You may be surprised to learn that according to a recent study, 80% of CFOs say that there is nobody in line behind them to take over when they move out of their role with the company. Even more disturbing? Only 38% of Chief Financial Officers indicate that there is even a trace of a succession plan to replace them.
What exactly does this mean for a company? It could mean that financial management takes a hit or even worse, that management makes a hasty decision in order to fill the role. Because CFOs play such a vital role in the company, the selection for this position should be carefully considered. Failure to have a succession plan in place often times leaves companies high and dry.
Companies Need to Focus Internally
So often, we see companies focused on disrupting their space or out-maneuvering the competition. While it’s certainly important to focus on these things, so often, it’s at the expense of planning for the company’s future internally. Leaders should remember that their company is only as strong as the people that they have operating it, and ensuring that they have a CFO succession plan should be a primary focus.
Make Sure Candidates are Ready
According to research, 60% of CFOs are appointed internally. While there is nothing wrong with finding a candidate within the business, you should make sure this person is ready to take on the position. Appointing a CFO should be done so intentionally and not because you are strapped for time because you didn’t create a succession plan. CFOs need to be ready for the responsibility and have the desire to move into the role.
Taking the time to create a succession plan may feel tedious, and like it’s taking away from your current strategy, however, this mentality must change. A CFO succession plan should be at the top of the list of your long-term company strategy.
Looking for a succession plan solution?
DLC can help! Using interim staffing allows your organization to function smoothly while a careful, un-pressured search is made for a new CFO. DLC’s interim CFO consultants are highly credentialed, Big 4 CPA’s and/or MBAs from the top 25 graduate programs.