Tag Archives | talent

Invest in Leadership Development

When you invest in leadership development, you are making an investment. It’s something that you pay good money for and expect a return on your investment. But what many leaders don’t realize is that leadership development should be strategic. We once had a coaching participant (CFO) who worked in a family company. Once the CEO retires, the CFO is set to become the CEO. Instead of going into the job blind or get coaching at the wrong time, this individual sought out coaching before he was set to take over the company. So, why invest in leadership development in the first place?

Invest in Leadership Development

Why Invest in Leadership Development

People will always be a good investment. Why? Because without people, you will not be able to accomplish all  of your goals for your company. There’s a phrase… The tone starts at the top or the fish rots from the head down. Whichever phrase you prefer, it hints at the same thing. Success (or failure) is a result of the leadership of a company. If you want a future for your company, then you need to focus on your leadership and management. You can accomplish this in 2 ways – 1) hire good leaders and 2) invest in leadership development for existing company leaders.

A legal entity should stand on its own no matter what changes are made at the top. There should always be a succession plan whereby management should be able to step up to executive roles. Without investing in your team, this will not happen.

The second option rides on the fact that you have already invested in a current employees with their compensation, benefits, etc. Now, it’s time to get them the coaching they need to further increase their value to your company.

 To learn more financial leadership skills, download the free 7 Habits of Highly Effective CFOs.

Reasons to Invest in Leadership Development

There are several reasons to invest in leadership development including improving profitability, retaining talent, and improving return on investment. Harvard’s research report on The State of Leadership Development discusses how leadership development addresses the “demands for change to address threats from global competition and technology-driven upstarts; the need to engage a multigenerational workforce with a range of work styles; and the imperative to cultivate a new generation of leaders who can meet these needs and thrive.” Simply put, companies need to address competition, culture, work styles, and generational differences to compete on a global scale.

Improve Profitability

If your leaders know how to improve profitability with the tools, resources, and second-hand experience from a leadership development program, then they will become evermore valuable to your firm. Leadership development will coach them how to make strategic decisions, how to lead effectively, and how to find opportunities. All of those benefits have the opportunity to improve profitability.

Day 2 of the Financial Leadership Workshop is all about improve profitability and cash flow. Click here to learn more, then contact us to register for the next series.

Retain Talent

In addition, companies cannot motivate all people by money. In fact, financial gain isn’t the only thing many employees negotiate. The next “gain” many negotiate for is mentorship, training, coaching, and further leadership development. That should tell you something. We all know the cost of turnover is high and can potentially make a dent in profitability. Your company’s goal should be to retain talent for as long as possible.

Improve Return on Investment

Many leadership development programs do not effectively communicate how they are going to improve return on investment. A good CFO or financial leader should be able to increase value 1-2% of sales in profits. For example, if a company has $1mm in sales, then a CFO should be able to increase profitability at least $10-20,000. And it goes up from there! If the investment is greater than 1-2% of sales, then I would advise you to find a different program. How much return can you expect from investing in your leaders? Financial leaders should always be looking at ways of adding value.

Financial Leadership Development

More specifically, your financial leadership needs to be further developed in their leadership skills. In our Financial Leadership Workshop, I enable my students to go beyond the role of CFO/CEO to become the central financial leader in the company. Furthermore, our curriculum empowers you to become both an influence and decision maker in your company.

Any financial leadership development program worth investing in should accomplish a couple things. It should make the shift from numbers cruncher to financial leader. It should also cover how technology changes the role. Obviously, it should address profits and cash flow. There are many other topics that I could list here, but you can read more about what you should be prepared to walk away from a coaching workshop here.

Finding the Right Financial Leadership Development Program

It all starts with who is coaching the program. For example, if a 26-year old with no financial executive experience began coaching financial leadership, then there would be no credibility or experience behind that program. In comparison, if the course is coached by a 28-year financial executive who is seasoned and experienced either in a niche market or a variety of markets, then the only thing you need to look for is the fit. Finding the right financial leadership development program begins with the curriculum. Does it coach on the topics you need to coached up on? If so, then you need to also evaluate the following:

  • Logistics (time, location, schedule, etc.)
  • Cost
  • Benefits
  • The Coach

Right now, registration is open for our Financial Leadership Workshop Gamma Series starting this October. Click here to learn more about our program and contact us to see if it’s the right fit for you.

In the meantime, I also wanted to gift you our 7 Habits of Highly Effective CFOs. This whitepaper is by far our most popular whitepaper and is just a snippet of what to expect in our Financial Leadership Workshop.

Invest in Leadership Development

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Invest in Leadership Development

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Beware of the J Curve

J Curve

An increase in sales sounds great! Right? But have you ever heard about the colloquialism of growing out of business? Growth requires cash flow, but sometimes, quick growth doesn’t allow you to keep up. If a company is run by leaders with sales backgrounds, they will be more focused on the growth than supporting that growth. Sometimes, it’s difficult for a company to sustain growth, especially if they aren’t collecting receivables quickly. This leads to some companies turning away clients. The analysis and forecasting of working capital is crucial in a high growth situation.

What is the J Curve?

A j curve is an initial loss followed by an exponential growth. This curve is used in the medicine, political science, economics, and in business. The quicker you grow, the quicker your burn through cash.

Cash is king, net working capital which is current assets less current liabilities is an indicator of the companies ability to meet short term obligations. In a high growth situation you will burn through net working capital and need to manage it carefully.

Looking to improve cash flow in your business? Click here to download our 25 Ways to Improve Cash Flow and get an invitation to join our SCFO Lab.

J Curve Effect

Initially, there is a decrease in sales, then there is a sudden growth. This growth ties up cash flow. Inventory requires significant cash to supply the demand. But if the company invoices the customer, then there is a risk of not being paid for 15, 30, or 60 days. Even if the company collects the cash up front, it doesn’t always align with when payments are due.

Let’s look at the Cash Conversion Cycle!

Cash Conversion Cycle (CCC) =Days Sales Outstanding (DSO) + Days Inventory Outstanding (DIO) – Days Payable Outstanding (DPO)

There are three things that impact the cash status for a company: sales, inventory, and payables. In other words, revenue, COGS, and overhead. If one of those are out of balance, then profitability will be impacted. If they are out of balance and net working capital is on a decline, then you are really in trouble. When you experience a j curve effect, you will see all increase in all areas with more emphasis on payables.

When J Curves Are Likely to Happen

There a couple instances where j curves are more likely to happen. Fasting growing firms and startups are two examples where we frequently find j curves in action.

Startups

Startups typically begin out of a need seen in a market. At some point, their product/service clicks with the market and they take off. This is great for the start up! But if the company doesn’t have liquidity or cash, then it will not be able to support the growth. In addition, you risk the quality of your product/service, dealing with legal issues associated with poor quality, and having bad reviews. For example, a startup finally hits the market at the right time with the right product. Sales boom and the entrepreneur is ecstatic! But they have no processes, they are buying materials for the product without thinking strategically, and are only looking at the sales. While sales were booming, they were buying everything on the company’s Amex. At the end of the month, the fees and lack of consideration for the timing of purchase outweighed the increase in sales. They ended up in the red.

Fast Growing Firms

Fast growing firms also see the same issues that startups deal with. In addition, fast growing companies tend to grow overhead quickly or lose sight of how big it is actually getting – larger operations, more employees, bigger reputation, etc. For example, $1 Billion fitness company Beachbody released a new fitness program earlier this month. Unfortunately, they did not forecast the sales accurately and were not prepared for the amount of sales they received. What could be a great opportunity turned into a scramble to deliver on the equipment needed for a new fitness program. As a result, they sent other similar products as a temporary solution. Customers could ask for the product that they ordered and they would be put on a waitlist – essentially asking for 2 products for the price of one.

Manage Your J Curve

J curves need to be managed because they can easily get out of control, leaving a large mess to clean up. Some of the factors you need to look at when managing your j curve include assessing the type of sales you are having and the ideal sales, the timing of when you purchase materials, and managing (retaining) your talent. Remember, the quicker you grow, the faster you run out of fuel.

Types of Sales

There are good sales, and then there are bad sales. We’re talking about the types of products/services you’re selling and who you are selling to. If you accept both good and bad sales, you are not managing your j curve effectively. Maintaining healthy profit margins in a high growth situation is also critical.  Sometimes, it can be more productive and profitable to fire a particular customer than take their money.

Timing of Purchases

Ever had to purchase something without having cash in your pocket? If you’re like most people, then you would defer that payment until you have cash. But companies disregard their habits in their personal lives… Sales means cash, right? Wrong. Work with your vendors to delay payments until you have cash in the bank.

Talent Management

Your talent is one thing you need to look at when managing your j curve. The reason is because with increased growth comes increased stress. If you are not taking care of your employees, then employee productivity and morale is going to decrease and eventually, turnover. We all know that high employee turnover is a cause of bleeding cash in you business. First, there’s decreased productivity that makes product produced or sale made that much more expensive. Then, there’s severance and continuing benefits for a certain amount of time. Finally, there’s the expensive hiring process that potentially includes staffing, recruiting, hiring, training, etc.

Effective Business Planning with a J Curve

Focus on the cash flow and profitability of your company. We show every company that we work with in our consulting practice and coaching workshops how to improve its profits and cash flow. When it comes down to it, that’s all the business is made up of. And every company, regardless of whether you are in a fast growth company or not, needs to effectively plan using cash flow forecasts and reports, flash reports, and flux analysis. If you are seeking more ways to make a big impact in your company, download the free 25 Ways To Improve Cash Flow whitepaper to find other ways to improve your cash flow within 24 hours.

j curve

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The Next Generation of Financial Leaders

Next Generation of Financial Leaders

As the baby boomers are retiring from the workforce and Generation X are becoming the most senior employees, it’s time to start looking at the next generation of financial leaders. Currently, the Millennial generation is the largest working generation in our economy. They have some quirky habits and behaviors – namely, their use of technology. That leaves some executive clueless on how they will eventually take over the leadership of their organization. With the average age of retirement being 61-65 in America, we are quickly approaching a workforce that is solely comprised of Generation X and Millennials. You may be asking questions… What is your part in raising the next generation? How will you pass on the figurative baton (if you are a Generation X or Baby Boomer)?

It’s important to not neglect the next generation, regardless of how their habits might annoy you. Let’s look at where previous generations have adopted their financial leaders.

The financial leader of the company is responsible for being the strategic partner to the CEO of the company. But there’s no guide. Until now… Access our How to be a Wingman Guide and learn how to be the trusted advisor your CEO needs.

Where the Next Generation of Financial Leaders Comes From

Just like when you acquire talent for other positions in your company (especially high-level positions), there are two options. Either you promote from within or you hire new talent outside your organization. There are benefits to both options. Regardless, as Millennials start to climb the proverbial ladder in your organization and baby boomers retire, it’s critical that you start mentoring and providing some structure for them to climb.

Similarly, last year we wrote a blog about one of our interns going to Japan because the workers were not concerned about who was to take over their positions. Japanese workers were so focused on their work that they weren’t having babies. As a result, the Japanese government was facing a pending economic crisis because there were not enough Millennials to take over. The time is now to start looking at potential financial leaders and how to further develop them.

Baby Boomers          1946-1964          Ages 54-72

Generation X          1964-1980          Ages 38-54

Millennials           1980-2000          Ages 18-38

(Keep in the mind that the above age ranges may be different from what you have read. This is because there are no standard start/finish dates for each generational cohort.)

Next Generation of Financial Leaders

Promoting From Within

The first option to replace high-level leadership is to promote from within. This is a great option because they will have seen multiple areas of the company from different positions. They also know the culture and experience how the organization reacts in good and bad times. Although promoting from within is the ideal option for continuing an organization’s mission, it comes with significant costs. Some of those include training, mentoring, and salary and benefits over the years. It takes time to prune talent to eventually promote them.

There is also time to tone parts of the Millennial down as well as enhance the current leadership’s weaknesses. This not only creates a stronger organization now, but it also prepares the organization for the future.

Hiring New Talent

Conversely, hiring new talent brings in some fresh perspective into the company. This would be ideal for a company who does not have the right talent to promote or needs a change in direction for the organization. Many companies use headhunters, retained search firms, staffing agencies, recruiters, etc. to find the talent take over after the current talent either leaves or retires.

The risk of hiring new talent is not knowing how they react to situations in real time. Unlike promoting from within, you are not able to predict the hire’s reaction (at first).


Click here to download: The Guide to Outsourcing Your Bookkeeping & Accounting for SMBs


The Difference Between the Next Generation and the Current Generation

The main difference between the current generation that holds those top roles (Baby Boomers and Generation X) and the next generation of financial leaders (Millennials) is the world they grew up in. For now, we’ll focus on the two largest generational cohorts in the workplace: Generation X and Millennials.

Millennials experienced two economic crises (2000 and 2008), a war on terror, social media, growth of student debt, advanced technology becoming more available, and information at a moment’s notice. They have a reputation for moving around jobs, focusing on technology, and being more risk tolerant. But one of the most important factors in a Millennial career path is that they are mentored, cared for, and valued in an organization. Furthermore, they want to feel a sense of purpose.

Although this description seems far from Generation X, we have found that more than half of Generation Xers want to mentor and give their mentees a sense of purpose. The Association for Talent Development says that, “Through mentoring, Gen X can help Millennials learn crucial people skills—such as empathy, adaptability, group dynamics, employee motivation, communication styles, and relationship building—as well as management and leadership styles. They can therefore increase the odds that younger Millennials will be successful in a future management or leadership role.”

In addition, the next generation of financial leaders are going to be more risk tolerant – knowing that success only comes from failure. They will test more ideas than the current generation. In fact, the current generation could capitalize off of the Millennials to take more risks.

Building the Next Generation of Financial Leaders

When building the next generation of financial leaders, start early and know how to optimize your relationships with the next generation. Deloitte reports that the 6 most important leadership qualities to develop as you are building the next generation of financial leaders include:

  1. Maintain Strong Executive Engagement
  2. Align Leadership Strategy with Business Strategy
  3. Define Tailored Leadership Competencies
  4. Target All Levels of Leadership
  5. Integrate with Talent Management Processes
  6. Apply Blended, Targeted Solutions

As the current financial leader of your company, guide your CEO on how to prune your employees to take over your role when you retire or move onto another position. Download our free How to be a Wingman guide and take your career to the next level and step up into the trusted advisor role.

Next Generation of Financial Leaders

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New Graduates: What Employers Are Looking For

what employers are looking for

Last week, we discussed the importance of having creativity in the workplace. Watching my Wolff Center for Entrepreneurship students walk across the stage was a bittersweet moment. However, I remembered something important. Most of those students will be fine because they have what potential employers are looking for.

2017’s Highest-Demanded Jobs

I’m sure there are a lot of highly-demanded positions in other industries such as the medical field and education. In conjunction with Indeed and Glassdoor, I’ve found that these occupations are also some of the most demanded in business for 2017:

Data Scientist

For those of you who don’t know what a data scientist is, a data scientist is an analytical data expert that gathers data and assists with business decisions. According to Indeed, the data scientist salary averages from $110,000 to $130,000, depending on the region you work in. This occupation continues to grow, and is projected to reach a 15% growth rate next year.

Office Manager

Long-gone are the days where office managers only handled administrative tasks. Recently I was talking with my associates, and they all told me similar things. “If it wasn’t for my office manager, I wouldn’t have come up with the idea for XYZ!” Office managers contribute to more than simple tasks, and as a result, they earn more as well.

Web Development and Design

Even though the digital age was introduced over 30 years ago (doesn’t that make you feel old!), one of the most interesting parts of the internet is how it evolves. As we discussed last week, the algorithms within major websites like Google is ever-changing. This means that jobs are also changing, growing, and expanding.

Designers are also getting more advanced. I used to think photoshop was a big deal, but now there are occupations such as UX (user experience) designers. In Houston alone, the median base pay is around $75,000. That’s not bad for a starting salary.

Internet Security

This also goes into web development, but may be more company-centric than website development-centric. The internet is not the only thing growing in intelligence. More people are finding ways to steal important pieces of information such as credit cards, passwords, and addresses. It’s a constant battle with the hackers versus security – the bad versus the good. At least one good thing comes from the many hackers in the world… jobs!

What are your Strengths?

From a graduate’s point of view, you have to reflect upon your own strengths and how to apply them in your new company. What makes you stand out from the rest? What can you bring to the table?

Conversely, as a business, what are your strengths? What makes you stand out in a crowd?

Teaching Skills versus Teaching Talent

what employers are looking for

In teaching at The Wolff Center for Entrepreneurship, I learned a few things myself. One of those things is that you can teach skills, but not talent.

The difference between talent and skills is this – a skill is the ability to do something well; an expertise. A talent is a natural aptitude or skill. If someone is learning how to write blogs, or draft up email campaigns, that person is learning a skill. However, how that person adapts, grows, and the aptitude at which the skill is being learned determines the talent that the person has.

How do you know what to look for in a new hire? Download our free Star Quality whitepaper to find out!

Can everyone have the same talent?

Unfortunately, not. In fact, they shouldn’t. Imagine having an office where everyone has the same talent in one skill set but not the rest. That would hurt productivity and make things in the office kind of boring, don’t you think?

To sum it all up, having multiple talents – a star-quality team – is ideal for your company. That’s what the hiring process is for.

What to Watch Out For

To all of the employers out there, there are some common issues that everyone should watch for when dealing with those new employees

Starting off with a Weak Hire

All of these problems can be avoided with a simple solution – find the right hire for your company by investing time looking for that person. If you rush to find someone to fill a slot, chances are you won’t have that person for very long (or maybe you’ll wish they were gone). And if that’s how you’ve been hiring your employees, chances are the last person left or was let go because of that same reason.

Don’t Lose your Temper!

So you’ve got a new hire, and your trainer comes into your office complaining about his lack of drive. First of all, don’t worry! Don’t lose your patience when dealing with a new hire. Like I mentioned earlier, that person can learn the skills you need to get the job done. Help them harness their natural talents and productivity will follow.

Employee Turnover

According to Compensation Force, employee turnover rate in the United States was 17.8% in 2016 and is expected to grow to 18-20% in 2017. Hopefully, you’re investing time and thinking long-term when it comes to your new hires. Again, this can all be solved by having a sound hiring process.

Hiring the Perfect Team

what employers are looking forHow do you know if someone has the “star quality” for your star quality team? It’s all in the process. If you find yourself constantly hiring and firing, it may be time to re-evaluate your hiring practices.

These are a few questions I tell my clients to ask themselves, beginning with does your potential hire…

  • Have the desire to solve problems?
  • Make wise decisions?
  • Have the ability to juggle multiple priorities?
  • Prove that he/she has good written and oral communication skills?

If you answered all of these questions “yes”, then you’re halfway there. Now you have to ask yourself the most important question… “Will this person thrive in this company for years to come?” Hiring is more than filling a spot. It’s providing opportunities with the intention to grow your employees.

What kind of boss will you be – a manager or a leader?

Conclusion: What Employers Are Looking For

In conclusion, getting hired for a new job has a process, and hiring a new person is also a process. Why waste time (and money) hiring and firing people? With enough patience, you might just find that perfect person (if you’re hiring), or job (if you’re looking) that fits the talents and skillset you need. Are you wasting time hiring and firing people? That’s a lot of paperwork! Check out our free 5 guiding principals for recruiting a star-quality team now!

what employers are looking for

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The Key to Having a Unique Business? Unique People!

Over the years of teaching in an entrepreneurship program, I realized a pattern. As expected, every entrepreneur thinks his business is unique. But in having a unique business, who works for you? What value do they bring to the table? Do they make your business “unique”? To some extent, they probably do! These are questions we will explore, but for now, let’s talk about what really makes a business unique.

Is your business really unique?

having a unique business

Every business or industry has nuances that are peculiar to that market. But is it necessary to restrict your hiring to employees with industry experience?

Business is business is business. Yes it’s different, but you don’t want to make decisions based on pride and skills you don’t have. They don’t make MBAs for each industry, after all. If all businesses were unique, they would make specific MBAs per skill per industry. That’s the beauty of the hiring process… seeing who has the talents and skills, and who doesn’t.

A few tips on having a unique business…

1. DiversifyEver thought about pivoting? Or changing your business model? When we say “diversify”, we really mean looking for something in your company that can be improved. How can you best optimize the assets you already have?

2. Innovate. This includes solving new problems, creating a new product, finding new business partners, and many other factors that go into making new plans for your business. But be careful not to introduce too many things at one time!

3. Hire unique people! Who else is going to implement these changes? Building a better team will help solve new problems that your company might not have seen before. You just have decide from there… will you hire based on degree or drive?

How do you build that unique team? Download our free whitepaper to learn how to recruit the perfect team for your business!

Degree vs. Drive

The term “degree” in this blog is a loose term. It generally means the typical employee who has gone to college, and worked 5-10 years in a job to acquire skills. If you think about it, who knows the nuances of the business better than anybody? It is the entrepreneur and his core team!

In the Strategic CFO, we work primarily with established companies rather than solely start-up companies. Although we don’t always work directly with the entrepreneur, we still see the patterns of pride within the company. Pride, in this context, means more than believing your company is the best and undeniably different than any other company.

Recently, I visited a client that wanted to recruit a CFO. They told me they wanted to hire someone with “industry experience.” How would you interpret this? “Industry experience” can mean one of two things: 1) years of experience in any given industry, 2) knowledge of the industry, or 3) both. Notice that I never mentioned talent or drive in this analysis.

Hiring for Degree

Advantages

having a unique businessNow don’t get me wrong, hiring for experience has its perks. Those with experience are familiar with the industry jargon, and understand the processes. If you’re lucky, you won’t have to train them for longer than a few weeks! Having a more tenured employee also appeals to customers and other partners, because not everyone trusts a young, fresh new hire.

Disadvantages

Experience is often short-sided. If hiring for experience was the main criteria for hiring new graduates, then there might be a lot of holes in the skill set of your company. Take the MBA, for example. You hire this person based on experience and their years of study in the industry. But what if there was a new skill set that not a lot of people have studied in? You’ll be paying a lot more to receive a lot less. Experienced employees tend to go by the book, and generally don’t go outside of what they know. After a while, tenured employees are less innovative, which is an essential part of diversifying your business and solving new problems.

Hiring for Drive

Advantages

Harvard says, “hire for talent, train for skills.” When you have someone that’s talented, you can get that person up to speed in any industry. For example, the marketing specialists in The Strategic CFO staff weren’t always tech-savvy when I first hired them. However, I chose them from a pool of talented people with drive. Within months, they became digital marketing specialists. People with drive are also innovative. They won’t stop until they’ve finished a project or solved a problem. Finally, they’re affordable. If you think about it, they’re usually young hires. Young hires are cheap!

Disadvantages

Although young hires are cheap, they might take longer to train and familiarize with industry jargon. Additionally, you can’t always send millennials out on cold calls or familiarize them with regular clients.

“Teaching tall:” more on hiring for talent

In my opinion, I think hiring for talent is more valuable than hiring for experience. It’s an investment. John Wooden, the famous head basketball coach at UCLA and creator of the “Pyramid for Success,” had this saying… “I can teach anybody how to play basketball. I can’t teach tall.” Basketball players are known to be tall, muscular, and fast. John Wooden showed us that anyone can do something if they have the drive for it. The same can be applied to business and building your company.

Conclusion

So we explored the idea of having a unique business by having a unique team, what other things you can do to make your company unique, and the advantages/disadvantages of hiring for degree and drive. The key to having a unique business: hiring unique people! You can accomplish anything for your business if you have the right resources and make productive decisions. You can get there, it’s just a matter of how soon you and your team are willing to do it. Your business can be unique… and you definitely can’t do it alone.

Don’t do it alone. Download our free 5 Guiding Principles for Recruiting a Star-Quality team today!

having a unique business

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Dealing with People Problems

A wise man once said…

“Life is simple, people complicate it.”

The same wisdom holds true for business.  If you take a look at the biggest headaches that you have to deal with on a daily basis, chances are good that the majority of them have to do with people.

Dealing with People Problems

So what’s a company to do?  Here are a few suggestions for how to solve some common people problems in your organization.

Identify Your Culture &  The Traits of Your Top Performers

ritz carlton credo

This Ritz-Carlton Credo identifies a culture of service. “Service” is the common trait among all their people that the company will look for when hiring.

Who are the most successful people in your company? What do they have in common?

Truly successful organizations have a common trait that they look for in prospective employees and foster in current employees. This trait is defined by the culture of the organization.

The Navy Seals value perseverance above all else. For Ritz Carlton, it’s service.

Identifying your company’s culture and nurturing those traits that support the culture is critical to building and maintaining a winning team.

Fewer, Better People

With the prevalence of technological advances across all industries, many routine jobs are being automated. A typical reaction to this trend is to reduce headcount.

A recent Wall Street Journal article highlighted this very fact:

Mr. Siu [the researcher referenced in the article] thinks jobs have been taken away by automation, more than by outsourcing. While some manufacturing jobs have clearly gone overseas, “it’s hard to offshore a secretary.” These tasks more likely became unnecessary due to improving technology, he said.

While automation almost always leads to the need for fewer people, it’s important for businesses to realize that the people they now need are different. They need people to analyze, not just input, the data.

Right People, Right Jobs

Are there some people in your organization that you feel aren’t living up to their potential? Perhaps the problem is one of fit. Even the most talented employee is limited if the work they are doing isn’t the right fit for them. Consider moving these people to a part of the company where their gifts would be better utilized.

You might be surprised that your accounting manager has a passion and a talent for marketing that isn’t being tapped into. Be open to allowing your best people to take on tasks outside of their job description.

Hire for Talent, Train for Skills

Obviously, hiring the right people in the first place eliminates a lot of headaches. Problems arise when a business doesn’t carefully define what the “right” person looks like. Often, they get caught up in a particular skill set they believe a job requires. Then they lose sight of a better indicator of success – talent.RI-MYUNG-HUN

Talent is that innate quality that transcends skill. It’s something that a person either has or doesn’t have.

You can’t teach talent. Look around your organization for those people that everyone goes to when they need something done. They are the ones with talent.

“I can teach anyone to play basketball. I can’t teach tall.”
—John Wooden, legendary basketball coach

Need help minimizing people problems by hiring the right people? Download our “5 Guiding Principles for Recruiting a Star-Quality Team” below!

dealing with people problems

dealing with people problems

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3 Ways to Develop Financial Leadership

financial leadershipDo you feel like you have the talent to be the best CFO you can be, but you aren’t sure how to develop the financial leadership skills you need to get there?

If so, you’re not alone.  Many financial professionals don’t know what is really expected of a CFO. But they are also don’t know how they can develop the skills to meet those expectations.

3 Ways to Develop Financial Leadership Whitepaper

Over my 25+ years consulting with entrepreneurial companies, I’ve discovered that there are really 3 ways you can get these skills.  Click here to read a white paper we recently published outlining what they are and how to decide which one is right for you.

If you want to learn more financial leadership skills, then download the free 7 Habits of Highly Effective CFOs. Find out how you can become a more valuable financial leader.

develop financial leadership

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

develop financial leadership

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