“Write down a change you would like to make in an organization that you are currently with…or change in the marketplace. Any kind. It can be a big change, it could be a small change – strategic, tactical, something you want people to start doing, something you want people to stop doing,” says Jeff Leitner as he looks around a room filled with CEOs, CFOs, CIOs, and other C-Suite executives at this year’s InterimExecs’ RED Team meeting. He continues “You’re change is absolutely, almost certainly going to fail. It’s not your fault. It has nothing to do with your particular genius – has nothing to do with your insights. Changes fail. They almost always fail.”
Jeff Leitner knows a thing or two about change and innovation. He spent the last 20 years improving organizations from the US State Department to NASA, Starbucks, Panera, and the Dalai Lama Center for Peace. In a world where innovation and disruption is key, the question is why does change rarely stick in organizations, markets, and society? Jeff has dedicated years to studying why change fails and in his most recent speaking circuit, issharing what leaders can do to be more effective in leading change initiatives.
In the tsunami of digital transformation, it has dawned on boards that disruptive technologies pose not only a great opportunity, but also bring inherent risks. New technologies bring great promise to help businesses grow, improve efficiencies, and seize new markets. On the other hand, when an organization decides to embrace new technologies, they will come face-to-face with new business models and regulations that are unlike what they have ever seen before.
Boards may not be fully equipped to face the onslaught and speed at which new technologies are infiltrating the business sector. In fact, according to the 2018–2019 NACD Private Company Governance Survey, 80% of directors say that boards need to expand their knowledge of the challenges and risks of emerging technologies.
Many nonprofit organizations and foundations struggle with limited capacity and do not have the luxury of time or surplus of funding to reflect on how each task at hand contributes to their overall strategy. Nonprofit employees and board members can be overwhelmed by day-to-day activities, making it a challenge to take an introspective step back and improve strategic management.
Unfortunately, this puts up blinders as to where holes exist in their systems and plans. This can also lead to problems in accountability, a weak strategic plan, not to mention the staff stretched thin.
Nonprofit organizations typically are faced with several business challenges from inefficiencies in operations and deficiencies in program planning. Other issues nonprofits face are limited resources, and aligning their culture with clear, measurable business goals.
The United States continues to outpace other countries on projected spending — both in public and private healthcare — with a grand total of $5.7 trillion projected from 2017 to 2026. Yet with nearly double the spending compared to similar countries, the positive health outcomes are worse in the United States.
Healthcare organizations who want to stay competitive must deliver positive outcomes while running a sustainable, profitable business. Many healthcare providers are now opting to outsource the expertise of interim Chief Financial Officers (CFO) to steer them toward a healthy financial future.
“How many businesses find their data to be a complete mess?” Christie Kelly, former CFO of JLL Real Estate questioned as she and a panel of high-profile CFOs discussed the changing landscape for financial leaders at an event held by the National Association of Corporate Directors.
In today’s world every business now seems to be in the game of being a technology business. That means that a new importance is placed on data, especially for CFOs.
“How do we transition to turn it (data) into insights, and how does that change finance to have more technology, process, and Six Sigma?” Kelly said.
The role of the CFO has evolved, due to the accelerated pace of the digital age. How? A strategic CFO drives transformational change. A CFO must not only understand a business from start to finish to provide financial excellence, but also must predict what is coming from a strategic standpoint and be ready to evolve.
There’s no question that the number of family offices is on the rise. A recent study by Campden Researchrevealed that there are over 5,300 family offices worldwide. About 2,200 of the family offices are in North America. About 67% of family offices that exist today were established after 2000.
There aren’t hard and fast rules on what amodern-day family officelooks like. A single family office typically has over $150 million in private wealth and is one family. In recent years, multi-family offices have increased. In multi-family offices, families — related or not — have shared interests, investment goals, infrastructure needs, or operational requirements. By coming together, they save resources. This way family offices can focus more energy on portfolio growth and increasing net profit margins.
Over the past decade, the way family offices invest has evolved. In the past, family offices stayed in their comfort zone, by acquiring operating businesses in their business sector.
It’s not uncommon for private equity portfolio companies to double or even triple growth thanks to merger or acquisition. Albeit positive, rapid growth brings new operational challenges that can stop the upward momentum in its tracks. Interim executives bring the expertise needed to enable growth on a massive scale.
“Sometimes a business will start with $40 million in sales, and through acquisition will be two or three times that size. Often that creates an environment where you need to add to the management team, whether that be the CFO or the CEO,” said Forest Wester, a Partner at Trivest Partners that leverages interim executives to enable growth.
Private equity funds use interim executives in a variety of scenarios. However, these scenarios are typically problems that need to be solved such as the abrupt departure of a CEO.
More than ever, a consistent brand that customers trust is critical to business growth. Whether product or service-based, B2B or B2C, local or global-focused, a strong brand with a great reputation is what enables a company to expand successfully.
Behind every powerful brand, stands an innovative Chief Marketing Officer. An experienced CMO can strategically plan and scale marketing plans during periods of business growth.
But not all companies can afford to hire a full-time CMO on a permanent basis. Many startups and midmarket companies reach a tipping point where they either expand or stagnate. All too often, the rate of business expansion they want to achieve outpaces their available operational resources and time.
Interim management has arrived, and it only took 50 years, from a specialty that started in the Netherlands and moved slowly around the world. And its first and best incarnation is the interim CFO.
A good Chief Financial Officer will help a business catapult to the next stage of growth. Whether public, private or private equity backed, a CFO leads and implements strategy that ultimately creates value for shareholders, increasing EBITDA and cash flow. The means to get there may look different for each organization, but companies choose to bring in an Interim CFO because they are looking for transformation:
Operational Improvement and Strategic Planning
An Interim CFO will streamline accounting and financial reporting, helping owners, board members, investors and the management team get a clear look into the state of the business.
Let’s face it: an Interim Chief Information Officer has to be of instant value to an organization. A top interim CIO can take on any technically-challenging project that would be assigned to the permanent CIO, though they usually have a focus on bringing change and transformation to an organization.
While some Interim CIOs may be brought in to perform initial work such as a technology audit — a fast way to assess if an organization is optimally set up from an infrastructure perspective — in many other cases the need for an Interim CIO is driven by a specific project or initiative:
Business and ERP System Implementation >
When a company wants to automate process or functions from finance to accounting to supply chain and customer relationships,
First-year Change Agent members have access to the Interim Institute’s 4 hour audio program on the Fundamentals of Interim Management, and a one-hour strategy session to help jumpstart their interim career.
*$200 additional charge for Accelerator Program only applies for first-year members. After the first year, membership renews at $485/year.