CPA Magazine – CFO Success: How to Get There and Stay There
Date: October 19, 2014
Name: CPA Magazine – CFO Success: How to Get There and Stay There
Presenter: Samuel Dergel, CPA, CA
CPA Magazine is a resource provided for Certified Professional Accountants to discuss the current events related to accounting world of different industries and organizations. This webinar is presented by Samuel Dergel, the executive recruiter and consultant of Stanton Chase International. With the involvement of searching Chief Financial Officers for many major corporations, his understands the true reflection of the quality of current CFO in the market today. Moreover, aside from financial and accounting skills, business owners will learn other requirements of successful CFO in this presentation.
What Makes a CFO Successful?
Dergel believes all successful CFOs in any corporation are a part of successful background stories of the existing corporation. CFO is hired to make a difference in the organization. CEO expects CFO to have strategic leadership that can impact the organization’s procedures. CFO needs to have well recognized relationship professionally and socially. Moreover, CFO also needs to be known on the outside.
CFO is required to have successful experience. Everyone loves a winner and success attracts success; therefore, CFO needs to ensure they have stable experience that can admire and lead the rest of the financial team.
In the current organizations today, successful CFO is visible from inside to outside. To establish visibility requires hard work. CFO needs to consistently improve their personal learning.
Successful CFO needs to have the ability to be recognized internally in the organization. The decision making should not be bias and should consider all areas of organization. CFO needs to find ways to connect the departments within the organization. Moreover, it is important to become a leader among leaders.
Even though CFOs are focusing on the financial statement, they need to solve issues that are outside of the financial boundaries. The CFO relationship in the organization is to report to CEO, the board and the investors. Furthermore, CFO needs to keep a good external relationship with lawyers, auditors, bankers, other outsiders and maintain a good internal relationship with other executives, HR, operations, IT and sales. CFO is supported by finance team members, which means leading the team is very critical.
“If your relationship is limited, your success is limited”
How to Plan for Success
Many CFOs do not have a good success plan. When CFOs have no plan, they usually wing it, which increases the chance of failure. When CFOs have successful plans, they will have higher chance of success. Therefore, successful CFOs will plan with the elements from their employers, careers, and personal challenges.
“Fail to plan is plan to fail; you are the only one who can plan for success”
People in this generation are way too busy with distractions and unnecessary events. Dergel believes any successful CFO will put 120% of effect into their careers.
During CFO success planning, there are two questions Dergel wants CFO to ask themselves
- Do you know how to plan?
- Can you properly plan for yourself?
CFO can ask for mentors and coaches to help out the planning.
What you need to do to be more successful
CFO branding is important. Dergel suggests all CFOs to take career success test to understand the strength and the weakness. All successful CFOs will focus on strength and act on weakness by asking for help.
Never look for another job again
Dergel recommends all CFOs to never be CFO in transition. CFO needs to focus these three factors:
- Developed your brand
- Have visibility
- An excellent network
Dergel means “developed your brand” is to ensure CFO knows how people can preserve them. “Visibility” means how other people find CFO. Moreover, “Networking” means to build professional values in the professional network.
CFO can build network internally and use it as a leverage to build externally. It is important to understand that CEO hires CFO, not CFO hires CFO.
“Being a great CFO does not make you a great CFO in transition”
Catching from behind
Dergel believes CFO should identify these criteria when finding a suitable CFO position.
- What your next role should look like
- Your daily schedule
- Track your contacts and follow up
- Targets and metrics
Before accepting the next CFO role, Dergel emphasizes it is important to understand if the role fits, if the location is acceptable, there is due diligence, compare with multiple opportunities, and gut check.
People can consider small company to start building CFO experience. Small companies can help CFO to improve other areas of operations.
Dergel indicates title is not important in the short run, but it might influence greatly in the future. Title can shows recognition in the industry, which can distinguish between others.
“How do you know if you are ready for CFO? If you have competency, believe in yourself and others believe in you”