Download - Successfully Navigating a CFO Transition

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Successfully Navigating a CFO Transition

Pam Williams & Marci Moore

August 21, 2013

Twitter Hashtag - #npweb Part

Of:

Sponsored by:

Advising nonprofits in:

• Strategy

• Planning

• Organizational Development

www.synthesispartnership.com

(617) 969-1881

[email protected]

INTEGRATED PLANNING

Part

Of:

Sponsored by: Part

Of:

Coming Soon

Sponsored by:

Today’s Speakers

Pam Williams and Marci Moore Principals

Nonprofit Finance Pros

Assisting with chat questions: Jamie Maloney, 4Good

Founding Director of Nonprofit Webinars and Host:

Sam Frank, Synthesis Partnership

Part

Of:

WELCOME

BONUS Materials Available Following

Program:

Worksheet: Transition Navigation Plan©

Article: Core Considerations When Recruiting

a CFO

www.nonprofitfinancepros.com

Successfully Navigating a CFO

Transition

Cash Flow Needs


Billing & Grants Management

Deadlines

Pending Financial Projects

Financial Management & Reporting

Interim Options

Evaluating Candidates

TAKEAWAYS: The first actions you should take in the event of a CFO

resignation or termination How to plan effectively for your CFO transition How to determine the skills, traits and experience your

next CFO needs in order to be successful How to objectively assess your CFO candidates’ skills and

cultural fit


POLL QUESTION 1: How many people on the call are in the midst of a CFO

transition right now? How many people have been notified that their CFO is

resigning? How many people are considering making a CFO change?


POLL QUESTION 2:

In your opinion, what is the first thing a CEO or Executive Director should do when a CFO resigns or is terminated?


Restrict Identify Notify

Immediate Actions:

As soon as you know about your CFO transition, begin taking action. The nature of your transition (planned vs. unplanned, voluntary vs. involuntary) will drive timing and urgency.


Notify bank(s) of the change Eliminate ability to transfer funds

or sign checks Change passwords Cancel credit cards/access to

credit accounts

Immediate Action: RESTRICT ACCESS

POLL: How many people have a list of user ids and passwords for all financial accounts (not just banking)

or know where that list can be found?

Major projects and short-term deadlines

Interim financial management solutions

Legal assistance necessary?

Notification list – who needs to know what?

Immediate Action: IDENTIFY

Immediate Action: NOTIFY

Staff Funders Board Members Other Key Business Partners:

CPA Firm Insurance Broker Vendors

Share as much information as you can, including your transition plans. Manage the message.


If you fail to

plan, you plan

to fail. Benjamin Franklin

Search Planning

Resource: Transition Navigation Plan Worksheet


Search Planning

Who will take the

lead on your

search, and who

will be on the

hiring team?


Search Planning

Who is your

ideal

candidate?


Search Planning

What is the availability of

your current CFO during

the transition?

Is your current CFO

willing to assist with the

onboarding process for

the new CFO?


Search Planning

Who will stay on

top of day-to-day

financial

management

needs?


Search Planning

If necessary, what

outside resources

(search firm, interim

CFO, etc.) are

available to you?


Search Planning

Where will you look for

candidates? • Personal Connections & Referrals

• Your website

• Targeted job boards • www.execsearches.com

• www.idealist.org

• www.nonprofitjobs.com

• www.opportunityknocks.com

• Online Social Networks • Ex: LinkedIn Nonprofit Controller’s

Network Group

http://www.execsearches.com/

http://www.idealist.org/

http://www.nonprofitjobs.com/

http://www.opportunityknocks.com/


Search Planning

How does the

current salary for the

position align with

the market?

Are adjustments

necessary?


Search Planning

How will you “sell”

prospective

candidates on

coming to work for

your organization?


Search Planning

What will you do

you to help your

new CFO get up

to speed

quickly?


You Need A CFO Superhero

You Need a CFO With: Depth of Experience & Knowledge Ability to Translate Numbers into Meaningful Financial Story for Different Audiences Ability to Focus on Today’s Needs AND Long-Term Sustainability Relationship Savvy Bandwidth and Competence to Manage Rapid Change and Competing Priorities

Determine Skills, Traits and Experience


What skills and

traits are

necessary for a

candidate to

perform well in

YOUR

organization?


Consider:

Culture

Challenges

Complexity

REAL LIFE EXAMPLE #1 • Human Services Nonprofit • Long-term CEO considering

retirement (not publicly) • 95% Funded by Cost

Reimbursement Grants • No Reserves • Funding Uncertainty • One-Person Department • Occasional Delays in Grant

Payments Require Careful Cash Management & Planning

• Small Town

TRAITS & SKILLS • Copes well with change • Attention to detail • Proactive with funders • Ability to easily move between

mundane and more complex work

• Demonstrated cash/vendor management

• Ability to deal with significant stress

• Understands the realities of living in a small town environment


REAL LIFE EXAMPLE #2 • Human Services nonprofit • CFO left with 2 weeks notice at the end of

the fiscal year • CEO left during the search after board

investigation • Widespread media coverage of issues • Funders nervous because of sudden CFO

departure and CEO issues that became public

• $30M budget • 40+ funding sources • Loss of over $2M prior year • Large # of Staff Reporting to CFO • Statewide organization

TRAITS & SKILLS • Comfortable with uncertainty & initially

chaotic environment • Ability to synthesize a large amount of

complex information quickly • Demonstrated cash/vendor management • Ability to develop rapport and reassure

funders • Ability to partner with board and interim CEO

to “right the ship” and restore integrity • Understanding that the job will take a

significant number of time for the first 18 months and that it will also entail travel throughout a large state on a regular basis

• Proactive with funders • Ability to manage large number of staff and

functions (HR, IT, Maintenance, Billing, Accounting)

• Ability to deal with significant stress


The right screening tools help you

make better decisions and ensure that

what-you-see is what-you-get


Objectively Assess

Candidates’ Skills and Fit

Ask Verify

Validate


Ask Well-designed behavioral interview questions allow you to see how the candidate would respond to real-world situations they might encounter on the job.

Example:

Because of a payment delay with one of your major funders, there will not be enough money in the bank to make vendor payments for three weeks, although many have due dates before then. What is your course of action?


Ask TIP: When possible, interview in teams. You are less likely to overlook red flags when you are super-impressed with one skill, quality or story.


Validate Give candidates a relevant timed assignment that demonstrates their ability to do the job: • Written analysis • Presentation to the interview

team


Verify Use skillful reference

checks to validate

what you’ve learned

from the candidate


Verify 3 Keys to Reference-Check

Success: 1. Ask Well-Designed Questions 2. Listen Actively 3. Ask for References with Different

Relationships to the Candidate (boss, peers, employees, CPA firm, etc.)


Verify SAMPLE QUESTION:

Based on your experience

with this candidate, what will

allow her to be successful in

this position? Describe the position before asking this question.


Verify SAMPLE QUESTION:

Is there anything about this

candidate’s ability to perform

this job, that I haven’t asked,

that you would like me to

know?


Verify Conduct a thorough

background screening

based on your own HR

guidelines and state/funder

requirements


Verify Consider using a behavioral

assessment:

• Final test for job fit

• Identifies strengths,

opportunities for growth

• Offers tips for supervising &

coaching Resource: www.omniagroup.net


Your Partner in CFO Search & Financial Transitions 727-393-2341
