Why is the search and selection of a CFO important?
CFO is the English acronym for Chief Financial Officer, in short the financial director of a company. By better articulating the reflection is the manager of all financial activity. The CFO is the decision engine of a company for all the strategic actions that will determine its systemic vision, with the implementation of decisions that make the best use of the financial, structural and human resources of a start-up or a consolidated organization.
The search and selection of a CFO is a crucial step for a company as it can determine its success and development possibilities.
The company profile of the management is not the same and varies according to the structure of a company and its presence on the market. The CFO of a market leader company can not be the same as a start-up.
In a start-up the CFO must start the company from the ground up, in a consolidated company, on the other hand, this process is started, the management is trained and defined and in all of them the production processes and the objectives to be achieved are clear, expectations can be strengthened, the bar of objectives can be raised, the company organisation and the relative productive and working wellbeing can be modernised and improved.
In a start-up, the CFO must outline the business goals, identify weaknesses to turn them into goals to be improved through short, medium and long term objectives with the improvement of processes to achieve the final result of business growth.
What competencies to identify in the search and selection of a CFO?
The primary skills of a CFO are focused on readiness and speed of decision making, specifically in the quality of communication that must be clear and authoritative. Financial decisions always have an impact with a company’s internal and external stakeholders.
Any decision with economic implications that requires integrated models to be put in place as a result of financial decisions must be recounted and explained to illustrate the rationale behind the measures.
Financial decisions must be shared with stakeholders in a transparent manner, only then will the CFO gain the trust of the company. An honest relationship and a clear narrative of decisions creates a climate of trust and well-being that is the basis for achieving the goals set in the light of financial models promoted by the director and the company (CFO).
In the search and selection of a CFO, among the basic skills that must be sought, at the forefront is the ability to communicate effectively to the chain of command and to all stakeholders the logic that oversee every decision.
When hiring a financial manager, an entrepreneur must evaluate his or her ability to establish a collaborative relationship with everyone, based on transparency of actions and on a correct comparison and dialogue between the parties.
The director’s mission is intensified in the ability to find financial coverage for the development of a business project. Shareholders and company owners have a project in mind that they want to implement with the help of an expert in economic and financial affairs.
The role of the CFO
Each company, in the initial phase of development, concentrates responsibility for financial aspects in the hands of the owner and a team identified by him that collaborates on the basis of the property’s indications.
As soon as a business activity reaches a consolidated level and a recognized presence in the relevant market, it becomes attractive and arouses the interests of all, at this precise moment financial and treasury aspects need an overall strategic vision that optimizes decision-making processes.
At this precise moment, the search for and selection of CFOs becomes fundamental and their presence in the organizational management, as far as the financial aspects are concerned, can determine the success of a company.
The role of the CFO is perceived even more in its strategic importance, in an economic phase of the global market where changes are sudden.
Changes need to be interpreted and creative responses with financial repercussions, involving all sectors of the company to face all the challenges and opportunities of the market.
The financial management of a private company and in the public sector is an integrated and systemic part of an organization and decision-making process.
Financial management is part of the “management focus”, the financial manager takes decisions together with the team and gives his or her opinion when the decision-making process is defined and not afterwards, at the end of an already defined decision.
Characteristics to consider in the search and selection of a CFO
In the search and selection of a CFO you must take into account the educational and human background of the profile you require.
It is useful to have the ability to accept challenges that go beyond one’s financial management tasks alone, but that in the long term become opportunities to create a climate of trust with the company components that can then be transformed into profitable and productive collaborations.
In order to find the right person for this role and initiate the search and selection of a CFO, a targeted search must be carried out. The required profile must have both specific and technical skills.
The search and selection of a CFO at a glance must be taken into consideration:
- interpersonal skills;
- technical and management skills;
- communication skills:
- previous experience.
Technical skills are part of the educational background of the profile and the course of study. Relational skills are part of the broader spectrum of attitudes, where communication skills are perhaps the most important that allows you to relate with others with an innate role of leadership.
Previous experience and curriculum
In the search and selection of a CFO, the candidate’s past experience is always evaluated. Some may also bet and bet on a young profile.
The high financial and economic responsibilities, require a profile structured on consoled experience able to manage resources effectively, efficiently and economically in order to develop the company’s business.
The optimal structure of the curriculum becomes necessary, it must be descriptive not only in the training part, but also highlight the previous experience in the field.
In the research and selection of a CFO very often the properties always evaluate the experience gained in the field, with respect either to the training and theoretical knowledge that are fundamental.