May 31, 2006
It's common knowledge that the role of the modern CFO is changing fast, and the financial managers best positioned to advance and make a difference in today's challenging environment carry a skill set that ranges far beyond the expected expertise in accounting and finance. A special supplement to the May 2006 issue of hfm offers insights into what prospective employers are looking for in today's CFOs.
"Twenty years ago, if you had CPA after your name, you were considered qualified as a CFO," says Richard J. Henley, FHFMA, FACHE, president and CEO of Pocono Health System in East Stroudsburg, Pa. That's not the case anymore.
"The CFO role has evolved from a comptroller function to one requiring more interpersonal skills, more versatility, and more political savvy," says Henley, noting the shift away from focusing solely on accounting, payroll, and reimbursement. "These days, it's not unusual for a CFO to oversee medical records, admitting/patient registration, and managed care contracts. I even know CFOs in charge of the ER, food service, housekeeping, and operations."
Organizations seeking to fill senior financial positions today are increasingly looking for leaders who possess broad competencies needed to excel in these many roles.
Demonstrating Core Competencies
The laundry list of job responsibilities today's senior financial executives face is growing, but still relatively easy to describe. Clearly demonstrating the core competencies needed to meet these leadership challenges, however, can be a little harder. In many cases, these competencies are expressed in terms of "soft skills" rather than specific qualifications or training.
As an example, what follows is the primary list of attributes Henley says he looks for when recruiting and interviewing senior finance managers:
Strategic-planning skills. When presented with numbers, the best leadership can go beyond simply describing past performance and anticipate what this performance will mean for the organization's future needs. "Today's healthcare finance leaders need to look through the windshield rather than the rearview mirror," says Henley.
Personal integrity. Individuals should adhere to a high ethical code. Senior financial executives should possess integrity and values consistent with the organization.
Relationship-building skills. Finance leaders should be able to work effectively with physicians, trustees, and staff. Not only should tomorrow's CFO be a team player, but also an implementer.
Communication skills. The best financial executives can articulate ideas in a lucid, understandable manner.
Leadership skills. Can the person move the organization and people forward? "They need to be outspoken, thoughtful, and persistent, but support decisions," says Henley.
Negotiation skills. Today's financial leaders need to be able to settle disputes and arrive at compromises, particularly when working with third-party payers and physicians. They should influence decisions and persuade others in a positive, proactive manner.
Generalist perspective. Broad general knowledge and exposure to a variety of issues is vital, says Henley. "They need to have an understanding of the lingo and subject matter of all disciplines from IT to nursing to HR and need to be receptive, taking into account more than a numbers perspective."
Communication Is Key
Behavioral competencies also are on the short list of J. Larry Tyler, FHFMA, president of Tyler & Company, an Atlanta-based executive search firm. Of these, he believes communication skills -- oral, written, and listening -- are the most important. "Finance managers need to be able to get a point across and have an understanding of the clinical perspective," says Tyler.
A strong communicator also is important for maintaining a solid team dynamic, notes Edward Walsh, vice president of finance/CFO for Pocono Health System. "Finance managers need to be able to properly motivate people," he says. "To obtain buy-in, they need to be able to educate others in the organization who do not have a finance background."
In some ways, the high desirability of a financial executive "who can relate" may simply be a natural outgrowth of the evolving nature of the CFO role. "Revenue cycle management is more significant today as we move further away from cost-based payment," explains Michael Doody, senior vice president, Witt/Kieffer, an Oak Brook, Ill.-based executive search firm. As a result of this change, he says, finance leaders face greater pressures to create and maintain high-quality relationships with IT staff, physicians, clinical staff, and payers. Those who excel know to adjust perspective to these broader relationships.
Organizations that recognize these changes will fare best in filling their CFO positions with individuals able to meet today's demands, notes Doody.
SOURCE: "A Matter of Talent: HFMA Helps You Recruit, Train, and Retain Talented Healthcare Professionals," May 2006 hfm
Additional Resources
If you have questions or comments about HFMA Wants You to Know, contact editor Laura Noble.
HFMA Wants You to Know ISSN: 1540-0697. Volume V, Issue 12. Copyright 2006, Healthcare Financial Management Association. All rights reserved.