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You are here: Home / Archives for CFO / CFO Search / Assessment

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, CFO Compensation, CFO Readiness Program, CFO Readiness Program, CFO Readiness Program, Finance Team, Finance Team, On the Road to CFO, Private Equity, Private Equity, Private Equity, Public Company, Public Company, Public Company, Social Media, Successful CFO, Successful CFO, Successful CFO, Succession Planning, Talent Management, Team Structuring, Team Structuring, The Strong CFO, The Strong CFO, VC, VC, VC, Venture Capital, Venture Capital, Venture Capital, VP Finance

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, CFO Coach, CFO Coach, CFO Coaching, CFO Coaching, CFO Coaching, CFO Consulting, CFO Consulting, CFO Consulting, CFO Relationships, CFO Relationships, CFO Relationships, Executive Search, Executive Search, Financial Executive Coaching, New CFO, New CFO, Training and Development, Training and Development

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: Uncategorized

September 7, 2011 By Samuel Dergel 6 Comments

CEO and Investors: Are you ready for your First CFO?

Companies in growth mode face great challenges. One of the biggest challenges a growing company faces is bringing in their first Real CFO.

In a previous post we reviewed an article written by Emily Chasen in the WSJ CFO Journal about how More Companies are Ready for their First CFO.

A growing company built on entrepreneurial spirit can only continue to grow so far on that spirit alone. At a critical juncture in the life of a growing business, it needs to make a transition from decisions made by the entrepreneur alone to a dynamic team that works on a business model of delegation of responsibility and co-operation between interests within the company.

This is an inflection point for many successful growth companies — when a CFO is recruited because the management disciplines that grew the enterprise to its current state will not be enough to take it to the next level.

Intellectually, the CEO and other key managers may know things need to change.  But that doesn’t mean they’ll be comfortable with a CFO who asks tougher questions, instills new disciplines or has a fiduciary responsibility to the investors as well as a loyalty to the management team.

So, what is the answer?  How do you strengthen CFO readiness when the next level of success takes people out of their comfort zones?  Courage.

That’s why we developed our CFO Readiness Program in conjunction with Dr. Merom Klein & Dr. Louise Klein, leaders of the Courage Institute.

The Courage Institute wrote the book on The Courage to Act — about 5 Courage Factors that equip effective leaders to challenge the status quo, champion new possibilities and get traction on breakthrough ideas and improvements. This is the foundation of the CFO Readiness Program.

The CFO Readiness Program is an assessment, feedback and action planning program that works to equip  the entire executive team to:

    • Strengthen and align your veteran executives — so they have the courage to welcome new thought-leadership and collaboration
    • Clarify your wish-list of expectations and priorities for the new CFO
    • Prepare for healthy debates and challenges to “the way we have done things here” as the new CFO identifies new opportunities
    • Equip the new CFO to conduct an independent assessment of your enterprise’s infrastructure, financial well-being and resources
    • Ensure career paths and mentoring opportunities for the finance executives who brought the enterprise to its current level
    • Identify fears, sensitivities and bridge-building that the new CFO could face — and ways to build courage to lift performance
    • Lift courage to embrace and accelerate change to get traction on new metrics, new ways of working and new ways to ensure regulatory compliance and good investor/board relations
    • Identify debates, deferred decisions and risk factors that the new CFO will face — and the input desired from the new CFO
    • See how to move past rivalries, turf-issues, personality clashes and other fear-inducing courage inhibitors that can reduce luminary efficiency at the executive and middle management levels
    • Invite scrutiny and transparency to sharpen up team thinking
    • Navigate matrix structures, networks and alliances — where it is not clear “who is in charge” or “who settles which debates”
    • Overcome fear and reluctance — as veteran members of the executive team are asked for courage to share decision-making discretion and authority with a new CFO

To receive a copy of our brochure and find out more about how our CFO Readiness Program can help your company, please complete this form:

[contact-form subject=”CFO Readiness Program” to=”[email protected]”] [contact-field label=”Name” type=”name” required=”true” /] [contact-field label=”Email” type=”email” required=”true” /] [contact-field label=”Position” type=”text” required=”true” /] [contact-field label=”Company” type=”text” required=”true” /] [contact-field label=”City” type=”text” required=”true” /] [contact-field label=”State / Province” type=”text” /] [contact-field label=”Country” type=”text” required=”true” /] [contact-field label=”Phone Number” type=”text” required=”true” /] [/contact-form]

Filed Under: Courage, Courage, LinkedIn, OnBoarding, PE, PE, Real CFO, Real CFO

August 19, 2011 By Samuel Dergel 2 Comments

More companies are ready for their first Real CFO

The WSJ CFO Journal recently posted an article by Emily Chasan called Silicon Valley Seeks CFOs to Hop on IPO Train.

This article, which is interesting reading, discusses how growing technology companies are getting ready for their next serious round of financing, which could include an IPO.

What I found interesting about this article is that many of these growing companies have been using Part-Time CFOs to guide them through their initial growth period, and that they are now ready for their first Real CFO.

Or, at least they think they are ready. But are they?

Having a Real CFO, especially for the first time, requires not only hiring the Right CFO. (See Dear CEO & Board: You can’t afford to hire the wrong CFO.)

The executives in the company, including the current CEO and other VPs, need to be ready for a Strong CFO. The leadership dynamics and the management relationships are going to change. Is your team ready?

My recommendation to CEOs, Boards and Investors: Make sure your team is ready for your new CFO.

How can you make sure your team is ready? Ask me about our program created specifically for you called: Are you ready for your 1st CFO?

 

 

 

 

 

Filed Under: Executive Coaching, Executive Coaching, Executive Coaching, First CFO, First CFO, First CFO, First CFO, Investors, Investors, Investors, Investors, IPO, IPO, IPO

August 16, 2011 By Samuel Dergel 9 Comments

Dear CEO & Board: You can’t afford to hire the wrong CFO.

Hiring the wrong CFO can be detrimental to your business.

Costs of hiring the wrong CFO include:

    1. Risk to your company reputation.
    2. A weak CFO will not help your company with what it needs.
    3. Not being able to get the most out of your CFO as soon as possible.
    4. Opportunity cost – the wrong CFO misses the opportunities to add value to the company.

Yet, many companies fear doing a proper search because

    1. Cost of a CFO Search.
    2. Effort and time required to do a CFO Search properly.
    3. Cost.

As CEO or Board Member, you may think that you know people (that know people) that know CFOs. And you ask yourself “How hard can it be?”

Let’s face it. The cost of hiring the wrong CFO is way more than the fees you will pay for a proper CFO Search.

Well. Have you ever hired the wrong CFO? Wonder why they were wrong for you? The CFO was not right for your company because you didn’t do a proper CFO Search.

Now, there are options to how to do a proper CFO Search. You can work with me, work with any good executive search firm, or even manage the process internally.

However, you must have the following elements in your CFO Search.

Assessment: You need to assess what your company really needs from the CFO, both today, and in the future. You need to assess whether your leadership is really ready for a good CFO that will add value and be a leader in the business. You need to assess what skills, knowledge and abilities your new CFO will have to have to be successful in your environment. If your last CFO failed, ask yourself if you did a proper assessment first before hiring him or her.

Search: “Who you know” will not cut it. You need to do a proper search for CFO caliber people that can meet the needs you’ve assessed. If you don’t do a proper search, you will not end up with the best possible CFO for your business.

Onboarding: For a new CFO to be successful, it is important to invest in ensuring that the CFO has what they need to be successful. Onboarding allows your new CFO to acquire the necessary knowledge, skills, and behaviors to become most effective for your organization.

If you’re ready for your next CFO, do yourself and your company a favor. Hire the right CFO this time.

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, Board, Board, Board, Board, Board, Board, CEO, CEO, CEO, CEO, CEO, CEO, CFO, CFO, CFO, CFO, CFO, CFO, CFO Search, CFO Search, CFO Search, CFO Search, CFO Search, CFO Search, Hire your Next CFO, Hire your Next CFO, Hire your Next CFO, Hire your Next CFO, Hire your Next CFO, Onboarding, Onboarding, Onboarding, Onboarding, Search, Search, Search

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