CFO Professional Development Leadership Competencies and Attributes

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Gerard Dawson
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1 CFO Professional Development Leadership Competencies and Attributes CMF Associates Philadelphia, New York, Vancouver, Chicago (215) CMF Associates, LLC. All rights reserved. Printed in the U.S.A. CMF and the CMF logo are registered trademarks of CMF Associates.

2 CFO Leadership Competencies CMF Associates Philadelphia, New York, Vancouver, Chicago (215)

3 CFO Leadership Competencies Leadership Competencies Evaluation 1-10 Comprehensive Knowledge of the Business Understands and is articulate about the market, competitive landscape, trends and customers; knows the sales cycle, supply chain and other key business processes. Business Partner to the CEO Supports the CEO in moving the business forward; trusted advisor; not afraid to speak up; anticipates issues and provides early alerts. Partners with Executive Team Shares financial acumen and insights with senior team; coaches and mentors colleagues. Understands and Participates in Strategic Planning Provides leadership in planning, shares insights and perspective; develops plans to execute on strategy; budgeting and forecasting.

4 CFO Leadership Competencies Leadership Competencies Evaluation 1-10 Manages Financial Health of the Business Manages the balance sheet, working capital and assesses and manages the P&L - gross margin, and operating margin at a granular level i.e.; (profit by customer, profit by product); ensures transactions are processed and flow correctly. Develops Talent Recognizes talent and the potential of individuals; develops and empowers team; delegates appropriately; coach and mentor. Evaluates and Communicates Results Understands the balance of communication with the Board, management and with external constituents; communicates relevant information to each audience.

5 CFO Leadership Competencies Leadership Competencies Evaluation 1-10 Ensures Accuracy and ss of Reporting and Compliance Daily, weekly, and monthly reporting, internal and external; quarterly and annual reports; reacts quickly to ad hoc requests. Ability to Prioritize Manages time, daily tasks and communication in order of what is menial, what is important and what may be urgent. Challenges Management Appropriately Gate keeper of company checkbook; works with team to develop and analyze the business case and ROI; arbitrator of allocation decisions, provides rationale. Relationships with External Community Auditors, lenders, consultants, tax providers, tax agencies, lawyers, landlords, insurance brokers, other outside service providers.

6 CFO Leadership Attributes CMF Associates Philadelphia, New York, Vancouver, Chicago (215)

7 CFO Leadership Attributes Leadership Attributes Evaluation 1-10 High Intellectual & Analytical Capacity Articulates and describes the P&L clearly. An A player candidate should be thoughtful in their approach to diving in to understand a new project or a new role. The initial deep dive is critical to the CFO s success. Strong Work Ethic PE companies want an A player CFO that is able to adapt and move quickly to achieve desired results. CFOs that have successfully worked for PE in the past understand this need and thrive in this type of culture. Catalyst for Change The A player CFO needs to have the ability to be nimble, fluid and open to moving quickly to get the job/task/project done. He/she also needs to be sensitive yet firm with existing company employees. With holding periods for PE backed businesses expanding, the role of the CFO becomes more strategic in nature. The CFO has to be open to helping the business to grow, not just crunching the numbers.

8 CFO Leadership Attributes Leadership Attributes Evaluation 1-10 Developmental Steps & Resilient The A player CFO in a PE backed company has to be able to anticipate and get in front of issues and changes within the company. Sense of Urgency The A player CFO candidate needs to balance empathy with the need to move quickly. The candidate needs to be mindful in communicating with their team, the CEO and the Board. The CFO needs to be confident in their decisions and not be afraid to step up and also fall on the tracks.

9 CFO Leadership Attributes Leadership Attributes Evaluation 1-10 Confident & Credible An A Player CFO must be a confident leader. They can not be afraid of confrontation. They must be strong leaders and surround themselves with a strong finance team. An A player CFO is supported by an A team. The CFO has to take the time to understand the team and what motivates them. Clear and honest communication creates a high level of trust. Candor/Transparency Transparency is key for an A Player CFO. A CFO needs to communicate the numbers honestly and accurately. Investors demand strong stewardship. A CFO in a PE backed business must be able to clearly articulate their financial data and reporting.

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Career opportunity: Executive Vice President and General Manager, Worldwide - Wolters Kluwer Finance, Risk and Regulatory Reporting (FRR) - London About Wolters Kluwer Financial Services Wolters Kluwer