Starting well is important and for the new CFO the are facing a myriad of business challenges, let alone adjusting to a new role. And the CFO role has evolved considerably to now be much more collaborative and human-centered, while also needing to keep abreast of and oversee rapidly changing digital initiatives. A recent McKinsey & Co. online article (READ IT HERE) has “identified seven key mindsets and practices that new finance leaders can commit to right from the outset, to help jumpstart and sustain ling-term value creation.”
- Scope the challenge
Take time to look at the entire business through the lens of an independent outsider, taking into account structures, resources, and activities. Seek consensus with your fellow senior executives regarding these, and then consider options. Challenge assumptions and scenarios and think like a competitor. - Adopt a bias for action
Do something that addresses the issues that are hindering value creation. Make the tough calls and commit to innovation. - Make space in your portfolio for a few bold bets
McKinsey notes that research “consistently shows that companies are too risk averse.” Rather than perpetuate the stereotype of the conservative finance leader, lead the way in taking some calculated bolder bets. Use the “test and learn” approach with small beginnings to learn, gains experience, and data. - Teach and translate
Use understandable terms rather than financial jargon when communicating with your Board and fellow senior executives. Educate colleagues “on what the financial implications are for their business and functions”, “share bad news early”, and your will gain more credibility through being straightforward and presenting “performance versus promises.” - Be proactive about risk
Understand what is most at stake for your business should major disruptions arise, and plan mitigation strategies. Build organisational resilience for the long-term. - Think strategically about ESG
New standards are emerging on reporting ESG activities, so get ahead of this and consider how, if at all, the companies ESG initiatives are connected to the company’s strategy. - Pull together for talent
Think big picture and collaborate with colleagues “to allocate capital toward attracting, teaching, and retaining talented employees.” Use your finance team to become “talent factories.”
Overall, the advice from the article is to “resist a setting for inaction or incrementalism and hit the ground running.” Ready, set, go!