My career as a CFO began in the mid-1990s, a time distinctly different from today. Back then, I was navigating the corporate labyrinth of New York City, a place where dreams are both forged and crushed. In that era, empathy in the workplace was virtually non-existent. Respect, especially in high-level positions like that of a CFO, was hard-won, more so for women like me. I was often the only woman in boardroom meetings, a testament to the gender disparity in corporate leadership at the time.
In those days, I believed that to succeed, especially in a domain dominated by men, I had to embody toughness. My persona in the workplace was that of a hard-driving, unapologetic, and, admittedly, difficult woman to work with. Yes, it’s true. I was the antithesis of an empathetic leader. My approach was shaped by the norms and expectations of the time – where showing empathy was often misconstrued as a sign of weakness, particularly for women in power.
But as the years passed, the corporate world began to evolve, and so did I. The transformation was gradual but profound. I witnessed a shift in the leadership paradigm – a growing recognition that empathy and understanding were not just desirable traits but essential ones for effective leadership. This change was not just external but internal too. I started to realize that being an empathetic leader didn’t diminish my authority; rather, it augmented it.
This realization marked a turning point in my career and leadership style. I began to see the power of empathy in action – how understanding and relating to my team’s challenges and perspectives could drive motivation, productivity, and loyalty. It was a stark contrast to my earlier years, where such considerations were often sidelined in favor of a more rigid, numbers-driven approach.
In the world of finance, a seismic shift has been underway, marked by the transformation of Chief Financial Officers from mere guardians of finance to strategic, empathetic leaders. This new era of financial leadership is exemplified by real-world CFOs who are breaking the mold and setting new standards for what it means to lead with empathy and understanding.
Amy Hood at Microsoft: A Paradigm of Empathetic Financial Leadership
Amy Hood, the CFO of Microsoft, stands out as a prime example. During the uncertain times of the pandemic, her leadership was not just about balancing the books; it was about balancing human concerns with financial imperatives. Hood’s approach to decision-making, particularly during crisis periods, demonstrated a deep understanding of how financial strategies impact employees and the broader ecosystem of the company.
Starbucks’ Patrick Grismer: Fostering Connection and Understanding
Patrick Grismer, former CFO of Starbucks, is another example of this new breed of empathetic financial leaders. During his tenure, Grismer was known for his efforts to understand the intricacies of the business beyond the numbers. His approach went beyond traditional financial metrics, focusing on how financial decisions would impact Starbucks’ employees and customers, thereby fostering a culture of connection and understanding.
Ruth Porat at Google: Balancing Empathy with Financial Rigor
At Google, Ruth Porat, the CFO, has been instrumental in navigating the company through turbulent financial waters with a blend of empathy and financial rigor. Her leadership style reflects an understanding of the tech industry’s nuances and the need to balance ambitious financial goals with the well-being of thousands of employees.
The Impact of Empathetic Leadership in Finance
These leaders represent a significant shift in the role of the CFO. No longer confined to the back office, dealing solely with numbers, today’s CFOs like Hood, Grismer, and Porat are at the forefront of strategic decision-making. They demonstrate that empathy and understanding are critical in making financial decisions that are sustainable and beneficial for the company’s long-term growth.
Their leadership styles underscore the importance of considering the human element in financial decisions – how these decisions affect employee morale, customer satisfaction, and the company’s public image. By prioritizing empathy and understanding, these financial leaders are not only ensuring the fiscal health of their companies but are also cultivating positive workplace cultures and enhancing their companies’ reputations in the broader market.
The Future of Financial Leadership
The examples of these CFOs herald a new era in financial leadership, one where empathy and understanding are as crucial as financial acumen. This shift is reflective of a broader trend in business where success is increasingly measured not just by financial outcomes but also by social and human impact.
As businesses continue to navigate complex challenges and opportunities in a rapidly changing world, the role of the CFO will undoubtedly continue to evolve. The leaders who can blend financial expertise with a deep understanding of people – both within and outside the organization – will be the ones shaping the future of their companies and, by extension, the global business landscape.
In conclusion, the real-life stories of CFOs like Amy Hood, Patrick Grismer, and Ruth Porat offer powerful insights into the changing dynamics of financial leadership. They serve as inspiring examples for current and aspiring CFOs, showing that empathy and understanding are not just desirable traits but essential components of effective and forward-thinking financial leadership.
If you are looking for a book that delves into the concept of empathetic leadership, here are a few of the notable works that further explore this important aspect of modern leadership:
- “Emotional Intelligence: Why It Can Matter More Than IQ” by Daniel Goleman: This book is a foundational text on the role of emotional intelligence (EQ) in leadership. Goleman argues that EQ, which includes empathy, is a key factor in successful leadership, sometimes even more crucial than traditional intelligence (IQ).
- “Dare to Lead: Brave Work. Tough Conversations. Whole Hearts.” by Brené Brown: Brené Brown is known for her research on vulnerability, courage, empathy, and leadership. In this book, she discusses how empathy is a vital component of courageous leadership and how leaders can cultivate empathy and other emotional skills.
- “Leading with Empathy: Understanding the Needs of Today’s Workforce” by Gentry Underwood: This book offers practical insights into how leaders can develop and apply empathy in the workplace. It provides strategies for understanding and meeting the needs of diverse teams in a changing work environment.
