Why CFOs Struggle as CEOs — The People and Communication Gaps That Undermine Leadership

A recent Financial Times article by Anjli Raval highlighted a growing trend:
according to Heidrick & Struggles, one-third of FTSE 100 CFOs are now promoted to CEO —
up from just 21% in 2019.

This seems like progress — but research shows these new CEOs often fail to drive top-line revenue growth as quickly as leaders from other backgrounds. Why?

Mini-Summary: More CFOs are becoming CEOs — but many are underperforming early in the role.

Raval points out that many CFOs carry a “cash-preservation mindset” into the CEO seat.
Their instincts are to protect rather than to pursue opportunity.

They’ve also spent years enforcing budgets — denying resources to division heads who now report to them.
When they become CEO, they inherit resentment from peers who remember those budget battles.

As baseball legend Yogi Berra said:

“Leading is easy. It’s getting people to follow you that’s hard.”

Mini-Summary: Leadership isn’t about control — it’s about followership.

Finance professionals excel at analysis, accuracy, and risk management — all vital traits.
But leadership requires a completely different skill set:
vision, persuasion, communication, and empathy.

These aren’t typically taught in accounting or MBA programs.
When analytical experts become CEOs, they face massive blind spots around human motivation, communication, and sales engagement.

Mini-Summary: The spreadsheet mindset doesn’t inspire teams — communication does.

When a former CFO becomes the boss of a sales organization, they often discover something shocking:
no one in sales respects them — yet.

Salespeople are independent, resilient, and results-driven.
They have spent careers facing rejection, negotiating with buyers, and surviving on commissions.
To them, a finance executive who “counts the numbers” but has never closed a deal has limited credibility.

Degrees and certifications mean nothing in the world of sales — only empathy and firsthand understanding do.

If new CEOs want the sales team behind them, they must get out of the office, visit customers, and listen.
Walk the talk. Feel the marketplace. Earn respect through experience.

Mini-Summary: Salespeople follow leaders who understand their reality, not just their revenue.

Another common pitfall: technical experts — whether CFOs, lawyers, or engineers —
spend most of their careers in professional silos.
Within those silos, communication is structured, logical, and full of jargon.

But leadership demands something different:
clarity, warmth, approachability, and adaptability.

I once met a lawyer at networking events — brilliant, but cold and awkward.
His goal was to build business, yet his demeanor repelled potential clients.
That disconnect is the same one that derails many new leaders.

Mini-Summary: If people don’t feel comfortable around you, they won’t follow you.

If you’ve been promoted from a technical specialty into a leadership role,
the first person you must manage is yourself.

An Executive Coach can help, but unless they’re trained in communication,
you’ll just be asked abstract questions — not shown how to change behavior.

Instead, take accountability:

• Enroll in professional communication and people skills training.

• Practice leading conversations with empathy and curiosity.

• Learn to connect with people who are not like you.

You can’t fire everyone who frustrates you — you must learn to influence them.

Mini-Summary: Leadership begins when you decide to grow beyond your technical comfort zone.

Leadership without followership is just authority.
If CFOs turned CEOs don’t learn how to win hearts as well as minds,
their tenure at the top will be short-lived.

Leadership today demands more than intelligence — it requires emotional connection.

• One-third of FTSE 100 CEOs are former CFOs — but many struggle early.

• CFOs often carry a “protect not pursue” mindset.

• Sales and people skills are critical gaps in most technical leaders.

• Leadership isn’t taught in spreadsheets — it’s learned through connection.

• To succeed, new CEOs must invest in communication and empathy.

Founded in the U.S. in 1912, Dale Carnegie Training has supported individuals and companies worldwide for over a century in leadership, sales, presentation, executive coaching, and DEI.
Our Tokyo office, established in 1963, has been empowering both Japanese and multinational corporate clients ever since.