The document provides an overview of the differences between the roles of Controller and Chief Financial Officer (CFO). It discusses how the CFO role is more strategic, forward-looking, and involved in leadership compared to the more tactical, execution-focused Controller role. The CFO is responsible for financial planning, risk management, and advising the executive team, while the Controller manages financial reporting, accounting, and day-to-day operations. Factors like company size, industry, and organizational structure also impact the specific responsibilities and scope of the CFO versus Controller roles.

1. Controller to CFO
Skills, Competencies, and Strategies

2. Controller to CFO
Background
Review what a CFO is and does
Contrast CFO and Controller
Self Assessment
Developing an Action Plan
Q&A
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3. Polling Questions #1
How many of you are Controllers?
How many of you are CFOs?
How many of you are in Public Accounting?
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4. Background
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5. Paul Shillam, CPA, CMA, CGMA
Controller, Multi-specialty Medical Group Practice
Independent Consultant
Chief Financial Officer, Apparel Industry
Manager Audit & Operations Analysis, Retail Holding
Company
Public Accounting, Big 4 and local firm
Entrepreneur
MBA
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6. Why this topic?
Creative dissatisfaction
Raising the bar
Doubts
Interviewing CFOs
Polling peers
Interesting discoveries
Conclusions: Share my discoveries
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7. Do I want to be a CFO?
When the right opportunity is presented, yes.
Until that opportunity develops, I must continually
renew my skills, refresh competencies, and review
career strategies to ensure that I can immediately
bring value.
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8. What I did…
Interviewed CFOs
Polled peers
Read
Worked with Executive Coach
Changed my work habits
Engaged at work in leading and participating in
projects
Became a change agent
Maintained work/life balance
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9. LinkedIn Discussion:
I am preparing a presentation addressing transition
from Controller to CFO: Do I have what it takes? I
would be interested in hearing from members who
have made the transition either through promotion or
moving to another company. I would like to know:
• What 3 strategies were most successful in moving
from Controller to CFO?
• What 3 characteristics did your immediate
supervisor find most attractive?
• What 3 skills were of most benefit moving into the
role of CFO?
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10. What a CFO Is
and Does
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11. A CFO is a member of the management team who has
to have an intimate knowledge of the operations of the
company and is responsible for the financing needs of
the company.
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12. I recently became the CFO for a company after many
years as a Controller. It's only been two months but I
am fighting with myself as to what my role should be.
I've come to the conclusion that my role has really
changed and that I'm not the keeper of the books
anymore, but the reviewer and analyzer.
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13. What is a CFO?
No one set answer
General
Responsibilities • Strategic Planning
• Capital Planning
• Financial Reporting
• Credit & Collection
• Financial Analysis
• Stakeholder Relations
• Treasury
• Compliance
• Risk Management
• Internal Audit
• Financial Planning
• …other duties as assigned
• Taxes
• Human Resources
• Purchasing Aren’t these similar to
• Information Technology your responsibilities as
• Financial Strategy Controller?
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14. What is a CFO?
Size Matters
Industry Matters
Organization Matters
Job Scope Matters
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15. Size Matters
Greater organizational revenues lead to increased
financial and accounting information needs
• Small business can see how its doing by looking at the bank
balance
• Mid sized organizations look at the check book, receivables,
bank debt, lease financing, and backorders.
• Large business look at all the above and global events effecting
potential earnings on invested excess funds and business units
revenue streams.
What does the mean to the CFO?
• Demands change from narrow to broad financial acumen
• Move from day to day operations to a more strategic view
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16. Are you talking about a Fortune 50 company or a $20M
company. Responsibility and requirements are light
years apart.
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17. Size matters!
In a small company, the Controller may be the de
facto CFO.
In a mid-sized company, the need for a CFO is
greater and it is here there may be a transitional
structure with greater reliance on consultants, a
move to more specialization within the
accounting/finance function, and additional
expertise added.
In large institutions, there is a great deal of
specialization within accounting, finance and
treasury.
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18. Industry Matters
Simply put, some industries are more complex than
others
• Contrast a sole proprietor consulting business with no
employees to a multinational drug manufacturer
What does this mean to the CFO?
• Significant degree of risk exposure and controls need to be
managed
• Stakeholders of the later need more information
• Regulatory compliance must be addressed
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19. Organization Matters
It is not so much the legal entity but the organization
culture. How is the CFO perceived by the CEO and
peers?
• Does the CEO accept the CFO as a business partner?
• Is the CFO the “go to” person for the other members of the C-
suite?
What does this mean to the CFO?
• To effectively add value to the organization and have influence,
the CFO needs to be accepted as an equal member the strategy
team
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20. Make time to discuss issues with each department
head so that you are aware of where the company is
heading and can effectively be part of the advisory
process and not just the record-keeper. You may need
to concentrate on your soft skills. You need to develop
rapport and trust so that business units come to you
for advice and don't engage external consultants or
hire their own finance people to prepare financial
projections and reports.
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21. Job Scope Matters
What are the responsibilities assigned and to whom
does the CFO report?
• The responsibilities, at least some, have been discussed earlier
• The CFO reports to the CEO/President and to the Board (and
Committees)
• And has a fiduciary duty to the general public as an Officer of
the organization
What does this mean to the CFO?
• It is the source of authority for fulfilling the duties and
responsibilities of the role
• Held to a higher standard
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22. For the CFO, the financial statements are the starting
point…the CFO can't just hang his hat on simply
complying with GAAP, SEC, IRS, and uses financial
skills and professional judgment, on a forward looking
basis, to improve performance, identify and mitigate
risk, and steer the company in the right direction.
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23. Question
Any other major responsibilities which you believe
should be included for the Chief Financial Officer?
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24. Difference between
CFO and Controller
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25. Office of the CFO
CEO
COO CFO CMO
Director, Financial Director, Cost Director, Supply Director, Information Director, Human
Controller
Planning & Control Accounting Chain Technology Resources
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26. Then, if the desired result is have business impact and
to help the organization to develop/achieve its
strategic initiatives, a very important skill area for a
Controller, aspiring CFO, or CFO (and staff) becomes
the ability to work across the entire organization in an
integrative and collaborative fashion. Ironically, I
believe it is in these ways that the essential CFO skill
set goes way beyond the traditional financial and
accounting skill sets that enable one to attain a
Controller position in the first place.
.
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27. CFO/Controller Orientation
Strategic Tactical
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28. CFO vs. Controller
Strategic / Tactical
Leader / Manager
Forecasting / Reporting Results
Planning / Executing
Conceptual / Technical
Looking through the Windshield / Looking in the
Rearview Mirror
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29. A CFO is a member of the management team who has
to have an intimate knowledge of the operations of the
company and is responsible for the financing needs of
the company.
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30. The biggest difference is that you need a different
mindset and a different vocabulary. Numbers are no
longer your primary focus. Relating them to the
operation, understanding and communicating them to
the other C's is now your focus. To do that you need to
speak in C language and understand their role and
responsibilities in a way you did not before. To do that
you need one more R - relationship. You are a peer
with the other C's and you need to act like one.
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31. I recently interviewed a number of CFOs in health care
systems and one of the observations they made was
that the CFO is dependent on Controllers and that, in
larger organizations, is supported by more
"specialists" as opposed to generalists.
The subordinate roles tend to be more narrow and
deeper in technical knowledge for the various areas for
which the CFO has overall responsibility;
accounting, finance, planning, risk management, etc.
In a smaller organization these responsibilities are less
complicated perhaps therefore can be "managed"
within the CFO's job scope.
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32. When you are at the top,
soft skills matter more and more.
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33. Soft Skills
CFO Study: Ron Scott
• People – Mentor and coach
• Prospective orientation
• Collaboration
• Influencer
• Relationships – Internal and External
• Strategic
• Analytical
• Intuitive
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34. 8 Key CFO Skills/Attributes
Communication
Integrity
Vision
Collaboration
Creativity
Analytical – Big Data
Contextual
Development
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35. Question
Any other differences that may have been missed in
this discussion?
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36. Self Assessment
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37. …breadth is more
important than depth.
Also, lack of awareness
of what you don't know
can be a credibility killer.
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38. The more I know,
the more I know
I don‟t know.
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39. Self Assessment
Do I aspire to be a CFO?
• Knowing myself, do I want to be the CFO?
• Can I handle it?
Do I have the requisite skills?
• As one moves into the position, knowledge is important; other
skills become more critical to success.
Do I have the competencies?
• Do I even know what these are and where to get them…
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40. Tools
AICPA Competency
Model
• Leadership Qualities
• Personal Attributes
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41. AICPA Competency Tool
Leadership Qualities: Personal Attributes:
• Strategic Thinking & • Insight & Judgment
Planning • Innovative/Creative
• Coaching & Empowerment Thinking
Broad Business Functional Specialties:
Perspective: • Information Technology
• The Organization & • Internal Audit
Industry Knowledge • Taxation
• Current & Emerging • Treasury Management
Management Practices • Cost Management
• Organizational Systems & • Human Resources
Processes
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42. Other tools
Myers Briggs or other personality profile
assessment
Executive Coach: 360 assessment
Human Resources: Discuss career planning
capacity
Review your reviews: What is being said about you
and what are things your can do something about?
Ask your peers what they think about you. What
would they say as a reference?
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43. Question
Anyone use other assessment sites, programs, or
tools?
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44. Developing an
Action Plan
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45. What 3 strategies were most successful in moving from Controller
to CFO?
• First of all you need to find ways of expanding what you do as
a controller beyond your job description. Show that you can
easily take on more complex tasks.
• Second you should get exposure to other functions within your
organization so that you learn to explain financial terms to
non-financial people
• Third you should undertake some project work where you will
be able to define strategies for a specific project and link it to
the overall strategy for the finance function.
… I think it is very important to have a plan of how you want to
show that you can become the next CFO.
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46. Used with permission: Napoleon Hill Foundation
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47. Action Plan
Self Assessment
Constantly update skills and knowledge
Find a coach/mentor/friend to provide perspective,
encouragement, and feedback
Develop and manage your Brand
Update Resume (have someone else read it)
Define target role and industry (be flexible)
Networking (internal and external)
• FENG
• State society meetings & Industry association meetings
• CPE Meetings
• Social groups (church, sporting events, square dancing)
• Recruiters (get known, be a resource)
Show up
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48. How to find an executive coach
Referrals
• Check with your superiors and peers to see if they have used an
executive coach
• Inquire at Human Resources
• Ask others in your industry
• Search the local internet for articles and resources
Screen your choices
• Interview more than one
• Understand the financial arrangement
• Find someone who has the skills needed to help you
• Be certain that you are comfortable with the coach
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49. Develop YOUR Brand
Tom Peters: The Brand You 50 : Or : Fifty Ways to
Transform Yourself from an 'Employee' into a Brand
That Shouts Distinction, Commitment, and Passion!
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50. Develop Your Brand
Tom Peters, The Brand You 50
• What do I want to be?
• What am I known for?
• Package yourself
• It‟s about what YOU value
• WOW Projects
• You are your contacts; network, community
• Sell
• Close
• Everything matters!
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51. Develop Your Brand
Harrison Monarth: Executive Presence
• Assess current brand
- Google yourself
• Identify changes in attitude, behavior, techniques, character and
personal energy
- What image do I project to the rest of the world?
• Identify what makes you unique
• Everything matters
- At work, home, socially, and on the road
• Discover your personal power
• Grow
• Market yourself
- Everything matters…
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52. Read your resume, then…
Update your resume for each position to which you
reply
Understand that employers use automated
screening devices; Include key works related to the
job requirements
Refresh your resume
Look at others resumes – How do I compare?
Remember the cover letter
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53. “Networking is not only a contact sport, but one at
which you can win every single time! How many sports
can say that?”
“The third kind of networking is probably the most
important. This element of being a master networker is
introducing people you know to other people you
know. In common parlance this is called being a
connector. Just as you expect others to “absorb” the
essence of who you are, so you too are obligated to
absorb the essence of your networking contacts, and
when the light goes off that you have a match, take the
time to make an introduction.”
Matt R. Bud, Chairman, The FENG
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54. 90% of life is just showing up
“If you have an interview and you don’t show up, you
can’t possibly get the job. If you expect to get
paid, you have to show up for work. And, the list goes
on.”
Matt R. Bud, The FENG
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55. Resources: Organizations
AICPA Competency Institute of Management
Assessment Tool; Accountants
www.CPA2BIZ.COM www.imanet.org
AICPA Financial Executives
www.AICPA.org Networking Group
The Napoleon Hill World www.thefeng.org
www.naphill.org Robert Half
Dale Carnegie Training www.roberthalf.com
www.dalecarnegie.com
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56. Resources: Books
Richard Bolles, What Theodore Levitt,
Color is Your Parachute? Marketing Imagination
Napoleon Hill, Think and Robert Greenleaf,
Grow Rich Servant Leadership
Peter Tom Peters, Re-Imagine
Drucker, Management Max Depree, Leadership
Price Waterhouse, CFO: is an Art
Architect of the John McGregor Burns,
Corporation‟s Future Leadership
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57. Resources: Web Sites
LinkedIn.com
Indeed.com
facebook.com
Industry associations
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58. Resources: Articles
CFO Study, Ron Scott, Scott & Associates
Leadership Series, Paul L. Shillam
What's the Difference? - CFO Versus a
Controller, Accountant Or Bookkeeper, Keith McAslan
There Is No Career Ladder, Priscilla Claman
Stepping Up to the „Big Picture‟: From Controller to CFO
CFOs Wanted: Controllers Need Not Apply, Marie Leone
The CFO‟s first hundred days: A McKinsey Global
Survey
Navigating the Uncertain Road from CONTROLLER to
CFO: The Leadership Imperative
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59. Good Luck!
“Luck is what happens when preparation meets
opportunity.” Seneca (Roman philosopher)
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60. Questions?
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61. Contact Information
Paul Shillam, CPA, CMA, CGMA
Pacific Medical Centers
1200 12th Ave S
Seattle, WA 98144
(206) 621-4203
(206) 621-4299
pauls@pacmed.org
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