DAVID NOUR, CEO-THE NOUR GROUP, INC. in matters of the heart. That is the crux ... If asked what the...

TIPS AND TECHNIQUESTO IMPROVE YOUR INFLUENCING POWER ASA CFO

nourgroup.com404.419.2115

DAVID NOUR, CEO-THE NOUR GROUP, INC.

AUTHOR “RELATIONSHIP ECONOMICS, RETURN ON IMPACT”AND FORTHCOMING “CO-CREATE:”

2 NourGroup.com | 404-419-2115

Approaching the subject of leadership

competencies and improving your influence is as

broad as the ocean is wide. Once upon a time there

was a strategy that whoever had the power had the

influence. In today’s ever-changing, technologically

advanced, and socially connected atmosphere,

whoever has the influence now has the power.

Anyone can crack a whip and strike fear within

the organization, but that generally serves to close

the door on innovation and squash any sense

of workplace satisfaction. There is no scientific

equation in matters of the heart. That is the crux

of what we’re talking about here: Relationship

building to expand your influencing power.

TABLE OF CONTENT

Leadership Competencies

3Catalyst

for Change

4

Finger on the Pulse of Each Business Day

8Hallmark of High

Financial Performers

7

Final Thoughts9


Leadership CompetenciesTake a look at the High Impact Leadership Model. It compartmentalizes the competencies and responsibilities when really these are all core proficiencies needed to be an effective leader. Everything you need to be an influencer is in the gold box. The idea of influence and building relationships cannot be a checkmark off the list; it cannot be an after-thought. It must be intrinsically accepted and implemented as part of your daily interaction and overall business culture. To lead, you want to mentor leaders. In doing so, you have an opportunity to learn from them and increase your value within the company.

If you are not trusted or respected; if you can’t engage and influence people, it doesn’t matter how smart

you are. You can know what the balance sheets say frontward and backward but no one is go-

ing to listen to your corporate improvement ideas unless you get your nose out of the

books to see what things look like out-side of Mahogany Row. As the Chief

Financial Officer you certainly have a lot of responsibility, but if you have

the reputation as the “No Depart-ment” then what is the motiva-

tion behind approaching you with new ideas?

EXPANDED STRATEGIC CFO ROLEBeing the head of finance function is critical to sustainability and growth so let’s examine some big mistakes first.

Benchmarking finance operations costs to revenue.

Unfortunately this has been a standard practice for businesses across many sectors, not because it makes sense but because some consulting firm some time ago said it’s the way things are done. Instead of thinking of the finance department as the cost center, how about turning that around to be the profit center or the center for innovation?

Believing transformation is a one-time deal.

Finance strategies needs to compliment business strategies. In larger corporations there is often a feeling of us versus them. There is nothing finite about creative thinking and business growth. Transformation is a fluid process and asking the right questions instead of making blanket assumptions is vital to the financial health of the business.

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LEADERSHIPRESPONSABILITIES

Creating the VisionCreating the Organization

Motivating the TeamBuilding a Culture of Innovation

Producing Results

LEADERSHIP COMPETENCIESFocused Drive • Conceptual Thinking • Systems Thinking • Emotional Intelligence

Trusted influence

SENIOR LEADER SKILLS

Strategic Thinking •Communication •Leading Change •

Personal Productivity •Coaching and Mentoring •

EMERGING LEADER SKILLS

• Decision Making• Relationship Biulding

• Team Leadership• Personal Productivity

• Coaching and Mentoring


Knowing the difference between consultants and advisors.

Consultants generally enter with pre-defined objectives. They are presented a task and prepare options with pros and cons to solve the problem. An advisor usually has in-depth knowledge of multiple disciplines and works more as a mentor or guide. They can help identify problems before they happen and give objective observations. Who are you surrounding yourself with?

Getting a SWOT Analysis.

If you think the CEO is the only one to benefit from a SWOT analysis, you would be wrong. Know your Strengths and Weaknesses. Seek market Opportunities. Determine where the financial Threats and sinkholes are. Don’t get blindsided by situations when they are right under your nose.

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4

Catalyst for ChangeIf you think of yourself as the rudder of the ship then you understand how instrumental you are in driving a ship and determining its direction. To have that strategic role you must understand the nuances of the company and not just how much something is going to cost. People also want to know you are authentic because they need someone to trust, who is credible and consistent. Part of that is: Knowing what your influencing style is. Discovery Learning conducted research on the five common influencing styles:

• Asserting: You challenge the ideas of others and insist your ideas must first be heard.

• Convincing: You convince others to assimilate to your point of view because your ideas are logical.

• Bridging: You build coalitions with relationships and connections by bridging ideas from many sources.

• Negotiating: Compromises and concessions are part of your DNA as long as the outcome satisfies your greater interest.

• Inspiring: You advocate for the greater good and inspire others with a shared purpose and positive outlook.

CFO’s Division of TimeAllotment of time CFOs actually spend in each of their four roles.

10%

20%

30%

40%

FINANCEFUNCTION

EFFICIEN

CYCONTROL

EXEC

UTION PERFORMANCE

Catalyst(24%)

Steward(22%)

Strategist(31%)

Operator(23%)

2Q10 2Q11 3Q13


This is not to say being assertive or convincing are bad traits, but be aware that communication is a two-way street. If you’re working closely with your CEO, it would be a good idea to know what their influencing style is because the end result is to make the best possible choices for the best possible outcomes. You are in a unique position for complimenting and advising the CEO on the best course of action for the company – not because you are motivated by the cheapest or easiest route.

You are not simply tasked with navigating through challenging economic times, but you must also be a catalyst for change. Beyond your P&Ls and balance sheets, beyond the boardroom, what are you doing to implement new technologies, find and mentor new talent, and collaborate with innovative thinkers? When is the last time you stepped out of the box to take an objective, bird’s eye view of the company and its direction? You might be in the jungle with a strong team where everyone has a sharp machete and you’re just trailblazing. But who’s looking up to 1. See if you’re in the right jungle and 2. See if you’re going in the right direction?

Your expertise in cost management and operational efficiencies are instrumental to the survival of your organization but to improve your influencing power you must also earn the respect and confidence of those whom you want to influence.

Studies conducted by Oracle and Accenture have noted that CFO roles are critical but incomplete. There still exists a void for collaboration between traditional finance functions and the lines of business. These findings show CFOs not being as significant as they’d like to be in strategy or transformation because of the gap.


HOW TO BRIDGE THE GAPVery few businesses succeed in exponential growth by cutting their way to the top. When asked what activities have been your key priorities in the last three years, profitability, cost management, cash flow and working capital, and risk control were in the top tier. This is reasonable and obviously within your wheelhouse. But when business transformation and growth agenda are sitting at the bottom of the priority list it speaks to maintaining the status quo, not challenging it.

What got your business here will not get you there. The challenges of a start-up are not the same as a 100-year old company. The one common denominator is: How do we stay relevant in this market?

In the traditional pyramid of business hierarchy, the CEO has the all-encompassing power and authority. Lately that trend has been changing to the idea that the CEO and CFO are peers; two minds and four eyes for strategic planning. Instead of being solely a supporting role, now you are emerging as a leader. Statistics show an increased amount of CFOs being asked to take on more strategic planning and initiatives, as it should be.

MAIN BARRIERS OF EFFECTIVENESSIf asked what the main barriers to the effectiveness of your role are, you would undoubtedly answer with challenging economic environment. Two U.S. recessions and a global economic meltdown have made the waters rough to navigate. Clearly this job is not for the faint-hearted. In a recent poll by Oracle, shortness of time and lack of integration between finance function and other parts of the business came in at number two and three respectively.

With the evolving role of Chief Financial Officer it’s going to feel like you’re being pulled in many different directions and in fact, you are. Now is the time to really assess you skill and what is the best use of your time. Rather than micromanaging every aspect, why not delegate to capable people? This serves two important purposes: 1. It frees you up to deal with a more important issue, and 2. It empowers them to take ownership and pride because they are contributing to the cause.

CATALYST FOR CHANGEIn this expanding role, many CFOs are now being asked to secure buy-in from their stakeholders. That alone speaks to your influencing power. In order to do this you must build a modicum of trust and reliability.

Bigger doesn’t mean better. Blindly freezing costs and acquisitions doesn’t mean you’re saving in the long run. How are you measuring the effectiveness of business transformation? Beyond your balance sheets are you looking at the human element within the business? Where are the redundancies? Why do you have them?


Hallmark of High Financial PerformersTaking your position to the next level requires a certain amount of levity and brevity. You own this sector of the company in finance function strategy and governance. This is your main objective and you didn’t get to this position through entitlements; you earned it. Staying at peak performance takes vigilance, consistency, and a little flexibility. Frequent self-assessments are highly recommended to figure out if you are a business enabler or business inhibitor.

Value-centered culture. Look at today’s market trends. People are willing to pay more for value and stepping back from a throw away culture. Find the value and get rid of waste in your company. Thoughtful, analytic, and transparent change, whether they are cost-cutting initiatives or new acquisitions, must have value for the betterment of the company.

Strong focus on emerging technologies. It is time to forge ahead and embrace the technologies that can propel you to the next echelon, but you need to know where your clients are; if your distributors are working with you or pushing back; if there are smart, efficient ways to cut overhead.

Strategic planning and target setting. There is a misconception that once the analysis is done and the planning moves to implementation, you’re done. The truth is: you are never done. There should always be a perpetual S Curve. New innovation should always be in development even as the latest idea skyrockets. Set milestones of achievement for steady growth. Don’t let the “What Ifs” take over.

Forecasting, reporting and insightful analytics. If you sit in on a financial meeting with your middle and top managers, are they giving you the information that you need to make thoughtful and informed decisions? Do you really need the minute details of the day-to-day or someone to iterate their resume to justify why they are there? This is where mentoring comes to play. Let me help you to help me get what I need.

Financial Risk Management. When approaching outside consultants and advisors for an objective view of your company’s risk assessment, the knowledge you have as the CFO is invaluable. When it comes to initiatives think in layman’s terms. Green is good, let’s keep going with these ideas. Yellow means let’s slow down and maybe take a second look. Red means stop. Let’s reassess and see if this is taking us in the right direction. By the way, a certain amount of risk is good.


Finger on the Pulse of Each Business DayAmerican Express did a study on the top three ways finance executives say they can contribute to the growth of their company. None of these should be surprising but oftentimes they have not been under the CFOs banner. Now they are.

Advocate for growth-seeking breakthroughs

Encourage innovation

Alert management to market shifts

Let’s use Kodak as an example. They developed the first digital camera in 1975…and shelved the idea for fear it would hurt their photographic film business. It is a classic case of innovative thinking with very poor judgement. They failed to see the forest beyond the field.

There had to be at least one person within that company who begged to run with this digital project and top management said no. Don’t be a victim to myopic thinking. One of your biggest assets is the people you employ. Provide a culture where they can share their thoughts openly. It is ultimately up to you and your CEO to be the filter of those ideas. The point is not to shut your eyes and hope nothing changes.

This information came from the 6th Annual American Express/CFO Research Global Business and Spending Monitor

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Final ThoughtsAs the CFO, you have the unique ability to be the single voice of reason in determining the direction of your company. To improve your influencing power you must be nimble enough to navigate through tough financial straits, agile enough to rebound from a failed attempt, humble enough to seek prudent advice, and mindful that the world is changing as fast as new technology is being developed. The idea of being second seat in the corporate hierarchy is outdated.

Do not leave opportunities on the table. A good CFO is good with the numbers. A great CFO influences the organization to influence the numbers. When is the last time you did some benchmarking analysis on your competitors and businesses outside of your sector? This really helps highlight best practices from the best practitioners. Incremental growth is great. Double-digit growth is better. But without benchmarks and analysis, how do you know if you could have done better?

Who is your Chief Best Practices Officer? Who is the one that can ultimately say this is working and this is not? The best way to create a financial culture to practice transformational collaboration, you need to walk the talk, bring in formal and informal mentoring so strategies are cascading down from the boardroom to your boots on the ground. There must be some cohesion and understanding of what the goals are.

The evolutionary role of the CFO is more strategic and insightful than ever before. You must elevate yourself above your peers to build a value-based portfolio of strategic internal and external relationships. Be impactful. It’s okay if you don’t have all the answers, but if you have the market reach and influential connections, you can find the answers. This makes you an invaluable asset and a true leader.

CONCLUSIONS

The evolutionary role of the CFO is more strategic / influential in the growth of the organization

CFOs who will elevate themselves above their peers will strategically invest in their internal & external relationships

The influential CFO is the exponentially impactful and indispensible CFO!

10 NourGroup.com | 404-419-2115

ABOUT THE AUTHORDavid Nour – CEO, The Nour Group

David Nour is an enterprise growth strategist and the thought leader on Relationship Economics® —the quantifiable value of business relationships. In a global economy that is becoming increasingly disconnected, The Nour Group, Inc. has attracted consulting engagements from over 100 marquee organizations in driving unprecedented growth through unique return on their strategic relationships. Nour has pioneered the phenomenon that relationships are the greatest off balance sheet asset any organizations possesses, large and small, public and private. He is the author of several books including the best selling Relationship Economics— Revised (Wiley), ConnectAbility (McGraw-Hill), The Entrepreneur’s Guide to Raising Capital (Praeger) and Return on Impact—Leadership Strategies for the age of Connected Relationships (ASAE).

Learn more at www.NourGroup.com

NourGroup.com

3500 LENOX ROAD, NE SUITE 1500

ATLANTA, GA 30326

T: 888-339-1333 | P: 404-419-2115 |F: 404-419-2116

@DAvidNour

The Nour Group, inc

David Nour

David Nour

DAVID NOUR, CEO-THE NOUR GROUP, INC. in matters of the heart. That is the crux ... If asked what the...

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