#248 Why CFOs Must Balance Results with Legitimacy Paul Achleitner, Former Deutsche Bank Chair & Goldman Sachs Partner
In today’s complex business environment, CFOs are expected to deliver strong results while also maintaining the legitimacy and trust of their organizations. Paul Achleitner, former Deutsche Bank Chair and Goldman Sachs Partner, shares his unique perspective on the evolving demands of financial leadership. Achleitner emphasizes that while performance metrics remain crucial, the legitimacy dimension—how stakeholders perceive the organization’s actions and values—has become equally vital in an era of transparency and social media scrutiny.
Drawing from decades of boardroom experience, Achleitner discusses the risks of relying solely on past experience, the importance of judgment in a rapidly changing world, and the need for CFOs to manage both their own egos and those of their teams. He highlights the dangers of both underperformance and unsustainable overperformance, urging leaders to continuously evaluate whether they are truly adding value. Achleitner’s insights offer CFOs practical guidance on navigating the balance between delivering results and sustaining legitimacy, ensuring long-term organizational success in a world where both are under constant public review.
Key topics covered:
- The critical need for CFOs to balance performance with legitimacy in leadership
- Why obsolete experience can hinder effective decision-making in today’s fast-changing environment
- The growing importance of judgment and self-evaluation for finance leaders
- Managing egos and fostering authentic, team-based leadership structures
- The risks of both underperformance and unsustainable overperformance
- The evolving role of the CFO as a “chief value officer” focused on long-term impact
Links
Timestamps
- 0:05:50 Achleitner introduces the “performance” and “legitimacy” dimensions of leadership
- 0:10:59 Discussion on the dangers of obsolete experience and the need for accelerated learning
- 0:13:43 Advice for managing change and the inevitability of unintended consequences
- 0:15:28 The importance of controlling egos and building strong leadership structures
- 0:20:18 Addressing imposter syndrome and the power of convincing narratives
- 0:29:07 The illusion of satisfactory underperformance and the need for continuous improvement
- 0:30:33 The deception of sustainable overperformance and the importance of balance
- 0:33:24 The CFO’s evolving role as a chief value officer and the importance of legitimacy
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