February 27, 2020
Enhancing Finance Leadership to Propel Company Growth
Posted by Scott Schimberg
As a middle-market company matures, finance leadership becomes more central to its operations and new opportunities emerge for finance leaders to play strategic roles in driving the organization forward.
The most effective CFOs at growing companies transform the finance function beyond its rear-facing reporting approach into an influential source of innovation that leverages financial and operational data to enable better decision-making by the company’s leaders and its sales, marketing, product development and operations functions.
Reporting financial data quickly and accurately remains critical, but transformational CFOs also deploy analytics capabilities and leverage operational data to provide deeper insights that help the company grow more rapidly.
These capabilities are especially important in the face of tremendous market volatility that accentuates the traditional challenges of generating market growth and success.
According to our CFO Evolution research, more than 90 percent of surveyed CFOs say their ability to influence the organization’s direction is critical to their companies’ survival in the face of today’s market complexity and volatility. One of the challenges for CFOs is an ever-accelerating pace of marketplace change, including fiercer competition from companies inside and beyond traditional industry boundaries.
Together, these forces dictate that the finance function must play a more strategic role to help the company grow, thrive and reach the leaders’ ultimate goals.
For instance, the CFO will need to review the company’s business processes and its incentive plans to see if they’re appropriate for its current size and plans. Revenue and bill-payment procedures built for a start-up can overwhelm a company expanding beyond the middle market, so basic processes that were performed manually should be automated with software better suited for a larger organization.
In addition, bringing in external investors or taking on bank debt means the company will face stricter requirements for providing financial and operational performance data, as well as complying with debt covenants. These, in turn, will require stronger capabilities to provide this data on a consistent, timely schedule.
Higher responsibilities mean CFOs must have broader skills that extend beyond the nuts and bolts of technical accounting. Long-term planning, for instance, will become more important as the company grows and its horizons extend beyond the next quarter (or the hopes of landing a big contract to buy a few months’ worth of funding). The CFO will work with other leaders, the company board and other stakeholders (such as investors or lenders) to identify emerging opportunities and the company’s goals.
These may include going public or selling the company to a strategic investor. In either case, the CFO will help the company create strong financial, operational and risk management frameworks so it can survive as a public company or maximize the value it receives in a sale.
The value that a transformational CFO can bring to a growing company means leaders with the right skills and experience are in high demand. So, where do you start?
A good approach is exploring your network for candidates who can meet the position’s requirements while also being a good cultural fit for your company. External investors and lenders, for instance, may have worked with strong CFO candidates at other companies.
It may take time and effort, but bringing in the right CFO can be a key strategic move to propel the company to the next level of growth and success.
Scott graduated from San Jose State University in 1991. He became a Certified Management Accountant in 1995 and obtained his CPA certificate in 2002. Scott is a member of the Institute of Management Accountants (IMA). He has held various positions with the Amador Valley Chapter, including President. Scott has a mixture of industry experience and has held positions as Assistant Controller, Controller and VP of Finance. He also has more than 13 years of consulting experience, where he has focused on implementing ERP systems.
Co Authors :
Ryan sits on the Consulting Leadership Team and heads Armanino’s Strategy and Transformation, Data Analytics and Solution Architecture functions. He provides executive advisory, management consulting, assessments and roadmaps for clients in all of Armanino’s business segments, and sits on the firmwide Real Estate and Construction Industry leadership team. He has extensive business, technology, and operations leadership experience in Fortune 50, mid-market and entrepreneurial environments, and has led global teams in the Americas, Asia and Europe.
He has held line leadership and consulting roles in a range of industries, including retail/consumer goods, real estate / construction, entertainment, hospitality, technology, healthcare, and financial services. His multi-functional experience includes strategy, management consulting, technology, process improvement, product commercialization, innovation, and operations.
Jenn has more than 25 years of outsourced accounting and finance experience, with a particular expertise in startups and the advertising and creative production industries. She is passionate about seeing companies utilize the latest accounting technology to maximize their efficiency, productivity, and ultimately, success.
Before joining Armanino, Jenn founded and led Team Jenn Corp., a firm dedicated to the strategic financial management of startups and small businesses, offering a comprehensive back office solution with accounting, finance and HR solutions. Previous roles include stints at advertising giant Ogilvy and Mather, and in the cash management industry.
Jenn has a bachelor’s degree in economics from Pepperdine University and is a member of several professional associations including the National Society of Accountants, ProVisors and the Women’s Business Enterprise Network.