Are you wondering about what skills you might need to succeed in a senior finance role? Here is some sagely advice from a former secretary general of the ICAEW.
Interview with: Dori Abendschein, SVP, Chief Financial Officer, Essilor of America. Abendschein is the Chairperson at the marcus evans CFO Summit XXXIII Fall 2017, in Irving, Texas, October 8-10.
The document discusses strategies used by long-lasting family-owned businesses to remain successful across generations. It finds that establishing strong governance through clear family rules and guidelines, prioritizing merit-based management decisions over nepotism, and actively managing business portfolios through engaged boards are key factors. Family businesses that have lasted over 100 years on average establish governance systems to separate family and management roles, appoint outside directors to boards, and only involve family in management if they prove their competence through outside experience.
White paper company directors stacey martinStacey Martin
Company directors face significant personal financial risks due to their role. This includes risks to personal wealth from legal liability, lack of time available for personal financial management, and lack of awareness of optimal structures to manage wealth. The document provides an overview of these challenges and recommends that aspiring directors seek professional advice early on to properly structure and manage their wealth in order to protect their assets and provide for philanthropic goals. It also summarizes the role and responsibilities of modern company directors.
The document discusses warning signs of distressed corporate situations and how addressing them early can create shareholder value. It notes that while some economies appear stable, the global economy is precariously balanced. Even good markets see corporate distress. The key is identifying issues quickly before restructuring. Boards must ensure viability and sustainability through accurate oversight. They should evaluate leadership, strategic plans, capital access, and consider advisors if management lacks relevant resources or ability to enact change. Addressing problems early through cost cuts, cash management and revised plans can help reverse declines before crisis measures are needed.
The document discusses corporate governance issues in 2004, where several CEOs were removed due to fraud. It discusses factors that allow fraud to occur, such as protecting a company's reputation, complexity of deals obscuring wrongdoing, and routines overriding signs of trouble. It recommends steps for boards and CEOs such as fostering trust, open dissent, ensuring accountability, and evaluating board performance. It also suggests criteria for selecting directors such as seeking knowledge over names, prioritizing character over independence, removing hidden agendas, finding passionate directors, and not accepting directors who collect boards.
1) The 2008 financial crisis exposed widespread failures in corporate governance, risk management, and compliance at many large financial institutions. Inadequate oversight and risky practices like off-balance sheet financing contributed to the crisis.
2) Regulators have since increased scrutiny of governance, risk, and compliance (GRC) practices in the financial industry. Compliance is now a major focus for CEOs and boards, who seek to integrate GRC and leverage compliance investments for broader business benefits.
3) Technology is playing a larger role in GRC, with tools that give managers and boards more real-time risk data and indicators. Financial institutions are working to establish comprehensive enterprise-wide GRC frameworks using technologies like cloud computing and
CFO & Financial Leadership Barometer - Global Report (English)Nadezhda Simakova
The Michael Page CFO & Financial Leadership Barometer is a unique study that independently analyses key trends in financial leadership across the world. It takes a timely look at issues such as the increasing complexity of the role of financial leader and the greater focus on value creation. It reveals the way in which financial leaders are moving towards being leaders of change, not just within their own function but in driving the organisation as a whole.
A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portf...Semalytix
Since 2008, times have been tough for family businesses. The antidote: tapping into hidden value.
Like families in general, family businesses seem to function relatively well in troubled times. In fact, many studies show that, in the long run, they perform better than other business models. Key factors for their ongoing success include a management perspective that emphasizes the long term, strong brand and family name recognition, and often a strong focus on the core business.1
But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite direction.2 During the recent crisis, they have been less resilient than the rest of the economy despite a pre-downturn history of rapid growth and market dominance. Since 2008, the A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3 After a tough 2008, GCC family businesses rebounded to some extent (as did the market), but this did not last. As the overall market has trended mostly up, family businesses have trended downward.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/gcc-family-businesses-unlocking-potential-through-active-portfolio-management/10192#sthash.sb692Hgw.dpuf
Interview with: Dori Abendschein, SVP, Chief Financial Officer, Essilor of America. Abendschein is the Chairperson at the marcus evans CFO Summit XXXIII Fall 2017, in Irving, Texas, October 8-10.
The document discusses strategies used by long-lasting family-owned businesses to remain successful across generations. It finds that establishing strong governance through clear family rules and guidelines, prioritizing merit-based management decisions over nepotism, and actively managing business portfolios through engaged boards are key factors. Family businesses that have lasted over 100 years on average establish governance systems to separate family and management roles, appoint outside directors to boards, and only involve family in management if they prove their competence through outside experience.
White paper company directors stacey martinStacey Martin
Company directors face significant personal financial risks due to their role. This includes risks to personal wealth from legal liability, lack of time available for personal financial management, and lack of awareness of optimal structures to manage wealth. The document provides an overview of these challenges and recommends that aspiring directors seek professional advice early on to properly structure and manage their wealth in order to protect their assets and provide for philanthropic goals. It also summarizes the role and responsibilities of modern company directors.
The document discusses warning signs of distressed corporate situations and how addressing them early can create shareholder value. It notes that while some economies appear stable, the global economy is precariously balanced. Even good markets see corporate distress. The key is identifying issues quickly before restructuring. Boards must ensure viability and sustainability through accurate oversight. They should evaluate leadership, strategic plans, capital access, and consider advisors if management lacks relevant resources or ability to enact change. Addressing problems early through cost cuts, cash management and revised plans can help reverse declines before crisis measures are needed.
The document discusses corporate governance issues in 2004, where several CEOs were removed due to fraud. It discusses factors that allow fraud to occur, such as protecting a company's reputation, complexity of deals obscuring wrongdoing, and routines overriding signs of trouble. It recommends steps for boards and CEOs such as fostering trust, open dissent, ensuring accountability, and evaluating board performance. It also suggests criteria for selecting directors such as seeking knowledge over names, prioritizing character over independence, removing hidden agendas, finding passionate directors, and not accepting directors who collect boards.
1) The 2008 financial crisis exposed widespread failures in corporate governance, risk management, and compliance at many large financial institutions. Inadequate oversight and risky practices like off-balance sheet financing contributed to the crisis.
2) Regulators have since increased scrutiny of governance, risk, and compliance (GRC) practices in the financial industry. Compliance is now a major focus for CEOs and boards, who seek to integrate GRC and leverage compliance investments for broader business benefits.
3) Technology is playing a larger role in GRC, with tools that give managers and boards more real-time risk data and indicators. Financial institutions are working to establish comprehensive enterprise-wide GRC frameworks using technologies like cloud computing and
CFO & Financial Leadership Barometer - Global Report (English)Nadezhda Simakova
The Michael Page CFO & Financial Leadership Barometer is a unique study that independently analyses key trends in financial leadership across the world. It takes a timely look at issues such as the increasing complexity of the role of financial leader and the greater focus on value creation. It reveals the way in which financial leaders are moving towards being leaders of change, not just within their own function but in driving the organisation as a whole.
A.T. Kearney: GCC Family Businesses: Unlocking Potential Through Active Portf...Semalytix
Since 2008, times have been tough for family businesses. The antidote: tapping into hidden value.
Like families in general, family businesses seem to function relatively well in troubled times. In fact, many studies show that, in the long run, they perform better than other business models. Key factors for their ongoing success include a management perspective that emphasizes the long term, strong brand and family name recognition, and often a strong focus on the core business.1
But in the Gulf Cooperation Council (GCC), family businesses are trending in the opposite direction.2 During the recent crisis, they have been less resilient than the rest of the economy despite a pre-downturn history of rapid growth and market dominance. Since 2008, the A.T. Kearney GCC Family Conglomerate Index has decreased by 60 points, while the Bloomberg GCC 200 Index has decreased by 40 points, a 20-point performance gap (see figure 1).3 After a tough 2008, GCC family businesses rebounded to some extent (as did the market), but this did not last. As the overall market has trended mostly up, family businesses have trended downward.
- See more at: http://www.atkearney.com/paper/-/asset_publisher/dVxv4Hz2h8bS/content/gcc-family-businesses-unlocking-potential-through-active-portfolio-management/10192#sthash.sb692Hgw.dpuf
This document discusses two phenomena that began in the mid-to-late 1990s: 1) A decline in the quality and appreciation of music, attributed to changes in the music industry and technology. 2) A rise in assets under management for alternative asset managers, but a decline in performance. It then discusses trends among investors, including lower fees for managers, more direct investments, growing interest in niche strategies, and decreasing patience with underperforming or largest firms. The document concludes with an update on the author's firm, Alpine, and their focus on unique opportunities and content.
Blog_We have made history together_Paul Druckman FINALpauldruckman
The document summarizes the progress made by the International Integrated Reporting Council (IIRC) and the integrated reporting (<IR>) movement over the past 5 years. Key developments include an increasing number of large companies adopting <IR> frameworks to provide broader non-financial reporting, governments and regulators supporting <IR> adoption, and over 300 Japanese companies planning to publish integrated reports in the coming year. The author reflects on the IIRC's role in driving this global change and momentum towards more sustainable and long-term oriented business and financial decision-making.
The document discusses the evolving role of chief financial officers (CFOs) and other financial leaders based on a global survey. Some key findings include:
1) CFOs are taking on more responsibilities beyond finance, such as driving change initiatives that impact the whole organization.
2) The CFO position is gaining standing as a desirable career ambition in its own right, rather than just a stepping stone to becoming a CEO.
3) Companies face challenges finding qualified financial talent and are focusing more on training existing staff while continuing to rely on recruitment firms for key hires.
1) After 20 years of continued development, very successful Croatian companies started facing difficulties due to a lack of quality information that could not be obtained through intuition alone.
2) Owners of these companies, who had been building them for 20 years, reacted too late when problems arose because they lacked controlling systems to properly analyze data.
3) The current economic crisis has created an opportunity for controlling to take hold in Croatia. Company owners are realizing business intuition is no longer sufficient and that they need the right information and analysis to actively respond to challenges.
This document provides an overview of Alpine Capital Advisors, a firm that raises capital for fund managers and growth companies from global investors. Alpine seeks unique investment opportunities that aim to produce durable returns regardless of marketability. The firm is launching a company focused on ethical sales and marketing, as well as a technology business, though they expect it may never make money. The document also briefly summarizes the history and current structure of placement agents, firms that help private investment managers raise capital.
US CEOs talk about creating value in uncertain timesCristina Ampil
Findings from the 2013 US CEO Survey highlight the US home-field advantage and asks: are US businesses prepared for more competition here? how do you disruption-proof your business, particularly your supply chain? how do you prepare for uncertainty in tax policy? how do you prepare the next generation of leaders? does your business have a social media strategy? how do you put customers at the center of your growth agenda? how do you protect your business against cyberthreats?
The document discusses various topics covered in the March issue of the journal "Inside Enterprise", including entrepreneurship, interviews with business leaders, and articles exploring social entrepreneurship. It provides an overview of the different sections in the issue, thanks contributors and readers, and invites others to get involved by writing for the publication or attending upcoming events.
The document discusses why people often fail to report or act on signs of wrongdoing they observe in organizations. It provides examples of accounting staff who discovered fraud at their company but did not report it until $40 million had been stolen. The document suggests that pressure to achieve short-term financial goals can cause managers to ignore problems and misconduct. Reward systems focused only on quarterly profits create incentives for concealment of issues rather than addressing them. Overall, the document examines why people remain blind to fraud and why signs of problems go unheeded within companies.
The document argues that non-compete agreements are stifling innovation and entrepreneurship in Massachusetts by preventing skilled employees from starting new companies after leaving their jobs. It states that non-competes treat employees as intellectual property of their employers and force many entrepreneurs to leave the state or not pursue new ideas. The author urges eliminating non-competes to stimulate the Massachusetts economy and allow the state to remain competitive in business through innovation.
McKinsey & Company
Managing CEO transitions
A leader’s best chance to lock in new organizational norms
is usually during the first few months on the job
Tsun-yan Hsieh and Stephen Bear
This document discusses family businesses in Latin America and outlines a three-stage model of a typical family business lifecycle. It also provides an overview of governance institutions that family businesses establish like family assemblies, councils, and offices. The document then discusses a case study of a Mexican pharmaceutical company called Quimica Farmaceutica Esteroidal that sought business consulting services to develop a family succession protocol. The consultant conducted a business diagnosis and provided insights that helped the company establish foundations for succession planning and formalizing processes.
The document summarizes key macro trends impacting the Australian legal market in 2016 and beyond. It finds that the pace of change is increasing for growth of digital technologies, growth of boutique/specialist firms, growth of new law models, and supply of legal graduates. Meanwhile, the pace is slowing for the entry of global firms into Australia and shifting of work in-house. Overall, the legal market faces challenges from increased competition and disruption driven by new technologies and business models.
The Downside Of Having Excessive Capital In A Volatile Economy - For CEO's An...TheEdge
Having excessive capital in a volatile economy can lead companies to make poor decisions in three key ways:
1) Companies may be tempted to make unnecessary or non-profitable acquisitions or focus on losing strategies.
2) Executives and employees can develop attitudes of complacency or lack motivation to succeed.
3) Companies may adopt a risk-averse mindset that discourages innovation.
An overview of the challenges and options business owners in the graphic arts space are facing with the transformation taking place in today's industry.
Canada Is Home Of The Fearless EntrepreneurKatherine Roos
While self-employment in the US has been weak during the recession, in Canada self-employment has risen significantly as more Canadians start their own businesses instead of relying on larger corporations for jobs. Self-employment in Canada has nearly doubled since the 1980s and shows no signs of slowing, as both the government and banks have increased support programs for entrepreneurs. However, some economists worry that increased self-employment may negatively impact productivity and economic growth in Canada.
The world of international business has become more challenging. Trade disputes, tariffs, rising nationalism and Brexit now point to a shift from globalisation to economic fragmentation. As a result, businesses in many cases have to localise their presence in order to establish themselves in markets they wish to do business in.
The Global Business Complexity Index ranks jurisdictions around the world in terms of how difficult they are to operate in. It highlights what to expect from different countries across a range of business requirements including legal, compliance, accounting, tax and employment rules.
Complexity is not a reason to avoid investing. It is a factor which must be managed. With the right local knowledge and preparation, good companies can thrive anywhere.
Cfo and ceo better together ima 2013 10-23Steve Little
The document discusses the evolving role of chief financial officers (CFOs) in business. It describes how CFOs are increasingly acting as partners to CEOs and helping to lead companies by supervising departments beyond just finances. An effective CFO can help steer a company through major initiatives like mergers and acquisitions or initial public offerings. Selecting the right CFO is one of the most important jobs for a CEO, as a great CFO is integral to building a strong management team.
This document discusses the evolving role of the chief financial officer (CFO). It argues that today's CFO role has expanded beyond financial management to include being a champion of strategic discipline. The CFO ensures value creation through strategic investment decisions and saying "no" to non-strategic initiatives. An effective modern CFO helps the entire company focus on developing distinctive capabilities, leverages business drivers and data to understand value creation, and facilitates organizational change.
This document discusses two phenomena that began in the mid-to-late 1990s: 1) A decline in the quality and appreciation of music, attributed to changes in the music industry and technology. 2) A rise in assets under management for alternative asset managers, but a decline in performance. It then discusses trends among investors, including lower fees for managers, more direct investments, growing interest in niche strategies, and decreasing patience with underperforming or largest firms. The document concludes with an update on the author's firm, Alpine, and their focus on unique opportunities and content.
Blog_We have made history together_Paul Druckman FINALpauldruckman
The document summarizes the progress made by the International Integrated Reporting Council (IIRC) and the integrated reporting (<IR>) movement over the past 5 years. Key developments include an increasing number of large companies adopting <IR> frameworks to provide broader non-financial reporting, governments and regulators supporting <IR> adoption, and over 300 Japanese companies planning to publish integrated reports in the coming year. The author reflects on the IIRC's role in driving this global change and momentum towards more sustainable and long-term oriented business and financial decision-making.
The document discusses the evolving role of chief financial officers (CFOs) and other financial leaders based on a global survey. Some key findings include:
1) CFOs are taking on more responsibilities beyond finance, such as driving change initiatives that impact the whole organization.
2) The CFO position is gaining standing as a desirable career ambition in its own right, rather than just a stepping stone to becoming a CEO.
3) Companies face challenges finding qualified financial talent and are focusing more on training existing staff while continuing to rely on recruitment firms for key hires.
1) After 20 years of continued development, very successful Croatian companies started facing difficulties due to a lack of quality information that could not be obtained through intuition alone.
2) Owners of these companies, who had been building them for 20 years, reacted too late when problems arose because they lacked controlling systems to properly analyze data.
3) The current economic crisis has created an opportunity for controlling to take hold in Croatia. Company owners are realizing business intuition is no longer sufficient and that they need the right information and analysis to actively respond to challenges.
This document provides an overview of Alpine Capital Advisors, a firm that raises capital for fund managers and growth companies from global investors. Alpine seeks unique investment opportunities that aim to produce durable returns regardless of marketability. The firm is launching a company focused on ethical sales and marketing, as well as a technology business, though they expect it may never make money. The document also briefly summarizes the history and current structure of placement agents, firms that help private investment managers raise capital.
US CEOs talk about creating value in uncertain timesCristina Ampil
Findings from the 2013 US CEO Survey highlight the US home-field advantage and asks: are US businesses prepared for more competition here? how do you disruption-proof your business, particularly your supply chain? how do you prepare for uncertainty in tax policy? how do you prepare the next generation of leaders? does your business have a social media strategy? how do you put customers at the center of your growth agenda? how do you protect your business against cyberthreats?
The document discusses various topics covered in the March issue of the journal "Inside Enterprise", including entrepreneurship, interviews with business leaders, and articles exploring social entrepreneurship. It provides an overview of the different sections in the issue, thanks contributors and readers, and invites others to get involved by writing for the publication or attending upcoming events.
The document discusses why people often fail to report or act on signs of wrongdoing they observe in organizations. It provides examples of accounting staff who discovered fraud at their company but did not report it until $40 million had been stolen. The document suggests that pressure to achieve short-term financial goals can cause managers to ignore problems and misconduct. Reward systems focused only on quarterly profits create incentives for concealment of issues rather than addressing them. Overall, the document examines why people remain blind to fraud and why signs of problems go unheeded within companies.
The document argues that non-compete agreements are stifling innovation and entrepreneurship in Massachusetts by preventing skilled employees from starting new companies after leaving their jobs. It states that non-competes treat employees as intellectual property of their employers and force many entrepreneurs to leave the state or not pursue new ideas. The author urges eliminating non-competes to stimulate the Massachusetts economy and allow the state to remain competitive in business through innovation.
McKinsey & Company
Managing CEO transitions
A leader’s best chance to lock in new organizational norms
is usually during the first few months on the job
Tsun-yan Hsieh and Stephen Bear
This document discusses family businesses in Latin America and outlines a three-stage model of a typical family business lifecycle. It also provides an overview of governance institutions that family businesses establish like family assemblies, councils, and offices. The document then discusses a case study of a Mexican pharmaceutical company called Quimica Farmaceutica Esteroidal that sought business consulting services to develop a family succession protocol. The consultant conducted a business diagnosis and provided insights that helped the company establish foundations for succession planning and formalizing processes.
The document summarizes key macro trends impacting the Australian legal market in 2016 and beyond. It finds that the pace of change is increasing for growth of digital technologies, growth of boutique/specialist firms, growth of new law models, and supply of legal graduates. Meanwhile, the pace is slowing for the entry of global firms into Australia and shifting of work in-house. Overall, the legal market faces challenges from increased competition and disruption driven by new technologies and business models.
The Downside Of Having Excessive Capital In A Volatile Economy - For CEO's An...TheEdge
Having excessive capital in a volatile economy can lead companies to make poor decisions in three key ways:
1) Companies may be tempted to make unnecessary or non-profitable acquisitions or focus on losing strategies.
2) Executives and employees can develop attitudes of complacency or lack motivation to succeed.
3) Companies may adopt a risk-averse mindset that discourages innovation.
An overview of the challenges and options business owners in the graphic arts space are facing with the transformation taking place in today's industry.
Canada Is Home Of The Fearless EntrepreneurKatherine Roos
While self-employment in the US has been weak during the recession, in Canada self-employment has risen significantly as more Canadians start their own businesses instead of relying on larger corporations for jobs. Self-employment in Canada has nearly doubled since the 1980s and shows no signs of slowing, as both the government and banks have increased support programs for entrepreneurs. However, some economists worry that increased self-employment may negatively impact productivity and economic growth in Canada.
The world of international business has become more challenging. Trade disputes, tariffs, rising nationalism and Brexit now point to a shift from globalisation to economic fragmentation. As a result, businesses in many cases have to localise their presence in order to establish themselves in markets they wish to do business in.
The Global Business Complexity Index ranks jurisdictions around the world in terms of how difficult they are to operate in. It highlights what to expect from different countries across a range of business requirements including legal, compliance, accounting, tax and employment rules.
Complexity is not a reason to avoid investing. It is a factor which must be managed. With the right local knowledge and preparation, good companies can thrive anywhere.
Cfo and ceo better together ima 2013 10-23Steve Little
The document discusses the evolving role of chief financial officers (CFOs) in business. It describes how CFOs are increasingly acting as partners to CEOs and helping to lead companies by supervising departments beyond just finances. An effective CFO can help steer a company through major initiatives like mergers and acquisitions or initial public offerings. Selecting the right CFO is one of the most important jobs for a CEO, as a great CFO is integral to building a strong management team.
This document discusses the evolving role of the chief financial officer (CFO). It argues that today's CFO role has expanded beyond financial management to include being a champion of strategic discipline. The CFO ensures value creation through strategic investment decisions and saying "no" to non-strategic initiatives. An effective modern CFO helps the entire company focus on developing distinctive capabilities, leverages business drivers and data to understand value creation, and facilitates organizational change.
Traditional finance is dead. Business has changed significantly over the last 2 decades. While this has opened up a new set of opportunities to reinvent the concepts of finance, a lot of businesses are being left behind as they grapple with issues that a proactive approach to finance could have easily avoided. All hail the new king of finance – Strategic Finance Thinking.
We get asked every other day by businesses we meet – So what is it that you do so differently? While this has become a part of our standard conversation, we thought of putting these thoughts together in a whitepaper that every SMB can use to define what they should be expecting from this new wave.
Disclaimer: Please note that these are our views are based on our experience in being advisors and working with various organizations. They are for the limited purpose of educating the officers of a company. How this applies to your business can vary significantly based on the context, stage, exact nature & size of the business.
The document discusses seven essential questions that CFOs should ask themselves to become more strategic. The questions include: how the company plans to grow, what constraints hold back growth and how to overcome them, what uncertainties exist and how to resolve them, areas of high spending with uncertain returns, whether growth goals are ambitious enough, what could disrupt the company, and what the company should stop doing. By asking and addressing these questions, CFOs can identify strategic opportunities, partner with other leaders to implement solutions, and help move the company forward in a pragmatic way.
Role of Auditor : entrepreneurship and small business management Ayush Parekh
The document discusses the role of auditors in small business organizations. It explains that auditors play an important role by verifying financial statements and ensuring management fulfills their responsibilities. The auditor assesses the business's internal controls and accounting practices to determine if financial reporting is accurate. Management is responsible for preparing financial statements according to accounting standards, maintaining adequate records, and designing internal controls, while the auditor provides an independent examination of the statements.
- Luxembourg aims to position itself as a leading global center for digital financial services and financial technology through combined efforts of the financial industry, FinTech innovators, and public research bodies and government.
- Three key requirements for sustainability and cementing this position are enhancing talent attraction, anticipating industry trends, and strategic and decisive action.
- Luxembourg is establishing the Luxembourg House of Financial Technology (LHoFT) to develop an innovation ecosystem where financial institutions, entrepreneurs, engineers, and researchers can collaborate on new solutions, similar to initiatives in other major financial centers. The LHoFT aims to attract talent and ambition to Luxembourg.
Boardroom agenda for FY16-17: priorities and actionsBrowne & Mohan
Boardrooms are witnessing breakdown of business models in their industries and high unpredictability than what they are used to. Weak Chinese economic data, plunging commodity prices, rise and spread of Islamic state group (IS) and its attacks are posing new business challenges. In this presentation, Browne & Mohan consultants discuss what should be the priorities of the Board for the FY16-17 and how must they go about it to sustain the growth and relevance of the organization.
The document discusses the issue of whether boards of financial institutions should have more directors with industry experience. It notes some potential advantages such as understanding business drivers, risks, and the competitive landscape. However, it also discusses downsides such as the risk of "groupthink" and the difficulty of recruiting current industry executives. It concludes that while industry experience can be valuable, it was likely not a lack of it that caused governance failures during the financial crisis. Sound judgment, common sense, and independence will remain most important for effective boards going forward.
MyCFO offers IPO Support, Small time entrepreneurs or grand scale businesses ...MyCFO Services
Are you a first generation entrepreneur wanting to professionalize the financial systems of your start up? Or a family business wishing to scale up to the next level? Perhaps you represent an overseas company making an
entry into India and looking for experts to navigate the Indian statutory labyrinth. Don’t worry! My CFO is here.
Why Hire an FD or CFO?
If you’ve landed on this guide, the chances are that you’re a business owner, CEO, or MD that is looking for help with hiring a CFO or Finance Director that works for your business needs.
Hiring an FD or CFO means that you can have a dedicated person on your team to deal with the financial side of your business. Not everyone who starts a business comes from within the industry or has the knowledge to do things like forecasting or troubleshooting. With an FD, you get to take advantage of their skills and experience to get your business back on track or smash your growth goals. Read our guide to find our more.
The role of FD or CFO is as much about strategy and planning as it is about monitoring the company’s cash flow. For any company to implement a new strategy, you need to have someone on your team with the specialist skills and knowledge to access your current systems and implement alternatives.
Bringing an FD on board is a major decision that you want to get right. Our guide is designed to help you make the right decision for you and your business.
Why Recruit an FD or CFO?
The position of CFO or FD is one of the most versatile in any company. Their role is to help you meet your financial goals and scale up your business, whether it’s through fundraising or company expansion.
You might decide it’s time to recruit a CFO or FD if you want help with fundraising through government programmes or private investors. If you have a merger or acquisition on the horizon, a CFO can ensure the transition is streamlined and runs smoothly. One reason companies choose to recruit an FD is that they are planning to enter a new niche or want to expand their market share in an existing one.
Some of the key benefits provided by a CFO or FD include:
Insights into company performance to improve profits.
Introduces better controls and systems.
Improves cash forecasting and management.
Utilises forecasting, modelling, and planning.
Increases the company’s credibility with external parties, including banks and PE houses.
Brings experience and expertise in a niche field.
Allows your company to plan for the future and formalise business strategy.
Recruit skilled employees to up-scale your business.
To learn more visit our website at https://www.fdcapital.co.uk
Chief Financial Officers time to shift focusNeil Holmes
How do today’s CFOs prepare to take on the increasingly broad range of demands placed upon them?
Think about it … formative professional training remains focussed largely on auditing company performance, checking results are reported in accordance with the latest technical guidance and ensuring that the business meets regulatory requirements. And whilst keeping abreast of the numbers is still regarded as a key responsibility of the Finance team, in an increasingly digitised economy Boards are demanding that the CFO also provides greater analysis of what the numbers imply, supporting the business to meet its strategic goals.
The potential to automate and outsource control and governance procedures could arguably lead to these skills becoming a commodity, with the CFO increasingly expected to devote more time to ‘being on the pitch’, supporting the Chief Executive in leading the drive for growth, change and transformation. Blockchain technology and the rise of Artificial Intelligence could revolutionise not only the automation of transactional processes but also the ability to transform corporate reporting, enabling transactions to be recorded and reported in real time.
But these changes will have a profound impact on not only the traditional career trajectory of finance professionals, but on the skills and expertise that the finance function will need to deploy, including talent with significant data and digital expertise. It’s no longer enough for Finance leaders to oversee a team that assimilates and reports information, but instead, they must develop the capability to identify, interpret and communicate the most valuable data, in the right language, at the right time.
The proliferation of data and analysis means little if the capacity to derive relevance from it is absent. With an accelerating shift in focus of today’s CFO away from control and governance towards the increasing use of analytics and business partnering, the CFO has an enhanced role in shaping the company’s future rather than reporting on the past.
In our latest CFO paper ‘Time to shift focus’, we explore the three main areas of influence where a CFO’s impact on a business is felt most.”
The document discusses the challenges of being a transformational leader today. It notes that while business transformations are critical for survival, most fail due to a lack of leaders with the right skills. These leaders, called "Strategists", have skills in visioning, execution, and adapting to complex challenges. However, Strategists make up only 8% of leaders. The document outlines 10 ways for organizations to identify and retain their own Strategists to lead transformations from within.
The document discusses challenges that owners of closely-held businesses often face when they do not have an interested and capable family heir to take over the business. It provides suggestions for facilitating continued successful management and ownership of the business through establishing a trust, utilizing a professional search firm to find new management, bringing in outside investors, and ensuring estate plans allow for extended business ownership. The key tasks are to find new leadership that maintains the culture while allowing positive changes, establish an effective board, and compensate new managers commensurate with the responsibilities of running the entire business.
The document discusses ethics and ethical dilemmas that can arise in management consulting. It notes that ethics is important in business given past scandals. While professional associations have established ethical guidelines for consultants, specific ethical issues may arise without explicit solutions. Consultants sometimes face perceptions of being unreliable due to changing business environments. The document argues that consultants often work in ambiguous situations, so ethical decisions can be complex.
This summary discusses the risks of growth and how boards can better manage them:
- Many companies become so obsessed with growth that they forget the risks, which can destroy business value. Pursuing only growth and size is misguided and has led companies like Toyota and Starbucks into problems.
- Smart growth means managing the risks of growth. As companies prepare for better prospects after the financial crisis, boards must examine what growth means and how to mitigate its risks.
- A panel of directors and executives discussed that growth should not always be the top priority. It is important to maintain capabilities and invest in people as the business changes. Rapid growth that overstretches a company can lead to failures.
- Bo
So what does it take to evolve finance into an agile,
flexible and value-adding function? How does finance
harness digital tools and data to become a better
business partner? And where do the pitfalls lie?
Learning from those who’ve already taken those first
steps is an important starting point. Which is where
this ebook comes in.
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1. icaew.com/fmfac02
type of business in which they are operating, remains
an exciting one.
Concentrating on the listed market sector in more
detail, there are important differences worth
considering. If you have ambitions in this sort of
organisation it is helpful to have a realistic goal. Some
companies in the FTSE 250 will not be for you... ever.
But others might be, if you manage your career in the
right way. Think about the capabilities required by a
CFO for each of the following types of listed business.
FTSE 30 – the top 30 companies
These businesses are huge and global. Their scope is
vast and their boards often quite large – up to 20
directors or more – including people from each of the
major markets where the group operates. Some of
them are listed not only in London but perhaps New
York, Tokyo and Hong Kong as well – different markets
with different reporting requirements and cultures.
Balance of the FTSE 100
The next grouping is the balance of the FTSE 100.
Again most of these are organisationally large –
although occasionally market sentiment may ramp a
share of an organisationally more modest-sized one so
that on market value it creeps into the bottom end of
the FTSE 100. Boards tend to be smaller (up to 12).
FTSE 250
And then there is the FTSE 250 where companies vary
hugely in size and complexity. Market capitalisation can
be a poor determinant of what really goes on within
each business. But these companies, just like the FTSE
100, have to comply with the UK Corporate
Governance Code (previously known as the Combined
Code) or explain why they are not doing so. They do
feel different and act differently from many of the
remaining 2000 or more UK listed companies.
Main requirements
If you are setting your sights on a job as CFO of one of
the larger listed companies, here is what you should be:
• technically strong and up to date;
• prepared to be a business partner to the CEO;
• prepared to be more strategic;
• able to communicate, persuade and influence;
• prepared for greater exposure to the City, investment
community and shareholders;
• able to handle the formalities of the audit committee
and to develop a good relationship with its chairman;
• prepared to deal with a new breed of non executives;
• internationally aware and comfortable operating in a
global environment; and
• more familiar with technology, the use and protection
of data.
In 2007 my former colleague, John Collier, wrote an
article in Finance & Management (F&M 142) about the
essential qualities needed for success as the CFO of a
large listed company. His comments were couched in a
gentler pre-crash, pre-Brexit and pre-Trump era of 10
years ago when the world, perhaps, seemed a more
predictable place.
Despite the turbulent happenings of the past decade,
much of John’s advice on how to secure, and succeed
in, a senior finance role remains relevant. John, who is
now retired, knew a thing or two about such things. He
had been a partner with PwC before his stint as
secretary general of ICAEW. He became a headhunter in
2006, evaluating and advising finance professionals and
other senior executives for the many non-executive and
board-level appointments he made on behalf of his
clients. His advice below, updated for today’s
environment, covers some thoughts on the different
types of listed environment and some practical
considerations when preparing yourself for the top job.
The market
As in 2007, there is always a demand for good CFOs;
the precise skills needed may shift over time but the
core requirements remain the same. CFO appointments
with large public companies have a high profile (and
therefore need people who can cope with the pressures
that this can bring), but roles that are not always in the
public eye can be just as demanding and rewarding.
There has been a number of major international
mega-mergers, market consolidation and a continued
prominence of private equity firms who are once again
taking businesses private on the basis of cheap, readily
available debt. There are exciting opportunities with
companies on the alternative markets and the
emergence of second generation internet businesses
has created a raft of organisations with impact and
influence well beyond their physical size. New online
and digital business models abound, bringing with
them new regulatory, reporting and international
taxation challenges not to mention staggering pre-
profit valuations. The life of a CFO, regardless of the
Tim Beckh is managing partner of
executive search firm Grosvenor Clive &
Stokes and has a 20-year career placing
senior executives in finance and other
functions in the consulting, technology
and power sectors.
tb@grosvenorcliveandstokes.com
PLANNING FOR SUCCESS
How to succeed in a senior
finance role
Are you wondering about what skills you might need to succeed in a senior finance role?
Headhunter Tim Beckh considers the sage advice of a former secretary general of the ICAEW.
2. FINANCE & MANAGEMENT SPECIAL REPORT MARCH 2017 03
Technically strong
It is rather taken for granted that you will have
laboured over International Financial Reporting
Standards (IFRSs) and the ever-increasing complexity
of our corporate tax regime. You will be up to date
with the Listing Rules, the requirements of the
Companies Acts, Sarbanes Oxley (perhaps), the UK
Corporate Governance Code and any special
regulatory requirements. You will probably not be
company secretary as well as CFO (as is often the case
with smaller companies) but unless you have a lawyer
on the board or as an integral part of your senior
executive management team the board will look to
you as a first point of call on most legal matters.
A potential business partner to the chief executive
This is normally the key relationship for a CFO.
Whatever the other attractions, if you do not think
you will get on with the CEO then do not join the
company. On the other hand this can be a highly
rewarding relationship.
It does not always mean playing second fiddle to
the CEO. Not all CEOs are outgoing and charismatic
(though lots are). There are a number of examples
where the CFO is the public face of the business
especially where the CEO is based overseas (usually
the US). Who else on the board or within the top
executive team has the same breadth of knowledge
across the whole of the group’s span of activities?
Yet you must never lose your independence of mind
or be afraid to speak up. If the CEO seems to want a
‘yes man’, think twice before taking the job.
Prepared to be more strategic
You will no longer be seen as just a numbers person,
and will need to be able to work with others on the
board as a team.
However, do not totally believe the cliché that
modern technology frees up accountants from the
drudgery of number crunching and enables them to
contribute across the whole range of a business
activity. If the annual report and accounts plus the
10k is 300 pages long, you are the one board
member who does have to know what is in there. It
may be a huge business but look round the board
table and ask who else will have done so – certainly
within the executive team – and you will have your
answer.
Able to communicate, persuade and influence
This ability is more important than ever. Being
technically up to date is not enough. You have to be
able to communicate technical complexity in a
straightforward and understandable way – beginning
with your CEO, then the wider board and your
investors, not forgetting the press and other media.
How do you deal with journalists, what do you look like
in a webcast and how much can you say to members of
the public? Often the medium really is the message.
How you say something as a CFO is sometimes nearly as
important as what you say.
Prepared for greater exposure to the City, investment
community and shareholders
Your shares will be more widely followed, and by better
analysts, than those of a smaller listed company. Most
analysts following big companies are deeply
knowledgeable technical accountants who have
followed a particular sector for years. Can you hold your
own with such people? It’s vital that you do. You will
need to be on top of your brief and be expected to be
proactive in your engagement with these important
constituents.
Able to handle audit committee formalities and forge a
good relationship with its chairman.
There is no doubt that in the last few years the audit
committee has introduced another significant dimension
to the CFO’s working life. Not only are you a part of the
team led by the CEO, not only does the board chairman
look to you as the keeper of the numbers round the
boardroom table but there is now an audit committee
chairman on whom the other, non-financial members of
the board, increasingly rely. An audit committee
chairman knows this, has a public profile and has a
report in the annual report and accounts – so they will
take a very close interest.
Whatever the size of the business, the audit
committee chairman’s relationship with the CFO is a
critical one. But this is particularly so within a FTSE 250
business. You will have to accept a degree of formality
not found within smaller companies. Some audit
committee chairmen make a point of keeping some
distance from the finance director; others see it as more
of a mentoring role. This is another relationship you will
need to weigh carefully before taking a job, and work
hard on after doing so.
3. icaew.com/fmfac04
Prepared to deal with a new breed of non executives
The responsibilities placed on the board of large listed
companies are considerable and this is cultivating a
new breed of non executives. Expect them to be
technically capable, engaged in the detail and
increasingly committed. They will offer challenge and
advice and should be considered a valuable resource
for any CFO. Communicate openly and use them as
your confidant and advisor.
Internationally aware and comfortable operating in a
global environment
We live in an increasingly global environment and
regardless of whether you are CFO of a predominantly
UK-focused business, you will be expected to think
globally. Whether it is sources of finance, international
partnerships or the unexpected takeover approach
from an overseas competitor, the CFO will need to
have all of this on their radar.
More familiar with technology, the use and potential
of data
Much as we live in a global environment, so we
operate in a digital world. Technology permeates all
aspects of running a major corporation and the CFO
must understand the opportunity this provides not
just to speed up reporting but to deliver insight,
create new value streams and deliver operational
efficiencies.
The best career path?
It is worth considering how many moves you should
make to gain experience in a range of roles and
sectors without giving the impression of failing to
stick at anything for very long. Even if you achieve the
‘right’ number of moves on your way upwards – what
is the ‘right’ route? Internal audit, subsidiary finance
director, group financial controller, and then group
CFO, for example? Or straight from a smaller
company CFO role (mid cap or even AIM) to the top?
There is no ‘right’ answer, but if newly qualified in a
Big Four firm and planning my future, I’d probably
work my way up in a bigger corporate environment. If
you start with small companies you tend to stay with
smaller companies whereas there is greater movement
in the other direction.
When the ‘ideal’ route is not possible
The ‘ideal’ route is not always possible, though. What
should you do if you are out of work, or feel the way
forward is blocked? There may be all sorts of reasons
why you are out of work – a takeover, rationalisation
involving closing your part of the group, a family or
personal illness. So how do you get back in?
Applying for advertised jobs (almost all online these
days, though the Financial Times’ Thursday
supplement is also good) is one route. But be warned:
good-sounding jobs can attract literally hundreds of
applications. You need to make sure you meet all the
requirements listed and try and do something in your
application to make you stand out a bit from the crowd.
Taking an interim role is clearly another option and
might give you the experience you want but, again, be
warned: experienced interims are usually preferred over
people who are really looking for a permanent job. Also
beware of becoming branded a career interim, if this is
not your intention, by staying put too long. You may
find it hard to work your way back into a permanent
role.
If you are employed and the way forward seems to be
blocked then your best bet is to make the most of what
you have and, for example, get involved in preparing
for investor presentations, attend audit committee
meetings (and make a good impression when you do)
and do important, high-profile project work to get the
experience and to get people’s attention.
Getting noticed
But whichever route you take, you definitely do need to
get noticed. You should consider:
• networking;
• public speaking and talking to the media;
• impressing your non-executive directors;
• taking on a non-executive director role yourself;
• impressing the City or fostering relationships with
private equity;
• being part of a ‘success story’; and
• taking calculated risks.
Networking
This comes naturally to some, but for most of us it
requires application and effort. At each stage of your life
you get to know people, often very well but then you
(or they) move away or get promoted and in spite of
your best intentions contact gets reduced to Christmas
cards (or e-cards) and then fades away altogether. The
best thing is not to let relationships fade but, if you do,
take heart. A call out of the blue to someone you have
not spoken to for years will almost certainly be warmly
welcomed and a lunch together can be arranged – and
then away you go. There are plenty of tools to help you.
LinkedIn is probably the best well known. Hunt out your
former colleagues and reconnect, join some groups and
contribute to the new threads with interesting
commentary.
Public speaking and talking to the media
It is far better to be proactive and manage your own
profile than it is to be noticed for the ‘wrong’ reasons,
eg for being highly paid although your profits and share
price are going sideways.
‘ Striking the right balance between
confident candour and sticking to the
precise line set out in your PR material or
the public statement is an art, and
getting it right can do you a lot of good ’
4. FINANCE & MANAGEMENT SPECIAL REPORT MARCH 2017 05
‘ However strong your desire for a senior
finance role, you do need to do your due
diligence before taking any post. This
may seem obvious but if you are offered a
big step up your objectivity may suffer ’
Impressing your non-executive directors
Impressing your non-executive directors (and
especially your audit committee chairman) always
helps. Although the days of large non-executive
portfolios are mostly behind us, many non-executives
(who have usually retired from full-time executive
work) have more than one appointment and inevitably
compare the performance of the executives in those
different businesses.
Taking on a non-executive appointment yourself
upside of becoming a NED yourself is that it lets you
see another business and increases your exposure to
other senior business people. The downside is that
non-executive work can be very demanding especially
if you are not only required to serve on the audit
committee but to chair it as well. Finding your first
NED role can be tricky but to help you along the way
you might consider offering your services to a charity
or trust pro bono.
Impressing the City or fostering relationships with
private equity
Impressing analysts and your shareholders is vital. Even
if you are not a natural presenter and are not too
confident on your feet you must work at gaining
confidence and using PowerPoint really well. Striking
the right balance between confident candour and
sticking to the precise line set out in your PR material
or the public statement is an art, and getting it right
can do you a lot of good. When headhunters are
taking soundings on your suitability for a prospective
senior role, we will talk to the City and analyst
community and will expect to hear positive things.
You might consider developing relationships with
Private Equity firms who invest in a portfolio of
businesses and look to high-calibre individuals for their
other investments. There may become a time when
you are tapped up for your turnaround experience or
based on their recognition of the impact you have
made elsewhere.
Being part of a ‘success story’
If at all possible, be part of a success story. If you have
chosen the right company to join, are working in a
business sector with potential, and have a good CEO
then some of the positive ‘halo’ for your business in the
market will reflect on you. So as part of your career
route, think before you join, get in at the right time
and make sure you respect the CEO.
Taking calculated risks
Be prepared to take risks – but only calculated ones. If
you believe a business which has been going through a
bad patch may be about to turn, or you believe in an
(as yet) untested strategy, or you think you can work
with the CEO – then go for it.
Speaking to respected executive search firms
Those executive search firms that handle senior-level
CFO appointments for large listed companies will
operate on a retained basis. This means that they are
driven by the needs of their clients and will be focused
on the projects they are handling at the time. However,
it is worth fostering relationships with headhunters and
making them aware of the sort of role you are looking
for next. It can be difficult to get them to engage
outside of a specific process but the more enlightened
firms will take the time to get to know the rising stars.
And finally... ask around
However strong your desire for a senior finance role,
you do need to do your due diligence before taking
any post. This may seem obvious but if you are offered
a big step up your objectivity may suffer. So ask
friends, colleagues and people you know in the
investing community and listen to what they say.
Although you may think the headhunter handling the
recruitment wants to fill the role at any cost, they will
be working for the long-term success of their client and
the candidates they represent and should be honest
with you when it’s not the right role, company or
career step for you.
THE FINANCE AND MANAGEMENT FACULTY
This article was published in ‘Soft skills that FDs need’
(SR56), a special report produced in March 2017 by
the ICAEW’s Finance & Management Faculty. The
faculty helps members in business to perform at their
best. For more information on the benefits of
membership see icaew.com/fmjoin