May 7, 2025
By Wayne Poulton
Appointing a CFO is one of the most consequential decisions a company can make.
It's a role that touches nearly every aspect of the business, from capital allocation and strategic planning to culture and governance. Yet, despite this, the hiring process is often treated as reactive rather than deliberate.
Having led CFO searches across a range of sectors and growth stages, I have observed a number of recurring challenges, both on the company side and from candidates themselves. These are some of the more common missteps, and how they might be avoided.
1. Waiting Until the Pressure Mounts
Many organisations only begin a CFO search when a transaction is looming or financial complexity has already escalated. By that stage, timelines are compressed and the field of potential candidates may already be limited.
Waiting until the need becomes urgent often forces a compromise, limiting the time available to find the right fit and increasing the risk of making a decision driven by urgency rather than alignment with the company’s long-term goals.
A better approach: Start early. If the business is evolving, if complexity is increasing, or if a capital event is on the horizon, it is worth initiating the search well in advance.
Consider an Interim Solution: When timing is tight or the organisation is still shaping what it really needs from its finance function, bringing in an Interim CFO can be a smart move. It provides breathing room to run a proper search, while giving the business experienced leadership in the meantime. A strong interim can also help define the long-term requirements of the role more clearly, and in some cases, may even prove to be the right person for it.
2. Unclear on the Type of CFO Required
There is no single definition of what makes a strong CFO. Some are best suited to early-stage environments, others to investor relations, international expansion, or preparing for exit. Without clarity on what the business actually needs, the search can quickly lose direction.
A common oversight is focusing too heavily on titles, or hiring based on previous companies worked for, without aligning on the actual actual objectives and responsibilities of the role ahead.
A better approach: Be specific about the outcomes the CFO will be expected to deliver over the next 18 to 24 months, and shape the brief accordingly.
3. Candidates Prioritising Title Over Substance
For candidates, particularly those stepping into their first CFO role, the appeal of the title is understandable. But not every CFO seat comes with the scope, decision-making authority, or strategic input that many candidates assume.
Some are board-facing and genuinely transformative. Others are still evolving, with legacy structures or unclear mandates.
A better approach: Ask the right questions early. Who truly owns strategy? What does the CEO expect from the role? How mature is the finance function? What are the board’s expectations?
4. Underestimating the Importance of Chemistry
The relationship between the CFO and the CEO, as well as with the wider executive team and board, is critical. Misalignment in working style, pace, or communication can cause friction, regardless of experience or credentials.
A better approach: Create space to assess fit beyond formal interviews. Whether through working sessions or less structured time together, it is worth understanding how decisions are made and how challenges are approached. Compatibility isn’t a nice-to-have, it’s often the deciding factor.
5. Relying Too Heavily on Familiar Networks
While introductions through trusted networks can surface credible individuals, they are no substitute for a well-run, structured process. Relying solely on referrals often narrows the field and risks missing out on outstanding candidates.
A better approach: Treat the CFO hire as a strategic search, not an opportunistic hire. A thoughtful process helps ensure alignment, surfaces a broader range of talent, and leads to stronger long-term outcomes.
Final Thought
A successful CFO hire is rarely the result of speed or serendipity. It stems from clear thinking, a well-structured process, and a shared understanding of what the business truly needs. Taking the time to define the role properly, and to assess both capability and fit, gives the appointment the best chance of lasting success.
If that is a conversation you are starting now, or one you anticipate in the months ahead, I would be glad to share perspective.