Situation: The Company is hiring their first CFO. How do they integrate this key person into the company?
Advice from the CEOs:
- The company should reflect the values, needs and desires of the CEO.
- Have a clear discussion and agreement with the CFO candidate on values, role, and organizational structure before hiring or announcing anything to the company.
- The talents of the CEO and CFO should complement each other.
- The CEO may put the CFO in charge of areas that they want to delegate – accounting, administration, finance and contracts.
- The CEO should remain involved in banking relationships.
- Recommended announcements and timeline:
- When the new CFO is announced, simultaneously present the new organization chart (broad responsibilities, not detailed position descriptions).
- Set a timeline for realignment of roles. It is not necessary to specify exact roles at the time of the announcement – let everyone know that this is a work in progress and give a time frame within which all will be resolved.
- Once the CFO is in place, the CEO and CFO should meet at least weekly, to assure that the CFO has the support and resources needed to accomplish their responsibilities.
- All decisions within the CFO’s group, personnel responsibilities and any shifts in roles should come from the CFO, with the support of the CEO.
- This will help the new CFO to more rapidly assimilate into the company and will give them the authority needed to manage their organization.
Key Words: CFO, On-Boarding, Values, Roles, Responsibilities, Authority, Personnel, Delegation