CFO is the English acronym of the words Chief Financial Officer, in short the financial director of a company. Articulating the reflection better, he is the manager of all financial activity. The CFO is the decision-making 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 an established organization. CFO recruitment is a crucial step for a company as it can determine its success and development possibilities.
The corporate profile of the CFO is not the same and varies according to the structure of a company and its presence on the market. The CFO of a market leading company is not necessarily the same as a start up. In a start-up, the CFO must launch the company from the ground up, in a consolidated company, however, this process has started, the executives are trained and defined and the production processes and objectives to be achieved are clear in all of them, the expectations, raise the bar of objectives, modernize and improve the company organization and the relative productive and working well-being.
In a start-up, the CFO must outline the business goals; identify weaknesses to transform them into goals to be improved through short, medium and long-term objectives with the improvement of processes to achieve the final result of corporate growth.
What skills to identify in the search and selection of a CFO?
The primary skills of a CFO are concentrated in the promptness and speed of decision-making, specifically in the quality of communication which must be clear and authoritative. Financial decisions always have an impact on both internal and external stakeholders of a company.
Every decision with economic implications that require the implementation of integrated models resulting from financial decisions must be told and explained to illustrate the reasons behind the measures.
Financial decisions must be shared with stakeholders in a transparent manner; only in this way will the CFO gain the company’s trust. An honest relationship and a clear narration of decisions creates a climate of trust and well-being which is the basis for achieving the goals defined in the light of financial models promoted by the director and by the company (CFO). In the search and selection of a CFO, among the basic skills that must be sought, the ability to effectively communicate to the chain of command and to all stakeholders the logics that supervise every decision is at the forefront.
An entrepreneur in hiring a financial manager must evaluate his ability to establish a collaborative relationship with everyone, based on the transparency of the actions and on a comparison and a correct dialogue between the parties. The director’s mission intensifies in the ability to find financial backing for the development of a company project. The shareholders and business owners have a project in mind that they want to implement with the help of an expert in economic and financial matters.
The role of the CFO
Each company, in the initial stage of development, concentrates the responsibilities of the financial aspects in the hands of the owner and a team identified by him that collaborates on the basis of the owners’ indications.
As soon as a corporate activity reaches a consolidated level and a recognized presence in the reference market, becomes attractive and arouses everyone’s interests, at this precise moment the aspects related to finances and treasury need an overall strategic vision that optimizes the better decision-making processes.
At this precise moment, the search and selection of CFOs becomes fundamental and their presence in the organizational frameworks, for the part concerning the financial aspects, can determine the success of a company. The role of the financial director is perceived even more in its strategic importance, in an economic phase of the global market where changes are sudden.
You need to know how to interpret changes and find answers, including creative ones with financial repercussions, involving all company sectors 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 of the decision-making process. Financial management is included in the “management focus”, the financial manager makes decisions together with the team and gives his opinion when the decision-making process is defined and not after, at the end of an already defined decision.
Characteristics to consider when searching for and selecting a CFO
In the search and selection of a CFO it is necessary to take into account the training and human background of the profile that is required. The aptitude to accept challenges that go beyond one’s financial management tasks alone, but which in the long term become opportunities to create a climate of trust with the corporate components which can then be transformed into profitable and productive collaborations, is useful.
To find the right person for this role and start the search and selection of a CFO, a targeted search must be implemented. The required profile must have both specific and technical aptitudes.
In the search and selection of a CFO in summary, the following must be taken into consideration:
– interpersonal skills;
– technical and managerial skills;
– communication skills:
– previous experience.
Technical skills are part of the educational background of the profile and of the study path. Relational skills are part of that broader spectrum of aptitudes, where communication is perhaps the most important and allows you to relate to others with an innate role of leadership.
Previous experience and resume
In the search and selection of a CFO, the candidate’s previous experience is always evaluated. Some may even bet and bet on a young profile. The high financial and economic responsibilities require a profile structured on consolidated experience capable of managing resources effectively, efficiently and economically in order to develop the company 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 sector. In the search and selection of a CFO, the properties very often always evaluate the experience gained in the field, with respect to training and theoretical knowledge which are fundamental in any case.
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