If you intend to grow your business, it is important to hire the right Chief Financial Officer (CFO) for your organisation. The primary requisite to find the right match is to know your needs. Every company requires a skilled professional, but what does a skilled professional mean to you?
The key to hire the right CFO is to define what a CFO must accomplish and to ensure that he fits in your company’s culture. Companies that experience rapid growth don’t have room for errors. They experience change from internal functions, such as production, marketing and sales, and from external forces like competitors. An organisation can choose a professional who fits its vision. The CEO of the company can define the type of Chief Financial Officer his company needs.
Here are 5 ways the right CFO transforms and grows your company:
Brings passion to the job
The right CFO is someone who believes in what you do, and understands your products, services and customers.
A passionate CFO lends credibility to your organisation. The business and financial face of the company, he serves as a bridge between the company’s CEO and employees, as well as the outside world, including bankers, investors, vendors and customers. He knows your competitors and helps the CEO to look for new ways to represent the products and services.
A good CFO offers trustworthy and passionate support that you need to acquire financing, engage professional service firms and build your brand.
Offers a strategic advantage
The right CFO not just simply executes current business strategy, but he suggests how an organisation can become more efficient and competitive. An officer who only cares about tactical matters and spends his time ensuring that the daily operations are carried out as per the strategy, fails to provide you the support you actually need.
A seasoned and skilled CFO understands business drivers, suggests alternatives, and helps in setting quantifiable goals. He stays well-informed about your competitors, products and customers. He is more focused on planning ahead and facilitating growth.
If your Chief Financial Officer evaluates results from a purely financial perspective, he is missing on something. Although financial aspect must be taken into account, he must work well with other departments to accomplish success as a team.
A good CFO is a cross-functional leader. He works with different departments and focuses on finding out solutions for problems, rather than being a “no way” person. He will determine how his decisions affect sales, marketing, and manufacturing. He focuses on right decision making for the company as a whole.
Navigates between strategy and details
A good CFO is careful and savvy when it comes to processes, contracts and efficiency. With excellent cost-benefit judgment, he knows when accounting and business control is important to prevent fraud. He knows when the cost does not justify the benefit. A large number of rapid growing companies realise the importance of a Chief Financial Officer who can be strategic and jump into the details when required, and knows when to navigate between the two. Those who cannot afford to hire a full time CFO opt for virtual CFO services.
Adds credibility through communication
A good CFO is interested to find out why the figures are the way they are. He comes up with innovative ideas for how your organisation will compete and thrive in the future.
Besides, he is a good communicator. He knows how to represent your company, products and services to your customers and others. He explains how your company’s strategy converts into actions.
Finding the right CFO
Once you have decided that you need a new CFO Australia or in any other part of the globe, it’s time to consider your needs and find the right professional. Make sure he has the knowledge, experience and skills to be the right officer for your company and can effectively utilise his experience and expertise to create new strategies that can help your business grow and flourish.