The CFO Professional Designation: Paving the Path to the Executive Suite

I’m still thinking about it.  Why can’t the broader finance community come up with their own designation of sorts to distinguish those competent to hold the senior most financial position in an organization? We have designations for everything else!

Back in July, I first raised the idea and the world was so shocked by such a proposition, that they could do little more than hold their breath awaiting more detail (though other explanations are entirely possible).  So as to not repeat what I wrote then, but to bring you up to speed, I think it’s high time that there be a more formalized career track for those aspiring the the role of Chief Financial Officer.  Those so worthy would be designated with the initials “CFO,” which could stand for Certified Financial Officer.

Confusing you wonder?  Perhaps, but in other ways less so.  The CFO would go on the same line of your business card as your name; beside your MBA or CPA.  On the next line down, you might have CFO again, or spell it out to indicate your position.  But I think using the initials CFO immediately indicate that this individual is serious about a leadership role in and of finance.  For our discussion, you can use both the designation and the position synonymously as each is a representation of the other.

The next ingredient is agreement on what a CFO should embody.  There is no need to reinvent this wheel either as there is already plenty of research done on developing a competency map.  I’ve summarized a competency map for the CFO based on research conducted by Queen’s University, but I find it strikingly familiar to Deloitte’s Four Faces of Finance, which for all effective purposes says the same sort of things.  I’m sure there are others frameworks, so its only a matter of finding one and adopting it.

Next we need to develop a program.  Like many professional programs, and particularly those at senior levels, there needs to be a great deal of flexibility in how individuals go about developing these higher level competencies.  This is something I spend a lot of time thinking about. There is a point in everyone’s career where they aspire to the CFO position, but until they have done it once, they may not be sure they have all their bases covered.

So the program I have in mind would have three elements.

1. Professional development courses designed to address comprehension of specific knowledge of competencies in the competency map.
2. An integration program that uses cases and simulations to develop application level competency.
3. An experience element that demonstrates that you have not only understood it, you’ve done it.

So for instance, it should be relatively easy for an already senior financial person, say a controller, to achieve the Stewardship competencies, as these are the traditional competencies of finance.  However, it would be harder, but not impossible, for the controller to develop competencies as a Catalyst or Strategist. With a framework such as this in place, it would give that individual a career  development path for them to seek out professional learning and experience opportunities.

There aren’t a whole lot of CFO programs out there, and of those that exist, few follow a higher level framework like a competency map.  I’m sure of those programs that currently exist, many are wonderful programs in and of themselves. I’m not suggesting that these need to be changed or replaced.  In fact, with a little thought, each of these sorts of programs could be worked into the first two educational elements of the designation.

The third element is somewhat trickier to enforce and implement, but I think there are enough precedent approaches already developed by the existing professions that something could be developed to have candidates prove their experience credentials. Then a body of like-minded CFO folks can review these applications and begin handing out the designation.

Sounds simple enough, though I’m sure there are a thousand reasons why this hasn’t been done before now.  Maybe you will tell me why not.