Good old-fashioned honesty continues
to be a highly coveted trait for leaders
in corporate America. According to 31 percent of chief financial officers polled
in a recent survey, integrity is the most
important quality for a business leader to
possess, followed closely by experience
and communication skills.
The survey, developed by Robert Half
Management Resources, the world’s premier provider of senior-level accounting
and finance professionals on a project and
interim basis, was conducted by an independent research firm and includes
responses from 1,400 CFOs from a random
sample of U.S. companies with 20 or more
employees.
“Integrity — in both managing assets and
managing people — has always been
important in business,” says Cecil Gregg,
president of the Southwest District of
Robert Half International. “But in today’s
environment, it is not only important for a
CFO to be honest, he or she also must able
to communicate that integrity.”
Smart Business spoke with Gregg about
the importance of the interrelationship of
integrity and communication skills.
Why is it important to not only be honest but
be able to communicate integrity?
The corporate scandals of the recent past
have underscored the need for sound corporate practices and transparency in financial reporting. Financial executives must
have not only the technical expertise and
knowledge to do this correctly, but they
also must be able to effectively communicate complex concepts to other people
from many walks of life — from investors
to board members and the general public
— in language that everyone can understand. Communicating openly is the key to
motivating and inspiring people, as well as
fostering trust.
Many of the CFOs who have risen
through the ranks have excellent communication skills, and frankly, those that have
experience and integrity are much better
positioned if they are able to communicate
openly to others. For those assuming the
CFO role, it has become a prerequisite that
these leaders are competent interacting externally with investors, analysts and the
media, as well as internally with key leaders and staff.
Employees also look to their leaders to
practice what they preach. Anyone can say
the right thing, but an honest leader’s
actions back it up.
How can the lack of communication hurt a
CFO’s perceived integrity?
Without frequent communication, honest
actions can sometimes be perceived as dishonest — either by employees or by outsiders looking in. Actions may be misrep-resented or misunderstood if they are not
openly discussed.
For example, take the scenario of a corporate buyout when decisions need to be
made about the acquired company’s leadership. Evaluations about the acquired
company’s employees are usually made
behind the scenes — and naturally, should
never be discussed or publicized. But there
are two sides to every story, and those that
are shut out of the buyout most likely will
not have positive things to say. Before that
happens, however, good leaders with
integrity will come forth and explain why
key leadership moves were made or not
made. It takes a leader with strong integrity, experience and communication skills to
walk that fine line of explaining reasons
without damaging anyone’s reputation and
sharing the wisdom of the decision made
to key stakeholders.
The key is to keep communication open
and decision-making transparent, because
in the long run, the more insiders and outsiders know about how a company operates, the more comfortable people feel
about the integrity of its leaders.
It sounds like the role of the CFO has become
more complex over the years.
The CFO’s job has definitely become
more demanding, particularly with the
Sarbanes-Oxley Act and more complex
financial reporting requirements. CFOs
also have more paperwork and administrative duties than in the past. At the same
time, the demand to communicate this
information is intense. CFOs need to
understand more deeply and feel comfortable that their company is operating in full
and transparent disclosure.
What are companies doing to effectively
groom accounting professionals to assume
today’s CFO roles?
Offering a mentoring program is certainly an effective way to do this. Many firms
have implemented or enhanced their ethics
training for employees. Those fresh from
colleges and business schools are more
aware of ethics because of the corporate
scandals. Some companies are also assisting professionals with tuition reimbursement for CPA or MBA degrees, as well as
attaining professional certifications.
CECIL GREGG is president of the Southwest District of Robert
Half International, and is based in Houston. Reach him at (281)
296-2812 or by e-mail at [email protected]. A division of
Robert Half International, Robert Half Management Resources has
more than 140 offices throughout North America, Europe and the
Asia-Pacific region, and offers online job search services at
www.roberthalfmr.com.
