Recently I was quoted in an article titled “Why Strong CFOs Know Who Will Replace Them” by Sarah Johnson on the Proformative Website.
Here are paragraphs where I was quoted.
“It’s not surprising a company like that has that kind of planning,” says Samuel Dergel, director, executive search, at Stanton Chase International. “Most companies do not.”
In fact, succession planning falls under CFOs’ risk management duties and their responsibility for business continuity, Dergel suggests. Just as CFOs have to ask “what if” questions about the viability of their company’s suppliers and credit risk, for example, they need to go through the possible scenarios for what would happen if they were incapacitated. “It’s the people who represent a company,” Dergel. “They are a key part, and if there’s instability in that, then the company is not stable.”
While talk about succession planning in the corporate world usually centers around the future of the CEO role, the CFO position deserves attention as well. “The CFO is an important figure in an organization. The more important they are, the more important it is to have a succession plan,” Dergel says.
At the very least, Dergel suggests, finance chiefs should – in addition to all their other duties – give the matter some thought.
To read the entire article, click here.
Ken Tudhope says
Yes, and finding a successor that’s even better than or has the potential to go farther than the incumbent should be normal, but it’s not. What does the CFO have to lose anyway? They are at the top of the profession and usually at the pinnacle of their career. That’s why potential is such a vital part of assessing executive talent. We have found that recently hiring has been weighted to much toward experience and not enough toward potential.
Good Stuff as always.
Kelly Dowe says
Thanks for the heads up. The article is a good read. I’m working to get the right people in the right roles at my organization and develop them, as I feel it is my responsibility to groom leaders capable of filling in for me. I just blogged about it at http://www.financelookblog.com/2013/06/upgrading-financial-planning-analysis.html.
Samuel Dergel says
Thanks for your comments and referring to your blog post!
All finance leaders are responsible to hire and train, retain and develop their future leaders. Congratulations on the efforts you’ve made and results you’ve achieved.