How to make an impact in your first 90 days
A framework for getting results quickly as a new finance leader
Step 1: Throw the last guy under the bus
Stepping into a new finance leadership role is both exciting and challenging. In some situations you’re working with a blank slate - the world is your oyster, for better or worse (wait, all this shit is really still in excel?)
Other times you’re inheriting a matted clump of dog hair.
In this post, we’ll explore priorities every new finance leader should focus on, drawing insights from seasoned, multi-time CFOs.
Phase 1: The First 30 Days – Listen and Learn
You’ll need to fight off the urge to step in and start ripping things apart. Contrary to popular belief, you can actually do MORE damage by moving TOO fast. Remember - even if it’s held together with shoestrings and bubble gum, that’s better than retooling your ERP’s rev rec module alone on a Saturday night.
Your listen-to-speak ratio should be very out of whack for the first 30 days.
“Your first 30 days is all about listening. You want to take notes, start to draw conclusions, but not share those conclusions too quickly or too firmly.”
— Naeem Ishaq, 3x CFO and current CFO at Checkr
With that context, your first priorities are assessing the team and understanding cash flow dynamics.
Identify Keepers: Identify the key players and begin to form an opinion on who’s a “keeper” and who isn’t.
“You need to know at the end of those 100 days who's on the bus for the journey. So that's my first priority.”
— Stephen Grist, 7x CFO and current CFO at Puzzel
And you can kill two birds with one stone here. Ask the team to explain how the tech stack is configured; ask the team about the payment dynamics with your suppliers; ask the team about assumptions in the forecast. The questions you need answers to are actually a means to evaluate the team’s competency.
Speaking of that…
Cash Management: Get an initial understanding of the cash drivers. How does money enter and leave the business? In particular, focus on payment terms and working capital.
“Understanding what are the cash drivers in any business is absolutely critical in those first 100 days.”
— Stephen Grist, 7x CFO and current CFO at Puzzel
Doesn't matter if you’re VC-backed, private equity-backed, leveraged to the gills, or Apple sitting on hundreds of billions of dollars; you need to understand where the cash is coming from.
When do you make your payroll? In Europe, they tend to run payroll only once a month, compared to semiweekly in the USA. When do you invoice your customers? And how soon should you expect them to pay? Levers start to emerge, and you can find quick wins to make them work better for you.
And, obviously, if you are in a leveraged environment, you've got to understand your covenants, and how close you are to tripping them.