There is no particular procedure for appointment of CFO at any organizations. While some of them hire CFO from outside others believe to promote their in-house employees for taking the responsibility of a CFO. For many businesses that are run by families the job of CFO is done by any one of the family men. Whatever is the procedure of getting to the position of a CFO, the personnel is responsible for the finance of the business and hence they must remember few things while they take the position.
Understand the business first
Although the rules of running a business may be same yet every business is a different identity with a different set of stakeholders, opportunities, and threats. As a new CFO of the concern, the person must first understand the environment of the business. What is the strength of the business, what can be possible threats to the business and what the expectations of the stakeholders are?
Someone who is promoted within the company will have some idea about all this for others it is necessary to listen during their first couple of months. It will provide them insight about the business that will help them get grip on their position.
Once the CFO has understood the business environment it’s time to start communicating with everybody related to him. A CFO has to adapt to the culture. It may be hostile in the beginning or friendly, whatever it is, one of the primary jobs of a newly appointed CFO will be to streamline the communication channels with the stakeholders, auditors, and employees of the business. It will increase their effectiveness.
Focus on creating agenda
Now, it’s time to start working as the CFO. Discuss with the functional heads about their requirement or take their opinion. As the goal of the business is already known it’s time to find out the path on which the business is driven. If any changes are required start implementing them so that they are of course within a certain time.
You must focus on the different agendas that you want to implement as a CFO which may include cost control, increased profitability, tax savings or new finance strategy.
As a CFO your role will also be to utilize the talent that you have in hand. Analyze the talent that you have and you may be surprised to find that there are many untapped talents. Make up your team and start working with them.