A reoccurring conversation across client meetings we continue to hear is: should we hire an up-and-coming financial talent or rely on an experienced CFO?
As I’ve observed, this decision point often reveals deeper questions about the organisational identity, risk tolerance, and strategic direction, signalling the business’s approach to operating within uncertain markets.
As a specialist CFO recruiter, I thought I would shed some light on the pros and cons of each and what to consider when making this decision for your business.
The modern Financial Leader
The profile of an up-and-coming CFO typically includes someone who is fast-paced, strategic, and analytical. They bring a fresh perspective and contemporary skills to the financial function.
When you hire an emerging talent, you typically gain:
- Hands-on engagement: First-time CFOs typically maintain closer connections to operational details, having more recently worked directly with systems and processes.
- Technological fluency: Newer finance leaders often demonstrate stronger comfort with innovation, systems integration, and emerging technologies like AI, bringing digital transformation expertise to financial operations.
- Cross-functional collaboration: These professionals frequently exhibit greater comfort working with non-finance stakeholders across the business, breaking down traditional silos.
- Advanced analytics: Their recent experience often includes more sophisticated analytical approaches, bringing data-driven decision-making to financial leadership.
The value of experience
Conversely, when facing uncertain economic environments, many organisations gravitate toward experienced CFOs who have “seen it all before.” These seasoned professionals offer:
- Proven leadership: Experienced CFOs bring proven people leadership capabilities and established management frameworks.
- Board-level expertise: Their experience in board interactions translates to smoother governance and stakeholder management.
- Influence and gravitas: Seasoned finance leaders typically demonstrate stronger capabilities in influencing key decisions across the organisation.
- External relationship management: Their established relationships with banks, auditors, and other external providers can provide immediate credibility and access.
- Crisis navigation: Perhaps most importantly, they’ve led businesses through different economic cycles and challenging situations, providing stability during uncertainty.
It’s worth considering these factors before making a decision:
- Executive leadership composition: Evaluate the tenure and seniority of your existing leadership team. Does it require a fresh perspective or a stabilising experience?
- Finance function maturity: Assess the size, structure, and capability of your finance team. A smaller or developing team may benefit from hands-on leadership, while a robust team might need strategic direction.
- Business performance: Honestly evaluate your financial performance trajectory. Turnaround situations often benefit from experienced hands, while growth phases may thrive with innovation.
- Key objectives: Define your primary goals for the next 12-18 months. Are you seeking immediate transformation or steady navigation through complexity?
- Transaction horizon: Consider whether your business is approaching significant transactions such as an IPO, sale, or exit—these inflection points typically demand experienced financial leadership.
- Economic context: The broader economic environment should influence your risk tolerance in this decision.
As economic conditions potentially improve, I’m watching with interest to see if organisational appetite for emerging financial talent increases.
