External hiring of CFOs at large publicly traded companies reached the highest level in a decade this year, with 44% of finance chief positions filled by external talent. Many CFOs enter the organization, and sometimes the industry, with a cold attitude. A recent high-profile example is Jim Lee, who worked for PepsiCo for 26 years and was named CFO of Target. While climbing an organization's corporate ladder before becoming a CFO is invaluable, work experience across multiple companies and industries is equally valuable.
A finance executive with experience in the latter is Arthur Carrier, finance director at edtech company Ziplines Education. Mr. Carrier began his career in food and beverage operations at Walt Disney World. “At Disney, we learned to put the customer at the center of every decision we make,” he says.
Later, while working for a railroad company, Mr. Carrier learned the economic impact of safety and the importance of fostering a safety-centered culture. At Ziplines, a San Carlos, Calif.-based startup that partners with universities on certification courses, Carrier relies on the tenacity of her mission-driven colleagues.
In a recent interview, we asked Carrier how new finance professionals should approach their first few months on the job.
If you join a company as a new finance leader, what should you focus on during your first 90 days?
New finance leaders need to make a solid first impression from the get-go. To deliver value quickly, CFOs must prioritize readiness. We recommend gathering as many high-level insights as possible before day one.
Build on your research as a job seeker by digging deeper into company operations and the broader industry landscape. As soon as I accept the offer, I want to read as much material as I can get my hands on.
Remember that listening and understanding are key to setting yourself up for success from the get-go. Without perspective, numbers mean nothing. Always dig deep and test your hypotheses. Recognize the uniqueness of each department, meet with colleagues across the organization, and build strong relationships within all functional areas.
Additionally, you will follow your customers' processes and learn how revenue is generated, what are the key risks and opportunities involved, and where there are “bugs” in the system. Identify bottlenecks and organizational pain points for both customers and employees. These friction points serve as valuable insights for prediction. It also provides opportunities to enhance business operations.
What strategies can finance leaders use to establish and maintain strong relationships in a remote work environment?
Communication requires greater intentionality and consistency compared to working in a physical office or hybrid environment. Arrange one-on-one meetings with department leaders to better understand their goals and needs. These conversations will show how finance can work with them to provide support.
Keep in mind that you are new and keep an open mind. Engage people by asking relevant questions and actively listening to understand nuances. At the end of an information gathering session, I always ask how finance can effectively support the person in their role.
Go beyond just a business discussion. Especially in a virtual environment, it's important to show interest in your colleagues' backgrounds and interests and establish genuine connections while respecting HR boundaries. Maintain these relationships through regular communication beyond purely transactional contacts.
You are the sole financial officer of a startup company. What are the key tasks that professionals in your position should prioritize to support your company's growth?
Finance leaders at startups often find themselves wearing many hats. The more you embrace these unique experiences, the more fulfilled you will become as a leader.
In particular, we welcome the opportunity to get closer to our customers and employees. These opportunities allow me to meaningfully contribute to the growth of the company's culture. You can also leverage a financial perspective to achieve your overall business goals and ensure that solid financial principles are a core element of your organization.
