Rescue after Sudden Loss of CFO
June 26, 2010
by Rose Fisher
Client Situation:
An international not-for-profit professional society found that it’s Chief Financial Officer was leaving for a new position after 20 years with the organization. With very little notice and nobody on the bench, the Executive Director was in a bit of a spot. Nobody was familiar with the antiquated systems or processes in the Finance Department. Year end and the annual audit were fast approaching. They needed an experienced person who could “hit the ground running” with very little training. The two fold problem was not only to close out the year, produce year end financials and work with the outside audit firm to complete the required audit, but to also search, help select and train the new permanent CFO.
What We Did:
Within two days of meeting the Executive Director we placed a senior financial executive at the client site for two weeks with the outgoing CFO. After just two weeks of basic process training we took over the financial function for the multi-million dollar international society. During this time period we learned and understood the marketing, sales, internal systems and financial functions. We successfully closed out the fiscal year, prepared year end financials and worked with the outside audit firm to complete the required annual audit. During our tenure we discovered many areas for improvement in the systems and processes, since the incumbent had been employed for such an extended period of time many systems were never upgraded. Within five months of taking over the Finance function, we completed a successful search for the right CFO candidate, who met all the specifications for the position. Our senior staff than trained and mentored the incoming permanent CFO over the next few months. During this time frame we also worked on several projects to update and improve the reporting functions with new software and re-trained the existing staff.
Results:
Within one year of becoming the Interim CFO we successfully completed several projects for this client. First, we managed the Finance function on an interim basis, oversaw the transition, and found and trained the replacement CFO. Second, we updated the client’s accounting software, integrated the new software with the front end agency management software, and trained the existing staff on the new systems. Third, we streamlined the audit process and engaged a new audit firm. There were also several smaller ad-hoc projects completed along the way. The software update and streamlining produced a 20% improvement in the time required to complete the annual reporting. It also streamlined the associated processes so the CFO could handle additional duties and work more closely with the Executive Director on several management issues that arose during our tenure. The society and its Board were extremely grateful for the speed and efficiency in which we were able to grasp their systems and processes and improve them as we handled the immediate need for an Interim CFO.