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3rd Quarter 2012
CFO CFO
2
Howard Reba
Chief Financial Officer, Fidelus Technologies
T
o even a casual reader of to-
day’s business news, it is clear
that Cfo turnover remains
high at many small and mid-
dle market organizations. Whether
attributed to new Ceos bringing in
their choice, private equity investors
electing to put their own people in
place, acquisition activity, increased
regulatory scrutiny, or the more
initiative-oriented and short-term
focus of the role, it is remarkable how
companies go about selecting a new
financial leader for their organization.
We are all familiar with the three
questions companies ask when
evaluating new employees: Can they
do the job? Will they do the job? and
will they fit in?
a good interviewer and solid hu-
man resources team should have little
difficulty answering the first question.
The second one is a little tougher, but
still quite manageable. it is how com-
panies handle the third
question when selecting a
new Cfo that i find most
fascinating.
in general, a Cfo
fulfills a leadership and
stewardship role for
the entire company by
delivering a strong financial function
and collaborating across other depart-
ments. accordingly, job requirements
include certain experiences, technical
capabilities, and achievements. Why
then do so many companies automati-
cally screen out candidates based on
industry experience?
The most common must-have
requirement in Cfo job descrip-
tions is industry experience, and in
many cases that makes sense:
a manufacturing Cfo is
unlikely to be a top candidate
for a hedge fund Cfo role.
however, this approach is
applied way too broadly. a
Cfo joining a new organiza-
tion is simply a new piece of
the puzzle that provides leadership.
how well that piece fits depends on
what gaps need to be filled. often the
missing piece is not industry experi-
ence, but more likely it is financial
leadership.
It’s
Not
About
Industry
Experience
A CFO
CANDIDATE
SHOULD
HAVEMANY
ATTRIBUTES,
BUT A
LENGTHY
TENURE
IN THE
INDUSTRY
IS NOT
NECESSARILY
ONE OF THEM
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