For new CFOs, these are the critical steps to take in the first six months

Towards the end of 2022, CFO turnover increased. That means many executives are slipping into new chief financial officer roles this year. However, it may take longer than the standard 90 days to get a foothold. It can take six months, according to an expert who has worked with thousands of executives.

“They are not hired to deliver the status quo,” explains Ajit Kambil, global research director of Deloitte’s CFO program. “You are truly hired to bring about transformation.”

There are three key resources you need to manage properly from the start — time, talent, and relationships, says Kambil. And that takes about 180 days to get right, he says.

Kambil is the creator and leader of Deloitte’s Executive Transition Labs and Transition Accelerators, which offer a personalized 1-day workshop for executives in new roles, ranging from first-time CFO to veteran CFO. The program has been running for more than a decade, with Kambil and his team working with over 4,000 US C-suite leaders who have participated. “And I’ve personally done that for over 300 CFOs,” says Kambil.

In his new book The Leadership Accelerator: The playbook for transitioning into your new leadership role, he explains the most important findings from years of research and provides actionable tasks for managers. He further discussed with me what should happen in the first 180 days.

1) Prioritization and time management, says Kambil. That includes leaders taking care of themselves, he says. “In the beginning, they often work 70 to 80 hours a week,” explains Kambil. “I ask her about her work week, Monday to Friday. When do you get up? When are you coming to the office? When will you come back home? How much time is spent on email after dinner? The goal is to get them to work 50 to 60 hours a week because that is sustainable.”

I asked him for an example of a senior executive struggling with work-life balance.

“We’ve had situations where someone suddenly realized that their child’s wedding is scheduled for a specific date in the next six months,” says Kambil. “They look at all the different issues of the work plan and they’re like, ‘Wait a minute, I need to change this.'”

2) Talent is key, he says. “Failing to use your talent properly is like giving up 20% of your tenure. Let’s say you have five years to take on the role. The opportunity cost of having the wrong team increases the longer you drag things out.”

Some questions to ask yourself: “How do I evaluate different functional talents?” says Kambil. “How do I specifically develop the FP&A capability in the next six months? How do I give people time to do the really important things? How do I create a continuously learning organization?”

3) To carry out important agendas with the least amount of resistance, nurture relationships to build social capital and influence other members of the C-suite, says Kambil. Another tip: “Make sure you get in touch with the audit chair early and establish a regular schedule of informal and formal discussions,” he says. “Because they want to help you.”

I asked him what CFOs should not do in the first year.

– “Don’t jump to conclusions,” says Kambil. “Take the time to really engage with different stakeholders, really listen to them and get to know the business.”

– Don’t make assumptions. For example: “When you get promoted, don’t assume the team around you is up to the challenge.”

I asked Kambil what he took away from his many years as a CFO. “They taught me how to be a better leader,” he says. And they’ve helped him delve deeper into “the way you unlock value in a company, but also how you need to organize to drive really big-scale change,” he says. “So many CFOs today don’t just focus on finance.”

Till tomorrow.

Sheryl Estrada
[email protected]

Quick note: In recognition of Martin Luther King Jr. Day on Monday, January 16th, the next CFO Daily will be in your inbox on Tuesday, January 17th. I wish you a nice weekend. Watch out.

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Big thing

“New Technology Changing the Future of Work,” a new report released by WorkTech, a market analysis and consulting firm, found that companies are still planning to spend on hiring this year. A survey of over 1,000 global HR and talent acquisition leaders in the US and Europe found that companies plan to increase the market for hiring technology or “work tech” budgets by about 47%, with 94% expecting an increase in headcount . The Work Technologies category includes workplace tools that help employees collaborate across a range of focus areas and collaborate more effectively. The report, produced by Greenhouse, a hiring software company, estimates that the total addressable market (TAM) for on-the-job hiring is expected to reach $244 billion by 2026.

go deeper

Here are a few readings from the weekend:

“Bill Gates rejects inflation and economic doom and insists now is ‘dramatically’ the best time to live” by Tristan Bove

“The Ax Has Fell at Goldman Sachs as Layoffs Sweep the Firm” by Luisa Beltran

“The millennial founder who sold her fintech to JPMorgan for $175 million is now being sued by 4 million customers for alleged invention” by Christiaan Hetzner

“Hustle Culture Is A Dangerous Myth, Says Burnout Expert. Here Are 6 Ways To Break It” by Alexa Mikhail

leaderboard

Here’s a list of some notable moves this week:

Jamie Miller has been appointed global CFO at EY and CFO of the proposed new public entity. Miller’s selection is another step in EY’s process of splitting the organization into accounting and consulting firms, with the consulting arm set to go public. EY is making “strong progress toward partner voices,” the company said. Miller joined Cargill in June 2021 as Corporate SVP and CFO. She was appointed Head of Corporate Strategy in April 2022. Before joining Cargill, Miller served as SVP and CFO for GE. She joined GE in 2008 as VP, Controller and Chief Accounting Officer and later became GE’s Chief Information Officer. Miller was also President and CEO of GE Transportation. Before joining GE, she was the SVP and Controller of WellPoint (now Anthem). Miller was also a partner at PricewaterhouseCoopers.

Jean Hu has been appointed EVP and CFO of Advanced Micro Devices Inc. (Nasdaq: AMD), a semiconductor company, effective January 23. Devinder Kumar, currently CFO and Treasurer, is retiring from the company. Kumar will remain with AMD for a transition period until April 2023. Hu joins AMD from Marvell, where she served as CFO since 2016. She has over 20 years of financial leadership experience at semiconductor companies including Qlogic and Conexant.

Michael McLaughlin has been appointed EVP and CFO at Informatica (NYSE: INFA), an enterprise cloud data management company, effective January 16. McLaughlin succeeds Eric Brown, who is stepping down from his position to pursue other responsibilities. McLaughlin joins Informatica from FICO, where he served as EVP and CFO since August 2019.

Angela Floyd has been appointed CFO at DPR Construction effective January 1st. DPR is a general contractor and construction manager specializing in projects for the high technology, life sciences, healthcare, higher education and commercial markets. Floyd joined DPR in 2017 and has worked closely with Michele Leiva, who has served as DPR’s CFO since 2010 and plans to retire in the first quarter of 2023. A veteran industry professional, Floyd held business positions at Balfour Beatty Construction including VP of Business Improvement and Director before joining DPR.

Jason MeggsCFO at Syneos Health (Nasdaq: SYNH), a biopharmaceutical solutions company, is stepping down from his position effective March 31 to pursue other career opportunities. Meggs has agreed to serve as an advisor and will support the company’s ongoing transformation initiatives through the end of 2023. Syneos Health has hired an executive search firm and has begun searching for its next CFO.

overheard

“When we think of crypto, aspects of this speculative market and investment have yet to prove themselves. So our investment philosophy is that crypto will disappoint clients rather than delight them.”

—Penny Pennington, managing partner of brokerage firm Edward Jones, spoke wealth on the recent crypto meltdown and the company’s longstanding focus on proven investments.