The CFO View: Making an impact
Why are the first 180 days so significant for a CFO? New-to-role executives want to make an impact on transition and are in the spotlight, which understandably adds to the many pressures of the role.
Maximising the impact on transition
This Deloitte Insight report will help senior finance professionals and board members understand:
- The three critical resources new CFOs must manage to make an impact on transition
- Where new CFOs spend their time in the first 180 days and where they can make the biggest impact
- The top priorities for UK CFOs
Insights from the Deloitte CFO Programme
Since 2011, over 150 newly appointed UK CFOs and nearly 1,000 CFOs globally have used the Deloitte CFO Transition Lab to manage their transitions effectively and efficiently. As a result, the Deloitte CFO Programme has an unprecedented understanding of the challenges faced by transitioning executives and knowledge of where successful CFOs spend their time in the first six months to make the biggest impact. This report is the first in a series that shares the insights identified on CFO transitions.
Challenges faced by new CFOs
The role of the CFO is challenging at the best of times. New-to-role executives want to make an impact on transition and are in the spotlight, which understandably adds to the many pressures of the role. To make an impact on transition, CFOs need to manage three critical resources:
- Time – their own and that of their staff
- Talent – the right competencies to support key initiatives
- Relationships – internal and external stakeholders
Transition into the CFO role
CFOs have endless demands on their time. The most successful CFOs quickly determine how to balance their resources across the Four Faces of the CFO framework but this is no easy task. Only by effectively prioritising their time do new-to-role CFOs build and then sustain their impact.
Build a high-performing finance function
On average a new-to-role CFO inherits 7.3 direct reports. Quickly identifying from this group a capable ‘second-in-command’ to take ownership of initiatives, particularly those around running the finance function is critical.
Deloitte expert view on CFO transitions
CFOs must manage three critical resources to navigate their transition successfully, their time, talent and relationships. How you invest your time is critical. Once it is spent it is gone forever.
‘It is important that CFOs take the time to challenge themselves on whether they are focusing on the right priorities, have the right team in place and know which relationships need to be developed to make the most impact.’
Richard Muschamp, Partner, CFO Programme Leader