8 Pitfalls to Avoid in Your First 100 Days as CFO
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, avoiding these pitfalls can save you a lot of angst.
8 PITFALLS in your first 100 Days as CFO: the 15-second headlines
1. Avoid the trap of arriving with “the answer” – or at least announcing it
2. Avoid the “action imperative”, even while you work to secure 2-3 early wins.
3. Avoid predictable surprises
4. Don’t lose sight of the fundamentals
5. Don’t trash the past
6. Don’t keep away from your boss
7. Don’t run thru some checklist of what you’ve been doing
8. Never blind-side your boss.
Specific ACTIONS to avoid the 8 PITFALLS in your first 100 days as CFO:
1. Avoid the trap of arriving with “the answer”.
It’s a destructive stance that leaves you open to making serious mistakes. Yes, you were hired to achieve certain goals, and to act decisively, with wisdom and all due speed. Yet bring a genuine willingness to listen and integrate new learning. This builds trust, grows your credibility and magnifies your influence.
2. Avoid the “action imperative”, even while you work to secure 2-3 early wins.
Some leaders have an urgent need to take action. Sometimes before they should. How many CFOs do you know who have shot themselves in the foot by imposing new policies in finance, or on operations or marketing without first creating relationships with their peers and understanding the implications? Actually, I’ve done this myself. Still, this doesn’t mean you should avoid moving toward tangible results, which are vital to show.
3. Avoid predictable surprises.
These typically lurk in organizational politics, and with customers, markets, competitors and strategy. So start familiarizing yourself early. Also look at your team. Assign a “flight risk” number to each person, along with an impact score if they leave. Act accordingly. Also consider: what are the major risks you need to be proactive about, such as with lenders, investors, and other key players? If something will have high visibility, ask to be kept apprised.
I have seen competent CFOs have their credibility muddied by careless, avoidable mistakes in their shop — as when the Controller wired $8 million to the wrong equity partner’s account. Even though it was easily retrieved, the fact that the PE Operating Partner and CEO became aware of it was an early blemish that caused extra scrutiny on whether the Finance team was sufficiently well on top of its game, especially when combined with a few other forced errors in the weeks that followed. Brainstorm with your team: What types of surprises could be avoided? What should we look out for?
4. Don’t lose sight of the fundamentals.
What were you hired to do? What keeps the wheels on the bus? What is the ONE THING your company must get right to deliver the revenue, and what is required to make that happen faster, cheaper, and with less risk? What are the operating metrics you want to see daily, weekly, monthly so that you are AHEAD of the curve as CFO – looking through your windshield rather than the rear-view mirror – as a strategic partner with your COO and CEO?
5. Don’t trash the past.
There’s not much to gain, and you don’t know what land-mine you might step on. It says a lot about you when you embrace what is, and move forward with optimism and vigor.
6. Don’t keep away from your boss(es).
Get on your CEO’s calendar early and often. If your company is owned by a PE firm, you should be talking with your operating partner at least weekly, and often more depending on their style. This ensures your boss(es) have visibility into the problems you face, and see your progress. It also helps you stay in tune with their shifting landscape and resulting expectations. As a leadership coach, I see too many CFOs tell themselves “my boss is too busy” or “I’ll wait until I know more” or “when I have more progress to show.” They end up playing small, and eventually marginalized. The most powerful difference coaching initially makes with CFOs I work with comes from identifying and disarming that small saboteur voice that results in subconsciously avoiding opportunities to communicate with the CEO, operating partners and even their own team.
7. Don’t run thru some checklist of what you’ve been doing.
Time with your CEO or Operating Partner is precious. They already assume you’re “on it”. Use each interaction to get their perspective on vital issues. Ask “what else”. See what additional connections, resources might surface that will aid you with specific issues. Use the time strategically. This is an opportunity to show you’re on the right path, or to get course corrections early on that can avoid turbulence later.
8. Never blind-side your boss.
Delivering bad news to your CEO or PE partners is hard. But it’s far worse to not raise the issue early enough. Few things are worse than having them learn about a problem from another source. I used to tell my team, “There’s almost no problem we can’t solve, if I know about it early and fully.” Of course, when you raise a problem, as a CFO you’re expected to bring a plan. Even if it’s just a rough sketch, it’s vital to show you’ve thought about how to address the issue, and what help you will need.
One other thing. Remember to pursue good marks from those whose opinions your boss respects. “Be alert to the multiple channels through which information about you and your performance will reach your boss,” Watkins encourages. Leaders spend an average of 4 years in a given position. CFOs have a shorter span. So plan for the long-term, begin with the end in mind by creating a 90-day blueprint, and avoid the pitfalls along the way. And if you know you are likely to encounter trouble, leadership coaching can make an immediate difference, even in the very short term.
Now, here’s a quick recap of the preceding 3 Months.
(Click titles below to link to earlier posts.)
Month 1: Your 7 Ways to Set Yourself Up For Success as CFO
Plan to hit the ground running
Define your A-List priorities, and potential early wins
Neutralize your vulnerabilities
Create a learning plan
Focus on the fundamentals
Get engaged, and don’t keep away
Plan 3 conversations with your boss
Month 2: Your 6 Ways to Build Momentum as CFO:
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: Your 5 ways to Maximize Success as CFO:
Diagnose the business situation
Lead with the right skills
Create a nutritious balance in your information intake
Plan to create WAVES of change – not a tsunami
Stay alert for common traps
#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. Connect on LinkedIn.