In the words of Aristotle, "Knowing yourself is the beginning of all wisdom."
While self-awareness does not come naturally to everyone, it is crucial. The ability to understand one’s emotions, strengths, weaknesses, and values is a powerful asset. In the realm of leadership, self-awareness is pivotal in fuelling organisational growth. It enables leaders to make informed decisions, regulate their reactions, and understand how their behaviour impacts others.
Self-aware leaders have the power to build stronger relationships, foster trust, and cultivate a positive work environment. They are also better equipped to guide their teams, navigate challenges, and drive organisational success by aligning their actions with the needs and goals of their team.
In 2024, this is more relevant than ever, with a global study finding that “Australian finance leaders believe that a new breed of CFO is needed to keep up with the rapidly evolving business landscape.”
The Redefined CFO study by Sage, showed that in Australia, CFOs reported seeing increased responsibilities over the last 12 months in identifying strategy and future planning (80%); digital transformation (80%); and diversity, equity, and inclusion initiatives (78%).
The study also highlighted how organisations have been prioritising people and empathy in business decisions, with 76% of financial decision-makers placing purpose over profits. In particular, 45% of Australian CFOs said they aspire to be ‘Chief Fairness Officers’, focusing on nurturing their organisation’s employees and fostering empathy.
This serves as a timely reminder about the importance of blending both technical skills and leadership soft skills to meet the diverse needs of modern-day financial management.
Related: The 6 technical skills in finance needed to progress to CFO
It is a sentiment that was echoed in Robert Half’s latest session of the Aspiring CFO Series. The third session explored the value of understanding the leadership soft skills required to be an effective CFO. The audience, comprised of mid-to-senior level finance professionals, also explored how to best communicate with others based on various preferences.
This crucial conversation, led by Kathy Burton, Ph.D., Vice President of Learning and Development at Robert Half, highlighted the power of the Myers-Briggs Type Indicator (MBTI) as a tool for understanding personality preferences.
Kathy boasts a diverse background spanning Human Resources, Organisational Development and Leadership Development. Holding a Doctorate Degree in Human Behaviour and Executive Coaching, Kathy is certified in over 15 personality and psychometric assessments, earning her Executive Coaching license in 2010.
Kathy’s unique experience and expertise prompted some powerful insights in this latest session. It’s a not-to-be-missed discussion for anyone looking to sharpen their leadership soft skills, and ultimately, their CFO credentials.
Related: How to build my personal brand to become CFO
As Kathy pointed out, today’s CFO requirements are perhaps the most diverse they have ever been. In 2024, the role requires a blend of attributes that allow leaders to engage in cross-functional decision-making, balance power with purpose, and future-proof their organisations.
As a result, these senior decision-makers can no longer rely on technical skills alone. Today, non-traditional skills are set to help CFOs guide their organisations effectively and meaningfully.
As a human behaviour expert, Kathy is an astute believer in the power of the MBTI to sharpen awareness and inspire informed action.
Before the session, all attendees were asked to complete the MBTI. The intent was to prompt deep reflection about how they are energised, how they absorb information, how they make decisions, and how they approach life.
Kathy believes this is a vital step in identifying and applying leadership soft skills. She says, “I would encourage any professional to complete the MBTI to deepen their self-awareness. Consider it a proactive step in analysing and identifying your preferred leadership styles and approaches. It will open your eyes to the importance of recognising and valuing diverse perspectives within a team. Furthermore, it will highlight where you may need to adapt your own style to interact more effectively with others.”
Kathy says, “The MBTI categorises individuals into one of 16 personality types based on four key dichotomies. It’s important to acknowledge that there is no good or bad, no right or wrong – it’s simply an opportunity to recognise and appreciate diverse perspectives and strengths.”
Let’s explore the four key dichotomies and how each can manifest in the workplace.
Extraversion: Extraverts are initiating, gregarious, and enthusiastic individuals. They thrive in social settings and draw energy from interaction with others. As a result, they often excel in roles requiring teamwork, brainstorming, and networking. The enthusiasm and sociability of these self-revealing individuals can invigorate team dynamics and foster collaborative efforts.
Introversion: Introverts on the other hand, are contained, quiet, and intimate, finding energy in solitude and deep focus. Their reflective predisposition makes them ideal candidates for roles that require independent work, concentration, and thoughtful analysis. Somewhat of an onlooker, their depth and well-considered perspectives make them valuable workplace contributors.
Sensing: Sensing individuals are realistic and detail-oriented, relying on concrete information and practical experience. They are best suited to positions that require precision, consistency, and a focus on the present. Characteristically methodical and pragmatic, their tasks are generally completed accurately and efficiently.
Intuition: Intuitive individuals are focused on the ‘bigger picture’. They are future-oriented, conceptual, and imaginative, making them ideal for strategic planning, innovation, and creative problem-solving roles. Notoriously resourceful, intuitive individuals have a unique ability to envision new ideas and solutions. Their abstract way of thinking helps to drive growth and transformation within the workplace.
Thinking: Thinkers make decisions based on logic and objective analysis, excelling in roles centred around critical thinking, data analysis, and impersonal decision-making. These ‘truth seekers’ are typically described as reasonable, questioning, and tough. Their rational approach ensures that decisions are fair, consistent, and based on sound reasoning.
Feeling: Feelers prioritise harmony and the welfare of people - they tend to base conclusions on personal or social values. As compassionate, and accommodating individuals, they excel in roles that involve team building, conflict resolution, and customer relations. Their tenderness and empathy help to foster a supportive and inclusive workplace environment.
Judging: Judgers prefer decisiveness, closure, structure, and clear action. Often described as systematic and planful, they thrive in roles that require project management, deadline adherence, and systematic approaches. Their preference for advanced planning ensures that projects are started early and efficiently. Their need for order ensures that projects stay on track and objectives are met.
Perceiving: Perceivers are adaptable and casual, thriving in flexible, dynamic environments. They are best suited to roles that require creativity, spontaneity, and agility.
Perceivers are pressure prompted – while they find early starts unstimulating, they are motivated by looming deadlines. Their ability to go with the flow ensures they can pivot quickly in response to changes and challenges.
When these preferences are combined, they form the 16 MBTI personality types below:
The Inspector - ISTJ (Introversion, Sensing, Thinking, Judging)
The Protector - ISFJ (Introversion, Sensing, Feeling, Judging)
The Counsellor - INFJ (Introversion, Intuition, Feeling, Judging)
The Mastermind - INTJ (Introversion, Intuition, Thinking, Judging)
The Craftsman - ISTP (Introversion, Sensing, Thinking, Perceiving)
The Composer - ISFP (Introversion, Sensing, Feeling, Perceiving)
The Healer - INFP (Introversion, Intuition, Feeling, Perceiving)
The Architect - INTP (Introversion, Intuition, Thinking, Perceiving)
The Dynamo - ESTP (Extraversion, Sensing, Thinking, Perceiving)
The Performer - ESFP (Extraversion, Sensing, Feeling, Perceiving)
The Champion - ENFP (Extraversion, Intuition, Feeling, Perceiving)
The Visionary - ENTP (Extraversion, Intuition, Thinking, Perceiving)
The Supervisor - ESTJ (Extraversion, Sensing, Thinking, Judging)
The Provider - ESFJ (Extraversion, Sensing, Feeling, Judging)
The Teacher - ENFJ (Extraversion, Intuition, Feeling, Judging)
The Commander - ENTJ (Extraversion, Intuition, Thinking, Judging)
According to Kathy, self-awareness is essential in maximising our leadership soft skills. She says, “The MBTI is a solid reminder that we all perceive and process information differently. It’s no surprise that those differences manifest in our work habits. In understanding ourselves, we can learn more about our habits and behaviours - where we focus attention, draw energy, make decisions, and handle stress.”
While none of these factors can be ignored, Kathy believes understanding stress is vital. “From world issues to workplace challenges, we face mounting stress on many fronts. Understanding your personality type helps to shed light on how you react to stress and pressure,” she says.
“Characteristically, we are all prone to certain stress triggers – there are also certain behaviours that take hold in the grip of it. If we can be aware of these, we can work more proactively to manage our stress before it becomes problematic.”
Kathy outlines the different stress responses below:
Extraversion: “Extraverts often feel stressed in the absence of social interaction or stimulation. Prolonged isolation can be very taxing for an extravert - under stress, they may seek out social interactions more intensely. They may also become more talkative and/or distracted. Their frustrations may be expressed outwardly, seeking assistance from others.”
Introversion: “Introverts may feel stressed in environments that require constant stimulation or interaction. Too many external demands and not enough personal space can prove overwhelming for them.
In times of stress, introverts may withdraw more than usual, becoming quieter and more reserved. Solitary time can help them to process their stress and fatigue.”
Sensing: “When it comes to stress, sensing individuals are triggered by ambiguity, lack of detailed information, and unpredictable situations. In the grip of stress, these individuals may become overly focused on details, rigid in their routines, and resistant to change. Clarity and step-by-step guidance can often help them to regain a sense of control.”
Intuition: “On the flip side, structure and excessive details can prove stressful for intuitive individuals. When devoid of creative opportunities, intuitive individuals may become scattered, lose focus, or become frustrated with routine tasks. When stress takes hold, they may seek out new projects or challenges to cope.”
Thinking: “As pragmatic individuals, thinkers typically feel stressed in environments where they believe feelings outweigh facts. Emotional conflicts and illogical reasoning can be quite stressful for a thinker. Under stress, they can become overly critical, detached, and may struggle to express empathy. In response, they may focus intensely on problem-solving.”
Feeling: “Inversely, feelers’ stress stems from conflict, disharmony, and situations that compromise their values. When relationships and harmony are jeopardised, feelers can become stressed and overly sensitive. They often take criticism personally and try too hard to please others. They may need reassurance and support to manage their stress effectively.”
Judging: “With a preference for order and firm decisions, judgers are often stressed by uncertainty, lack of structure, and sudden changes in plans. Stress can cause them to become controlling, inflexible, and frustrated with delays. They will likely push for quick resolutions to regain a sense of order.”
Perceiving: “On the other hand, order can cause perceivers to feel stressed. Thriving in flexible environments, these individuals experience stress in the face of rigid schedules, excessive planning, and a lack of freedom. When reacting to stress, perceivers may become disorganised, unfocused, and prone to avoiding commitments. They may need the time and the space to explore options and adapt at their own pace.”
Kathy says, “Understanding our individual preferences is crucial, not only for finessing our leadership soft skills but for influencing the culture in which everyone operates. If we can better understand ourselves and those on our team, we have a better chance at leading effectively and building an enduring, high-performing team.”
Stephen R. Covey once said, “Strength lies in differences, not similarities.” This certainly rings true in the context of team diversity.
As Kathy explains, “Diversity is central to building a well-rounded, high-performing team. With a sound understanding of different personality types, you’ll be well-equipped to build a powerful team. Seek to foster an environment where different personality types can work together to complement each other's strengths and weaknesses.”
Embracing personality diversity, particularly through the lens of the MBTI, will prove valuable in creating a balanced and dynamic team. The right mix of personalities can lead to:
Enhanced problem-solving
Balanced decision-making
Improved team dynamics
Effective task management
Comprehensive skill sets
Enhanced employee satisfaction and retention
“The MBTI proves that individuals don’t operate identically. A dynamic mix of personalities means a dynamic mix of skills that can elevate business outcomes,” says Kathy.
“Take decision-making as an example. This is an area where a business needs a mix of thinking and feeling types to make balanced decisions. While thinkers will offer logical, rational insights, feelers will be much more considerate of the human impact. Both perspectives have merit however, this mix will help to bring objectivity and empathy to business decisions.”
Don’t lose sight of the importance of creating a culture based on diversity. As Kathy explains, “Respect for diverse perspectives will pay dividends. It helps to foster open communication, inclusivity, and support. When employees feel appreciated for their unique contributions they are far more likely to deliver positive outcomes.”
Related: Are finance skills at the top of chief executive requirements?
Leadership soft skills aren’t perfected overnight. For aspiring CFOs, ongoing learning and self-development are crucial for remaining effective, competitive, and sharp.
By incorporating self-reflection and feedback into your growth plan, you can identify areas for improvement, set realistic goals, and achieve professional growth. Not sure where to start? Try the initiatives below:
Regular self-assessment – Stay committed to conducting routine reviews to assess your achievements, challenges, and areas for development.
Seek constructive feedback – Gather formal and informal feedback from colleagues, direct reports, and supervisors to shed light on your blind spots. Be sure to foster an environment where team members feel comfortable providing honest feedback.
Set specific, measurable goals – Clearly define your objectives and craft an action plan. Monitor your progress and adjust your action plan as required.
Engage in continuous learning – Work on expanding your emotional intelligence and your leadership skills. Pursue professional development opportunities (courses, workshops, and certifications). Join professional networks. Stay abreast of the latest developments in finance, leadership, and management by reading books, journals, and articles.
Leverage mentorship and coaching – Find a trusted mentor (an experienced CFO or leader) who can provide guidance, advice, and insights.
Foster a culture of reflection – Lead by example and demonstrate the power of feedback and self-reflection. Work with your team to implement regular reflection practices.
Evaluate and adapt – Regularly review the effectiveness of your growth plan and adjust where needed. Be open to change in the face of new insights and changing circumstances.
Related: How to become a CFO – 7 steps to guide your career path
Self-awareness is paramount for any high-performing CFO. As the latest session of Robert Half’s Aspiring CFO Series showed, it’s a practice that must begin well before the title is earned. A deep awareness of self begins with getting to know your personality preferences. If you haven’t already, take the time to complete the MBTI assessment to gain a comprehensive understanding of your unique perspectives and strengths. It’s a must for sharpening your leadership soft skills and getting the most out of life, both in and out of the office.
What are the most important soft skills for a CFO?
Effective communication
Emotional intelligence
Leadership and management
Strategic vision
Adaptability and agility
Negotiation and conflict resolution
Collaboration and teamwork
Time management and organisation
Critical thinking
How can I develop my soft skills as a CFO?
Regular self-assessment
Seek constructive feedback
Set specific, measurable Goals
Engage in continuous learning
Leverage mentorship and coaching
Foster a culture of reflectiont
How do I balance my technical and soft skills as a CFO?
Recognise the value of both skill sets – Acknowledge that both are fundamental in your role. Look for opportunities to use both skill sets daily.
Prioritise continuous learning – Commit to expanding both skill sets through courses, workshops, education, and personal development.
Apply a holistic approach to decision-making – Leverage your technical skills to analyse data and leverage your soft skills to present the information to stakeholders.
Delegate and collaborate – Know where your personal strengths lie and leverage team strengths.
Set personal development goals – Identify specific soft skills and technical areas that require improvement. Set measurable goals to work towards.
How can I use my soft skills to build stronger relationships with stakeholders?
Leverage these soft skills to foster enduring relationships with stakeholders:
Effective communication
Empathy
Emotional intelligence
Collaboration and teamwork
Conflict resolution
Leadership and influence
Trust building
Relationship management
Adaptability and flexibility
Recognition and appreciation
How can I use my soft skills to navigate difficult situations as a CFO?
Maintain clear and transparent communication
Practise actively listening
Demonstrate empathy
Stay composed and exercise emotional intelligence
Lead by example to foster a collaborative and solution-oriented environment.
Employ conflict resolution skills and strategic decision-making to find mutually beneficial solutions
