Size Matters When Recruiting a Finance Head

You may have been lead to think that finance people are pretty transportable from one company to the next. Sure there’s similarities between what’s done in finance throughout different companies and there can be more portability than there might be in other positions. However, there are differences. Here’s one.

Size matters. A mid-market CFO will operate very differently than a small company CFO. Pick which one fits your particular situation:

1. Smaller company CFO. Will be more likely to be much more hands-on. Will get more actively involved across all areas of the company. Can know his or her way around the computer system pretty well and get information. Will be both a doer and a delegator.

2. Mid-market CFO. More likely to be a bigger picture person and do more strategizing and not as much hands-on types of work. May have to rely on staff to get things done. Could be more likely to require more staff than a smaller company CFO in a similar position. Probably more skilled in the treasury area with more outside contacts and more experience with different types of financing.

Like in many things in life, what’s important is to find the type of person that fits. If you’re growing into a midsize company a smaller company person may not keep pace. They may have trouble delegating, do too much themselves and won’t move along with what your company needs. They may not have some of the exposure in the financing world or otherwise.

However, if you overshoot the mark and bring somebody in with larger company experience than what you have, that can be a challenge too. That person might struggle to get things done because he doesn’t know his way around the computer system as well nor may not be as versed in tools like spreadsheets and take longer to get things done. He may have trouble getting some answers without being able to rely on staff to help out. If given free rein on staffing, you could end up with a bloated finance staff and wonder if you are really getting value for the extra spending.

So bottom line, have a sense in what your needs are and get the one that fits.

 

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