As I sat through a full-day board meeting of a software company it became clearer and clearer that what the directors yearn for is visibility.
They are backward looking and the challenge for the CFO of the company is to provide answers to the questions listed above using the processes in place inside the company.
These processes reveal the data that develop a coherent and concise Key Performance Indicator table.
If the data is not available then systems and processes must be upgraded or completely created from scratch.
This is not a simple task and can be very disruptive and time consuming to all involved. That’s why I make sure that I have total buy-in from the CEO, who must work alongside me to implement the changes with the respective heads of each department – accounting, sales, marketing, HR, and legal.
Everyone inside the company feels these “growing pains” and so both the CEO and CFO must excel at leadership to ensure team performance continues to be maximized.
As we continue down the road of startup finance and how to create a strong foundation upon which to scale and replicate I will take each of these topics individually and take a deep dive into what I do to find the answers.
What’s your visibility into your company’s cash liquidity, sales funnel, HR policies and legal compliance?
What does your monthly or quarterly management report look like that provides the key performance indicators with which you can make the highest quality decisions?
And which leadership strategies do you implement to drive maximum team performance during periods of high growth and rapid change?
Whatever stage you’re at in business, you need to be all over the numbers. In posts like this, we aim to offer bite-size food for thought – but in a few hundred words, we can only do so much.
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