The Importance of Culture Match for a New CFO
As a CFO joining a new company, there are a lot of expectations and pressure to deliver results. However, one aspect that often gets overlooked is the importance of having a company culture fit. Culture is a set of shared values, beliefs, and behaviors that define how things get done within the organization. An otherwise very capable and experienced CFO can fail at their objectives when joining a new company if they are not fit with that company's culture. Here's why.
Culture influences leadership and inspires change
The CFO is a key member of the leadership team and is a pivotal player in inspiring change within the organization. In a new company, the CFO must work collaboratively with a diverse group of stakeholders, including investors, the board, the CEO, employees, partners, and customers. The company culture affects how each stakeholder group will respond and engage with the CFO's vision and ideas. Knowing how to work with each stakeholder group and speak their language is crucial to gain credibility, building trust, and communicating effectively. A CFO who is not fit with the company culture may find it challenging to work with these groups and may struggle to inspire change.
Culture dictates decision-making and actions
Culture has a significant impact on the way people think and act. A company culture dictates decision-making, actions, and what is valued. A CFO who is not fit with the company culture may find it difficult to make decisions and take actions that align with the company's values and beliefs. For example, a CFO who is used to a more aggressive approach may clash with a company that values a more conservative approach.
Culture shapes employee engagement and retention
Employee engagement is critical for a company's success. Culture plays a significant role in shaping employee engagement and retention. A CFO who is not fit with the company culture may find it challenging to work with the employees and may struggle to keep them engaged and motivated. This could lead to high turnover, and in turn, can affect the company's performance.
In conclusion, while being capable and experienced is important, being a fit with the company culture is equally crucial for the success of a CFO in a new company. As a CFO, taking the time to understand and align with the company culture is key to effectively leading and inspiring change. Being mindful of the culture and building relationships with different stakeholder groups within the company will enable the CFO to be an integral part of achieving the company's objectives.
For further reading on this topic, check out this insightful article on CFO.com.