Supply chain management is increasingly recognized as a central driver of business profitability. Because of this, many companies are promoting supply chain managers to the position of chief financial officer (CFO). The finance and management experience you gain by working in supply chain management is an excellent qualification for a CFO career path.
Not every supply chain manager has the ability to fill the CFO role. A chief financial officer needs to be adept not only at accounting and financial reporting but also possess superior leadership and communication skills. Fortunately, these skills can be learned. Supply chain managers who want to pursue a CFO career path often seek out extra training and advanced degrees to help hone the skills needed for C-suite success.
The CFO career path
A day in the life of a CFO usually entails wearing many different hats. You might review financial reporting documents, work on financial projections, and meet with the chief executive officer and other top management to brainstorm a five-year plan for the company. In your CFO role, you may analyze accounting and finance reports to create forecasts for the next quarter or fiscal year. You could be asked to weigh in on the advisability of a financial decision based on the company’s assets, balance sheet, and projected income. As a top financial officer, you will also be responsible for making sure that your company is current with tax filings.
The chief financial officer is part of the decision-making team that determines how much to spend on research and development for new products. In the CFO role, you might be tasked with seeking outside investment and communicating with current and potential investors.
The CFO role also includes managing the finance team. Your job is to support the people who support you by making sure they have the resources and information they need to do their work. The reporting and planning that you need to do as CFO can’t happen without support from your staff.
The chief financial officer is expected to attend meetings of the Board of Directors. The directors will look to you for information and guidance about the company’s financial and supply chain health as they make decisions about the future direction of the organization. You’ll also draft the annual budget for the board to review.
Because of these and other significant responsibilities of CFOs, the CFO career path is highly compensated. The Bureau of Labor Statistics (BLS) Occupational Outlook Handbook shows continued growth in top executive positions such as chief financial officer. Median pay according to BLS is over $100,000 per year. The BLS Handbook data finds that most people in executive positions have at least a bachelor’s degree and 15 years of experience in their field.
A search on Glassdoor for CFO jobs yielded a starting salary range of up to $243,600. In addition to Chief Financial Officer, job titles included Revenue Cycle Manager, Senior Vice President of Finance, and Division CFO. Some companies were seeking a candidate who could fill more than one role. In combination with the CFO role, job listings included other executive titles, such as Treasurer and Chief Executive Officer.
Steps on the supply chain management CFO career path
A traditional path to the role of CFO is through finance positions. Some candidates get an MBA degree or study to become licensed as a certified public accountant. On the career ladder to the CFO role, some people take jobs as corporate controllers or treasurers.
However, companies today are looking for CFOs with backgrounds that include more than accounting and finance. Employers are looking for people who have a range of skills to fill the CFO role.
The complexity of global supply chains has elevated the importance of supply chain management within companies. Over time, more companies are choosing to draw from their supply chain management team when they are looking to fill the CFO role. Therefore, a background in supply chain management is the perfect preparation for a CFO career path–and possibly even the job of chief executive officer. Supply chain managers are adept at multitasking. They have experience with planning and forecasting. They know how to think on their feet during emergencies. Supply chain management professionals manage staff and deal with external partners and vendors.
The CFO role in today’s top companies is often closely linked with supply chain management. The chief financial officer is well-positioned to head off costly supply chain disruptions. As the top financial officer, a key part of the CFO role is risk management. A CFO with a solid grounding in supply chain management operations and principles is uniquely qualified to manage the risks that face companies that depend on global supply chains to power their businesses. Rather than delegating supply chain knowledge to those lower down the management ranks or, worse, trusting outside suppliers to make sure the supply chain continues to function smoothly, the supply chain management CFO stays engaged with supply chain operations. A CFO with a background in supply chain management is able to pull together all the pieces of the financial and logistical picture to ensure that plans are in place to mitigate supply chain risks.
Technology is also important on the CFO career path. You need to understand the ways that tech can help in financial reporting and forecasting. It’s not enough to have people on your staff with number-crunching expertise. You have to understand and be able to use the tools yourself. If you’re comfortable with big data and the tools that are needed to utilize it, you’ll have a leg up on your CFO career path.
In addition, the CFO has to take responsibility for data security. Experience managing data to keep personal and proprietary information secure will help you land the CFO job of your dreams. Don’t expect to advance to the CFO role until you have several years of experience under your belt, but putting in the time is worth it.
Education and training requirements for a CFO in supply chain management
If you dream of becoming a chief financial officer, education can be the key. Whether you want to fill the CFO role or even advance to the position of chief executive officer, education can help unlock the doors of the C-suite.
The CFO role includes ensuring that the company meets compliance and accounting requirements, so you need to stay abreast of changes in legal requirements for financial reporting. In addition, your success as a CFO will hinge on your ability to create financial forecasts and plans and to communicate this information to others in management.
The CFO role includes managing personnel and interfacing with many different people, both internally and externally. Leadership and people management skills are essential for the chief financial officer.
The CFO is also responsible for spotting trends, helping the business adapt to a changing marketplace. A keen understanding of external forces that can affect elements of your supply chain is important on the CFO career path.
Some people become CFOs with a bachelor’s degree, but more than half of the people who become CFOs have a master’s degree. If you don’t have an advanced degree, you’ll need to prove that you’re capable of filling the CFO role through experience. (On-the-job training is essential for a CFO.) However, the skills and capabilities you can gain through an advanced course of study can shorten your CFO career path.
How to become a CFO
Experience on the job is one element on the résumés of successful applicants for CFO positions. More than two-thirds of Fortune 100 CFOS were recruited from within their companies. Loyalty and trust are also important. Most people who take on the CFO role have worked at the company for 11 years or more. The kind of interpersonal relationships that you can build over time within your organization is key to the CFO career path. In addition, your time at the company allows you to demonstrate your capabilities and your willingness to meet the challenges of the business.
The most important skill for people hired for the CFO role is budgeting. This is followed by forecasting and financial reporting. Experience with QuickBooks and profit and loss statements are less relevant to your CFO career path; the CFO is not merely someone who is good at accounting and financial reporting. Firms are looking for a financial officer whose vision will help guide the organization into the future.
The CFO in many companies has taken on new responsibilities. These include partnering with the chief executive officer to develop strategic plans. Supply chain management professionals are well suited to the CFO role because of their years of experience in complex planning and strategy, as well as financial reporting. As you interview for CFO positions, make sure you include relevant and specific instances where you created winning strategies to improve a supply chain. Remember that your actions as a supply chain manager have saved your company money and increased its market share. Don’t be shy about telling those stories.
The CFO role is no longer relegated to a back office: CFOs are often part of the public-facing executive team. Your experience dealing with employees, vendors, partners, and customers as a supply chain management professional will help you advance to the position of chief financial officer.
To become a CFO, you’ll need to demonstrate that you understand the nuts and bolts of financial accounting. You’ll also need to show that you grasp the greater significance of the financial reports you will be responsible for. What examples from your career in supply chain management show your capacity for coming up with new ideas? Communicate to your superiors that you’re not afraid to take risks. These characteristics will help you stand out from other contenders for the CFO role who don’t have a supply chain management background.
It’s never too soon to begin considering your CFO career path, no matter where you are in your supply chain management career. You can take on projects that show your ability to come up with strategic solutions for supply chain management problems. You can show your capacity for leadership by mentoring your direct reports and running a successful team. You can also take courses or get a degree that will bolster the skills that the chief executive officer and others look for in the CFO role. Your drive, talent, and training will make you a natural choice to be your company’s CFO.
Why choose Haslam to become a CFO?
An executive overseeing supply chain finance needs robust experience in data modeling and analysis, planning, and supply and cost management. These are all key skill sets that you need to develop to set yourself on a CFO career path.
The Haslam College of Business at the University of Tennessee, Knoxville offers an online Master of Science in Supply Chain Management (MSSCM) that provides comprehensive training for supply chain professionals.
Haslam’s MSSCM delves into the day-to-day issues that supply chain management professionals face on the job. As an online program, the coursework is flexible enough to accommodate working professionals. You can take classes full- or part-time and finish your course of study in 18 months to five years.
For management skills designed specifically for the C-suite, Haslam also offers an Executive MBA program for Global Supply Chain (EMBA GSC) that can be completed in less than a year. Minimal time away from work and immediate application of the concepts are core features that allow organizations to manage workstreams while expanding their supply chain discipline. You’ll meet leaders from some of the biggest and most influential corporations, and case studies provide the opportunity to hone advanced management practices for managing supply chain.
Our programs are taught by the same expert faculty members that are recognized through the Global Supply Chain Institute (GSCI) as industry experts. At Haslam, you’ll join a cohort of students from a range of industries and backgrounds. The support doesn’t end when you graduate. Haslam has an extensive alumni community, so the network you build during your studies will travel with you into your career.
Are you ready to advance on the CFO career path? Haslam could be the next step toward your exciting future. Learn more about the online MSSCM and EMBA GSC today.
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