I once worked with a CEO who did not think he needed a CFO. Well, that is not entirely true. He thought he needed one, but he was not really sure why.
His company had been running just fine with a controller who had been there for 17 years. But then, someone convinced him that it was time to “upgrade” to a CFO, someone strategic, someone who could help the company grow. So he did what many business owners do. He hired a big-name recruiting firm with all the bells and whistles, a firm that promised him they would find him the perfect CFO.
And they did. Except he was not. This CFO was a big-picture guy, full of grand ideas, but when it came time to roll up his sleeves and get into the weeds? He was not interested. The company was small enough that if a senior accountant was out, someone needed to step in and keep things moving. The CFO was not that person.
Worse yet, he convinced the CEO that the controller needed to go too. The one person who had all the institutional knowledge of the company. The glue that had kept the books running smoothly for nearly two decades. So the CEO, trusting his shiny new CFO, let her go and hired a new controller.
Within months, it was a disaster. The CFO was so focused on strategy that tax filings were missed. The new controller was overwhelmed and under-supported. And before long, both of them were out the door.
Which led to the CEO calling me in desperation. “I need a temporary controller,” he said. “I need someone now. And then, once I get that settled, I will hire another CFO.”
But I told him to stop. “Let’s take a breath,” I said. “Let’s figure out what you actually need before we repeat the same mistake.”
Because the truth was, he did not need a CFO. He needed a strong corporate controller. Someone who could manage the numbers, keep things running smoothly and ensure compliance.
Not every company needs a high-level strategic CFO. But when they do? That person needs to be more than just a finance person in a corner office. They need to be at the table, helping drive decisions, mitigating risk, and ensuring that every department—from HR to IT to sales—is aligned with the company’s financial goals.