Photo by Adeolu Eletu on Unsplash
Each function within a business is unique. Similarly, the executives leading those functions are unique and bring particular skills and experience to their roles. No individual can be an expert at everything, and while a CXO might thrive in one situation, they might not be well suited for another.
At Bolster, we believe there are common types of leaders within a business function, whether marketing, finance, revenue, or product. We refer to these commonalities as CXO Archetypes. When we advise our clients on a search, archetypes are a useful tool to help identify the right talent for their needs.
While anyone at an executive level will bring a wealth of experience to their functional area, each person will have preferences, values, and deeper experience in certain areas and skills. Understanding where an executive excels within their function (their archetype), and knowing what type of functional leader your business needs, significantly increases your likelihood of making a successful hire.
In this series, we’re breaking down the most common archetypes of senior executives across marketing, finance, revenue, product, and people. In this post, we’re looking at three common archetypes of the Chief Financial Officer role, including what makes each unique, when your business might need that type of finance leader, and how to identify them when you’re hiring a CFO.
The Accountant
The Accountant CFO has a solid foundation in accounting, typically beginning their career at one of the Big 4 firms—EY, Deloitte, PwC, or KPMG—and accumulating significant experience and expertise during their tenure. Before ascending to the CFO title, they usually spend four to 10 years in controller roles, where they hone their skills in financial reporting, budgeting, and compliance. With CPA credentials, they bring a deep understanding of accounting principles and regulatory requirements, ensuring meticulous financial oversight and strategic fiscal management within their organizations.
When to Hire The Accountant:
A company should consider hiring an Accountant CFO when facing greater complexity in accounting and compliance relative to its peers. In particular, intricate financial regulations, diverse revenue streams, or international operations often demand rigorous oversight and precise reporting. Additionally, if the company is undergoing a significant cleanup in its accounting practices or compliance protocols, an Accountant CFO’s expertise can be invaluable. Their deep understanding of accounting standards and regulatory requirements ensures accurate financial records, mitigates risks of non-compliance, and establishes a solid foundation for future financial stability and growth.
How to Identify The Accountant:
To identify an Accountant CFO, look for candidates with a Certified Public Accountant (CPA) designation or past experience working for a reputable audit firm. These credentials demonstrate a strong foundation in financial principles and regulatory standards. Additionally, prioritize candidates with extensive experience in finance and accounting. This background ensures they possess the technical expertise required for meticulous financial management, compliance, and reporting. An ideal Accountant CFO will have a proven track record in overseeing complex accounting processes, ensuring accuracy and transparency, and maintaining rigorous adherence to financial regulations.
The Strategist
The Strategist CFO typically originates from a background in management consulting or investment banking, bringing a wealth of expertise in financial planning and analysis (FP&A), strategic planning, budgeting, reporting, and forecasting. Their approach is deeply rooted in analytics and metrics, enabling data-driven decision-making that supports long-term organizational goals. These CFOs are visionary leaders who excel at aligning financial strategies with broader business objectives, making them indispensable partners to the CEO. Their forward-thinking mindset and strong analytical capabilities position them as key drivers of organizational growth and sustainability.
When to Hire The Strategist:
A company should consider hiring a Strategist CFO in a growth stage, when it requires strategic financial leadership to effectively navigate expansion. This is especially important when the CEO and other executives need a collaborative partner to assist in making informed business decisions. A Strategist CFO brings a forward-thinking perspective and leverages financial insights to guide the company’s trajectory, identify growth opportunities, and optimize resource allocation. Their strategic acumen ensures that the company’s financial strategy aligns with the overall business objectives, driving sustainable growth and enhancing the company’s competitive advantage in the market.
How to Identify The Strategist:
To identify a Strategist CFO, seek candidates who hold an MBA or have experience in consulting or investment banking roles. These backgrounds indicate strong strategic thinking and a comprehensive understanding of business dynamics. Additionally, look for candidates who have advanced their careers through FP&A roles, demonstrating their ability to analyze financial data and support strategic decision-making. Experience in operational roles (such as COO) is also valuable, as it reflects a broader perspective and leadership capabilities. An ideal Strategist CFO will possess the strategic insight and leadership skills necessary to drive the company's growth and align financial strategies with overall business objectives.
The Deal Maker
The Deal Maker CFO comes from a robust background in investment banking or private equity, bringing a keen understanding of mergers and acquisitions (M&A), investor relations, and financial modeling. With extensive experience in corporate development, these CFOs excel at identifying and executing strategic deals that drive company growth and create value. Their deep expertise in navigating complex financial transactions, coupled with a strong network of industry contacts, enables them to effectively manage relationships with investors and stakeholders. This CFO is adept at leveraging financial opportunities to fuel expansion and enhance the company's market position.
When to Hire The Deal Maker:
Hiring a Deal Maker CFO is ideal when a company is preparing for an initial public offering (IPO) or when M&A are central to its near-term strategy. This is particularly crucial if the company is planning a roll-up strategy to consolidate multiple businesses and enhance its market position. A Deal Maker CFO brings extensive experience structuring and negotiating deals, and will ensure transactions are financially sound and strategically beneficial. Their expertise in capital markets and investor relations is invaluable during the IPO process, helping to maximize valuation and attract investors. This CFO archetype can adeptly navigate the complexities of M&A, driving growth through strategic acquisitions and ensuring seamless integration post-transaction.
How to Identify The Deal Maker:
To identify a Deal Maker CFO, look for candidates with past experience in an investment bank or substantial involvement in multiple business exits. These experiences highlight their proficiency in deal structuring, negotiation, and execution. Additionally, consider candidates who have held titles in Corporate Development, which can demonstrate their capability to drive strategic growth initiatives through mergers, acquisitions, and other transactions. An ideal Deal Maker CFO will possess a robust network of industry contacts, a deep understanding of capital markets, and a proven track record of successfully closing deals that enhance shareholder value and support the company's strategic objectives.
When it comes to hiring a Chief Financial Officer, it’s important to understand what your business needs most and align your search around the persona that most closely matches your needs. While you may find your ideal financial leader embodies aspects of multiple archetypes, this framework can be a useful tool as you prioritize your requirements and identify the types of candidates you most want to consider.
At Bolster, we’re reinventing executive search by combining the power of experienced recruiters with our intelligent sourcing platform. Built by entrepreneurs, for entrepreneurs, Bolster matches CEOs with transformational executives for full-time, fractional, and board roles—without the hassle of traditional talent sourcing. It’s smarter search done faster and with more confidence.
When you work with Bolster, our extraordinary team will work alongside you to make your search a success. We take the time to listen, understand, and respond to your needs, support you throughout your search, and offer our expertise as a resource.
Want to know more about what it’s like to work with us? Let us know what you’re looking for.
