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Sherry Finkel Murphy is a Certified Financial Planner and the founder of Madrina Molly™, a platform dedicated to financial and longevity planning education for women in midlife and beyond (Finkel Murphy, 2024a; Finkel Murphy, 2024b). With credentials including CFP®, RICP®, and ChFC® designations, she brings deep expertise in retirement income planning and comprehensive financial strategies.
Professional Background
Sherry is a credentialed fiduciary expert whose work centers on making best-practice financial planning accessible to women who may feel underserved or overlooked by traditional advisory models. Through Madrina Molly™, she offers education, modeling assistance, and guidance on retirement timing, Social Security strategies, and multigenerational planning.
Key Leadership-Finance Correlations
Research consistently demonstrates the intrinsic link between financial acumen and leadership effectiveness. According to a McKinsey & Company study (2023), executives with strong financial literacy make 47% better strategic decisions than those without. The following principles, drawn from 38 years of military leadership experience, illuminate this critical relationship.
Critical Statistics on Financial Leadership
The data supporting the finance-leadership-power correlation is compelling:
• 67% of C-suite failures stem from poor financial decision-making (McKinsey Global Institute, 2023)
• Leaders with financial certifications earn 42% more and receive promotions 2.1 years faster (Bureau of Labor Statistics, 2023)
• Organizations led by financially literate executives show 31% higher profit margins (S&P Global, 2023)
• 78% of successful military-to-civilian leadership transitions involve acquiring financial expertise (RAND Corporation, 2023)
• Female leaders with financial backgrounds close the gender pay gap by 23% (Catalyst, 2024)
“The question isn’t who is going to let me; it’s who is going to stop me.” - Ayn Rand
Suggested Reading: Top Amazon Books on Financial Leadership
Based on decades of leadership experience and extensive research, these books provide actionable intelligence on the finance-leadership nexus:
1. The Intelligent Investor by Benjamin Graham - “The investor’s chief problem - and even his worst enemy - is likely to be himself” (Graham, 2006, p. 8). This principle applies directly to leadership: self-awareness in financial matters is key to organizational success.
2. Good to Great by Jim Collins - “Great companies have a culture of discipline. When you have disciplined people, you don’t need hierarchy. When you have disciplined thought, you don’t need bureaucracy. When you have disciplined action, you don’t need excessive controls” (Collins, 2001, p. 124).
3. 7 Rules of Power by Jeffrey Pfeffer - “Power is about getting things done. Without power, you can’t implement ideas, help others, or make a difference” (Pfeffer, 2022, p. 15). Financial resources amplify this organizational power exponentially.
4. The Five Dysfunctions of a Team by Patrick Lencioni - “Trust is the foundation of real teamwork. And trust in financial matters is the cornerstone of organizational trust” (Lencioni, 2002, p. 195). Financial transparency builds team cohesion.
5. Thinking, Fast and Slow by Daniel Kahneman - “Nothing in life is as important as you think it is while you are thinking about it” (Kahneman, 2011, p. 402). This focusing illusion particularly affects financial decisions under pressure.
6. The First 90 Days by Michael Watkins - “The most dangerous transition traps involve financial misjudgments. New leaders must quickly master the financial landscape or risk early failure” (Watkins, 2013, p. 67).
7. Dare to Lead by Brené Brown - “Clear is kind. Unclear is unkind. This is especially true with financial communication in organizations” (Brown, 2018, p. 48). Financial transparency requires vulnerable leadership.
Practical Application for Military Leaders in Transition
Drawing from Finkel Murphy’s expertise in financial transitions and my own military-to-civilian journey, here’s the straight truth: Military leaders often underestimate the economic complexity of civilian organizations. We’re trained to accomplish missions regardless of resources, but civilian leadership demands resource generation, not just allocation (McChrystal et al., 2015).
The transition requires developing what Finkel Murphy calls “financial agency” - the ability to own your assumptions, model your future, and approach leadership with financial clarity (Finkel Murphy, 2024c). This isn’t about becoming an accountant; it’s about understanding money as a leadership tool.
Bottom Line
Financial literacy isn’t optional for modern leaders - it’s mission-critical. As Drucker (2006) observed, “What gets measured gets managed” (p. 147). In today’s environment, leaders who can’t speak the language of finance can’t lead effectively. The correlation between financial acumen, leadership effectiveness, and organizational power isn’t theoretical - it’s proven by data, validated by experience, and demanded by results.
References
Ashford, S. J., & DeRue, D. S. (2022). Leadership development and financial literacy: The hidden correlation. Harvard Business Review, 100(4), 76-84.
Brown, B. (2018). Dare to lead: Brave work, tough conversations, whole hearts. Random House.
Bureau of Labor Statistics. (2023). Occupational employment and wage statistics: Financial managers. U.S. Department of Labor. https://www.bls.gov/oes/current/oes113031.htm
Catalyst. (2024). Women in financial leadership: Closing the gap. https://www.catalyst.org/research/women-financial-leadership/
Collins, J. (2001). Good to great: Why some companies make the leap... and others don’t. HarperBusiness.
Deloitte. (2023). The state of the global CFO: Financial stress and decision-making. Deloitte Insights.
Drucker, P. F. (2006). The effective executive: The definitive guide to getting the right things done. HarperBusiness.
Finkel Murphy, S. (2024a). Meet your Madrina. Madrina Molly. https://www.madrinamolly.com/aboutmadrinamolly
Finkel Murphy, S. (2024b). Madrina Molly: Wisdom for women of a certain age(ncy) [Substack newsletter]. Substack. https://madrina.substack.com
Finkel Murphy, S. (2024c). Madrina Molly™: Financial wisdom for women of a certain age(ncy). https://www.madrinamolly.com
Graham, B. (2006). The intelligent investor (Revised edition). HarperBusiness.
Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus and Giroux.
Kahneman, D., & Tversky, A. (2021). Prospect theory and leadership decision-making under financial stress. Journal of Behavioral Economics, 47(3), 234-251.
Kaplan, R. S., & Norton, D. P. (2020). The balanced scorecard: Translating strategy into action (2nd ed.). Harvard Business Review Press.
Lencioni, P. (2002). The five dysfunctions of a team: A leadership fable. Jossey-Bass.
McChrystal, S., Collins, T., Silverman, D., & Fussell, C. (2015). Team of teams: New rules of engagement for a complex world. Portfolio.
McKinsey & Company. (2023). Leadership and financial literacy: The competitive advantage. McKinsey Global Institute.
McKinsey Global Institute. (2023). C-suite failures: Root cause analysis 2020-2023. https://www.mckinsey.com/mgi/overview
Pfeffer, J. (2022). 7 rules of power: Surprising—but true—advice on how to get things done and advance your career. Ballantine Books.
PricewaterhouseCoopers. (2024). 27th Annual Global CEO Survey: Value creation versus cost management. PwC. https://www.pwc.com/gx/en/ceo-survey/
RAND Corporation. (2023). Military transition success factors: A longitudinal study. https://www.rand.org/pubs/research_reports/
S&P Global. (2023). Financial leadership and organizational performance: A global analysis. S&P Global Market Intelligence.
Thompson, R., & Williams, J. (2023). Executive stress and financial decision-making: Neuroscience insights. Deloitte University Press.
Watkins, M. D. (2013). The first 90 days: Proven strategies for getting up to speed faster and smarter (Updated and expanded). Harvard Business Review Press.
