, including successes and challenges, to stakeholders. This transparency builds trust and credibility.

Integrity: Upholding ethical standards is paramount.

Empathy: Understand the concerns and needs of their team members.

Vision: The Finance Director plays a key role in developing and executing financial strategies that align with this vision, driving sustainable growth and success.

Accountability: Taking responsibility for actions and decisions.

Communication: Clear and open communication is essential for fostering trust and collaboration.

Development: Prioritise the growth and development of team members.

Adaptability: In a dynamic business environment, demonstrate flexibility and adaptability.

Resilience: Remain resilient in the face of challenges and setbacks.

Community Engagement:  Demonstrating a commitment to social impact and sustainability.

Authentic leadership is integral to the success of a CFO because it builds trust, enhances communication, fosters ethical decision-making, promotes employee engagement, enables resilience and adaptability, facilitates relationship building, and supports strategic leadership. By embodying authenticity, CFOs can effectively fulfil their responsibilities and contribute to the sustainable growth and prosperity of the organisation.