Technical vs. Strategic CFO: From 80-20 to 20-80
Stage One: 80-20:
Technical CFO, 80%: In the beginning, a technical CFO acts as a “financial fireman” due to messy books, audit, late payment, and other sorts of glitches and failures in a company’s financial system. About 80% of the service is putting house in order, like a super controller: reviewing and correcting balance sheet accounts, tax & legal compliance, business process, cleaning up errors, staff training, and implementing a healthy new system.
Strategic CFO, 20%: While setting up a new financial processes, the remaining 20% is “keeping the ship on course,” as a STRATEGIC CFO. A Strategic CFO develops strategies for reaching specific goals. It requires a strategic focus, to prepare a company’s forecast, KPI, financial statements, financial structure, and exit strategies. A Strategic CFO looks into the future, navigates along side of CEO and executives by charting the course for a company’s destination.
Stage Two: 20-80:
Strategic CFO, 80%: At Stage Two, the focus is on building a company upon newly established healthy habits and financial order accomplished in Stage One. A strategic CFO works with a company’s CEO and executive team on leading a company towards its goals, vision, and eventual exit.
Technical CFO, 20%: Thanks to the work in Stage One that has created a sound and sustainable financial system, about 20% of the work at Stage Two is implementing the technical procedures and practice.
For a company to reach a higher vision and to a higher level, keeping its financial house in order must be followed up and supported by the disciplined financial practice for the long term, under a strategic CFO’s guidance and supervision. In this way, a company will continue the momentum to grow on the right track.
We at a2z CFO are both the right and left hands of a business, charting its course through calm or turbulent waters. Whether you need a technical or a strategic CFO, or both, at Stage One or Stage Two, on an interim or long-term basis, we are here to help you in-house, hands-on. With more than 30 years of experience and our core values of ethics, hard work, and fair value, we serve small businesses, family offices, and non-profit organizations, to “keep your ship on course”.