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Finance chiefs have had a wild ride in recent years with economic upheaval, geopolitical tensions and game-changing technological advancements contributing to a widespread sense of uncertainty. Expectations of the CFO role are also evolving. And while it’s tough to predict how their next year will play out, their first 100 days in the job can help them navigate future challenges and lay the foundations for success.

The first few months are crucial for CFOs. It’s a time to build relationships, gauge cultural nuance, assess business performance, listen, learn and challenge convention.

They may have been appointed for specific strengths that will help shape their early agenda – perhaps they bring capital-raising experience to a fast-growing company or specialised skills to steer a struggling business back to a profitable state – but the most successful finance leaders also prioritise a core set of tasks.

Laying the groundwork

Michelle Carlsen, director, analyst in the finance practice of Gartner in the US and co-author of Gartner research paper The Chief Financial Officer’s First 100 Days, says formal onboarding for senior executives is surprisingly rare.

“As a result, it’s important that CFOs spend time in the early months assessing the lay of the land they’re operating in and this tends to span far beyond finance,” she says.

Strong relationships are vital in laying the groundwork, says Nathan Thomas FCA, founder of recruitment firm Thomas Executive and a former CFO himself.

“The most important relationship for them to build is with the CEO, to help them understand their priorities and get across the strategy,” he says. “From there, they start building out the relationships with the leadership team, such as the chief technology officer and the chief people officer, so they can begin to understand different issues within the business, the pain points of various departments, plus the pain points they may have with the finance function.”

Getting to know their finance team is also a priority. An early assessment of team-member capability and performance helps CFOs identify skills gaps and build the team they’ll need.

“I would always meet with everyone in the finance team in the first two weeks and ask them, ‘If you were in my role, what would you be changing right now and what do you see as important?’,” says Thomas. “Your team knows more about the business than you at this point.”

Assessing performance

Successful CFOs also use their first 100 days to build an understanding of the metrics that drive business value, but should avoid getting stuck in the details.

“A trap for new CFOs is to just focus on the finances and the compliance,” says Thomas. “While this is important, they also need to step back and ask, ‘How do we make our money? What are the critical things I need to look at?’. This could include cost per acquisition, customer churn rates or revenue per customer.”

Ross Buckley FCA, chair of Institute of Directors in New Zealand, says successful CFOs don’t spend their first few months at their desk.

“They get out of the office,” he says. “This might involve customer visits, talking to suppliers, bankers, regulators, auditors and stakeholders, so they get a broader handle on the business and its performance, and so they are visible from the start.”

Buckley’s directorships also include the board of ASB Bank, Investore Property Limited and Stride Property Group, and he chairs several audit and risk committees. He says boards generally expect CFOs to engage in strategic planning within their first 100 days.

“They need to be assessing the performance of the business, while coming in with fresh eyes and questioning the status quo,” he says. “While KPIs should be regularly refined, it’s valuable when a new CFO questions their effectiveness and challenges capital allocation.”

“Sometimes, they assume that what they’ve done before is going to work in the future but that’s something successful CFOs avoid. They tend to be humble and realise that because they’ve nailed something in the past, it doesn’t mean their next role will be an easy lift.”

Hatching a plan

Once the groundwork is laid and business performance is assessed, successful CFOs develop a plan of action that aligns with the broader business strategy.

Jason Collins CA, partner, CFO advisory at KPMG Australia, says that in the first 100 days this plan generally involves identifying short- to medium-term enhancements. For example, they may seek to integrate operational and financial systems, extend financial forecasting beyond two years or contribute to a growth agenda through margin management.

“Any new executive is hired to bring in fresh thinking, new ideas and better practices, drawing on their past experience and track record for the benefit of their new employer,” he says. “Landing into the new role and being just a caretaker for what’s already there will ensure a short tenure, but change must be well-informed and incremental.”

Carlsen agrees that while successful CFOs show progress in their first few months, they typically avoid making wholesale changes.

“The acumen of finance is not a challenge for CFOs but understanding the dynamics of the environment they’re working in takes time and needs to be prioritised before they jump to making huge changes,” she says. “They need to pause, take a deep breath, soak everything in. Sometimes, they assume that what they’ve done before is going to work in the future but that’s something successful CFOs avoid. They tend to be humble and realise that because they’ve nailed something in the past, it doesn’t mean their next role will be an easy lift.”

CFOs require a long-term mindset and Buckley recommends they undertake a career planning session within their first few months.

“This helps them plan what they want to achieve, and to identify the potential opportunities and challenges that come with the role,” he says. “It requires consulting with the CEO, directors and other stakeholders.”

Thomas adds that it’s vital for a new CFO to value their time and set boundaries early in their tenure. “Other people in the business can hijack your agenda and your to-do list,” he says. “While you need to be responsive and respectful, particularly of the CEO, you need to stick to your core responsibilities.

“There’s a lot to take in, but successful CFOs avoid getting overloaded in their first 100 days.”

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10 critical CFO tasks for the first 100 days

1. Build relationships with the CEO and leadership team

This ensures you are clear on the priorities for the business and the finance function, and helps foster trust, mutual respect and open communication.

2. Understand business KPIs and the current state

Gauge strategic goals, objectives and financial expectations, and review information like the latest financial statements, quality of earnings reports and return on capital.

3. Get across cash flow and assess risk

This includes understanding banking facilities and speaking to the legal department for clarification.

4. Assess the finance team

Meet all team members, assess their capabilities and ensure you have a team with the appropriate skills.

5. Meet with relevant stakeholders

This may include auditors, the chair of the audit and risk committee, bankers, insurance brokers, suppliers, customers and key investors.

6. Perform due diligence

Review the internal controls against invoice fraud, check general ledger reconciliation processes, and assess payroll and superannuation/KiwiSaver obligations to ensure compliance.

7. Assess IT infrastructure and investment

Gain an understanding of the business’s technology roadmap, join relevant steering committees and evaluate digital transformation opportunities, costs and benefits.

8. Understand governance, risk and compliance

This includes reading the last 12 months of board papers to understand strategic priorities, risk appetite and recurring issues.

9. Engage in scenario planning

Seek to anticipate risk and model the financial impact.

10. Listen and learn

To help cement your credibility, avoid suggesting transformative change until you have a thorough understanding of the business.

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Take away

CA Library carries the CFO’s leadership playbook ebook – Reimagine Finance: The CFO’s Leadership Playbook for the Age of AI, Data, and Digital.