The skills needed from CFOs are more complex than ever
In a volatile and complex world, characterized by uncertainty and risk, CFOs are actively responsible for a host of new business areas and issues. Among the most rapidly advancing area of responsibility is for environmental, social and governance (ESG) matters. I recently spoke with Gina Mastantuono, CFO of the software company ServiceNow, about her role within her organization as custodian of ESG strategy. Our conversation broadened beyond that to encompass how much the CFO role has changed and the new mindset finance leaders must have to work cross-functionally and set a path for future growth, rather than just managing the money.
Jeff Thomson: At ServiceNow, you own the strategy for ESG globally, which is a wider trend for CFOs who are best equipped for gathering and analyzing cross-sectional data from around the organization. How is technology enabling better ESG measurement and disclosure? What advice would you give to CFOs with new responsibilities around ESG measurement? What can be the challenges involved when organizations have siloed and disparate data platforms?
Gina Mastantuono: ESG, tech and finance are now inextricably linked. It’s a shift that is fundamentally reshaping the role of the CFO. There is no part of a company that isn’t powered by tech, or that won’t be responsible for ESG. ESG goals, activities and reporting must be embedded into business processes and policies to succeed.
Gina Mastantuono, CFO of ServiceNow
Of course, that is sometimes easier said than done for CFOs tasked with ESG measurement. There isn’t one widely accepted ESG framework for reporting ESG metrics. ESG processes are manual and data lives in siloed systems, which results in an inefficient process fuelled by spreadsheets, emails and data pulls from multiple software tools. This is where tech can help. In a fast-changing environment, technology gives us the ability to automate what used to be very manual, error-prone processes. This frees up employee time in the short term, and helps companies gain much-needed visibility and insights to achieve goals in the long term. Automation creates strong governance, which helps companies balance purpose and profit.
As a CFO, I like to say that governance is the glue that holds ESG together through accountability and trust. Governance happens to be ServiceNow’s superpower. Our platform is a great example of how technology can enable better measurement and disclosure. Internally, we use our own technology to help us integrate our ESG initiatives, from setting goals and collecting data to tracking and disclosing performance. The advice I’d impart to fellow CFOs is straightforward: do not overlook the “G” in ESG.
Thomson: Digital transformation is about technology, but also about change management. What are the soft skills CFOs need to help their employees manage the large-scale changes being ushered in by technology? How have you developed your emotional intelligence skills and learned to lead with empathy? What are the benefits to the organization when leaders have finely tuned technical and emotional intelligence skills?
Mastantuono: My career trajectory has always been about growth, development and taking smart risks. I love to push the envelope and I thrive on challenges outside my comfort zone. For me, that’s where the most learning and highest growth happens. And I’ve found that when I’m willing to take a leap, there has always been someone–oftentimes, several people–there to help me land and keep going.
The confidence I gained leading outside my comfort zone is especially important in times of change. When the pandemic hit, we had to send our 10,000 employees to work remotely. My ability to say, “I don’t have all the answers, but here’s how we are thinking about it,” helped the team get comfortable with discomfort, too. Transparency builds trust. I needed to get comfortable being vulnerable enough to share what makes me tick and how I make critical decisions. Our CEO often reminds us that anything worth communicating is almost always under communicated.
Investing in mentorship is another important one, and it’s personal for me. I didn’t have a role model that looked like me when I was starting out in finance. I want to change that for the next generation. I want to be known for leading with empathy and helping people achieve their career aspirations. Excellent leaders do everything they can to unlock the potential of the people they work with. It’s about lending a hand to others’ success.
Thomson: In addition to your role as CFO of ServiceNow, you also serve as a Board member at Roblox and Gong. What competencies as CFO did you develop that enabled you to sit as a voting director on boards requiring a very broad and strategic global perspective? As both a CFO and board member what are the key issues you want the finance function to address? How should board members relate to the CFO of the company over which they preside, and vice versa?
Mastantuono: One key learning of mine in recent years is that CFOs can no longer just be finance experts; they must be enterprise-level leaders. I think CFOs used to be viewed by the business as an adversary, guarding purse strings – whereas CIOs, for example, were viewed as advocates of implementing new technologies without concern for cost or ROI. CFOs now need to care about so much more: holding the company accountable for driving value, attracting, retaining and developing talent, and hybrid ways of working, to name a few. The breadth of this responsibility has undoubtedly made me a stronger leader and a stronger Board member. I’m biased but this is the most interesting time to be leading finance. On the flip side, because the technology strategy is now the business strategy, CFOs need more technology acumen to drive business in a digital world.
Board members must adopt a holistic understanding of the factors that drive meaningful, sustainable growth. For example, at ServiceNow, our people are key to achieving our ambition to become the defining enterprise software company of the 21st century. So, we’re focused on unlocking employee productivity while attracting, motivating and retaining great talent. I probably spend more time with our Chief Human Resources Officer than any other executive. In this moment, meaningful, purpose-driven work matters more than ever.
