Controller or CFO? That is the Question - The Overture Group

60 %
40 %
Information about Controller or CFO? That is the Question - The Overture Group
Career

Published on February 4, 2014

Author: TheOvertureGroup

Source: slideshare.net

Description

In today’s economy, hiring the right financial leadership is critical to a company’s success. You need to make sure you have the right person for your company’s needs. Many mid-size business owners struggle or ask themselves, “Do I need a Controller or a CFO”? The answer is different, depending on your company’s situation.

Controller or CFO? That is the Question By John Liacone & Bob Lindeman

Controller or CFO? In today’s economy, hiring the right financial leadership is critical to a company’s success. You need to make sure you have the right person for your company’s needs. Many mid-size business owners struggle or ask themselves, “Do I need a Controller or a CFO”? The answer is different, depending on your company’s situation. When looking for that person, you first need to understand the general difference between a Controller and a CFO. A Controller is typically the day-to-day manager of the tactical accounting issues and functions. The CFO serves more as a strategic advisor to the owner or CEO. A CFO also tends to become more involved with strategic and operational issues outside the accounting department, including possible interaction with customers or critical vendors. What The Overture Group’s Executive Search Team has found is that many mid-size businesses need what we have termed a “Shirt-Sleeve CFO™.” This is someone who can be a strategic resource at 10:00 am and work on a tactical issue at 2:00 pm. He/she is flexible enough to roll up the sleeves and get the job done as well as bring value to the organization through both delegation and strategic, solid financial management. Mid-size organizations normally are looking for a practical problem-solver who will respect the historical culture of the company while positioning the company for future growth. The pro-active ShirtSleeve CFO™ listens, plans, delegates and remains integral to a project’s completion. One critical aspect of finding a successful Shirt-Sleeve CFO™ for your company is considering his or her previous employer’s culture. Did she come from a large company with plenty of resources at her disposal? Or did he come from a mid-size business where the culture was, “I am the person who needs to be resourceful and get the job done”? We have seen a higher level of success from CFOs coming out of mid-size businesses. To the right is a chart that really examines the characteristics of both a Controller and a CFO. As you move from a Controller to CFO level, you start adding more value to your company, both short-term and, more importantly, long-term. It is important to note that some Controllers may have some of the characteristics in the CFO column, but their tendency is more in the Controller column. Similarly, some CFOs may have a couple of the Controller’s characteristics. 2 A “Shirt-Sleeve CFO™” is someone who can be a strategic resource at 10:00 am and work on a tactical issue at 2:00 pm.

Controller or CFO? CFO DISCUSSION CHART Focus Focus CONTROLLER CFO Reactive Historical Adding value to the Firm Proactive Strategic Short-Term Advisory Passive Operational Narrow Analytical Individual Collaborative Profits/Value Growth 3

On-Boarding: A Requirement for a Variety of Reasons 4 Many questions should be asked by an Owner, CEO or President to determine what level of person you need to lead your financial function:

1.  hat are my growth projections? What will my company look like in three to five years and W what will my needs to be in financial leadership? 2.  m I looking for my right-hand person to advise me on a number of strategic, financial and A operational issues? 3.  ow is my communication and relationship with my bank? Do I get them accurate information H on-time as requested? Do they have confidence in my lead financial person? How important is that to the bank? 4. How involved do I, as the CEO or owner, want to be in financial matters? 5.  o I need to improve my budget process and disciplines? How about my strategic planning D process and execution? 6.  o I need someone to negotiate risk insurance, benefits and other key contracts for D my company? 7.  o I just need a day-to-day manager to get tasks done such as accounts payable, accounts D receivable, collections, reporting, month-end close and payroll? 8.  o I need help to recruit, build and manage the accounting department? Will this be the D financial lead’s primary focus or do I need someone who will get outside the accounting function to the other departments and locations and possibly countries? 9.  o I need to prepare a financial and management reporting package for Senior Management D and the Board of Directors? 10. Do I need someone to interact with my Board or ownership group? 11. Am I capitalized right or do I need to raise more money? 12. How do I plan on growing? Organically or through acquisition? Internationally? 13.  o I need my financial professional to manage other areas such HR, IT, Administration, etc.? D What should be the breadth of the responsibilities for this role? These are all key elements you need to think about before you start looking for your financial professional. Having the right scorecard or roadmap can be the difference between a company that grows and thrives and one that does not get to the next level. Analyze where you are and where you want to go. What type of resource do you need? A company‘s success is greatly driven by the leaders in the key functional roles. Deciding whether your need a Controller, CFO or ShirtSleeve CFOTM is one of the most important decisions you will make as a company leader. 5

about overture The Overture Group finds the right people for your organization so you can keep moving— and pick up speed. As one of the Midwest’s premier professional/executive/management search and interim placement firms, we tap into a network of the top finance, accounting, human resources, operations and technology professionals to find your fit. With expertise in every element of the hiring process, we can guide you from pre-search preparation to post-placement training. We’ll find you people so perfect, you won’t be able to imagine how you ever got along without them. For more information Visit theoverturegroup.com or contact one of our executives to learn how you can be HIRING ON ALL CYLINDERS 6 Copyright ©2013 The Overture Group All rights reserved.

Add a comment

Related presentations

Tyrone  aurelio

Tyrone aurelio

November 10, 2014

CONOCE LO QUE LLEVO DENTRO

E portfolio-1

E portfolio-1

November 10, 2014

E-Portfolio

John's presentation to EMBA students on knowledge work, the innovation ethics and ...

Looking for an icebreaker that helps team members learn more about each other, imp...

Quantas vezes você pensou sobre diferentes formas de conseguir ter mais foco. São ...

Os segredos do sucesso - Dale Carnegie O livro de Dale Carnegie "Como Ganhar Ami...

Related pages

Overture Institute - Controller or CFO? That is the Question

Controller or CFO? That is the Question. In today’s economy, hiring the right financial leadership is critical to a company’s success. You need to make ...
Read more

Job Title CFO vs. Controller vs. Finance Director

Job Title CFO vs. Controller vs. Finance Director what is the ... This is a tricky question. CFO is clearly the ... CEO CFO | EVP Finance Controller 1 ...
Read more

Resources | The Overture Group

Resources. Keep your business ... case studies and industry links collected for you by The Overture Group. ... Controller or CFO? That is the Question ...
Read more

The changing role of the financial controller

10 The changing role of the financial controller CFO, ... then become financial controller, then group ... will answer this question alongside ...
Read more

Hiring a CFO: Interview Guide - Strategy Consulting ...

Hiring a CFO: Interview Guide The ... 2009 The Bridgespan Group, Inc. ... the Right CFO for Your Organization,” and “Frequently Asked Questions: Hiring ...
Read more

15 Incredible CFO Interview Questions | Y Scouts

15 Incredible CFO Interview Questions. Sticky Post By Yscouts On June 16, 2014. As an executive search firm, we help place CFO’s at nonprofits and social ...
Read more

Questions a CFO Should Ask In An Interview

Questions a CFO Should Ask In An ... differences between the roles of a Controller versus a CFO. ... able to answer the following questions:
Read more

Difference Between CFO and Controller - Proformative

Difference Between CFO and Controller. Ben Paramore. Profile. Title: Chief Financial Officer Company: ... but easy to answer a question such as, ...
Read more