CFO Action Plan for Today’s Economy Part II - Relationships and Skills

I have dedicated a number of the Future of Finance Leadership newsletters this year to how finance leaders can deal with a slowing economy due to rising inflation and interest rates, labor shortages, global conflict and supply chain snags.??These newsletters provide plenty of resources to deal with an economic downturn (you will find the links to these pieces at the end of this article).

So, I am dedicating this edition to your individual professional development.

Your Career Starts (and could end) with Relationships

With your CEO

It’s great to develop a first-class team, solve big problems, create systems that flow together and make a fine salary, but finance leaders almost always name the relationships they develop as the most satisfying aspect of their career. ??That reminds me of the inscription on the book, The Adventures of Tom Sawyer, Clarence gives George Bailey at the end of the movie classic, It’s a Wonderful life, “Remember, no man is a failure who has friends.”

In addition to being pleasant to be around, being valuable to have around is a great way to build a relationship. ??When it comes to creating a good relationship with your CEO, Tom W. Burke , a serial CEO living in a Minneapolis suburb shares these wise words.

• A partnership relationship between the CEO and CFO is critical in order for the leadership team to make the best possible decision at the end of the day.
• The CFO’s role is to determine how best to work in a given situation.
• ?It’s important the CFO consider ways to make concepts developed by the leadership teamwork (Don’t get known for only being the ‘brakes’ on the organization.)
• CFOs must have the ability to work with their CEO and build the team together.

The full video and transcript of Tom’s CFO Talk can be found here: The CEO/CFO Relationship with Tom Burke - Transcript

With Your Board of Directors

The CEO/CFO relationship is one key to success.??Building a solid relationship with the Board of Directors is another.?For insights into building those bonds I turned to 4 experienced Board members, asking them, What do you expect from a Chief Financial Officer?

In summary they told me,

• Deliver financial results that have integrity and are free of material errors
• Develop strong relationships with bankers and auditors and create a strong finance team
• Display leadership and strategic thinking/execution as part of your working persona
• Possess a sound understanding of the business and industry

For more on the CFO/Board relationship read the 3 part series, What the Board Expects from a Chief Financial Officer

With Your Team

Having a great relationship with your CEO and the Board isn’t worth much if you don’t develop a great accounting and finance team that delivers results.?

I’ll use a sports analogy as the lesson on this point.???Team INEOS (previously Team Sky) dominated the Tour de France from 2012-2019 and inspired this article,?Team INEOS – Lessons from the Tour de France –?Lessons for our Teams

Here are some noteworthy, team inspiring highlights from their 7-year run:

• Have a clear goal, understood by all.
• The contributions by the ‘supporting’ (domestiques) riders are highly valued and praised.
• Egos take a back seat to the goal – unselfishness.
• Planning (pre-race training & tactics decided before the race) and execution requires a team mentality and individual dedication.
• Planning also builds the confidence and agility to overcome obstacles cast in the team’s path.

Growing Your Skill Set is Career Enhancing

Leadership Tops the List

In a poll taken earlier this year, finance leaders identified the skills revolving around the leadership pillar as being the most critical to success. ?

A review of reports from Forbes, Deloitte, Strategic Finance Magazine, CFO Dive, PWC and Gartner highlighted where the CFOs leadership skills should be applied in our current environment; first on Talent, next on Technology and Business Transformation and finally on Financial Performance and Growth.?

Read the full report here, Leadership Tops the List , and apply the findings to your situation.

Leverage Available Resources and Take Responsibility

In a study conducted by CFO.University we identified the key barriers to professional development (workload and time topped the list), who is responsible for professional development (mostly employees), the types of resources companies are making available to employees for their professional development.?Although the majority of participants in the study don’t expect much change in the way companies approach professional development, a minority of participants expressed concerns budget constraints will reduce corporate investment in development. They expect this to drive training to more inhouse and online delivery methods.????

The report on the study, Professional Development for Accounting and Finance Leaders , includes a professional development plan template you can use to grow your skills.

Finally, if you are currently in or headed toward a CFO role in your career, CFO.University developed the?CFO Readiness Assessment??to measure proficiency and experience in the primary areas (pillars) that drive CFO success.?Read more about these pillars and take the CFO Readiness Assessment here: Professional Development Tool: The CFO Readiness Assessment

After months of managing your business through economic turmoil don’t forget to invest time and resources in your relationships and skill building. ??I invite you to share tips on how you maximize your investment in these two fundamental career activities. ??___________________________________________________________________

And, for your business - included below are resources to help you deal with a slowing economy. The material will help you confidently navigate your business through an economic or other business crisis.

Start by visiting CFO.University’s?Crisis Resource Center for CFOs

The following are the 2022 Future of Finance Leadership newsletters dedicated to dealing with a slowing economy

The CFO Leading in Times of Economic Turmoil? ?November 5, 2022

CFO Action Plan for Today’s Economy Part I ?September 28 , 2022

What Area of the Cash Flow Statement is Top of Mind for You in 2022? ?May 30, 2022

What Area of the Income Statement is Top of Mind for You in 2022? May 18, 2022

What Area of The Balance Sheet Is Top of Mind For You?? ?May 3, 2022

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