Samuel's CFO Website

  • Home
  • CFO Blog
    • Samuel’s Other Blogs
      • CFO Moves
        • USA
        • Canada
        • UK
      • CHRO Moves
  • CFO Book
    • Buy your copy
    • What others have to say about Guide to CFO Success
  • How Samuel Helps
    • Hire your next CFO
    • Build your Finance Team
    • Financial Executive Coaching
    • CFO Peer Groups
    • Speaking & Training
  • About Samuel
    • Media on Samuel Dergel
  • Contact Samuel
  • English
  • Français
You are here: Home / Archives for Failure

February 25, 2015 By Samuel Dergel Leave a Comment

CEO: When Your Brand New CFO Leaves

Dear CEO,

I noticed in the news that the CFO you hired with big fanfare only a couple of months ago has left. Your press release quoted your recently new and currently past Chief Financial Officer saying that he is returning to his previous employer because the role is too good of an opportunity to pass up.The CFO Revolving Doors

I have never been Chief Executive Officer of a publicly traded billion-dollar revenue company. I do imagine, however, that the conversation your new CFO had with you must have felt like a kick in the gut, among other places. I am sure that it was not a good day for you.

You know more than most that the past can never be changed. The question remains what can be learned from this ordeal.

While I was not involved in the drama that evolved both before, during or after this incident occurred, I have seen it happen too many times in my weekly coverage of CFO Moves across the US, Canada and the UK. Here are some pointers that you can give to other CEOs so that this does not happen to them.

1) Don’t fall in love with the wrong candidate. Technical, interpersonal, leadership, communication skills are all great. But to hire a great CFO to take you to the next level, you need to connect with motivation of the candidate.

2) Be honest with yourself. You may run a great company but your CFO to be is coming from an ever better environment, understand why they are saying yes. If you know you are runner-up, you may find yourself holding the bouquet at the alter.

3) It’s not just about money. Never, ever think that a CFO takes a role just because of the compensation package. Sure, CFOs are money motivated, but once basic needs are met, other needs are much more important.  (Maslow’s hierarchy of needs is the same for CFOs, except their basic needs are different than most).

4) Select your executive search partners carefully. I know that you understand the value of working with retained executive search for hiring your key leaders. Not all search firms are created equal, and not always should a search firm you have used in the past be the one you use for a critical search like your next CFO. One key differentiator you search firm needs to have is the ability to truly connect with the executive candidates. When looking for a Chief Financial Officer, a great retained search team has the ability to act as an advocate for the needs of the CFO candidate. The closer your recruiter can become a true partner to your CFO candidate, the better opportunity you will have for hiring a CFO where you will be his or her first choice.

If there is a cloud to this silver lining, it is that your recently retired CFO is available to cover until you hire again. I wish you all the best in hiring your next CFO. This time, I know you will make a better choice.

Wishing you continued success,

 

Samuel

Filed Under: Assessment, Board, Books, books for CFOs, CFO, CFO Moves, CFO Relationships, CFO Search, Chief Financial Officer, Executive Coaching, Guide to CFO Success, How Samuel Helps, New CFO, Successful CFO, Succession Planning

January 21, 2015 By Samuel Dergel 4 Comments

Lessons Learned from Target Canada: Strategy vs. Culture vs. Leadership Talent

The closing of Target in Canada within a couple of years of the iconic US retailer expanding its business in an attempt to become multi-national in an attempt to complete and grow against its main competitor (small company based out of Arkansas) is sad.Strategy Culture Leadership Talent @DergelCFO

Sad because over 17,000 people lost their jobs and need to start over.

Sad because the brand of a true ironic American company has taken a big bruising.

Sad because, if the expansion was executed correctly, it would have changed, and probably improved, the retail landscape for Canadian consumers, not to mention the impact it could have had internationally.

And most importantly, sad because it didn’t have to turn out this way.

I have waited to share my thoughts on this news so it could allow me to think about how to comment on this property, while taking in the commentary and opinions of others.

There are those that come out and blame the logistical failure that led to empty shelves.

A number of people pointed to pricing differences between the US and Canada that had Canadian consumers scratching their heads at the perception that Target Canada’s pricing was inconsistent and unfair.

Pundits point to the poorly chosen locations ‎that Target chose after the demise of Zellers in Canada, as well as the strategy of opening too many stores at once while not learning this new and culturally different market.

In the end, while these may be reasons (excuses) for a series of failures, the failures of execution stem from the failure of leadership. And this goes all the way to the top, and every leadership level on the way there.

Imagine the scene in the boardroom at Target a few years back. Imagine executive management making a very slick presentation to the Board as to the Who, What, Where, Why, When and How of expanding into Canada. Imagine that everyone was giddy with expectations of success, profits and accolades. The strategy was set. All was needed was the execution of the strategy.

When I picture the final approval at the table, my childhood memory is of Captain James T. Kirk saying those famous words “Make it So, Number One”.

Obviously, “making it so” is a lot easier said than done. Target’s Canadian adventure is one more highly publicized misadventure for MBA case studies of the near future.

Leadership Talent is where this fell apart. All the actions or inactions, reasons or excuses, come from the fact that the right people were not hired or promoted to make this grand scheme work.

I continue to see, time and time again, situations where companies do not bring on board the best possible leadership talent to execute. Execution not only means following the original strategic plan, but making sure that the plan continues to evolve as the situation evolves. The mistakes we know about, as well as the mistakes we will never hear about, all contributed to the demise of this $4 billion dollar adventure for Target shareholders.

I also continue to see, time and time again, choices being made in executive hiring that are emotional, personal and illogical. Vested interests lead to decisions being taken without proper assessment of the true needs compared to the knowledge, skills and abilities of the best candidates for these mission critical roles.

The bright side of the Target foray into Canada is the impact that Target culture has had on a generation of Canadian employees. I enjoyed reading and hearing about the warm, motivating, employee excellence and recognition culture that permeated the organization. ‎I believe that employers and employees across Canada will benefit from the introduction of these ideas into businesses across Canada for years to come.

But to paraphrase Peter Drucker:

Culture may eat strategy for breakfast, but Leadership talent ensures that there is food on the table. 

Filed Under: All of Samuel's Blogs, All of Samuel's Blogs, Bankruptcy, Board, CEO, CEO, Companies, Executive Search, Executive Search, Hire your Next CFO, Hire your Next CFO, Leadership, Peter Drucker, Quotes, Risk Management, Talent Management, Target, Team Structuring

February 6, 2014 By Samuel Dergel 2 Comments

3 Lessons Learned: The Failure of Heenan Blaikie

The Canadian legal and business communities are getting over the shock that a storied, successful and well known establishment corporate law firm has decided to shut its doors this week. (Read the Financial Post: Heenan Blaikie partners vote to wind up operations)Heenan Blaikie

Heenan Blaikie has been an icon in the business community in Canada for decades. The fact that it can just disappear and disintegrate in a matter of weeks leaves many lessons to be learned. Here are some of the things that were reinforced for me this week.

#3 – Job security is a myth

The only place that job security exists is in your head. There is no such thing as a safe, life-long, job.

Throughout my career in recruitment, I have always heard from individuals that were looking for the safety and security of a career in a firm that is too big to fail. And every so often, stories of failures, restructurings, refocused strategies and mass-layoffs make the headlines. If you would have asked any employee (and many partners) this past December if they had any fear for their career with the firm, they would have given you a look that would be a mix between being puzzled and that you must be out of your mind.

Don’t ever think you have job security. I don’t care what company you work for, even if you work for supposedly secure jobs in government. You job is at risk. If you don’t want to be unemployed, or to minimize your time in transition, you must build and invest in your network. You can only expect your network to work for you if you have invested in it before.

If you’re a CFO or senior finance professional, you may want to read my chapter on CFO Transition in my upcoming book.

#2 – Beware the multi-headed monster

If you’re my age, you remember Sesame Street well. You will also remember the two-headed monster with a smile.

Professional services firms have a challenge becoming a business like the others. The nature of this type of firm (accounting, legal, engineering, marketing or even executive search) can be very perplexing. In most publicly owned businesses, the boss is the CEO and the Board represents the owners. Managing relationships for an executive in a standard environment can be challenging enough. While there is a chain of command, the number of people to keep happy is limited and controlled.

In a professional services firm, every partner is the boss. Add a number of people with big egos and who are not afraid of litigation and you can find yourself facing a multi-headed monster that is not as cute and cuddly as the Sesame Street version.

Managing relationships is a key component for the success of any executive. From the perspective of a CFO, I believe it looks like this. In my soon to be released book, I discuss the issues of managing these relationships for success, and dedicate one chapter to the challenges of managing the relationships of the people you report to.

#1 – The world is changing. Are you?

This applies to all businesses as well as individuals.

The post-mortem on Heenan Blaikie will continue for a while. When a personal relationship breaks up, there is his story, her story and the truth. In a partnership that has many heads and egos, the story can only be more complicated.

From an informed outsider’s perspective, the legal industry has been going through changes in the past years and decades, mirroring the changes that have been going on in rest of the business world. In today’s world, business needs to grow to keep their competitive advantage, needs to assess strategic opportunities and threats, and must take on a more global perspective while keeping a local flavor.

All businesses must adapt to the changing realities facing them. Failure to do so can lead to doors closing.

On a more personal note, each one of us needs to be aware that to continue to stay relevant and employable, we must continue to improve, change and adapt so that we can thrive. Sitting at your desk while the world changes outside your window will only leave you dazed, confused and lost when security leads you outside the building.

What are you doing to:

    • Create your own job security?
    • Get the best out of your work relationships?
    • Stay ahead of the curve in a continually changing world?

Filed Under: Heenan Blaikie, Job security, Personal Branding, Professional Services Firm, Restructuring, Restructuring, Uncategorized

Search in Samuel’s CFO Blog

Related Blogs

  • Your Next CFO
  • Why work with Stanton Chase to hire your next CFO?
  • Why do CFOs Leave?
  • When hiring a CFO, is LinkedIn the place to look?
  • What I learned at the Bank of America Merrll Lynch Conference – Treasury in a Connected World

Related Blogs

  • When should a CFO hire?
  • What I learned at the Bank of America Merrll Lynch Conference – Treasury in a Connected World
  • VIDEO: Webinar Presentation – CFO Succession: The Right Way to Grow your Company’s next CFO
  • Together, CFOs and CEOs Create A “Can Do” Culture
  • Thoughts About Successful CFO Hiring

Related Blogs

  • You’ve been promoted to CFO. Now what?
  • Why should a CFO tweet? 
  • What I learned at the Bank of America Merrll Lynch Conference – Treasury in a Connected World
  • What a CFO should read every day
  • Together, CFOs and CEOs Create A “Can Do” Culture

Related Blogs

  • Why should a CFO tweet? 
  • What I learned at the Bank of America Merrll Lynch Conference – Treasury in a Connected World
  • VIDEO: Webinar Presentation – CFO Succession: The Right Way to Grow your Company’s next CFO
  • Together, CFOs and CEOs Create A “Can Do” Culture
  • Thoughts About Successful CFO Hiring

Related Blogs

  • Your Next CFO
  • You’ve been promoted to CFO. Now what?
  • Why work with Stanton Chase to hire your next CFO?
  • Why should a CFO tweet? 
  • Why do CFOs Leave?

Recent Blogs

  • PODCAST: The Hiring Triangle – CEO, CFO and the Board
  • Is your CFO your best salesperson?
  • A CFO Success Story: Sajid Malhotra, CFO of Limelight Networks
  • What Makes a Great Modern CFO?
  • Things CFOs Say

Like what Samuel has to say?

Great! The goal of Samuel's CFO Blog is to engage with CFOs and those who work with CFOs.

Please feel free to comment on any of the issues raised in Samuel’s CFO Blog. Your input, positive or not so positive, encouraging or critical, will add value to all readers of the blog.

You can reach Samuel...
Telephone
San Francisco: +1 (415) 738-2070
Montreal: +1 (514) 907-0925
Email: [email protected]

View Samuel Dergel - The CFO Expert's profile on LinkedIn

Contact Samuel

So you like what Samuel has to say, and you would like to reach out and contact him.

Excellent.

There are a number of ways to reach him. You can complete this convenient form on the right, or you can reach Samuel by...

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

Or by clicking on the social media icons below.

Thanks for your interest!

Contactez Samuel

Vous vous intéressez à l’opinion de Samuel et souhaitez le consulter?

Excellent.

Vous pouvez le rejoindre de plusieurs façons, soit en complétant le formulaire ci-joint ou en le rejoignant :

Par téléphone : +1 (514) 907-0925

Ou en sélectionnant l’icône d’un réseau social ci-dessous:

Nous vous remercions de votre intérêt.

  • Email
  • LinkedIn
  • RSS
  • Twitter
  • Email
  • LinkedIn
  • Twitter

Archives – Samuel’s CFO Blog

Categories – Samuel’s CFO Blog

All of Samuel's Blogs Assessment Blog Board Board Books books for CFOs Build your Finance Team Career Management CEO CEO CFO CFO Buzz CFO Coach CFO Coaching CFO Consulting CFO Moves CFO Peer Groups CFO Relationships CFO Research CFO Search Chief Financial Officer Executive Coaching Executive Search Finance Team Financial Executive Coaching Great CFO Guide to CFO Success Hire your Next CFO How Samuel Helps HR Investors LinkedIn New CFO Personal Branding Recruiters Social Media Speaking and Training Successful CFO Succession Planning Talent Management Team Structuring The Strong CFO Training and Development Wiley
  • Email
  • LinkedIn
  • RSS
  • Twitter

Contact Information

You can reach Samuel by:

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

Email: [email protected]

Copyright © 2011-2016 - Samuel Dergel (Dergel CFO Search & Consulting Inc.) Note: Opinions expressed on this website are the personal opinions of Samuel Dergel only, and not any other person or entity, unless attributed otherwise.