Secret CFO: How to master the pivotal first 100 Days as a new CFO

For any incoming CFO the first 100 days represent a critical window to set the tone and lay the groundwork for success.

In a recent interview with The CFO, the Secret CFO, they provided advice on some of the most significant actions someone should take in their first few weeks operating as the new financial head of an organisation.

“It depends what you are walking into. I’ve done jobs where I spent the first 100 days driving short term cashflow and nothing else. But assuming a more stable starting point,” they say.

Steadying the Ship vs. Hitting the Ground Running

While some CFO transitions require an immediate triage of cash flow issues, The Secret CFO’s advice provides a framework for taking the helm of an organisation on more stable footing. Their pragmatic suggestions range from hands-on reconnaissance to carefully crafting a comprehensive strategic plan.

“Get on the shop floor of the business, if only for a few days,” they stress.  Often an overlooked first step, getting out of the office and immersing oneself in the operational core of the business provides invaluable context.

“Understand what you are inheriting. Get a detailed inventory of issues,” the Secret CFO stresses.

When a new CFO steps into their role, their first task is to perform a comprehensive and discerning analysis of the organization’s financial health and the challenges it faces. This involves a detailed examination of the financial statements, key performance indicators (KPIs), reporting processes, and internal controls to ensure that the foundation of the financial operations is solid. Additionally, it is crucial to review the capital structure, assess liquidity, and scrutinize cash flow positions to understand the financial dynamics at play.

“Listen hard. You can build strong convictions, but they must be loosely held. Especially in those early days,” the Secret CFO says.

Beyond the numbers, the incoming CFO needs to evaluate the company’s revenue streams, identify key cost drivers, and leverage profitability mechanisms. This financial scrutiny extends to auditing risk exposures, understanding tax implications, and ensuring regulatory compliance, which are fundamental to safeguarding the organization’s assets and reputation. The operational aspects of the organization also require attention, including the examination of operating models, business processes, and technological capabilities, which are essential for strategic alignment and operational efficiency.

Understanding the broader operational context is equally important. The CFO should assess the efficiency of the supply chain, logistics, and distribution networks. Workforce planning, talent management, and organizational design are critical areas that influence the company’s ability to meet its strategic goals. Identifying operational inefficiencies and quality control gaps will help in pinpointing areas that need immediate improvement.

Strategic elements also require the CFO’s focus. They should familiarize themselves with existing strategic plans, growth initiatives, and any ongoing mergers and acquisitions. Analyzing the competitive landscape, market trends, and macroeconomic factors will provide a broader perspective on the environment in which the company operates. It is also essential to evaluate management’s strategic assumptions and their decision-making processes to ensure they align with the company’s long-term objectives.

To garner a holistic view, conducting listening tours with key stakeholders—both internal and external—is invaluable. Gathering 360-degree perspectives from teams, customers, suppliers, and investors can provide insights that financial data alone cannot. Identifying the confidence levels and concerns of these stakeholders, as well as any areas of misalignment, will guide the CFO in making informed, strategic decisions. As they undertake these tasks, the CFO must remember the importance of listening attentively and remaining adaptable, as initial convictions about the company’s direction might require adjustment based on newfound insights. This approach ensures that strategic decisions are both informed and flexible, adapting to the realities of the business landscape.

A License to Create, Not Merely Inherit

The Secret CFO, the first 100 days serve as the opening act for any new financial leader to make their distinct mark. “Spend the time building your plan. And present it to the board and your team at day 100,” they say.

It’s a time for the CFO to build a detailed, actionable plan that reflects both the insights gained through their initial assessments and their personal strategic vision for the financial future of the company.

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