Stop underestimating soft skills: The CFO traits that truly drive financial success

Think about this: Would you trust a CFO who can read a balance sheet with laser-like precision, but cannot inspire or communicate with their team? If your answer is no, you are not alone. Too many businesses overlook the softer aspects of financial leadership, and the consequences go well beyond missed targets or botched forecasts.

Soft skills for CFOs are often treated as an afterthought, yet these skills can make or break a company’s financial well-being. Most companies obsess over technical expertise when hiring a CFO, but they often neglect the critical traits that drive real transformation, communication, empathy, adaptability, and vision. The unfortunate truth? You could be making the same mistake, and it might be costing your business dearly.

Here’s what you will discover in this article:

  • The most common mistakes companies make when defining the CFO role
  • Why soft skills are essential for financial leaders, illustrated with real-life examples and hard numbers
  • How to fix these mistakes and build a stronger finance team
  • Simple steps to spot and develop the right CFO traits for true financial success

Ask yourself: Are you prioritising the right skills in your financial leadership? Could your company’s next financial breakthrough hinge on something as simple as better listening? Is your current CFO missing the soft skills that matter most?

Let’s get into the pitfalls holding companies back, and, more importantly, how you can correct them.

Spotting the errors: Why soft skills matter for CFOs

Companies today are making a handful of avoidable mistakes that undermine their financial leadership without even realising it. Maybe you are too. Are you focusing solely on technical know-how when recruiting your next finance chief? Do you believe soft skills are just “nice to have” rather than essential? If so, you could be handicapping your business.

Research from Deloitte shows that the CFO job is bigger than ever. Modern CFOs are expected to be strategists, catalysts, and communicators, not just number crunchers. Yet, too many companies still stick to outdated checklists, leading to poor leadership, uninspired teams, and missed opportunities.

Let’s break down the most common mistakes and how you can steer clear of them.

The mistakes

Mistake 1: Overvaluing technical skills and ignoring the human element

It’s tempting to zero in on candidates with flawless technical credentials. Spreadsheets, audits, controls, these are the bread and butter of finance. But if you place technical prowess above all else, you risk missing out on the very traits that turn good CFOs into great ones.

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Imagine a CFO who delivers perfect reports but fails to explain the story behind the numbers. If your finance leader cannot translate data into action, or spark motivation, your strategy will fall flat.

How to fix it

Start treating soft skills as core competencies. When interviewing, ask about storytelling, conflict resolution, and collaboration. Use scenario-based questions to see how candidates handle delicate conversations, not just financial hiccups. Companies like EY recommend integrating soft skills assessments into your hiring process. When you do, you’ll spot leaders who can connect with people, not just figures, creating a team that works as one.

Mistake 2: Overlooking emotional intelligence

You may assume emotional intelligence is a trait best left to HR. That’s a costly misconception. Emotional intelligence lets CFOs navigate stress, defuse conflicts, and understand what motivates their teams. Without it, a CFO can create a toxic environment or cause a mass exodus of talent.

Real-world example: At a leading tech company, the CFO’s inability to read the room during tense budget cuts led to confusion and fear, a morale hit that lingered for months. In contrast, emotionally intelligent CFOs can deliver tough news with empathy, reducing anxiety and keeping teams focused.

How to fix it

Make emotional intelligence a non-negotiable. Tools like behavioral interviews and 360-degree feedback can help you spot these traits during recruitment and reviews. Offer emotional intelligence training for your current finance leaders, so they can sharpen their self-awareness and relational skills.

Mistake 3: Neglecting adaptability and openness to change

The pace of business is relentless. New technologies, regulations, and disruptions hit every year. If your CFO cannot adapt, your company will fall behind. Unfortunately, some leaders cling to old processes, resist new tools, or fail to pivot when the market shifts.

For instance, during the pandemic, companies led by adaptable CFOs were able to reforecast, reallocate resources, and communicate changes quickly. Others, stuck in their ways, struggled to keep up.

How to fix it

When hiring or promoting CFOs, look for signs of flexibility and curiosity. Ask candidates to describe a time they adjusted to a major shift. Foster an environment where experimentation is encouraged. You can support this with ongoing professional development and peer coaching.

Mistake 4: Undervaluing strategic vision

Some CFOs focus entirely on day-to-day operations. While this keeps the wheels turning, it misses the opportunity to drive long-term growth. A CFO with strategic vision can spot trends, anticipate risks, and ensure the company’s resources support its biggest goals.

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Consider the case of Microsoft’s Amy Hood, whose strategic finance leadership helped drive the company’s successful pivot to cloud computing. That required not just financial planning, but vision and the ability to rally cross-functional teams.

How to fix it

Get your CFO involved in wider business planning. Encourage cross-departmental collaboration and regular strategy sessions. Identify and reward forward-thinking decisions, not just short-term wins.

Mistake 5: Failing to foster communication and collaboration

A finance leader who keeps to their own corner can do more harm than good. Without strong communication, teams become siloed, decisions are misunderstood, and trust evaporates.

CFOs with standout communication skills can explain financial data in plain English, making it relevant to everyone from the CEO to the creative team. According to Digital Defynd, organisations with communicative CFOs see up to 15% higher team productivity.

How to fix it

Promote a culture of open dialogue. Encourage CFOs to participate in town halls and cross-team meetings. Invest in communication workshops and encourage two-way feedback. Make it clear that finance leaders are ambassadors for the entire company, not just the finance department.

The payoff: Data behind the soft skills

You may still wonder, do soft skills really move the needle? Look at these numbers:

  • Deloitte reports CFOs with well-developed soft skills help slash operational costs by as much as 10%, thanks to improved collaboration and smarter decisions. (Deloitte CFO Survey)
  • Companies with CFOs who prioritise people skills see a jump in productivity, sometimes up to 15%.
  • Firms that invest in leadership and soft skills development experience higher retention and more consistent, sustainable growth.

These results are not accidental. Soft skills enable financial leaders to weather storms, unlock creativity, and set the stage for lasting success.

How you can build soft skills into your CFO team

Ready to act? Here are your next steps:

  • Overhaul your recruitment process to weigh soft skills and technical skills equally.
  • Incorporate behavioural and situational assessments in every CFO interview.
  • Offer ongoing training in emotional intelligence, communication, and leadership.
  • Reward adaptability, collaboration, and initiative alongside financial targets.
  • Encourage regular feedback and create a culture where learning from mistakes is just as important as celebrating wins.

For more actionable tips, check out Warner scott’s Leadershop develoment.

Key takeaways

  • Make soft skills as important as technical skills when hiring or developing CFOs.
  • Assess emotional intelligence and adaptability during every recruitment and review process.
  • Foster a culture of communication and collaboration within the finance team.
  • Invest in ongoing leadership and soft skills training for finance leaders.
  • Reward forward-thinking and people-centered leadership, not just technical expertise.

Start fixing today: Do not let another quarter slip by with a finance team that lacks the human touch. You have the tools to change the conversation and the outcomes. Embrace the full range of skills your CFO can bring to the table, and you will see better performance, greater innovation, and a stronger bottom line.

Are you ready to rethink what makes a great CFO? How will you measure soft skills in your next leadership hire? What hidden potential could your current team unlock if you made soft skills a priority?

FAQ: The Importance of Soft Skills for CFOs

Q: Why are soft skills important for CFOs today?
A: Soft skills such as communication, emotional intelligence, and adaptability are essential for modern CFOs. These skills enable CFOs to effectively lead teams, drive strategy, and align financial decisions with broader business objectives, beyond just technical financial management.

Q: What are the most critical soft skills for a CFO to have?
A: Key soft skills for CFOs include strong communication, emotional intelligence, adaptability, and strategic vision. These qualities help CFOs collaborate with other leaders, manage change, and inspire their teams to achieve organisational goals.

Q: How can organisations assess a CFO candidate’s soft skills during recruitment?
A: Organisations should incorporate behavioural interviews and soft skills assessments into their hiring processes. This approach ensures candidates are evaluated not just on technical expertise, but also on their ability to lead, communicate, and adapt.

Q: What are the tangible benefits of CFOs possessing strong soft skills?
A: Research shows that CFOs with strong soft skills can increase team productivity by up to 15% and reduce operational costs by as much as 10%. These improvements stem from better team dynamics, more effective decision-making, and enhanced alignment with business strategies.

Q: How can companies help their CFOs develop better soft skills?
A: Companies should invest in ongoing leadership development and training focused on soft skills. Additionally, fostering a culture of open communication within the finance team can help CFOs better understand and improve team dynamics.

Q: What common mistakes should organisations avoid when recruiting a CFO?
A: The main pitfalls include overemphasising technical expertise, neglecting emotional intelligence, and undervaluing strategic vision. Effective recruitment should balance technical and soft skills to ensure the CFO can successfully lead and drive financial success.

 

About

Warner Scott , based in London and Dubai, is a global leader in executive recruitment for Banking & Investments, Accounting & Finance, and Digital & Fintech. With over 18 years of experience, they have built solid relationships with top-tier banks, financial institutions, and accountancies. Their distinct advantage comes from these long-term relationships with hiring managers and internal recruiters, a broad candidate network, and continuous candidate engagement. This unique positioning earns them trust from both talent and hiring managers. Their in-depth understanding of recruitment needs enables them to identify senior C-suite, EVP, SVP, and MD-level hidden, ready-to-move talent that other recruiters cannot reach.

Providing customised recruitment solutions, Warner Scott serves both international and regional clients as true business partners. Their offerings encompass retained, exclusive, and contingency searches, along with permanent, contract, and interim staffing services.

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