Beyond Finance: The Strategic Approach to a CFO's First Weeks
As a finance leader stepping into your first CFO role in a startup, you have a unique opportunity to make a significant impact on the company's growth and success. The first few weeks in this new position are crucial for setting the stage and establishing yourself as a key player in the organization.
When you start your journey as a CFO in a new company, it's essential to prioritize gaining a deep understanding of the business beyond the finance function. If possible, one of the best ways to kickstart your new job role is to put the finance responsibilities on hold and get stuck into every other department in the company. This immersive strategy isn’t always endorsed by Founders and CEOs, as sometimes the business is left with no handover time or there is a burning hole in finance that desperately needs sorting. But in this blog, we will explore how to persuade the C-Suite leaders to support your request and eventually encourage it, after seeing the long-term benefits.
Immersing yourself in the other departments in your first few weeks can massively help you identify the pain points of the different teams in the organization. Learn from the product team, listen to sales calls, and comprehend the go-to-market strategy, because it will all be beneficial when you are building your financial strategy and building essential relationships. Through this process, you can listen to your colleagues challenges and offer a fresh perspective to potentially long-standing issues, as well as gain respect and credibility as a valuable business partner.
One of the most critical aspects of your initial weeks as a CFO is observing key data points, understanding the operational running of the business, and grasping the unit economics. From the offset your colleagues will know they have been listened to and in return respect your authority and intention. This approach prevents you from being a bullish first-time CFO, who may unintentionally disrupt the organization.
Furthermore, taking the time to know and understand the subtleties of the leadership team helps you tailor your communication style and presentation of data, ultimately supporting your skill to storytell and influence the financial agenda.
However, if your CEO really doesn’t have the resources to support your diversion away from finance for a short period, here is how you can build those conversation and areas of trust with other department heads whilst taking ownership of the finance function;
Schedule one-on-one meetings with other C-suite Leaders from the start.
Create open communication with your colleagues, request their feedback on your plans and establish a network of support within the organization.
Once you’ve built those one-on-one relationships offer to sit in on their meetings and provide them with the data they need to make informed decisions they will begin to see the value of finance’s support and then request your presence on an on-going basis.
Another effective method to get your foot in the door is by making sure everyone understands the finance blueprint, the reasons behind tracking specific key performance indicators (KPIs), and how it all relates to cash. Many times, finance managers, CEOs, and other c-suite members fail to see the direct impact on cash flow. By bridging this gap and educating your colleagues, you have another opportunity to garner their support and advocacy for your involvement in crucial non-finance meetings.
Your colleagues are going to be your biggest champion, especially if you have offered support, guidance and a useful education, that they can utilise to better manage their department. Not only is building strong connections with your colleagues vital for your success in the finance department, it encourages effective communication, collaboration, and alignment within the organization.
Aligning the c-suite is essential because any misalignment can trickle down and affect the entire organization. It's natural to have disagreements, but the key is to disagree then realign so you can work through the differences as a team. By fostering strong relationships and open communication, you can share your perspectives, debate ideas, and find common ground to move forward together.
In summary, stepping into your first CFO role in a startup requires careful navigation and strategic planning. By dedicating your initial weeks to understanding the business, building relationships with peers, and gaining CEO buy-in, you can establish yourself as a valuable asset to the organization. Remember, success as a CFO goes beyond finance expertise; it's about being a trusted partner and influential leader within the company.
This article is taken from ‘CFO Unveiled: Learn from Jimmy Vassilas’ Journey’ an event in partnership with GrowCFO. You can watch the full event here.
As an expert in partnering with early-stage tech start-ups, feel free to get in touch if you require advice or are keen to hire that first or even second person for your finance function.
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