Category: Professional Recommendations

CFO (or Controller) Puts on Her Recruitment Hat


It is difficult to look for a job – I already talked about it several times and even have a "Job Search" category to keep the related posts in one place.  Every time I encounter information that may help job-hunting CFOs and Controllers, I make sure that it finds its way into this blog.

But what about my peers and myself who are in an active headhunter mode?  Truth: we dislike looking for people nearly as much as job-searching.  I guess, being a seeker is not as enjoyable to us as it is to Harry Potter.  

Pitching yourself to prospective employers and recruiters is nerve-straining.  Dealing with unfairness, randomness and subjectivity is frustrating.  Facing rejection is disheartening.  That's all true.  However, after each attempt you collect yourself, you move on.  

On the other hand, recruiting people who will work for you, who will carry out functions you delegate to them, but for which you are ultimately responsible, is not just an excruciatingly difficult and tedious work.  When that stage is over, you are not done -  this is just the start.  Now you have to ease the new hire into his functions, fill him with missing knowledge, perfect his ability to perform the tasks, i.e. develop your new staff member into an asset. 

Here is what frequently happens.  After spending your preciously scarce time looking through hundreds of resumes, interviewing candidates by the score, all you want is to get this damned recruitment issue off your agenda.  If you cave in and make a mistake of hiring a wrong person simply because you are tired of the process,  you will still go through the remaining steps without a chance of achieving the desirable result.   So, all that time will be completely wasted.  Moreover, it is damaging to the company, to your own success, to your staff's morale.  It leads to enormous amounts of the worst type of frustration – the one that's based on guilt.

Why do we end up falling into this trap?  If you are not a giant corporation that can afford to fill departments with bodies and let the most ambitious and talented ones to surface, every person you hire needs to be the best you can find.  And of course, you are somewhat handicapped by the fact that you are not a household name. 

Still, it is shocking really how difficult it is to find good candidates considering how many people are out there unemployed.  On one hand, it is a buyer's market, on the other hand, the shelves are stocked with generic products who are limited, unfocused, and dull. 

And I am actually very flexible.  I don't hold industry-specific experience in much regard.  I believe that it depends on a person, and not the school,  whether he is well educated or not.  What I am looking for is that spark in the eyes showing intelligence; the ability of systematic thinking; the foundation I can build on.  And that's hard to come by.   

CFO’s and Controller’s Many Hats: Etiology of Afflication, Part II.


So, let's take a closer look at the reasons why CFO's and Controllers end up with more responsibilities and a larger hat collections than other members of senior managerial staff, and why we should be proud of it.

First of all, it's responsibility by association.  Human resources are related to payroll and that is a monetary subject and frequently the largest budgetary constrain.  Accounting modules usually outnumber all other types in the IT systems, hence we have vested interests in their adequate development.  Business strategies are fueled by cash flow, investments and lending.  It is frequently up to us to determine whether the business has an ability to expand or needs to contract immediately.  In other words, we are far closer to these issues than anyone else.  That is why in the businesses where products have dollar signs in front of them (such as assets management, or commodities trading), Operations end up to be under CFOs and Controllers as well.

Secondly, in the eyes of our bosses and peers, we are the natural choice to undertake any responsibility because we usually possess broader work expertise, eduction covering both fundamental and specialize knowledge, and far more diversified industry exposure.  A capable Controller with good commercial acumen and working knowledge of fundamental accounting   principles is able to apply them to any business model, whether it is manufacturing, import/export, consumer products, services, or E-Trade.  I frequently say that it makes no difference for me what to finance, safeguard ad record: tons of chemicals, gold futures, multimillion mortgage packages, women underwear, or paper clips.  On the other hand, try to transplant a VP of Marketing into home insurance after he has spent 10 years in cosmetics, and he will be lost.  And how many VP of Sales you have met who could understand a legal contract?

The third force comes from within.  It has to do with our tendency of relying only on ourselves.  yes, we complain about our hectic schedules and inability to relax, but if we didn't take these multitude of tasks under our control we would be worrying sick about things going wrong: strategic initiatives taken that we are not able to support financially, software packages bough that cannot reflect the commercial activities properly, contracts signed with terms paralyzing our cash flows, etc. etc.  And we need to be on top of everything, because every commercial happening needs to be translated into an accounting event and reflected in our books.  Face it, my fellow financial professionals, we would not want it any other way.

In the future, with your valuable input we will address the issues of multifunctional optimization and the way to avoid being crashed under the burden of responsibilities.


 

CFO’s and Controllers’ Many Hats: Etiology of Affliction, Part I.


Many people tell me about their overwhelming span of control – the numerous responsibilities they have to attend to on daily basis.

It is not a secret that all CFO's and Controllers in small and mid-size companies store hatboxes under their desks and change on hat after another as daily needs require: just an hour ago you sat down at our desk in your business clothes attending to the natural responsibilities of finance and accounting, but here you are in the police chief hat enforcing civility of human relations, and there you are in a Napoleonic bicorn developing global expansion strategies, in a deerstalker applying forensics in search of a lost container, in a backwards baseball cap discussing with laidback computer geeks the requirement for IT upgarde, in a wig reading a legal brief, etc. etc.

The smaller the company, the larger the hat collection.  Just look at the job listings for our positions – usually it is a laundry list of duties frequently broken down into up to ten sections, each covering separate group of functionality.  Your scope of control is expected to encompass at least 30 diverse responsibilities. It is an established fact and we don’t need an evidentiary hearing to prove it.

Clearly this wide repertoire of roles is a major source of pressure and frustration we experience.  So, as the fist step on the road of improving our wellbeing, I thought it would be healthy to look at the etiology of this issue, i.e. to understand how we ended up in this state of affairs.  

Why other execs stick to their narrow niches of know-how? Why it is not a VP of Sales who is responsible for strategic planning? Why we are expected to be chief administrative and information officers, human resources managers and legal liaisons?  The answers actually may help us to look at this boatload of duties not as a punishment of fate, but rather as a source of pride and positive reinforcement.

The way I see it, there are three major forces pushing us into the realm of endless tasks.   I will describe them in my next post.