The role of a financial leader also entails selecting the right people and consistently conveying to them the company’s tasks, values, and competitive position. From the employees’ perspective, there should be genuine interest in operational processes, the organization’s strategy, its products, and a recognition of the significance of their role in shaping the overall outcome.

This approach to motivating financial professionals fosters the development of a sufficient level of expertise and engagement in the business, instilling a healthy sense of perfectionism within their tasks and motivating them to pursue common goals. The head of the financial department should possess substantial independence within the management team to effectively oversee control processes and establish an information system for decision-making by product leaders, functional leaders, shareholders, and investors.

Therefore, by maintaining significant independence from business leaders and prioritizing long-term results, the financial leader can offer insights on performance indicators compared to other top executives at board meetings, exhibiting reduced susceptibility to the influence of short-term goals. In turn, this enhances trust in their assessments and significantly reduces, ideally eliminating, conflicts of interest.

Among the qualities crucial for a CFO, integrity is paramount – shareholders must trust that results are transparently and honestly communicated – even when it may not be personally advantageous. It is essential to establish a system where the judgments and decisions of the financial department leader are not influenced, directly or indirectly, by short-term motivating factors like quarterly or annual bonuses tied to company performance.

From the financial leader’s perspective, it is crucial to consider that, when presenting financial reports and company performance results to senior management, the board of directors, and shareholders, documenting conclusions in writing and sharing them among participants is advisable. This helps avoid misinterpretation of numbers and biased perceptions due to the «broken telephone» effect.

The process of hiring a CFO is a significant undertaking for both the organization and the candidate. The company aims to find a qualified staff member who not only possesses the requisite skills and experience, but also aligns with its corporate culture. This alignment is particularly critical as the CFO substantially influences the internal service culture, encompassing areas such as HR and accounting documentation, payments, budgeting, financial analysis, automation, and more.

As an experienced financial leader seeking employment, it is imperative to pose direct, incisive questions regarding the company’s financial health and related processes during the job search. Before finalizing any employment decision, it’s essential to request key internal financial documents for personal analysis. Typically, these documents include:

1. Monthly financial reports used for operational decision-making by management.

2. An up-to-date financial model or the current one in use.

3. The latest set of documents submitted for regular board of directors meetings.

Understanding how significant decisions are made within the company is crucial. Clarifying which decisions are within the purview of the CEO and which involve the senior management team members, including the CFO, is vital. It’s also essential to delineate the responsibilities of other top managers: who falls under CEO-1, which decisions the leader makes independently, which ones are made jointly with the second-in-command or the CEO, and which ones are made jointly with the second-in-command or the CEO, and which decisions the CEO brings for discussion and voting among the top-management team.