The figure of the CFO is a key element in all companies. What differences are there between hiring the right one or not and what factors must be assessed before making the choice? In this article I detail the necessary tips to help you make the best decision.
1. The added value that a good CFO can bring is the internal organization capacity . The good choice will allow you to have a better organization of the company's activities and at any time, obtain information on the financial and numerical status of the departments.
2 . A good choice will guarantee you a good negotiation and relationship with suppliers and banks. The mastery of negotiation skills , knowledge of financial products and empathy will be crucial to obtain the most efficient products and decision-making more accurate for performance, performance of your company and risk management.
3 . Good communication and dialogue skills is another of the key characteristics for choosing a suitable CFO. This will be important to be able to transmit the information to the Management Committee, to correctly communicate decision-making and inform the rest of the functional directors of their budgets, of possible deviations and forecasts, among others.
4. The transmission of information in a timely manner is another essential feature. A good CFO must be transparent, raise his hand in the face of any incident or irregularity and have the ability to anticipate and provide solutions, not just report events. It must be a person with the ability to analyze and provide solutions in the short, medium and long term.
5. Confidentiality is an inherent aspect of the position, however we must not ignore it and it must be taken into account before deciding on one candidate or another. The CFO has access to confidential and sensitive information for the company, so a relationship of trust must be created between the company management and the CFO, and this information should always be used properly and in compliance with the code. ethical.
We have seen that the 5 main differences and factors to take into account when selecting a good CFO are: that hiring the appropriate profile will provide a good and better internal organization of the company, guarantee a good negotiation and relationship with the suppliers and banking entities, will improve communication and decision-making, create good communication and inform Management of possible incidents bringing solutions to them and last but not least, it will make responsible use of the information to which it has access.
How do I know if the profile is the right one for my company?
As we have commented at the beginning of the article, it will depend on several factors that determine the suitability of the profile for your company. First of all, we must take into account the size and geographical chestnut of our activity, that is, are we a national or international company, are we a SME or a multinational? The second point to determine is the sector and main activity of our company. And third, determine if the CFO will perform team management or will be a single global figure.
Once these three points have been determined, we will be able to define the job position and the characteristics that our Financial Director should have and proceed to the analysis of the 5 aforementioned competencies.
The hiring of the suitable profile that adapts and that our company needs, will make us achieve the proposed challenges and objectives . The good choice of a CFO will help us in a very high percentage to make our company successful or not . Likewise, we must consider that the Chief Financial Officer can and should be innovative in his actions and decision-making, always ensuring compliance with current legal and legislative frameworks.
In conclusion, if you want your company to be successful, stay on a prosperous line through the application of effective and agile procedures, guaranteeing a good relationship with your suppliers and creditors, with short and long-term solutions and a vision of the future, You must take into account the 5 differences between hiring a suitable CFO for your company and not doing it, so that the incorporation is a success.