Gartner: Strategies for new CFOs to succeed in their first 100 days

The initial three months for a Chief Financial Officer (CFO) are pivotal for establishing leadership, setting priorities, and ensuring successful tenure.

According to Michelle Carlsen, Director Analyst in the Gartner Finance practice, the transition period offers opportunities to enhance the CFO's impact on the organisation. "The transition of a new CFO can lend opportunities to accelerate the CFO's success and impact the organisation, but it can also be both stressful and rewarding," she stated.

Carlsen outlined the importance of a structured onboarding process, highlighting the need for preparation, assessment, planning, action, measuring, and communication to accelerate success and organisational value. "Proper onboarding, which includes preparation, assessment, planning, acting, measuring, and communicating, will greatly accelerate success and value to the organisation," she explained.

New CFOs should initially focus on understanding the organisation, its products, customers, and the existing finance team instead of rushing into immediate action. "As new CFOs prepare, they should resist the urge toward immediate action. Instead, the focus should be on learning about the organisation, its products and customers, executive peers, and the finance function and leadership team," Carlsen advised.

Assessing the current finance function's performance and the status of key companywide initiatives is crucial for new CFOs. Carlsen emphasised a thorough examination of governance structures and finance service delivery models based on organisational goals. "New CFOs carry out a thorough assessment of the current finance function's performance and structure, enterprise performance, and initiatives," she noted.

Developing an actionable plan with both immediate and medium-term goals is vital following the assessment phase. Carlsen recommended that CFOs decide on necessary resources and collaborations to ensure successful execution. "After the assessment phase, CFOs must create an actionable plan with specific areas of focus," Carlsen stated.

Leading the finance team through the transition requires effective communication strategies. Carlsen suggested that CFOs implement both formal and informal communication plans to manage reactions to their leadership. "Once the foundational groundwork is done, CFOs need to set up and lead their team for longer-term success while also managing change," she explained.

Regular progress reviews and showcasing quick wins help maintain team morale and momentum. Carlsen advised updating plans and goals after the first three months based on acquired insights. "Finally, CFOs must regularly review progress and build on successes," she said.

These insights, according to Carlsen, are designed to help new CFOs establish a strong foundation during their first 100 days. "By following this structured roadmap, new CFOs can effectively navigate their transition, build strong relationships, and align finance goals with the broader organisational strategy," Carlsen concluded.