Managing CFO Transitions

Taking the Reins - A Study from Deloitte's CFO Program

While CFO turnover ratcheted down in 2009 to 13 percent from rates of 18 percent in 2008, we expect it to increase in 2010. Which means more and more CFOs will be managing tough transitions.¹ And tough they are. Some researchers estimate that nearly 40 percent of all executive transitions fail in the first 18 months.²

To gain an understanding of how successful CFOs navigated their transitions into their role, Deloitte’s CFO Program interviewed over 20 CFOs from varied companies, with over $167 billion in combined revenues and most with over $2 billion in revenues.

From these interviews, we learned that taking on the role of CFO, especially in a publicly traded company, is a deeply personal choice that can be joyful and exhilarating. It can also be a frustrating and sometimes career-limiting experience. In nearly all cases, however, it is an intense journey that places new and conflicting demands on personal time and relationships.

Taking the Reins: Considerations in Managing CFO Level Transitions

This report shares practices that successful CFOs have used to navigate transitions, with a special emphasis on those critical questions that need to be asked.

In contrast to many excellent books and articles on general leadership transitions, Taking the Reins focuses specifically on the CFO role, exploring three transitional phases that all CFOs encounter:

Getting to the know the business – the focus through the first ninety days
Choosing what to do – a key focus from day one through the first hundred and eight days
Making a difference – executing short and long term wins over the first two years

Across these phases, CFOs must effectively manage the golden triangle of

Time
Talent
Relationships

To learn more, including inspirational quotes, first hand stories from tenured CFOs, and examples of proven activities that have lead to their success, please download the full report,”Taking the Reins: Considerations in Managing CFO Level Transitions” below.

1 “Downtown in Turnover,“ Alix Stuart, CFO.com, February 10, 2010
2 “The Right Leader: Selecting Executives Who Fit,” by Nat Stoddard and Claire Wyckoff

As used in this document, ‘Deloitte’ means Deloitte LLP (and its subsidiaries). Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries.

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