Following up to my previous blog CFOs and The Cloud, I found this infographic recently created by Altico Advisors. If you click on the graphic it will take you to a page where you can request their latest White Paper, 35 Questions Every CFO Needs to Ask About ERP Software in the Cloud.
As CFO, you can be the best in the world (for your business), but if your team is not up to par, you and your company will suffer. A key foundation for a CFO’s success is their Finance Team (see bottom of my CFO Relationship Map). CFOs I have spoken with agree that A Strong CFO needs a Strong Finance Team.
How does a CFO build their Finance Dream Team?
By having a Talent Plan. Your Talent Plan needs these key components:
1) Vision. What do you want to accomplish as CFO?
2) Needs Assessment. What talent do you need to support you in attaining your CFO Vision? What are your needs today? What will they be in the future?
3) Team Assessment. Assess your current team critically. Do they, individually and as a group, currently have the knowledge, skills and abilities (KSAs) you need to accomplish Vision? Will your team be able to meet your needs in the future?
4) Hire, Promote, Train and Unhire. Once you know your what your needs are and what your team can deliver to you, you need to activate decisions by hiring and unhiring key people, as well as training and promoting those that can deliver.
5) Continuous Hiring. Having a continuous hiring plan is beneficial. (Read: When Should a CFO Hire?)
Sounds simple. Yet most CFOs I speak with agree that this is difficult to implement. With CFOs having so many things to get done, Talent Planning and Management takes too much time for most CFOs to put the necessary effort and focus into it.
Here are some tips on how busy CFOs can accomplish each component of their Talent Plan.
1) Advice & Coaching. Working with an internal resource (HR) or an external resource (executive search firm) can be very beneficial in putting your Talent Plan together – from Vision to Continuous Hiring. CFO Coaching in particular can allow you the resource to become a better CFO while preparing your plan to become one. (Read: CFOs: 5 Reasons why you need an Executive Coach.)
2) Outsource key time-suckers. The hiring process takes a lot of time. Many CFOs are under the impression that they can make great recruiters, with the idea that they don’t have to pay a fee. Working with an executive search firm that you trust will not only make the process easier, but will add value to you and your company. (Read: Executive Search: Do CFOs understand the difference between Cost & Value?)
3) Build your leadership team first. Let your leaders build their team so they can deliver to you.
The War for Talent is returning; don’t get caught unprepared.
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My readers and followers know that I am a big proponent of social media for CFOs. Used right, CFOs can use social media to help brand themselves to the benefit of their careers and their employers. I have blogged about CFOs and LinkedIn previously, here, here, here and here.
I recently had a conversation with my friend Cindy Kraft on Proformative about CFOs and Twitter, specifically whether Twitter is helpful to Chief Financial Officers in their personal branding process.
Twitter is not intuitive for CFOs like LinkedIn is. It took me a while to become interested in it and get the hang of it. LinkedIn was a lot easier – I’ve been there for over 8 ½ years so far, and was one of the first 25,000 members back when I joined in 2003.
If you are a CFO that enjoys building relationships with people you would like to know, Twitter is a great place to follow, develop and participate in thought leadership based on your interests. Just having an @name on Twitter and putting it on your LinkedIn profile shows people that are finding you that you know what Twitter is. True, having a Twitter account and not using it may be like using your iPhone just to make phone calls, but at least people will believe that you on top of current trends.
Let’s face it – few CFOs are on Twitter. (You can check out and subscribe to my list of CFOs on Twitter – I add CFOs as I find them). If you are looking to stand out as a CFO, join Twitter and let people know about it. Then, slowly, begin to experiment. If you’d like my help, just add me on Twitter @DergelCFO.
Twitter. It’s good for you. And you might actually like it.
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In my last blog, CFOs, Information, and IT, I wrote about why IT is important to the CFO, and what the CFOs today need to understand about IT.
The Cloud is a hot topic for many in IT today. This is an important topic for CFOs to be understand, because as I mentioned in my previous blog, CFOs today need to be aware of ongoing changes in IT and the impact it can have on them.
What is the Cloud?
“The Cloud” is short for “Cloud Computing”, which Wikipedia defines as the delivery of computing as a service rather than a product, where shared resources (software and data) are provided to computers and devices over the internet.
To get a better understanding of the options when it comes to the Cloud, I went to my fellow CFO Intellectual Exchange Network member Laura Mikovsky, HANA Solution Partner at SAP.
Mikovsky explained that there are 2 options when it comes to the Cloud.
Software as a Service (SAAS) – this is a licensed (per user) model, hosted by a solution provider.
Infrastructure as a Service (IAAS) – this lesser known Cloud solution is more appropriate for larger companies. Essentially, the company is responsible for managing and installing the applications and data they use on remote computers and storage that is running remotely.
“It is important for an organization to define which option is best for them.” says Mikovsky.
What are challenges that CFOs face with the Cloud?
To find out what these challenges were, I spoke with Yehuda Cagen from XVand Technology in Houston. Cagen’s company services small and mid-sized companies in Texas and around the US. Cagen says, “There are two types of challenges CFOs face with the Cloud. The first is that they know what the Cloud is, but are not sure where to start. The second type of CFO isn’t sure what the Cloud is, but their problems can be solved in the Cloud”.
What are some of the benefits of the Cloud?
Less worrying about IT – Cagen quotes one of his CFO clients who, after implementing a Cloud solution from ISUtility, said “I don’t talk about IT anymore”.
Cost and Cash Effectiveness – Paying per user allows for paying for what you need and use, as well as spreading IT costs over a period of time, without making an upfront investment in hardware and implementation. SAAS counters the ongoing uncontrolled costs of upkeep on an IT system installed on premises.
Self-Service – Mikovsky says the working with the Cloud allows the business user to have more control over their IT needs, and be less reliant on the IT department. (This is good news for anyone that has ever waited for IT to deal with a mission critical finance technology issue).
The Mobile CFO – The Superstar CFO: After the Crisis published by CFO Publishing in partnership with SAP, refers to The Mobile CFO. Most CFOs will admit that a lot of work does not happen at the office anymore. Having access to their data and information in the Cloud allows a CFO (and the finance team) to be more mobile, and possibly more effective.
Disaster Recovery and Business Continuity – Stuff happens. Earthquakes, hurricanes and other natural disasters can have a strong negative impact on a business. Moving to the Cloud can allow for a business to continue in unfortunate times. Cagen recommends looking at how this impacts the business, as well as how potential Cloud providers are set up to ensure this continuity.
There have to be downsides to the Cloud. What are they?
Implementation risks – “Garbage in, Garbage Out” applies. We have all seen the impacts of a bad implementation. Becoming involved with the needs analysis and planning of implementation should lead to reducing implementation risk when it comes to the Cloud.
Security – Finance people are often able to better understand what they can see. Not having your computers and systems on-site can feel uncomfortable to a CFO. If the computer equipment is all locked up in a room, CFOs feel more secure. But this may not necessarily be the case. It is possible to have better security off-site than on. Asking the right questions can lead to better sleep patterns – at least about IT. Cagen recommends that CFOs put their potential Cloud providers in the hot seat and ask them the tough questions about security.
Backup Recovery – Systems work. Most of the time. Sometimes they fail. Ensuring recovery via testing of backups is critical to any system implementation. The Cloud is no exception.
As CFO, you should not expect to be an IT expert. Understanding key IT concepts, such as the Cloud, will allow you to understand how you can better access the data and information you need to make more appropriate decisions.
Have you moved some or all of your systems to the Cloud? How has the Cloud impacted your finance team and organization?
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CFOs are not expected to be IT experts.
CFOs are expected, however, to know all aspects of the business, and use available information, internally and externally, to the company’s best advantage.
To be “all knowledgeable”, CFOs not only need access to the data, but more importantly, have the right information gleaned from that data on a timely basis to be able to help their company make the best decisions possible.
Since I started my working career over 20 years ago, the information landscape has certainly changed quite drastically, in a good way, to benefit those who are willing to make the right investments in time and money to get the information they need.
The challenge CFOs face today can be defined as having access to too much data and not enough information. Regular blog readers know that I put a lot of emphasis for CFO Success on their ability to manage their relationships (See Road Map to Successful CFO Relationships). When it comes to relationships they have with IT (or the CIO), CFOs face a continuous challenge.
In smaller companies, the CFO is ultimately responsible for IT, either directly, or by having IT report to him or her. When this is the case, the relationship is less of the issue, but making appropriate IT decisions can be.
In larger companies, the CFO works with the CIO/IT to make sure that they have access to the data as well as being able to get decision capable information when needed.
One thing is for certain. The CFO of today can no longer ignore IT as they may have done 20 years ago (or even 10). Today’s CFO must have access to the information they need to be able to help their business make the best decisions.
CFOs today need to be able to understand:
1. The current and ongoing changes affecting Information Technology,
2. How these changes affect where, when and how they access their information.
3. The impact of these changes on the budgets and expenditures for IT and other departments.
4. The value that these changes are supposed to bring, and how to ask the right questions to ensure the promised value is actually delivered.
As CFO, what do you need to understand better when it comes to information, and the technology that provides it?
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