In technology, three CEO profiles continually present themselves when it comes to the handling of finances. In each case, the CEO has a blind spot or a persistent, nagging feeling that help is needed. The self-aware executive recognizes that with rapidly changing business models and dynamics, expert financial management is a requirement for their business and financial expertise must be represented on their team. However, their hesitancy continues.
Do any of these sound like you?
- The Discomforted – This executive is less certain about company finances and controls than setting the vision, strategy, customer interaction or sales approach but feels they “should” be focused on finances.
- The Bootstrapper – Many founders who have created their businesses are totally hands-on and feel no one know their business like they do. These executives are rarely adept at the fine points, such as finding new sources of capital or know what equity investors want.
- The Ambivalent – This CEO knows deep down that they are not the right person to be overseeing finances but “doesn’t know what they don’t know” and therefore have become the default finance executive because they don’t see another way out.
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Increasingly, CEOs are outsourcing the finance function on a project, part-time or interim basis to an experienced CFO who often brings highly specialized skills to his/ her assignment. Depending on the circumstances, it may be more efficient and cost-effective to bring in a hired gun.
This approach affords CEOs the flexibility to bring someone on without incurring significant overhead. Consulting contracts usually have very short termination periods and help avoid recruiter fees, too. Thus, CEOs can tap their network to not only find someone quickly and cost-effectively, but they may even be able to find someone with highly specialized skills to help solve their current issues.
To learn more about how to make these part-time and interim arrangements successful, click on the book image to download a free eBook on: The Outsourced CFO: A CEO’s Selection Criteria.