Women in Finance: Paving the Path to CFO with Performance and Innovation

The journey to the Chief Financial Officer (CFO) seat is a noteworthy one, especially for women. According to a comprehensive global study conducted by OneStream, women take approximately three years longer to reach the CFO position and often follow a non-traditional career path. However, once they do arrive, their impact is profound, often driving substantial returns and leading in the adoption of new technologies like automation and artificial intelligence (AI).

Key Findings of the OneStream Study

The study included responses from over 1,100 finance leaders and professionals worldwide. One significant finding is the astounding 4.5% annualized return delivered to shareholders by firms led by women CFOs. Not only do these companies outperform industry benchmarks, but evidence also suggests a 10% performance enhancement for organizations appointing a woman CFO, reinforcing their effectiveness in leadership roles.

In terms of digital transformation, the study revealed that 83% of female CFOs believe automation, particularly AI, is paving the way for new expertise to enter finance leadership. This openness to innovation is complemented by 75% of women in finance who emphasize the importance of digital literacy and strategic leadership as vital skills for future CFO positions. Despite this, only 24% reported significantly relying on AI tools in their current roles, signaling a gap between the potential and actual use of technology in their work.

The Non-Linear Route and Its Impact

Interestingly, the study notes that women often take non-linear career paths, averaging 18 years to attain the CFO role in Global Fortune 500 companies and 20 years in FTSE 100 firms. This trajectory frequently involves changing roles and companies, with 35% showcasing a non-linear career background, which includes cross-functional experiences outside traditional finance roles. This diversified experience can enrich their perspectives, enabling them to manage financial strategies alongside people development, risk management, and cross-business collaboration, which are essential qualities of a modern CFO.

Skills That Define Tomorrow's CFO

The attributes of successful women CFOs include the alignment with leadership styles that prioritize financial governance, strategic planning, and team development. These leaders are categorized into personas such as The Strategic Architect, who balances finance planning with executive development, and The Financial Guardian, who emphasizes transparency and risk management – essential skills that today’s finance leaders must embody.

Moreover, women are stepping up in tech adoption; a significant majority acknowledges automation's role in reshaping finance roles. Nearly 70% identified tech as a means to equalize opportunities, highlighting the changing tide in traditionally male-dominated fields. Areas like data analytics and cybersecurity emerged as essential capabilities for the future CFO role, showcasing the evolving landscape.

Barriers to Advancement

Despite these promising insights, many women CFOs still encounter structural barriers that inhibit their rapid progression to leadership roles. Challenges such as organizational disruptions due to economic downturns, complex workplace politics, limited mentorship access, and the dichotomy of balancing professional and personal responsibilities remain pervasive obstacles. Addressing these issues is crucial for companies wishing to harness the full potential of their female leaders, as clearing the path to advancement could unlock significant business value.

The Value of Diversity in Finance Leadership

This study not only sheds light on the trails blazed by women in finance but also presents an urgent call to action. Firms that actively work to dismantle these barriers will reap rewards, including higher returns and a rich array of skillsets necessary for steering finance into the future. As organizations recognize the strengths that women bring to leadership positions, particularly in navigating complexity and fostering innovative environments, the importance of diversity in finance leadership cannot be overstated.

In conclusion, to delve deeper into the findings of this illuminating research, including ways to bridge the gap in AI adoption and promote female leaders, a complimentary copy of the report titled The Glass Chair can be accessed through OneStream’s website. As we move toward the future of finance leaders, empowering women CFOs stands to change the face of corporate governance and innovation fundamentally.