The CFO Coach

Are You Really OK?

I’m OK, You’re In Trouble. Really? How convinced are the folks who were surveyed … really … that it will happen to someone else and not them?

The final results for the 2007 survey of 573 CFOs in the United States and 1,275 globally found that 72% are more pessimistic than they were in the 3rd quarter of 2007.

A more recent survey by Spherion Corp. and cited in Today in Finance, found finance and accounting employees increasingly pessimistic about the economic outlook and the availability of finance positions. "Negative economic news and turmoil in the financial markets seem to be creating general unrest about where things are in the economy," says Brendan Courtney, a Spherion senior vice president.

Despite the general unrest, “… a whopping 82% of finance and accounting employees say it's unlikely they'll lose their jobs suggests that they aren't taking their pessimism personally.”

The best time to proactively manage a career is while you are still employed. In this tight economy, it is not enough to “believe” any position is secure. Sticking one’s head in the sand and hoping that any disturbance will pass him by is intentionally putting a career in reactive mode … and reacting from the street curb is infinitely more difficult.  One need only look to a good chunk of Bear Sterns 14,000 employees for confirmation of that fact.

With fewer jobs and stiffer competition for them, the time to get visible to your target market is 12 to 18 months BEFORE you plan to move.

CareerXroads Source of Hire Study

CareerXroads conducts an annual study on methods company use for sourcing candidates. It’s an interesting read and I’ve highlighted, and commented on, a couple of important findings below.

––Personal referrals from employees, vendors, alumni, customers, and friends is the #1 external sourcing strategy, with employee referrals constituting between 80–90% of overall referrals. The study says that one out of every three referrals turns into a hire.

That statistic confirms the validity of the power of networking. Talking to people who work in companies that are interesting to you, can lead to opportunities you would not otherwise be privy.

––Retention strategies are leading many competitive companies to promote from within, with the goal of filling 40–50% of their openings internally.

Even if you are the greatest, most hard–working, and contributing employee, if the higher ups don’t know about you it really doesn’t matter. A strong, visible brand can help you stay on the radar screen of people who need to know about you.

CFO Turnover

Why is CFO turnover so high? David McCann’s article in CFO.com addresses the fact that one–quarter of Fortune 1,000 lost (for one reason or another) its senior finance leader in 2007.

These two excerpts point to the facts, but the article in its entirety is a must–read.

“For large-company finance chiefs considering job switches, the good news is that a lot of CFO positions are opening up. The bad news is that those who land one of them might not have it for long.”

“Being a CFO at a very large company is a precarious position indeed. ‘The average tenure of a [Fortune 1,000] CFO right now is less than three years,’ Michele Heid, co-managing partner of the finance practice at Heidrick & Struggles, told CFO.com. ‘Five years ago, it was closer to five years’.”

Knowledge is power. With a “here today, gone tomorrow” culture surrounding senior–level finance executives, the questions is … how are you going to use that knowledge?

You can do nothing of course. But when (and it is more likely when, not if) you find yourself on the curb, your marketability will have taken a big hit.

Or, you can begin to proactively manage your career much like you proactively run your company. Where do you want to be in three years? In five years? What do you need to do and who needs to know about you in order to get there?

Isn't there an old adage that goes something like ... failing to plan is planning to fail?

The Buzz about NotchUp

NotchUp is making the rounds in the career industry … a new and innovative way of finding those top performing candidates every employer covets. Whether you buy into its philosophy or not, it’s a hot topic. I recently read an article by Recruiter Dr. John Sullivan addressing some of these issues from a recruiting perspective.

This excerpt really struck me, and I wonder … could it also apply to the passive candidate?

"You don't have to utilize NotchUp in order to improve your candidate flow, but you do have to improve your employment branding and interviewing approach. If you're one of those individuals who is constantly complaining about the shortage of qualified candidates, maybe it's time to look in the mirror and realize that it is actually your approach to employment branding, recruiting, and interviewing that is causing your shortage…. The fact is that talent shortages for any single firm are caused by weak branding/recruiting strategies and practices."

If I might seek some grace from Dr. Sullivan, I’d like to re–phrase his comments from a candidate’s perspective.

... in order to improve your candidacy interest, you have to improve your executiv e branding and interviewing approach. If you're one of those individuals who is constantly complaining about the shortage of company interest, maybe it's time to look in the mirror and realize that it is actually your approach to branding, searching, and interviewing that is causing your shortage…. The fact is that prospect shortages for any candidate may be caused in large part by weak branding, networking, and search strategies and practices, combined with a tendency to value (and emphasize) what you did rather than how you delivered and its associated impact.

Thoughts?

Change

There are numerous truths about change. Here are four important ones that relate to your career.

1. Change is inevitable. That means, you have the choice to be proactive or reactive to what will be coming your way sooner or later.

2. Change causes fear among people who know you. That means, when you are ready to move you might find yourself surrounded by naysayers … presumably looking out for your best interests.

3. Change is driven by a desire to change. That means, it is important to look within yourself to find the motivator(s) that will force you to move.

4. Change makes you uncomfortable. That means, if you aren’t uncomfortable, you’re probably not growing. If you are floundering in stagnancy, you probably aren’t as successful as you could be.

For my full article around Change, Opportunity, and Your Career, send me an email and I’ll happily send it your way.

The Most Connected Man on Earth is in the Forum

I am so excited that Ron Bates will be joining us in the Forum on February 19 at 4:00 p.m. Eastern. And you might be, too when you find out who he is!

Ron is a Search Consultant with Executive Advantage Group’s Silicon Valley Office. With +35,000 direct contacts across multiple on-line professional networking platforms, Ron has been referred to as "the most connected man on Earth." You can view his detailed networking profiles on LinkedIn and Ecademy.

Many of you who were kind enough to participate in the research survey mentioned Linked In and networking as some of your challenges. For example, a few didn’t really understand the importance of being on Linked In or, they were on Linked In but didn’t really know how to use it or, want more networking connections and would like to understand how Linked In can help increase connectivity and visibility.

Well, from a career perspective, who better to ask than “the” most–connected person who just so happens to be an Executive Recruiter. Ron is not only knowledgeable about Linked In, he is knowledgeable about how recruiters use Linked In and he is a great person to add to your network.

If you are a member of the CFO–Career–Forum, log in and register today for our conversation on February 19 at 4:00 Eastern. If you are not a member of the CFO–Career–Forum but you are a senior-level finance executive and want to join the call … register here! If you are not available at 4:00 p.m. Eastern on February 19, the call will be recorded, but you must register in advance to receive the recording.

Additionally, we want Ron to answer YOUR questions about Linked In. Please email those to me at cindy@cfo-coach.com prior to the 19th (the earlier the better so we can get them in the queue) or IM them to me during the call at Coach Cindy.

Some Good Folks to Know

Business Week has published The World's Most Influential Headhunters.

Do you know about them? More importantly, do they know about you?

Now, before you start firing off cold resumes to these recruiters, remember … what they are most interested in is a relationship with a top–performing passive candidate. It all starts with a relationship.

Big ROI on Trusted Sources

I received an email today regarding the new social networking site being launched by Hoovers. Here’s an interesting stat from the article ...

"The goal of the service is to take advantage of research from the University of Chicago and the University of North Carolina at Chapel Hill business schools showing that an introduction made through a trusted source is up to 16 times more likely to yield a response than a cold call, the company noted."

That seems like a pretty strong incentive for ramping up your networking!

Is your Finance Career Recession-proof?

Interesting article in CFO.com today, “Is Your Finance Job Recession–proof?” I’m excerpting the CFO section below, but other finance jobs are covered in the article.

I wonder if a better question would be, “is your finance CAREER recession-proof?”

There is little control over job security, which is always driven by external factors. Conversely, making your career recession-proof ... doing the things you need to do on a consistent basis to ensure you do not find yourself on the street for 22.6 weeks (average length of an executive job search) searching for that next job ... is all within the control of a passive candidate.

Thoughts?

Here’s the excerpt …

<<And what about CFOs themselves? Eldridge says that it's common for companies to change CFOs during changes in their business cycle — when they go public, for example. Thus, he says, job changes are also common when the larger business cycle turns. For example, a CFO of a smaller growth company may decide to leave if recession forces the company to adopt a defensive economic approach.

But ultimately, CFOs occupy such a volatile position that an economic recession may simply be a moot point. "If the plan is not being met, the CEO is not going to take himself out — the CFO will go first," says Eldridge. And CFOs can't really win: When CEOs do end up leaving, their successors tend to bring their own CFOs with them. The CFO slot, says Eldridge, "is just a battlezone. You're going to score a touchdown or get sacked."

That may sound grim, but Eldridge is bullish on finance positions in a recession. One might think, of course, that turnover would benefit an executive recruiter one way or the other. But that's not so, says Eldridge. Five years ago, he says, financial services hiring "came to a screeching halt. We have not seen that in finance."

He recommends that finance professionals continue to seek ways to balance their skill-set. "Don't get pigeon-holed. You want to be the value-add person." He says finance professionals can do that by working with senior management on special projects, volunteering for assignments overseas or within operating units and taking other steps that demonstrate that they are more than just a number-cruncher. "You don't want to be easily disposable," he says.

In the long run, says Eldridge, finance talent is like healthcare: everyone needs it. "I would have to lean towards finance perhaps being recession-proof," he says. "But that doesn't mean everybody stays in their job.">>

Great read in Today in Finance at CFO.com

Two things stuck out to me in reading the article, “What You Don't Know about Headhunters: 10 Tips" in Today in Finance at CFO.com.

First, recruiters are too busy to return every prospect’s phone call, but they expect prospects they call to return theirs. And sadly, that is just the way it is. If working with recruiters is one of your search strategies, and it should be, then you have to play by the rules the recruiters have written. Failing to do so could kill a crucial relationship.

Second is the comment made by Chuck Eldridge, Managing Director of the financial-officers practice at Korn/Ferry International …

And, yes, do not wait until you are in trouble or transition to start calling recruiters. "It is extremely unfortunate that so many people don't network or do it too late," says Eldridge.

Networking – with all of your contacts – is a long–term career management strategy and is most effective when you help others before you need help.

“Understanding what makes recruiters tick is a vital but often overlooked component of the job hunt.” It is also important to remember that recruiters work for a company, not for a candidate. The subtle difference is that they do not find candidates jobs; rather, they fill open positions.

Which brings me to a question. If there really is a recession looming, are you prepared for a possible job loss? Just like networking is most effective when you don’t need it, having a strategic career plan and working your plan is most effective before you lose a job.