The CFO's Role in Cultivating Leadership

How are CFOs preparing the future finance leaders?

Attendees at last week's HealthLeaders CFO Exchange has one clear take-away: The CFO's role is changing, and they had better be prepared to evolve with it.

The role is no longer just guardian of the bottom line. Today's CFOs are expected to help lead across technology, clinical operations, and staff culture.

And while this is prompting a growing sense of urgency around succession planning and leadership development, many CFOs are behind the curve.

According to a Korn Ferry survey, only 34% of CFOs have a formal succession plan in place. In an industry under relentless pressure, from shifting reimbursement models to digital transformation and labor shortages, that's a large gap.

A Broader, Bolder CFO Role

"CFOs can be involved in anything we want to be involved in, and it makes it more fun," one CFO said during a roundtable discussion. This enthusiasm shows how finance leaders are now embedded across the entire health system, leading EHR investments and working closely with CMOs on cost-of-care models. CFOs today need a working knowledge of clinical operations and a clear grasp of technology's growing influence on care delivery.

Additionally, soft skills are now central to the role. Transparency, empathy, and courage were cited as essential leadership qualities.

"Sometimes we have to say what no one else is saying," one of the executives said.

Successor Development: A Strategic Imperative

During a "CFO Masterclass" on leadership development, attendees were challenged to take a more intentional approach to mentoring and succession planning. CFOs learned how "let go," by slowly integrating staff into decision-making processes and giving them exposure to higher-level responsibilities.

The transition is rarely clean-cut, members noted. It requires clarity about what's being taught through each development opportunity and support through growing pains.

Leaders were encouraged to periodically assess their mentees by answering these questions:

• What are my reservations about this person, and how do others feel?
   
• What would make them at least 80% ready for the CFO role?
   
• What experiences—both inside and outside finance—do they still need?

CFOs were also asked to consider what they wished they had known when they first stepped into the role. Who guided them? What challenges were pivotal? These insights can shape a roadmap for preparing the next generation— not just for financial management, but for full organizational leadership.

Looking Ahead

As the healthcare landscape becomes more complex, the CFO is becoming a connector—between data and outcomes, clinical and operational strategy, and people and performance. With only a third of CFOs actively planning for succession, the profession is risking a leadership vacuum just as the demands of the role are growing.

Preparing future CFOs isn't just about teaching them the numbers. It's about developing their judgment, resilience, and strategic vision. In today's environment, a great healthcare CFO isn't just financially literate, but also tech-savvy, clinically conversant and, above all, people-first.