CFOs agree on broad trends despite different leadership styles

CFOs are often categorized by the industries they work in, the size of the companies that employ them or their geographical locations. Less common is grouping them by their leadership approaches.

However, a new report, based on a survey of 751 finance leaders, posits that three distinct leadership styles typify finance executives. Interestingly, survey respondents self-identified as being among the three groups in nearly equal proportions.

Prophix, a maker of FP&A software that conducted the survey, calls the three groups “expanders,” “catalysts” and “protectors.” It noted that none of the leadership approaches is preferable to the others overall; the best one for any particular company depends on its business needs.

Expanders (31% of those surveyed) “seek growth and actively look to invest in big new opportunities,” Prophix wrote in the report. “They reassess their business and weave the right narrative for investors with an optimistic view of their company’s financial performance and the economy.”

Catalysts (35%) “look to drive operational efficiencies and optimize their operations. Scalability, agility and resilience are key to their approach as they … quickly tackle opportunities and threats as they arise. They wish to invest in measures that will support productivity and connect silos.”

Protectors (32%) “are keen to address risk immediately and build up their teams’ ability to manage disruption…. They actively monitor external issues and assess the potential impacts, as well as take measures to protect and preserve assets. Their focus is on specific, anticipated opportunities or threats that need to be managed to maintain stability.”

Only 2% of the survey respondents did not identify with any of the three broad groups. The full survey base was drawn from finance leaders in the United States, Canada, the U.K., France, Germany, Brazil and the Benelux countries.

The three finance-leader groups expressed remarkably similar views. For example, participants were asked whether they had a positive or negative view for 2025 about the general economy, their industry, and their company’s financial prospects. All three groups were quite optimistic overall, although somewhat less so with regard to the economic outlook — notably, all three were least optimistic in that area.

Likewise, all three groups were most positive about their own company’s business outlook. Almost half (48%) of finance leaders reported being “very” optimistic.

Further, similar proportions of each group said in 2025 they will be open to adopting and utilizing AI, open to new opportunities, looking to expand and invest, and looking to invest in measures that will support productivity.

Among the entire participant pool, when asked about the biggest challenges they face, two were tied at the top of the list with a 32% plurality: (1) data reliability, timeliness and accuracy, and (2) attracting, retaining and developing talent.

The priority on data is part of a broader trend toward digital transformation. Three-quarters of the survey participants reported that their transformation efforts are well underway, although 15% said their teams continue to struggle with finding the right technologies to invest in. “Organizations must prioritize thorough research and due diligence to identify the best fit for their unique needs,” Prophix advised.

On the talent front, 43% of finance leaders said their teams are not adequately staffed. And they expect things to get worse before they get better: 47% said they don’t expect to be sufficiently staffed in the next 12 to 24 months.

The understaffing and talent management challenges make it harder for finance teams to balance daily responsibilities with strategic priorities such as technology advancements, digital transformation, and organizational shifts, according to Prophix.