Your CFO Sees Your Dysfunction: Are You Letting Them Speak?

Forbes

2 days ago

In most companies, the Chief Financial Officer is the steward of budgets, forecasts, and financial reporting. They keep the numbers clean, manage investor expectations, and ensure regulatory compliance. In short, they keep the lights on and the trains running on time.
But the financial insights that make this work possible can also uncover deeper problems and solutions. CFO's have an intimate understanding of the organization that can be both granular and strategic. Not only do the numbers tell a story, but the process of collecting all that data provides the CFO with a unique insight into each department and each leader. CFO's are often the first to know when there is a problem in the organization. I've worked with CFOs who've identified everything from leadership accountability gaps to misaligned organizational culture. The question is: how often is the CFO empowered to speak up or act when they detect such issues?
The Evolving CFO Landscape
According to McKinsey's latest CFO pulse survey (July 2024), 55% of CFOs now say that long-term planning and resource allocation is a top priority for finance, up dramatically from 30% in the previous year. Additionally, 60% of CFOs cite strategic planning as a top priority, versus just 38% in 2023.
This shift comes at a critical time. The Russell Reynolds Global CFO Turnover Index (March 2025) reveals that global CFO turnover reached 15.1% in 2024, just below the record 16.2% seen in 2023. For S&P 500 companies specifically, turnover hit a six-year high of 17.8%.
Connecting the Dots: How to Unlock Strategic Value
When a department consistently goes over budget without delivering proportional results, that's not just a financial problem. When travel expenses spike in one division while collaboration metrics remain flat, that's an operational intelligence goldmine. When project timelines correlate directly with budget overruns in specific teams, that's leadership data worth exploring.
To harness these insights systematically, organizations must redefine the CFO role beyond technical expertise and help CFOs transition from technical specialists to strategic advisors. Research from Deloitte's CFO Insights confirms that many CFOs feel they have to earn a seat at the table when strategy is under discussion. Executives on the path towards becoming CFO often overlook the importance of learning proactive leadership skills, focusing more on the analytical aspects of the job. When opportunities arise to put their knowledge to use in impacting strategy, they hold back. Smart CEOs proactively invite CFOs into strategic discussions from the start.
Next, foster open strategic dialogue when talking about the numbers. Don't ignore department heads' defensive responses to financial insights. Rather, actively create an environment where CFOs can raise questions about operational patterns without being told they're "overstepping."
As I've written about previously, psychological safety is crucial for organizational effectiveness, and this principle extends directly to executive team dynamics. Actively solicit your CFOs' observations and use them as starting points for deeper strategic conversations.
Why This Matters More Than Ever
I've written extensively about how organizational culture can make or break strategic initiatives. For CEOs, a truth-telling partner who can connect financial outcomes to organizational behavior is an invaluable ally in this domain.
Consider this: while HR might report that employee engagement is up, the CFO might notice that productivity-adjusted compensation costs are rising. While operations reports that processes are streamlined, the CFO might see that vendor management costs have actually increased. These aren't contradictions to be dismissed; they're data points that reveal the complete picture of organizational health.
The stakes are particularly high given current market conditions. According to the Russell Reynolds data, average CFO tenure dropped to 5.8 years in 2024, down from 6.2 years in 2023. In the first half of 2024, tenure hit a five-year low of 5.7 years. Most concerning is that 54% of outgoing CFOs retired or moved exclusively to board roles, up from previous years, with the average retirement age falling to 56.6 years old, the lowest in six years.
This turnover represents lost institutional knowledge and disrupted strategic partnerships precisely when organizations need stability most. Notably, certain sectors face even greater challenges, with healthcare CFO turnover reaching 22% in 2024 and technology sector turnover hitting 15.2%, a five-year high.
A Practical Framework for Strategic Partnership
To activate your CFO as a strategic partner, start by asking different questions. Instead of just "Are we on budget?" try asking "What do our spending patterns reveal about team effectiveness?" or "Where do you see financial indicators that don't align with our operational reports?" or "How can financial data help us anticipate market shifts?"
Because of their core duties, your CFO may be better informed than others on competition and market trends. This privileged position requires moving beyond technical analysis to connect financial data with organizational behavior.
Modern CFOs are also embracing technology to enhance their strategic value. According to PwC's CFO insights, 58% of CFOs are investing in AI to drive real-time forecasting and smarter planning. This technological capability enables CFOs to move from historical reporting to predictive analytics.
Building trust through consistent transparency is essential. The CFO requires permission from the CEO to challenge business-unit leaders and their strategies. The CEO-CFO relationship must be built on mutual respect and psychological safety, where tough questions are welcomed rather than avoided. This isn't just about being nice; it's about creating the conditions where strategic insights can emerge.
Looking Ahead
The CFO should be one of the CEO's most trusted advisors, not just on financial health, but on overall organizational performance. Today's CFO is a key colleague across businesses and functions, and is the CEO's strategic partner in maximizing value creation.
As we look to the future, successful organizations will be those that recognize the CFO as a strategic thought partner, not just a numbers expert. They will create environments where financial insights drive operational improvements and invest in the tools and talent that enable predictive, not just historical, analysis. Most importantly, they will build executive teams where challenging the status quo is encouraged.
In my experience coaching executives through complex organizational challenges, I've consistently seen that the most successful leaders are those who leverage every available source of insight. Numbers don't lie. But too often, we don't ask them the right questions—or give the right people permission to speak up about what they see.
The organizations that thrive in tomorrow's complex business environment will be those that unlock the full strategic potential of their CFOs today. The question isn't whether your CFO can be a strategic partner; it's whether you're creating the conditions for them to succeed in that role.