Head of Finance to CFO: What Has to Change Before the Title Does
Many Heads of Finance already do much of the CFO job.
They run the finance function. They report to the CEO or Managing Director. They manage the banks, the audit and the budget. In smaller businesses, they may be the most senior finance person in the company.
But they do not have the CFO title. And when they apply for CFO roles, they often lose out to candidates who already have it.
The gap is rarely about technical skill. In my experience, it usually comes down to three things: strategy, board access and capital. This article covers each one, how to build them in your current role and how to rewrite your resume so CFO readers see you as ready.
Why the title gap exists
There are a few reasons a Head of Finance may not have the CFO title:
The business is small and uses Head of Finance for its most senior finance role
The business has a CFO above the Head of Finance
The owner or CEO does not want a CFO at the executive table
The role grew over time but the title never changed
In the first and last cases, you may already be doing a CFO job. In the second case, you are a step below. In the third case, the title is a signal about how the business sees finance.
Know which version you are in. It changes what you need to do.
For a clear comparison of titles, see CFO, Finance Director and Head of Finance.
The three shifts: strategy, board, capital
When a CEO, board or search consultant compares a Head of Finance with a CFO candidate, they usually look for three things.
Strategy. Has this person shaped where the business is going, not just reported on where it has been? Have they influenced pricing, investment, growth or major decisions?
Board. Has this person worked directly with the board? Have they presented, answered questions and built relationships with directors?
Capital. Has this person raised money, managed lenders or made capital allocation decisions?
Many Heads of Finance are strong on control, reporting and team leadership. Those are expected at CFO level too. But the three shifts above are what separate a CFO candidate.
Getting strategic work in your current role
You do not need the title to do strategic work. Look for opportunities to:
Lead or contribute to the strategic plan
Build the business case for a major investment
Review pricing or the customer mix
Assess an acquisition or partnership
Challenge a decision with clear analysis
Then make sure the results are visible. "Built the case for a new product line that the board approved and that now delivers $8 million in revenue" is a strategic result.
If your CEO does not involve you in strategy, ask. Offer to prepare analysis for the next planning session. Many CEOs welcome it.
Getting board time without the title
Board exposure is one of the biggest gaps. If you have little or none:
Ask to present your section of the board pack
Offer to attend the audit or finance committee
Ask for a regular meeting with the audit committee chair
Offer to brief new directors on the finances
Volunteer to prepare the board strategy day papers
Within a year, you can have real board exposure to show. See board exposure before your first CFO role.
Building capital experience
If you have not raised money, look for chances to:
Lead a refinancing or facility renewal
Manage lender reporting and covenants
Prepare a funding case for an investment
Work on an equity raise, sale or acquisition
Even a modest facility renewal, handled well, is a capital story you can tell.
Rewriting your resume for CFO readers
Once you have the experience, your resume needs to show it. Common changes:
Profile. Lead with strategy, board and capital, not control.
Weak: "Experienced Head of Finance with strong technical, reporting and leadership skills."
Stronger: "Head of Finance and most senior finance executive in a $150 million business. Partners with the CEO on strategy and investment, presents to the board and led a $40 million refinancing. Ready for a CFO role."
Mandate line. Make your scope clear. If you report to the CEO and attend board meetings, say so.
Achievements. Move strategic, board and capital results to the top. Put control and reporting results after them.
Language. Swap process words for decision words. "Recommended", "secured", "led the board through", "changed" rather than "prepared", "supported", "managed".
For more on what CFO readers want, see what boards and CEOs expect from a CFO resume.
When to move and when to wait
Move if: - Your business will never create a CFO role - You have built strategic, board and capital experience and have nowhere to grow - The CFO above you is not leaving and you have been ready for some time
Wait if: - Your CFO is likely to leave and you are a credible successor - You are close to getting board or capital experience you need - The business is about to go through a sale, raise or growth phase that will give you a strong story
Sometimes the fastest way to the CFO title is a CFO role in a smaller business. Sometimes it is waiting a year for the right experience.
Signs you are ready
You partner with the CEO on major decisions
You have presented to the board and handled their questions
You have led at least one funding or capital project
Your team can run without you day to day
You can explain the business strategy and how finance supports it
If you can say yes to four of these five, you are probably ready to apply.
Interview preparation
CFO interviews will test the three shifts directly. Expect questions such as:
Tell us about a strategic decision you shaped.
How do you work with a board?
Walk us through a funding project you led.
What would you do in your first 90 days as our CFO?
Prepare specific stories for each. See first-time CFO and CFO interview questions.
Common mistakes
Applying for CFO roles with a resume that reads like a Financial Controller
Not asking for board and strategic work in the current role
Waiting for the title to appear without building the experience
Overclaiming board or capital work you did not lead
How search consultants assess you
When I was in search, a Head of Finance applying for a CFO role went on the shortlist if one thing was clear: they had already done the work, even without the title. The resume had to show it in the first page. Strategy, board and capital, in plain words, with results.
Update your LinkedIn headline to reflect your scope and your direction. "Head of Finance | Most Senior Finance Executive | Strategy, Board and Funding | $150m Business" is much stronger than "Head of Finance at ABC Group". See CFO LinkedIn profiles.
A 12-month plan
If you are not quite ready, set yourself a 12-month plan. In the first three months, ask for one strategic project and a board presentation. By six months, aim to lead a facility renewal or funding case. By nine months, have a regular line to the audit committee chair. By twelve months, your resume should show all three shifts with results.
Your next step
Score yourself on strategy, board and capital. Pick the weakest and find one way to build it in the next three months.
If you want a resume that shows you are ready for a CFO role, my CFO resume writing is built for Heads of Finance and Financial Controllers making the step up.
If you are planning your path to CFO, book a complimentary Clarity Session.
