Change of mind: What CFOs can learn from sport psychology

Introduction

On May 6, 1954, in Oxford, England, Roger Bannister did what some thought could never be done. He broke the four-minute barrier for the mile run, turning in a time of 3:59.4.¹ Until then, the fastest time for the mile was 4:01.6. That was set roughly nine years earlier.²

Attaining this kind of peak performance can be elusive. Getting faster, or stronger, or more agile can be attributed, in part, to a number of components—training and conditioning, among others. While athletes must have the physical tools to compete, mental tools can separate great players from average ones. Elite athletes tend to possess a mindset and coping mechanisms that can give them an edge over the competition. Yet, having a good day at the office is still not easy. The expectations are high. Game after game, meet after meet, match after match, management—not to mention tens of thousands of spectators—expect athletes and coaches to rise to the big occasion and stay calm in the most intimidating circumstances. Play well, and you’re a hero; play poorly, and you’re branded in less flattering terms.

Athletes are not the only high-profile employees who face the pressure to outperform. Corporate boards expect C-suite leaders to outdo the competition regularly. In an environment where the S&P 500 doubles every seven years, on average,³ finance leaders face the challenge of ensuring that company value keeps growing.

Finance departments serve as the backbone of a company’s operations, and mistakes can be costly—and highly visible. If a company misses Wall Street’s earnings-per-share numbers, its stock price may take a hit. New regulatory requirements, as well as the monthly close, add more pressure.⁴ Increasingly, CFOs are being asked to participate in strategic decisions that could determine the long-term direction of a business. Missteps could cast doubt on a CFO’s long-term durability.

In this edition of CFO Insights, we examine what CFOs can pick up from sport psychology to enhance their own performances. What can they do to perform well under pressure? How can CFOs “get in the zone”—achieving a heightened state of focus that blocks out distractions? And can acknowledging the possibility of failure actually help CFOs succeed?

Endnotes

¹ “Behind the Yogi-isms: Those Said and Unsaid,” New York Times, September 23, 2015.

² “Average Stock Market Return,” Forbes Advisor, February 16, 2023.

³ “The human touch: How CFOs can support a culture of well-being,” CFO Insights, July 27, 2023.

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