Managing the Risk of a CFO Transition-Part 5

Welcome to the final installment of this week’s series, Managing the Risk of a CFO Transition

Address Core Issues to Avoid Future Turnover

When CFOs are highly dissatisfied or the finance function is impaired, there are often two key points of weakness in the office of the CFO: the controllership function and information technology. A lack of competent functional managers, technical expertise below the level of the CFO, or IT systems will create a crack that grows over time into an extreme fissure in performance.

Many companies have reduced staff without enhancing the technology infrastructure required for accurate financial reporting or managing financial drivers like inventory. This creates a cycle of dependency on manual processes to derive management reports, which then breeds errors and burnout in key positions within finance. Enhanced systems and processes—intelligently designed information flow—can ease regulatory reporting, audit committee concerns and peer requirements. Making a strong commitment to IT investments on the front-end will save time, money and heartache in the long run.

Like any executive change, the potential for risks during a CFO transition is significant without a plan for mitigation. Examining causes (not symptoms) behind a transition, making changes to better support the CFO and his or her staff, and employing flexible leadership for additional support when needed can help avoid a messy transition that negatively impacts your company’s operations, morale and results.