CFO Studio | Category Archives: Employees | Page 4Employees

Hiring Outside the Box

As Seen in CFO Studio Magazine 2015 Q3 Issue

Recent trends have shown that C-suite executives increasingly recruit talent from industries outside their own. Executives often find that people from varying sectors can have an excellent handle on best practices, more so than those with deep experience in a single field. One example is the former CEO of Louis Vuitton who, according to the Harvard Business Review, hired executives from Toyota to improve supply chain management and IT integration. Thanks to input from experts outside of the luxury-brand field, today Louis Vuitton is ahead of most of its competitors in sharing with suppliers real-time information about customer demand.

Career mobility often helps transfer best practices across different sectors and products. A skill set that at first glance may seem irrelevant to a particular field, may actually help inject new life into a management or design team. For example, an executive formerly with Apple, a company known as much for its design and style as its technology, may have excellent ideas for the development of high-tech clothing or jewelry lines, or to run a luxury watch brand that looks to meet precise performance benchmarks. The possibilities for this type of cross-pollination are endless once C-suite executives expand their views of what comprises a valuable skill set.

The X.Q. Factor

As Seen in CFO Studio Magazine 2015 Q3 Issue

Can companies achieve the perfect workforce by analyzing the psyche of prospective employees? The big-data companies designing these tests say yes, and more and more employers are inclined to agree. Everyone from the Chili’s restaurant chain to the world’s largest hedge fund, Bridgewater Associates, administers personality tests to prospective and current employees looking for the correlation between people’s answers and their job success rate.

Relying on equal parts psychological assessment, New Age questioning, and mathematical algorithms, this fast-growing $2 billion industry purports to define and measure the behavioral, cognitive, and cultural traits that make up a successful employee.

But can these tests really predict job performance? Like the I.Q. (Intelligence Quotient) and E.Q. (Emotional Quotient) assessments, the X.Q. test is supposed to match the best people to the jobs at which they will most excel. However, algorithms cannot always account for the human factor. People have the capacity to learn and take on new skill sets, even becoming extremely successful doing jobs that go against personality type. (Case in point: We are all charging our iPhones right now thanks to Nikola Tesla, the ultimate loner and recluse. How would Tesla have fared on an X.Q. test?) Until the effectiveness of “people analytics” passes the test of time, a good vetting of the resume and face-to-face interview may still be the best ways to find successful employees.

A Formula for Success

As Seen in CFO Studio Magazine Q4 2015 Issue

By James Emmerson Chief Financial Officer, Huntington Learning Center

SURROUND YOURSELF WITH TALENT, AND ENHANCE WHAT THEY GIVE YOU

Your responsibilities as a chief financial officer are probably much like mine: overseeing day-to-day activities regarding accounting, budgeting, tax management, cash management, banking activities, information technology, telecommunication systems, human resources, payroll, employee benefits, legal matters, risk management, facilities, property management, and purchasing. I think of myself as a well-rounded senior financial manager, but I depend heavily on my team.

When you get to a C-level position — and even before that — it is important to surround yourself with expert business partners, either as part of your internal team or your third-party advisors.

The most important role I have, beyond making sure that the company is performing well in all of the above-noted areas, is ensuring that the strategic posture of the company is aimed at growing our targeted product lines or services so the company can achieve the financial and market-share expectations of the shareholders. That means I need data that is accurate and detailed.

In order to ensure access to the data that allows each of us to perform our role as a CFO, we need current financial and operational information. You cannot project tomorrow if you really don’t know where the company was yesterday or is today.

Hire the best staff that you can and ensure that internal controls and auditing are in place to prevent things going off course.

Managing the Team

You need to be able to sleep at night knowing processes are working as they are supposed to.

• If you are not 100 percent sure that you have the right staff, replace them. To make do instead would cost you more in the long run —much more.

• Encourage your staff to attend webinars, seminars, and conferences. There is also a tremendous amount of valuable information on new products, services, and regulations available on the Internet.

• Challenge your staff to find better, more efficient ways to improve your bottom line. Be sure to reward this behavior accordingly.

The same approach goes for third-party advisors. You need to be 100 percent sure that you are being advised on the best and latest trends in the marketplace. It is great to be loyal to those advisors with whom you may have a long relationship. But don’t be afraid to challenge them by getting competitive bids.

We all know service has a value, but don’t throw away an opportunity to improve the bottom line. Just do your homework and make sure that the lower-priced vendor is not going to cost you by providing poor service or products.

Work with your advisors on programs that will provide financial benefits to both parties if you reach or exceed predetermined milestones.

If you don’t ask for better pricing or service levels, the opportunities will not present themselves. Periodically renegotiate your leases, agreements, and contracts. You should usually end up in a better financial position.

Remember to surround yourself with the best talent available. Challenge them, but also, reward them.