SlideShare a Scribd company logo
Fin DNA not a must for CEO's 
job: Study
Contd.. 
About 700 American companies listed on 
the Fortune 500 or Standard & Poor’s, or 
both, that undertook an executive search 
in 2014, did not, in most cases, hire a 
CEO with a natural talent for finance. 
Less than a quarter (only 20%) of the 61 
CEOs hired by large companies in the 
past year had any experience in finance, 
meaning they had spent part of their 
career as a CFO or in a lesser finance 
role, such as controller or treasurer, or 
were once an investment banker, 
according to a report by BTI Consultants, 
a part of Kelly Services Worldwide.
Contd.. 
In other words, a financial services background is 
generally not a prerequisite for CEOs and its 
importance to executive recruiters is said to be 
waning. The trend is no different in India. BTI 
Consultants, which leveraged its working 
association with more than 100 top corporates in 
India, believes that — while hiring CEOs — most 
companies look beyond aspects such as “financial 
DNA”. Instead, they focus on business acumen and 
skill sets, including ability to focus on growth, drive 
change, take tough decisions on resource 
allocations, take calculated risks, influence and run 
businesses in an everchanging and evolving 
market. Companies also look for CEOs who are 
visionaries and those who can provide direction.
Contd.. 
In the existing scenario, financial institutions and banks 
look at hiring CEOs having a strong financial 
knowledge. While that gets the maximum weightage, 
some stress is also being laid on evaluating skills like 
business acumen, ability to drive change and 
innovation, focus on growth, building team and 
managing talent. 
On the other hand, for non-financial focused industries 
like IT, telecom, FMCG, retail, consumer durables and 
pharma, companies look at hiring CEOs with similar 
skill sets. However, the primary weightage is not given 
to financial knowledge, according to BTI Consultants. 
“We have also seen large Indian companies, a few 
startups in India, Fortune 500 organizations and MNCs 
in the consulting space giving some weightage to 
education and the colleges that one has graduated 
from. However, significant emphasis is on the 
corporate track record,” said James Agrawal, MD, BTI 
Consultants India.
Contd.. 
The highlights of the report, which TOI is privy to, throws 
insights on how the trend has become pronounced post 
the financial crisis. So executives with financial expertise 
are finding the CEO position more elusive. “Whether we 
like to think it or not, the vast majority of companies are 
reactionary and downturns tend to be when the value of 
a finance toolkit increases,“ said Agrawal. Interestingly, no 
leadership competency matters more than the capacity to 
understand the evolving needs of customers in detail. “At 
Godrej, we look at leadership through the lens of our 
Godrej capability factors of `leading self ', `leading others' 
and ‘leading business’. We believe that leadership is more 
than just delivering results and we want Godrej leaders to 
be emotionally mature and self-driven — that is, people 
who can lead themselves and, in turn, are able to mentor 
and grow their teams,” said Nisaba Godrej, executive 
director, Godrej Consumer Products.
Contd.. 
She believes that the mark of a great leader is 
“someone who can make herself obsolete”. “This 
ability to lead self and others is key because we 
will only be able to achieve our growth plans if we 
are able to continuously nurture and develop the 
next generation of leaders,” said Godrej. 
S Venkatesh, executive director (HR) at KEC 
International, an RPG company, said, “Considering 
that the world is yet to turn the corner, 
organizations will need CEOs who can instil a 
culture of frugality and cost control. The other 
challenge is to manage the increasingly complex 
regulatory environment and governance 
requirements.”
For details and bookings contact:- 
Parveen Kumar Chadha… THINK TANK 
(Founder and C.E.O of Saxbee Consultants & Other-Mother ) 
Email :-saxbeeconsultants@gmail.com 
Mobile No. +91-9818308353 
Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015
Fin dna not a must for ceo's job study

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Fin dna not a must for ceo's job study

  • 1. Fin DNA not a must for CEO's job: Study
  • 2. Contd.. About 700 American companies listed on the Fortune 500 or Standard & Poor’s, or both, that undertook an executive search in 2014, did not, in most cases, hire a CEO with a natural talent for finance. Less than a quarter (only 20%) of the 61 CEOs hired by large companies in the past year had any experience in finance, meaning they had spent part of their career as a CFO or in a lesser finance role, such as controller or treasurer, or were once an investment banker, according to a report by BTI Consultants, a part of Kelly Services Worldwide.
  • 3. Contd.. In other words, a financial services background is generally not a prerequisite for CEOs and its importance to executive recruiters is said to be waning. The trend is no different in India. BTI Consultants, which leveraged its working association with more than 100 top corporates in India, believes that — while hiring CEOs — most companies look beyond aspects such as “financial DNA”. Instead, they focus on business acumen and skill sets, including ability to focus on growth, drive change, take tough decisions on resource allocations, take calculated risks, influence and run businesses in an everchanging and evolving market. Companies also look for CEOs who are visionaries and those who can provide direction.
  • 4. Contd.. In the existing scenario, financial institutions and banks look at hiring CEOs having a strong financial knowledge. While that gets the maximum weightage, some stress is also being laid on evaluating skills like business acumen, ability to drive change and innovation, focus on growth, building team and managing talent. On the other hand, for non-financial focused industries like IT, telecom, FMCG, retail, consumer durables and pharma, companies look at hiring CEOs with similar skill sets. However, the primary weightage is not given to financial knowledge, according to BTI Consultants. “We have also seen large Indian companies, a few startups in India, Fortune 500 organizations and MNCs in the consulting space giving some weightage to education and the colleges that one has graduated from. However, significant emphasis is on the corporate track record,” said James Agrawal, MD, BTI Consultants India.
  • 5. Contd.. The highlights of the report, which TOI is privy to, throws insights on how the trend has become pronounced post the financial crisis. So executives with financial expertise are finding the CEO position more elusive. “Whether we like to think it or not, the vast majority of companies are reactionary and downturns tend to be when the value of a finance toolkit increases,“ said Agrawal. Interestingly, no leadership competency matters more than the capacity to understand the evolving needs of customers in detail. “At Godrej, we look at leadership through the lens of our Godrej capability factors of `leading self ', `leading others' and ‘leading business’. We believe that leadership is more than just delivering results and we want Godrej leaders to be emotionally mature and self-driven — that is, people who can lead themselves and, in turn, are able to mentor and grow their teams,” said Nisaba Godrej, executive director, Godrej Consumer Products.
  • 6. Contd.. She believes that the mark of a great leader is “someone who can make herself obsolete”. “This ability to lead self and others is key because we will only be able to achieve our growth plans if we are able to continuously nurture and develop the next generation of leaders,” said Godrej. S Venkatesh, executive director (HR) at KEC International, an RPG company, said, “Considering that the world is yet to turn the corner, organizations will need CEOs who can instil a culture of frugality and cost control. The other challenge is to manage the increasingly complex regulatory environment and governance requirements.”
  • 7. For details and bookings contact:- Parveen Kumar Chadha… THINK TANK (Founder and C.E.O of Saxbee Consultants & Other-Mother ) Email :-saxbeeconsultants@gmail.com Mobile No. +91-9818308353 Address:-First Floor G-20(A), Kirti Nagar, New Delhi India Postal Code-110015