Samuel's CFO Website

You are here: Home / Archives for Courage

By Leave a Comment

The Quick CFO Turnaround

This is not about a CFO turning a business around quickly.

This blog is about the Quick Hiring & Unhiring of a CFO.

As someone that tracks CFO Moves every week across the country, I see this too often. Every time I see it, it bothers me, especially when I know that it could have been avoided in many cases. Here is one recently reported example of one Quick CFO Turnaround – Ulta Beauty CFO out after 6 weeks on the job.

An outsider will never really know the reason a person leaves their position. Like a divorce, there is the official story, the company’s story, the employee’s story and the real story.

That being said, here are some things that can be done to ensure CFO hires are done well, and can be successful over the long term.

    • CFO Readiness: Previously I wrote Are you Ready for your First CFO? The same Readiness that applies for a company’s first CFO applies when a company has had a CFO for a very long time and needs to change.
    • Onboarding: CFOs need to plan their Onboarding. My take on Onboarding is in blog The First 90 Days of a New CFO. As one CFO who went through a Quick Hiring & Unhiring told me recently “I wish I read the book before I accepted the job”.

Hiring for any executive level position needs to be treated seriously. Unfortunately, in too many cases, companies that do not treat their executive level hiring needs with the proper attention and resources necessary. This can end up doing serious damage to their company.

Many executives that are approached for career opportunities rely on their own business acumen to assess and accept career positions. When executives, CFOs included, are looking at career opportunities for themselves, they should know that they are minimizing their own career risk when the company they are being considering by is working with a reputable Executive Search firm.

CFOs: Has being hired by a company that worked with an Executive Search firm make a difference to your career?

By 4 Comments

The New CFO and your Finance Team: Who Stays? Who Goes?

Congratulations! You have been selected as Company XYZ’s new CFO. The selection process was long and difficult, and you have been chosen as the Chief Financial Officer of the Company.

The announcement has been made, and you have the opportunity to meet the key people on your Finance Team. Each leader on the Finance Team is apprehensive. They don’t know you. You don’t know them. How do you approach your new reports?

Before starting any new executive position with a company, I highly recommend that you read  “The First 90 Days – Critical Success Strategies for New Leaders at All Levels” by Michael Watkins. I wrote about it here.

Meet your leaders, together and individually. Learn, listen and ask questions. Your Finance Leaders have a lot of information and knowledge. An open and respectful attitude will provide you with an understanding of the leaders themselves, the department and inter-departmental dynamics, as well as critical information you will need to get your job done and be successful.

But do make decisions. CFOs need to have a plan to succeed. The first 90 days are critical to putting the plan together.

Who should stay? Who should go? Figuring this out is a key part of your plan. You need clarity as to what your team should look like to accomplish your goals.

But beware. If you don’t decide who stays and who goes, it may be decided for you. You could end up losing the very people you want and need to keep. You need to act quickly and decisively to ensure you have the team you need to succeed.

Decide who stays.

Decide who goes.

Communicate your plan.

Decide on the type of person/people you need to bring on board.

Start the hiring process quickly and using the best resources to ensure hiring success.

Don’t delay.

++++++++++++++++

Do you like this blog? Would you like to receive ‘Samuel’s CFO Blog – An Insider’s Insight Into the Mind of the CFO’ delivered to your email inbox when fresh and new?

Click on the ‘SIGN ME UP!‘ button on the right side of the blog page, and welcome aboard!

By 2 Comments

How do you replace your CFO?

Last week, I wrote about how you know it is time to replace your CFO.

So how exactly does a company hire their next CFO when their current CFO is still in his or her chair?

There are 2 choices.

1) Let the CFO go.

2) Look (confidentially) to replace the Chief Financial Officer while they are still employed.

Let the CFO go

I recommend letting the CFO go before replacing them, if:

1) The CEO and the Board has lost confidence in the abilities of the CFO, and

2) There is a senior finance executive (or sometimes, an experienced Board member) in the company that can take the reins on an interim basis.

Be aware that when performing your new search for your Chief Financial Officer, prospective CFO candidates will want to know what happened. I would recommend disclosing as much as you can, because CFOs can smell fertilizer from far away.

Perform a confidential CFO Search

A confidential search for a CFO is difficult because most CFOs pretty much know all the important details of what is going on in the company.

You can choose to do a Search for your Chief Financial Officer without a using an executive search firm. It is not a good choice, but it is still your choice.

I highly recommend using an executive search firm. (I always recommend working with a search firm when hiring a CFO, and even more so in this sensitive situation.) A reputable search firm understands the complexities of working on a confidential search, and knows how to attract candidates to you without word getting out on the street, or getting back to your current CFO.

One important issue to address when using a search firm is how you pay your retainer for this search. As the CFO may be one of the people signing cheques in your organization, the last thing you would want is the CFO to see an invoice for a CFO Search.

By 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

By 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

By 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.

By Leave a Comment

Become a Better CFO: Be on Trend. Create your own Luck.

I received this video in my email yesterday, and I wanted to share it with you. I was fortunate to be attending a conference in May 2010 where Mike Lipkin was the keynote speaker.

[Sidenote: I have always been skeptical of Motivational Speakers. It was never my style. But I ended up in a room with Mike Lipkin and he is one person I thank for making the changes in my life and career that has brought me here today].

If you are the kind of person that does not like motivational speakers – do not watch the video.

If you are the kind of person that likes to hear new ideas, be current, and are open to change and improvement, go ahead and listen.

[youtube=http://www.youtube.com/watch?v=NT1Y8hed0K4]

Based on the research done by Mr. Lipkin’s company, Environics Lipkin, Mike explains these seven powerful and current trends that have the ability to make you a Better CFO.

    1. Instrospection and empathy.
    2. New social responsibility and community involvement
    3. Social learning and cultural fusion.
    4. Vitality and effort for health.
    5. Rejection of authority and support for government.
    6. Equality of the sexes.
    7. Pursuit of originality.

If any of these trends interest you and you would like to understand them better, watch the video.

Do any of these apply to you?

Can you be on Trend?

Will following any of these trends help make you a Better CFO?

As Mike says “You may be the one that others have been waiting for.”

By 1 Comment

CFOs: Are you a CEO in training?

The news of the replacement of Carol Bartz as CEO of Yahoo by Tim Morse, the CFO (as an interim position) brings up interesting points to ponder for the CFO about their career path and career plan.

As I was at my desk thinking about what CFOs could learn from the Yahoo news, the phone rang and it was the Wall Street Journal wanting my take on this news. You can read the article and my quotes in the article by Emily Chasan, When CFOs Become Interim CEOs.

This Yahoo succession story should make every CFO look in the mirror and ask themselves:

If I get the call to be CEO,

    • Can I take it?
    • Should I take it?
    • Am I ready to take it?
    • Do I have what it takes to take it?

Most CFOs will admit to second guessing the CEO on some of their decisions. It’s easy to think “I could do a better job”.

When a finance executive moves up the ladder to become CFO, they need to move out of their comfort zone of being technical to become a strategic finance leader. A CFO can only move to the CEO role if they have taken steps to move beyond finance.

What are you doing as CFO to learn, grow and challenge yourself? (Hint: Get a Coach or a Mentor)

Are you a CEO in training?

If you get the call, would you be ready to become CEO?

By 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]

Contact Information

You can reach Samuel by:

Telephone
San Francisco: +1 (415) 738-2070
Montreal: +1 (514) 907-0925

Email: [email protected]