The first few months of a CFOs tenure are decisive, as they lay the foundation for successful leadership development in the future. It marks the start of a journey of what is expected to be a long and complex journey, where initial adaptation must give way to the development of more strategic functions.
During this first stage, his dedication should go towards understanding and learning about the company’s organisational culture, as well as defining the management model to be implemented, which will enable him to successfully face the different challenges that will arise in the medium and long term.
It is also key to acquire a thorough understanding of the business model, identifying sources of revenue, profitability, cost structure and cash flows. It should also analyse the main financial and operational risks affecting the company's sustainability.
After what we could define as ‘the first 100 days as CFO’ it is time to face the operational reality of the company. In this phase, you will have to demonstrate your ability to work on the definition (if applicable at that time), execution and transformation of the company’s strategy, both from a financial and business perspective.
This is the time to take on a role that could be compared to that of an ‘architect’, in the sense that he must design and build what will be the business strategy to be implemented, working together and in coordination with the rest of the company’s areas.
In this phase, the CFO should move from being an ‘observer’ to an ‘executor’, implementing the necessary changes, according to the knowledge acquired during his first weeks in charge.
This involves not only carrying out the more ‘traditional’ functions of the financial area, but also being involved in the leadership of initiatives that drive the organisation’s growth and efficiency.
In this sense, the CFO must become the leader of change within the company, a task that must be carried out working as a team and aligned with the CEO, as he is his ‘natural partner’ and a ‘counterweight’ in many of the decisions that must be taken, with the aim of achieving the proposed objectives.
Moreover, it should not be forgotten that the evolution of its role towards the development of increasingly strategic functions cannot be explained without considering the use of technology, which has allowed it (and will surely allow it even more in the future) to free the financial area from manual and repetitive tasks.
At this point, having a comprehensive cloud-based treasury management platform such as Embat allows CFOs to have a clear, real-time view of the company's financial situation. Thanks to solutions that automate manual processes and facilitate data-driven decision-making, the CFO can focus on his or her strategic role without wasting time on operational tasks.
In this way, and thanks to his knowledge of the business, the CFO can ‘broaden’ the scope of his functions towards the leadership of projects that enable the creation of value within the organisation.
Becoming one of the main internal communicators represents another challenge for you, adopting a clear and concise message, depending on the target audience of your message, which includes not only the organisation’s staff but also the different stakeholders, such as the company’s key customers and suppliers.
The correct management of your emotional competencies, becomes a critical factor for success, as it allows you to strengthen your leadership inside the organisation, being able to interpret and manage the emotions of people with whom you interact.
Therefore, we can say that the first 100 days as CFO, represent the start of a journey in which he must become a strategic leader, working in a coordinated and transversal way with the heads of the other areas of the organisation, and also as an ally and ‘co-pilot’ of the CEO in the design and execution of the company’s strategy.
In itself, the real impact of a CFO is not measured by his first days, but in the months or rather years that follow, with the execution and materialisation of the actions necessary to achieve the expected results.
