The actions you take in your first few months as CFO have a large impact on the extent to which you succeed. If you fail to build momentum early, you can blow much of the goodwill that’s initially credited to every new hire. As an executive coach, I am typically called on by CEOs or PE operating partners long after the CFO initial phase, and often see the missed opportunities.
Whether you’re on the cusp of a new role, expecting to be hired or promoted, or actually in your first few months in the role, the success strategies for new leaders follow a clear pattern. Wisdom from Michael Watkins, author of The First 90 Days and an expert on accelerating transitions, has been around for 15+ years, and I recommend it highly. But if you don’t have time for a full read just now, a few ideas can go a long way.
In your First 30 Days as CFO, the headlines were:
• Prepare yourself mentally
• Define your A-List priorities, and potential early wins
• Neutralize your vulnerabilities
• Create a learning plan
• Focus on the fundamentals
• Plan 3 conversations with your boss
Month 2 as CFO, 6 Ways to Build Momentum:
• Focus your energy
• Identify your best sources of insight
• Prepare for early tests of your authority
• Build credibility
• Have the resources conversation
• Secure tangible results / 2-3 early wins
Month 3 as CFO, to Maximize Success, the 10-second headlines are:
Diagnose the business situation
Lead with the right skills
Create a nutritious balance in your information intake
Plan to make WAVES of change – not a tsunami
Stay alert for common traps
Specific ACTIONS around the 60-90 Day mark as CFO: (a 4-minute read)
1. Diagnose the business situation.
Your organization is either (1) still a start-up, (2) needing realignment, (3) in turnaround mode, or (4) sustaining success. It’s vital to understand which phase the company is in. You MUST match your leadership strategy to what your organization needs now. If your company is in realignment and you as CFO are not playing a vital role in re-inventing the business, right along with the COO and your CEO, you are likely going to be marginalized. And if your company is owned by a PE firm, their expectations are sky-high.
2. Lead with the right skills.
“Start-ups and turnarounds call for ‘hunters’, people who can move fast and take chances.” On the other hand “realignment and sustaining success are more akin to ‘farming’ than hunting,” according to Watkins. So be sure to apply the right skills and the style to match. The Clifton StrengthsFinder is one tool that can clarify which of your skills will best serve you here. “Don’t bring your spear if you need to be ploughing.”
3. Create a nutritious balance in your intake.
With a flood of new information daily, it’s easy to miss important signals. A frequent trap is focusing too much on your own department, and not enough on corporate strategy and operations. You must lay the foundation to become a vital partner not just to the CEO but also the COO and other C-level partners. It’s wise to look back at this point and understand “How did we get to this point?”
4. Plan to make RIPPLES of change, then WAVES of change.
A CFO typically stays in the job for 2-5 years. Begin with the end in mind, in view of what your company needs. It’s helpful to think of changes you want in waves. The first wave is to secure your early wins. A 2nd wave focuses on issues of strategy. A third might center on structure and systems. A fourth might be skills and culture that can reshape the company. Avoid being a tsunami.
5. Stay alert to common traps.
These include a failure to focus, not adjusting to company culture, and not taking the business situation into account. If you’re in a turnaround, now’s not the time to spend a lot of time getting people to talk about the company’s challenges (vs. a realignment, where that’s apt). Just remember: how you get results matters. Short-term results that feel manipulative or inconsistent with the values of the company lead to disaster in the long-run. Be aware of 8 Pitfalls to Avoid as CFO in your First 100 days. Leadership coaching can help.
By Day 90, you might have a “personal development conversation” with your boss. Speak honestly about areas where you need to invest in your own growth: whether that’s becoming more operationally focused, or more involved in strategy, give voice to your desire and plans for additional training on organization-specific processes or systems. Invite guidance from your boss on who can accelerate your growth in those areas.
The failure rate for senior leaders who enter a company from the outside is high. One key to success is to adapt some of these general principles into specific plans for your own situation.
• 7 Ways to Set Up for Success in your First 30 Days as CFO
• 6 Ways to Build Momentum as CFO, in Your First 60 Days
• 8 Pitfalls to Avoid as CFO in your First 100 days
#cfocoach #ceo #privateequity #finance #leadership #first90days
Edith Hamilton, MBA, CPCC is a certified executive coach for CFOs and VPs in Finance and Operations, particularly recently promoted women in the C-suite. She is a former executive of Fortune 500s, and has a background in private equity. With over 25 years’ experience in finance, operations, and growth strategies in corporations of all sizes including middle-market and entrepreneurial, Edith is a catalyst who accelerates #leadership growth using tailored coaching frameworks that typically have an ROI of 4x-6x.
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