Should You Outsource Your C-Suite?

Should You Outsource Your C-Suite?

In last week’s issue of the Houston Business Journal, Molly Ryan reports on how businesses in Houston are looking to augment the leadership of their companies by outsourcing their C-suite executive positions.  Ryan interviewed several leaders and clients of Houston-area outsourced executives firms, myself included, to get their perspective on what is driving the trend and who the primary consumers of these services are.

Should You Outsource Your C-Suite?

One of the reasons for executive outsourcing is technology. Art Saxby, founder and principal of Chief Outsiders, explains, “Technology makes it so much easier to work remotely.” This allows outsourcing firms to work on multiple clients from one location. Additionally, improvements in technology are affecting company structure. “I think there is a structural change going on in companies,” says Martin Lindenberg of the Newport Board Group.  “Because of the rise of information technology and automation, companies are becoming flatter.  There isn’t a need for as many layers in management. The result is, they are becoming leaner. And it is more cost-effective to bring in an outsourced experienced executive.” We have also seen that computerized accounting practices have greatly contributed to our company’s growth.  The streamlining of day-to-day accounting has led to smaller accounting departments that don’t always need a full-time CFO.

Who Is Hiring Outsourced Executives

So who is hiring these part-time executives?  Outsourced executives are ideal in mid-sized companies. They need the executive’s expertise and leadership, but they can’t always afford to have them full-time.  Fortunately, Houston has many mid-sized, entrepreneurial businesses. Ryan interviewed Marshall Hoffman (owner of Steel Supply, LP) and me as part of his research on outsourced executives. Watch the following video from HBJ’s website of Hoffman discussing his decision to hire a part-time CFO:

The full article can be found here. If you want to learn more financial leadership skills, then download the free 7 Habits of Highly Effective CFOs.

[box]Strategic CFO Lab Member Extra
Access your Flash Report Execution Plan in SCFO Lab. The step-by-step plan to manage your company before your financial statements are prepared.
Click here to access your Execution Plan. Not a Lab Member?
Click here to learn more about SCFO Labs[/box]
outsourced executives
ARTICLES YOU MIGHT LIKE

The Struggles of Private Company Accounting

Hiring the right accountant  When I meet a business owner operating at a successful $10 million in revenue, they often mention, “My CPA”… I immediately know that CEO/Entrepreneur is referring to their Tax CPA.  That is because one thing that all Entrepreneurs have in common is that they must file a tax return.  So, from

Read More »

IN CRISIS? GET A STRATEGIC CFO! – CEO Blindspots Podcast

Friend of the firm, Birgit Kamps, recently had Strategic CFO President, Dan Corredor, as a guest on her podcast, CEO Blindspots. CEO BLINDSPOTS HOST: Birgit Kamps. She was speaking five languages by the age of 10, and lived in five countries with her Dutch parents prior to becoming an American citizen. Birgit’s professional experience includes starting

Read More »

SHRM calls ICHRA the 401K for Group Health Benefits

Fed-up with group health insurance? ICHRA is the new way to offer great health benefits and avoid ACA penalties, SHRM calls it the 401K for group health benefits.  In 2020 the Department of Labor, HHS and IRS changed the rules for employer health benefits. They changed the Affordable Care Act mandates and penalties for every

Read More »

JOIN OUR NEXT SERIES

Financial Leadership Workshop

MARCH 28TH-31ST 2022

SHARE THIS ARTICLE

JOIN THE NEXT STRATEGIC CFO™ SERIES

Strategic CFO™ Financial Leadership Workshop
The Art of the CFO®

Days
Hours
Min

September 12-15th 2022