![]() ![]() This means using the first 90 days to form relationships, understand current performance, and develop a vision that guides setting the agenda for execution. How can new CFOs lay the foundation for a successful and sustained tenure? Simply put, new CFOs should prioritize careful planning over speed of execution when taking the helm. As a result, the CFO is not able to have a meaningful impact on the organization and leave behind the desired legacy. (See Exhibit 1.) A brief tenure does not give a CFO enough time to fully understand the company or its industry and the trends affecting them. And more than 50% have left by the end of the fifth year. A BCG analysis found that nearly 10% of CFOs at top companies leave their role within a year after they start the job. The scope of the challenges appears to be taking a toll on the tenure of some CFOs. This often stretches a CFO too thin and creates challenges in delivering tangible value that justifies the costs. However, many CFOs fall into the trap of trying to tackle everything at once, simultaneously attacking a variety of improvement areas. With such a broad mandate, new CFOs are understandably keen to make their mark on the organization and to mold the finance function according to their ambitions and aspirations. CFOs also must oversee the finance function’s core audit, regulatory, and risk-management responsibilities. CFOs must help to shape the company’s agenda, engage with investors and capital markets, ensure strong financial performance, and partner with business colleagues to support operations. This unique platform comes with a wide variety of challenges. ![]() The CFO’s role today is a unique platform for creating sustained value and impact. As an executive at a large tech company told us, “The CFO’s true mission today is to be the ultimate owner and champion of value creation for the company.” Their strategies often determine whether the organization succeeds or fails. CFOs, along with a small group of C-suite leaders, are at the very top of the decision-making pyramid, heading the function with arguably the broadest vantage point across the company. The next article in this series will explore the agenda for the rest of the first year. ![]() Here, we discuss a plan for the first 90 days. ![]() CFOs can then use the vision as the basis for pursuing a prioritized agenda during the rest of their first year. The first 90 days of their tenure provide a unique opportunity to gain this knowledge and apply it to set a vision for the future. This means that before focusing on execution, new CFOs must get to know the organization. Given the scope of the role, new CFOs’ agendas should be shaped by their organization’s strategic priorities and financial performance. Today’s CFOs are strategists and value creators in their own right, with broad mandates and continuous responsibilities to drive strong performance. Gone are the days when the CFO was a numbers person who supplied other leaders with data to inform strategic decisions. When taking the helm of the finance function, CFOs must come to terms with a new reality. This is the first of two articles that offer advice about the priorities and agenda for incoming CFOs.
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