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LinkedIn vs. Resume – The discussion continues

CFO Coach Cindy Kraft blogged CFOs and LinkedIn, the Evolution. The blog discusses the story of a recruitment firm that would only be focusing on working with CFOs that have a LinkedIn Profile.

My readers will know that I am a big proponent of LinkedIn for CFOs (or any other executive). You can read my previous blogs on the subject:

While I am a fan of LinkedIn for CFOs, I think that people that are looking to hire CFOs (search firms included) that focus solely on LinkedIn are missing a large pool of talent.

Today, it is easier than ever to find talent using LinkedIn. This makes companies and some recruiters (retained and contingency firms) take shortcuts to find talent.

Is LinkedIn a great place to find talent?

Absolutely.

Is it the only place to find talent?

Absolutely not. (Read: When hiring a CFO, is LinkedIn the place to look? )

Finding talent is easy. Finding the best talent to meet the needs of a company is not. Securing that talent is even harder. Ensuring that the talent is hired, stays and delivers multiples of the value of the cost spent on hiring and compensating that talent is why a company decides to work with a quality executive search firm in the first place.

What lessons can CFOs (or other executives) learn from this?

Executives that are not actively searching for their next opportunity beware: You want to be hired by a company that understands the value of executive search and is willing to retain a quality search firm to not only find you, but secure you and keep you for the long term.

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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?

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CFOs need to understand these HR numbers.

I was interviewed last week on DriveThruHR with Brian Wempen. (You can listen to the interview here). We discussed the relationship between Human Resources and Finance. Being that the audience was mostly HR people, I challenged these HR people to understand how to become valuable to the CFO and the Finance Team.

This week, I would like to discuss the value of HR to Finance. And I found some numbers to back it up. (Most CFOs I know like numbers).

I spotted this interesting blog by Dr. John Sullivan which brought  to my attention a Boston Consulting Group study which discussed the value of HR Processes on Profit Growth, Profit Margin and Total Improvement.

I recommend reading the entire post to get the full details of which HR Processes add most value.

But I would like to bring to the CFOs attention the following results from the survey.

Recruitment is the most valuable HR function to a company.

OnBoarding and Retention is the second most valuable HR function.

Questions to CFOs:

    1. Do you find that these HR processes are most valuable to you and your company?
    2. Does your current solution (internal and external) provide you with this high level value?

If you’ve answered no, give me a call. We need to talk.

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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.

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5 Steps to Building your Finance Dream Team (and 3 tips on how to get it done)

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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4 Reasons you should use an Executive Search Firm when hiring your CFO

As CEO, Board Member, or VP of Human Resources of your organization, you may find yourself in a situation where you need to hire a CFO. Some companies take the decision to perform a search for their next CFO by themselves. This is a mistake. In past blog postings, I have detailed the reasons you cannot afford to hire the wrong CFO, asked if it’s time to replace your CFO and how do you replace your CFO?

When you do a search for a Chief Financial Officer on your own, it is a misnomer to call it ‘search’. What you are really performing is a ‘look’. To find a needle in a haystack, ‘looking’ will not suffice – you need to do a proper, methodical search. And just because you find a needle, it doesn’t mean that it will be the right needle you need to get the difficult job done.

Searching for your CFO requires that you have the resources, network and capabilities to succeed. An Executive Search Firm that specializes in the Chief Financial Officer,

• Understands what you need,

• Knows how to find the CFO you need,

• Actively engages in a methodical and detailed search,

• Has the experience necessary to get your next CFO interested in your opportunity,

• Is intimately aware of the market and ensures that negotiations are fair to both parties, and

• Works after your CFO is hired to ensure that they have the right support in place to succeed.

When you look to hire a CFO on your own,

• You have not done a proper Needs Assessment. Do you really know what knowledge, skills and abilities your next CFO needs? Are you making an assumption, or has an expert made you think more about what you really need?

• You are missing the best CFOs. CFOs that are happy in their job are too busy to be looking at job postings. Without an active search, done by people experienced in gaining the attention of a busy CFO, you are missing what could be the best candidates.

• You are tapping in to your network. This is a good thing. Except does your network really have access to the best CFO that you need? Can they attract the right CFO for your needs that is currently working and happy at another company?

• The CFO you hire will not be a match. You’ve hired a square peg CFO to fit your round hole.

If you have the important responsibility of being involved with hiring your organization’s next CFO, it is important to be honest with yourself. If you are not using a Search Firm for hiring your CFO, you are probably resigned to the fact that any CFO will do.

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Ask Samuel: Negotiating coaching for my new job

Dear Samuel,

I am about to get a job offer as CFO. Thank you for your blog on Negotiating your CFO contract – I am finding it very useful as I’m going through this process.

I have networked my way to this opportunity, and I think it’s a good fit for me. In the last steps of this hiring process, I would like to ensure that I not only deliver value to my new employer, but also have the ability to access coaching to help me become the best CFO I can be.

Do you have any guidance on how to make sure I can get the approval for a budget for an Accelerated Transition Program and CFO Coaching?

Almost There in Almont

Dear Almost,

What is most important at this time is to secure an offer of employment from the company. I have seen too many instances where CFOs were about to get a job offer that never materialized.

Once your next employer is serious about bringing you on board, you can discuss other key terms for your employment.

Regarding an Accelerated Transition Program, it is important to ask the following question to your new employer as you finalize your offer of employment: “What support do you offer executives to ensure a successful transition into the company?” If you get a blank stare, you might be on your own. If however you get some recognition by your employer that executive job transition is important, you may have room to negotiate this program. If you cannot get official transition assistance, you should at least read the book I’ve recommended and apply it for yourself and your new company.

When it comes to the subject of coaching, some CFOs have mentioned to me that they are uncomfortable bringing up the concept with their new (or their current) employer.

Like any great idea that others may not understand right away, it is important that you understand the perspective of the decision maker before you present them with your great idea.

The easiest person to convince that you can get great value from a Coach is your CEO, IF they have a coach themselves.

Companies that understand the need for professional development and readily invest in these activities for their key people are solid candidates to pay for CFO Coaching.

Regardless, I recommend that new (or current) CFOs should ask for approval of an annual budget amount for their professional development that can include conferences, training, books as well as coaching. Getting a budgeted amount approved upfront allows you the freedom in how to best spend these professional development dollars. This gives you the flexibility to choose your own areas and methods of development while not having to go back again and again for permission.

Remember, you’re the Chief Financial Officer. Your negotiation skills are being tested at this critical junction. A great negotiator gets what they want while the other party gets what they want as well. As you finalize the conditions of your next CFO role, keep this in mind.

If you’d like to ask Samuel a question, click here.

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Negotiating your CFO Employment Contract

Congratulations! You have been offered the role of CFO at a company you are excited about. You’re buzzed, and pleased with yourself, and so you should be. However…

… keep the following in mind:

    1. From my experience, most CFO roles last an average of 3 years. The time to prepare for your next job is today.
    2. The best time to negotiate the terms of your employment is when you begin your employment.

Some Warnings:

    1. Be sure to have an employment contract. An offer letter may not be sufficient to protect you.
    2. Have the employment contract reviewed by competent counsel before signing.
    3. Do not resign from your previous role without ALL the details being worked out.
    4. A proper employment agreement not only protects you, it protects your new employer as well.

Now, let’s take a look at some things you should be looking for in an employment contract.

(Please note: I am not offering legal advice. I am reviewing points worth considering when negotiating your CFO employment agreement. For specific advice with regards to your employment situation, I recommend discussing it with competent counsel.)

Issues to consider for your employment agreement.

    1. Base compensation – you know how this works. You want more and they want to give you less. This is where all those years of sharpening your negotiation skills come into play.
    2. Upside – regular bonuses, special bonuses, stock based compensation etc. – many conflicts arise because of lack of clarity on how this works. Be sure it’s clear.
    3. Severance – you may be asked to leave. It happens. Having clarity on what happens if you are asked to leave is important not only for your cash flow after you leave, but for your reputation as well.
    4. Notice – you love your new job, but a better one might come along. What will your responsibilities be upon leaving?
    5. Restrictive covenants – usually includes non-disclosure and non-competition clauses, but may include others. It may be detrimental to your new employer for you to take your next job at a direct competitor. Ensure that the time limits on these restrictive covenants are reasonable, and get competent legal advice as to their reasonability.
    6. Relocation – there should be no guessing games when it comes to relocation for your new role. Will they cover moving expenses? Transition costs? Cover your ‘out-of-the-money’ mortgage? Clarity here is key.
    7. Other benefits – What will be offered in insurance (health, life, disability)? Will there be a car? Access to the corporate jet?

Issues outside your employment agreement that you will want to have a clear understanding of prior to accepting:

    1. Office – I have seen CFOs get off on the wrong foot when they get an office that was not what they were expecting. It can really sour the relationship.
    2. Resource support – Will you get an Executive assistant? Will you share one? Will you get to choose your own? (See Does a CFO need a PA?)
    3. Allowable expenses – What expenses will you be allowed to charge to the company? Is there a policy for executives?
    4. Professional Development – You should have a budget for allowing you to attend conferences you deem necessary to ensure you are on top of your game. You don’t need to be going hat in hand to the CEO each time.
    5. Coaching – Does your CEO have a Coach? If he or she does, then you should have the budget for one too. If your CEO doesn’t have one, you should recommend that he or she gets one. (See 5 Reasons why you need an Executive Coach)
    6. Team Headcount or Staff Budget – Before accepting the role as CFO, you need to know what the cost of your team is, and get clarity on the leeway you will have to make changes you feel are necessary to deliver to the rest of the company. (See A Strong CFO needs a Strong Finance Team)
    7. Onboarding – Ask what the plan for “Onboarding” is. You might get blank looks. Make sure that you have an onboarding plan that allows you to develop the internal relationships necessary for success. (If you want to know more about Onboarding, we will be posting a Blog on the topic soon. Click on the “Sign me Up” Button on the right to get blog updates directly in your email inbox).

Special situations.

In special situations, keep this in mind: When the company’s risk increases, so does yours.

    1. Restructuring – if you start off in a restructuring situation, or you are called upon during your mandate to turn the company around – you need to address the following situations.
      • Bonuses. If you accomplish the goals set out, you should have potential for an upside. Be clear on what the upside is.
      • Getting paid. You’re working hard for the company. If the company has no cash, and you’re busting your chops, what is the guarantee you will get paid.
      • What happens on bankruptcy, buy-out, new investment etc. How do you protect yourself and your career? Work these things out in advance.
    2. CEO leaves permanently or temporarily – It is time to renegotiate. (See Are you a CEO in Training?)
    3. Poison pills and takeovers – time to renegotiate.
    4. Where the CEO or other executives are getting special compensation privileges, it may be time for you to ask for more as well.

Remember, a key reason your new company is hiring you because you are supposed to be a great negotiator! Show them how you negotiate a win for all sides.

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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]

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Tell-tale sign your new employee has one foot out the door.

You’re excited. You’ve finally hired the person you were looking for to join your team. They’re personable, intelligent, capable, have a great pedigree, can do the job needed today and can grow within your organization. They might be the right person to eventually take over YOUR job when you’re ready top leave.

Except…

…If they are that good, chances are:

  • you weren’t their only choice.
  • they had other opportunities brewing when you hired them
  • they are susceptible to a better opportunity and offer.

Did I scare you?

Thought so.

Want to know if the risk of them leaving is high?

Check their LinkedIn profile.

If they’ve updated their profile to show their new role with your team, you can sleep better. The risk of them leaving is not high.

However, if they haven’t updated the LinkedIn to show their new job commitment it means they are still shopping.

How do I know this?

I regularly see this with job seekers who have accepted something with the hope that something better will come along shortly.

The new reality is that professional and executive job seekers use LinkedIn for their careers. If they haven’t updated their profile, it means they are not telling their network about their exciting new commitment. It means they are not excited. It means they are not committed to you.

Has this happened to you?

Contact Information

You can reach Samuel by:

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

Email: [email protected]