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You are here: Home / 2011 / Archives for October 2011

Archives for October 2011

October 27, 2011 By Samuel Dergel Leave a Comment

“Get a CFO on board when you are ready to take on the world”

The title is a quote from Fred Wilson, a VC and Principal at Union Square Ventures, who recently wrote a blog titled “VP Finance vs CFO”.

It’s an interesting blog – you should read it. It certainly got a lot of attention in the social media space (CFO, Tech and VC subsector) in the time since it was published 72 hours ago.

I chose this quote to write my blog post on because it was the meatiest and juiciest for me to work with. In addition to my own direct take on the blog which I recently wrote – Does a Small yet Growing Business need a CFO? – I have written blogs that have touched this topic from different perspectives.

Let us count the ways.

1) CFO Readiness. When is a company really ready to take on the world? Are they really ready for a CFO?

2) Promoting the VP Finance to CFO. Fred says that a VP Finance is about “what happened” and a CFO is more about “What is happening right now”. I do agree with him. But that doesn’t mean the VP Finance cannot become a CFO. Here is how. And here is how as well.

3) The Successful CFO. How does a CFO become a successful? They prepare a plan, map out their relationships, get coaching, and build a strong team to support them.

4) Hiring your CFO. How do you hire them? Read this. How do you NOT hire a CFO? Read this.

Come to think of it, there are more than just these 4 ways.

Just read all my blogs.

And, to not miss any in the future, Click on the “Sign me up!” button on the right side of the blog.

Filed Under: Blog, CFO Compensation, Finance Team, Finance Team, Hire your Next CFO, Hire your Next CFO, On the Road to CFO, Public Company, Public Company, Social Media, Succession Planning, Succession Planning, Talent Management, Talent Management, Team Structuring, Team Structuring, The Strong CFO, The Strong CFO, The Strong CFO, VP Finance

October 25, 2011 By Samuel Dergel 1 Comment

Ask Samuel: How do I make time for networking?

Dear Samuel,

As CFO of a mid-sized manufacturing company, I find that I am always busy. If I’m not getting things off my To Do list, I’m being pulled into company meetings.

I know it’s important to network, both for representing the company I work for as well as for getting myself known within my business community. Still, I can’t find the time. What can I do?

Too Busy in Two Rivers

Dear Too Busy,

The first thing you need to do is convince yourself that networking is important. If you believe networking is valuable, you will make the time for it, just like you make time for everything else in your life that you find important.

Now if you really believe that networking is important, and need help making time for it, then I have some advice for you.

Objectives

What is it that you want to accomplish with networking? The answer to this question sets the stage for how you will reach your networking objectives.

Venues

Where are you going to network? Are you going to go to local business or national industry events? Are you going to call on previous people you worked with to go to lunch and catch up?

Scheduling

If you don’t put it on your schedule, it won’t happen.

Follow up

It is nice to meet someone at an event, have a pleasant conversation and exchange business cards. But then what? If there is no follow up, what is the value in having met that person in the first place?

Pay it forward

When you think about the people that are in your network and how you can add value to them, they will keep you in mind when you least expect it. This will also allow you to call on your network in the future if you need it.

Advice from other experts

As an example of calling on people in your network to help others, I reached out to people in my network for advice that I can share with you.

Ken Tudhope, a finance recruiter in Orange County, California is a person I point to as an example of how to network. Ken, who writes a blog on networking, makes it a point to never have lunch alone. He believes that networking groups, like local Chambers of Commerce, are excellent, because they give you a great context to network. He advises CFOs to “Sign up, Show up, Follow Up and Step Up.” Ken says “When people are involved and the event is enjoyable they tend to make it a priority.”

Cindy Kraft, who is familiar to my regular readers, is an excellent CFO Career Coach. I asked Cindy how a CFO can make networking a priority. Cindy said “The same way you make anything else a priority: put it on your calendar and then honor the appointment. Networking, on a consistent basis, is one of the most valuable things you can be doing for your career. Schedule it, and then do it!”

So, Too Busy, are you still too busy to network?

If you’d like to ask Samuel a question, click here.

Filed Under: Cindy Kraft, Ken Tudhope, Networking, Speaking and Training

October 19, 2011 By Samuel Dergel 11 Comments

The First 90 Days of a New CFO

Contrary to the way many people in the recruitment industry work, the successful placement of a CFO does not stop once an offer of employment is accepted by the new CFO.

Actually, this is one of the most critical stages in the successful hire of a new CFO – Transition.

If you look at the timeline for any well planned project, one project stage does not begin at the point in time that another ends.

For a New CFO, Transition begins…

    • before you start on the 1st day.
    • before you sign your offer letter.

Transition begins when you are interviewing.

You need to know what you’re getting yourself into. The more you can learn about the company during the interview process, before you sign your offer and before you start, the better off you will be as you transition into your new CFO role in the first 90 days.

As part of our complete CFO Search service, we provide the new CFO with our Accelerated Transition Program. This program coaches the CFO to get them up and running smoothly and quickly. (We also deliver our Accelerated Transition Program to CFOs who were not placed by us).

The ‘bible’ for successful transitions is “The First 90 Days – Critical Success Strategies for New Leaders at All Levels” by Michael Watkins. Published in 2003, this book is the guide that we use in all our New CFO Transitions. Watkins clearly describes the process to ensure the success of a new leader, including the CFO. Our CFOs appreciate the coaching we provide in conjunction with this important handbook.

I do not want to summarize the content of the book here as I really could not do it justice. However, here are some additional recommendations that CFOs should consider as they embark on their new CFO position.

1) The numbers. A New CFO should really understand the numbers before walking in on Day 1. You should have reviewed the Financial Statements of the company for the last 5 years, including the MD&A (if publicly listed). You should review the current budgets or forecasts and the business plan going forward. You should not be learning this information when you’re at your desk – there will be too much to do once you’re there.

2) Relationships within the company. Yes. I harp on relationships. That is because they are the most important factor for your success with your new employer. I can’t stress this enough. Know your CEO, Board, your fellow VPs and your team. I urge you to follow the guidance in “The First 90 Days” on how to make the most out of these relationships. Remember, you may be the numbers guy or gal, but you will only be able to accomplish and become a Successful CFO by working with and for the people at your new employer.

3) External Relationships. Bankers, Lawyers, Auditors, and of course Investors. You are the CFO. You represent the financial face of the company. They may not have hired you, but they will have to deal with you. Don’t forget, you need them to trust you.

4) Understand the business. You need to really and truly understand the inputs, process and outputs of the company. You need to be able to internalize why people buy your product or service and understand the company’s value proposition. The role of Finance is to support the business. You can only support it if you truly understand it.

5) Smile. It’s simple. No one likes a sourpuss.

Filed Under: Accelerated Transition Program, Accelerated Transition Program, Assessment, Assessment, Assessment, Executive Search, Executive Search, New CFO, New CFO, Onboarding, Onboarding, Search, Search, Training and Development, Training and Development

October 18, 2011 By Samuel Dergel 4 Comments

Ask Samuel: My Company hired a new CEO

Dear Samuel,

I was hired by my current employer 3 years ago. Recently the Board decided to hire a new CEO.

The new CEO has been here for a month, and I’ve met with her a few times. I have to admit, I’m concerned about what will happen to my position.

What can I do to secure my role with my Company?

Insecure in Secaucus

Dear Insecure, 

You face a challenge that many CFOs have faced before you. A good number of these CFOs ended up in a career search.

This is not necessarily the way it needs to be.

The good news is that you can do something about it.

Essentially you need to consider your situation like you’re interviewing for the CFO role, except you have an advantage – you know a lot more about this company and position than for any other job you have ever applied for.

Prove your value. The CEO is your new boss – She didn’t hire you, she acquired you. Prove to her that you are the best person to be CFO. Listen. Ask questions. Understand her strategy. Find out what information she needs from Finance to be a Great CEO. Gain clarity on what support she needs from you in the short term and the long term.

I’ve discussed the importance of relationships for CFOs in the past. There is no more important relationship for a CFO than the relationship with the CEO. 

Making this new situation work takes work. Prepare your plan, and put it into action.

You do not need to be a casualty of a new CEO.

If you need to discuss the specifics with me about this, give me a call at (201) 961-0838. 

Good luck,

Samuel

Filed Under: Ask Samuel, Ask Samuel, Ask Samuel, Ask Samuel, CFO Coach, CFO Coach, CFO Coach, CFO Coach, CFO Coach, CFO Coaching, CFO Coaching, CFO Coaching, CFO Coaching, CFO Coaching, CFO Coaching, Executive Coaching, Executive Coaching, Executive Coaching, Executive Coaching, Financial Executive Coaching, Financial Executive Coaching, Financial Executive Coaching, Successful CFO, Successful CFO, Successful CFO, Successful CFO, Successful CFO

October 17, 2011 By Samuel Dergel 2 Comments

Does a Small yet Growing business need a CFO?

You might think that given what I do, I would say “of course”.

I recently read a great piece by Janine Popick in the Huffington Post called Small Business CFOs: Do You Need One? In this article, Janine discusses the personal story of the growth of her company, Vertical Response, the challenges they faced as they were growing, and not having the right finance resources when they needed it.

Janine’s honesty is refreshing. She mentions that there were numerous times she needed to take decisions to bring on the right finance resources, but her concerns of cost overrode her need to build value. She also admits there were things she did not know.

The fact is many entrepreneurs of growing companies face the same issues. And make the same mistakes. I highly recommend this article to any entrepreneur who is building a growing business.

So, does a small yet growing business need a CFO?

If the business is small, growing and simple, I would say no.

If the business is a complex business (where revenue is not a simple formula, where there is innovation in the product or service and where new investment is needed regularly to accomplish success) I would say yes.

My recommendation to entrepreneurs of growth companies is: If you’re not sure, there are people you can ask. You can approach an entrepreneur of a successful growth business (like Janice) for their input. You can seek advice from the people that have invested money in your business (or people you hope will invest money in your business) for input.

Or, as one entrepreneur did last week, you can ask me.

Related Blog Posts:
More companies are ready for their first Real CFO
CEO and Investors: Are you ready for your First CFO?
New CFOs and the Entrepreneurial CEO – How to make it work

Filed Under: All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, All of Samuel's Blogs, Board, Board, Board, Board, Board, CEO, CEO, CEO, CEO, CEO, CEO, CFO, CFO, CFO, CFO, CFO, CFO, CFO, CFO, CFO, CFO Consulting, CFO Consulting, CFO Consulting, CFO Consulting, CFO Consulting, CFO Consulting, CFO Readiness Program, CFO Readiness Program, CFO Readiness Program, CFO Relationships, CFO Relationships, CFO Relationships, CFO Relationships, CFO Relationships, CFO Relationships, CFO Search, CFO Search, CFO Search, CFO Search, Courage, Courage, Courage, First CFO, First CFO, First CFO, Investors, Investors, Investors, IPO, IPO, Private Equity, Private Equity, Private Equity, VC, VC, VC, Venture Capital, Venture Capital, Venture Capital

October 11, 2011 By Samuel Dergel 3 Comments

Ask Samuel: Too many meetings, not enough time to work

Dear Samuel,

I have been following your advice saying that CFOs should build their relationships with the other executives in the company.

The problem is that I find myself in more meetings now than ever, and this is taking up so much of my time that I can’t get the work done that I am supposed to.

Do you have any advice on how to manage this better?

Flummoxed in Florida

Dear Flummoxed,

I’m glad that you have taken my advice about building your CFO Relationships. This certainly will help further develop your CFO value.

“Too many meetings” can be difficult to deal with. However, it is important to realize a couple of things as you build yourself into a Great CFO.

Meeting control. Part of your relationship building with other executives requires an honest discussion with them about the value they need from you to achieve their goals, as well as how you can help. Just attending meetings is not the answer. You need to be attending the right meetings, not all meetings. You need to guide the other executive to provide you with an agenda prior to the meeting, so you don’t have to be at the table for discussions that are not relevant.

Delegate. You brought up that you are too busy and cannot get your work done. Have you actually looked at the work you do to see if you cannot delegate some (or most) of this work? You need to assess how much of your work needs to be analytical and technical, how much of your effort needs to be ensuring that the work actually gets done, and how much of your time should be spent helping people in your organization make the best business decisions possible. What you shouldn’t be doing should be done by people on your team.

The CFOs that I coach come to me to help figure out these multi-layered challenges. I do realize that these two tidbits of advice are general in nature, and may not be able to completely solve your challenges.

Carry on asking yourself the right questions. Continuous self-improvement is the hallmark of a Great CFO. Never be satisfied. You can always do better.

Samuel

Filed Under: Great CFO

October 5, 2011 By Samuel Dergel 4 Comments

New CFOs and the Entrepreneurial CEO – How to make it work

I have been privy to viewing (from near and far) many successful entrepreneurial businesses over the last 20 years. I have always been fascinated by how one person (or a small group of people) can create an amazing business out of nothing. It takes a certain type of individual to have the motivation, drive and skills to be a successful entrepreneur.

I have also seen many entrepreneurial companies reach a ceiling on their growth potential. The management structure and style that has made them the success they have become can no longer support continued growth without a radical change in how the company is run.

This inflection point is where it can continue its growth and success.

Or it can all fall apart.

It is at this time that the Entrepreneurial CEO, driven by his or her own logic or by outside forces (usually external investors), understands that he or she needs to hire a Real CFO.

I have been called in to situations like this to help with the CFO Search. The biggest challenge CEOs face at this inflection point is emotional, not logical.

A recent article by Alix Stuart in CFO.com called How to Avoid Power-Hungry Bosses discusses this issue, and provides a 7 point check list on how to avoid a “Control Freak CEO.”

From my vantage point, the challenge for CFOs as they assess new and exciting opportunities is more than just avoiding difficult situations. The challenge is: How does a new CFO “make it work” with an Entrepreneurial CEO on the cusp of major change?

In essence, the company needs to be ready for a Real CFO. For an outside CFO candidate on the verge of accepting an offer from a growing company, this is difficult to assess.

The Question for the incoming CFO is: Are they ready for a Real CFO?

The Question for the Entrepreneurial CEO is: Are we ready for a Real CFO?

For companies facing this important point in their growth, I always recommend our CFO Readiness Program.

You can learn more about our CFO Readiness Program by reading our blog – CEO and Investors: Are you ready for your First CFO?

If you are a New CFO getting ready for (or having just started) a new role in a growth company with an Entrepreneurial CEO at the helm, you need to learn more about how this CFO Readiness Program will help you help your new company.

If you are an Entrepreneurial CEO that knows you will be facing an uphill battle in the move towards a more corporate structure, our CFO Readiness Program will equip you and your entire team to make the shift with more impact and less pain.

If you are an Investor in (or on the Board of) an Entrepreneurial Growth Company on the cusp of change, investing in CFO Readiness will take the guessing out of making the shift to the more corporate environment that will make you sleep better at night.

So, how does a New CFO “make it work” with an Entrepreneurial CEO on the cusp of major change? With the CFO Readiness Program.

Filed Under: PE, Real CFO, Uncategorized

October 4, 2011 By Samuel Dergel 2 Comments

Ask Samuel: Is every CFO coachable?

Note: This question was asked in the CFO Lounge. If you would like to know more about the CFO Lounge, I recommend that you read The Lonely CFO.

Dear Samuel,

I have read your blogs about coaching for CFOs, and agree that many of my fellow CFOs could benefit from getting guidance on how to be a better CFO.

One thing I have noticed, and you have not mentioned, is that some CFOs are not coachable – they just can’t change who they are.

What do you think about this Samuel?

Sincerely,

Philosopher in Philadelphia

Dear Philosopher

You bring up an interesting point – not all CFOs are coachable. They are like Freudian lightbulbs – they have to ‘want to change’.

A Number of CFOs are happy with how they are doing things, and don’t see the need to improve. They believe that what has got them to where they are will continue to help them to grow in their career.

Except…

You cannot believe the number of CFOs I speak with that find themselves in a job search that were totally blindsided by their need to find a new CFO role.

And a good number these CFOs will admit that they did not read the writing on the wall – that they did not see that ‘how it was always done’ wasn’t good enough.

My coaching program for CFOs – The Strong CFO Program (which you can read about here) works to coach CFOs, starting with their Strengths. On this blog page you can find a copy of my personal Strengthsfinder report, which is an example of the report used in my coaching program.

Funnily enough, most of the CFOs that I coach that come find me to help them grow have “Learner” as a strength. Learner is defined as…

“People strong in the Learner theme have a great desire to learn and want to continuously improve. In particular, the process of learning, rather than the outcome, excites them.”

That is not to say that CFOs that are not strong in “Learner” cannot benefit from coaching – it is just that they don’t go out of their way to continuously improve.

Samuel

Filed Under: Better CFO, Better CFO

October 3, 2011 By Samuel Dergel 3 Comments

Vote for your favorite CEO Story!

Thank you for following our CEO Story Contest!

It’s time to vote.

Before voting, you may want to review…

  • The original Contest Announcement
  • Story #1 – The CEO’s Son
  • Story #2 – Paper Thongs
  • Story #3 – Poof!

[polldaddy poll=5551490]

Voting runs through Friday October 7th. The Winner of the BlackBerry Playbook will be announced on Monday October 10th.

Good luck to our story contributors.

Filed Under: Bankruptcy, BlackBerry, Contest, Fraud, Playbook

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