We’ve been looking closely at how a virtual CFO can help CEOs cope with many of the challenges they face. So far, we’ve explored how a vCFO can help your company navigate change, plan for growth, and retain top talent. Now let’s take a closer look at another pressing issue: How to develop an effective management team or train the next generation of leaders at your company.
A virtual CFO can offer insight and guidance as you navigate leadership transitions or look for candidates who have leadership potential. They can help you create an organization-wide management training program or help you determine if an outside hire is the way to go.
It Starts With the Right Hires
You know that you and your current management team won’t be with the company forever. You might want to step down or retire as CEO at some point. The other members of the executive team are likely to want to do the same. While it can be beneficial to hire externally when you want to bring on new managers and executives, it can often be more cost-effective to hire people who show leadership potential even when they are in non-leadership or non-managerial roles.
Not everyone you hire will stay with your company long enough to move into a leadership role, but it’s still important to look for the qualities of a great future manager when you interview candidates. During the interview, dig deeper when asking candidates questions. Don’t just find out about their hard skills, also ask them about their goals and visions.
It’s also worthwhile to find out if a candidate is interested in a leadership position down the line and how they feel about company loyalty. Your vCFO can work with you through the hiring process, helping you find and choose the candidates who offer the greatest potential for your business’s future growth and success.
Develop a Training Program
Few people are born with management skills fully formed. While some people might have more innate leadership qualities than others, everyone could use a bit of training and polishing. A leadership program helps you train the next generation of company managers and executives. The program can teach them the skills they need to succeed in a management role while ensuring that your company has a roster of potential new leaders ready to go.
A virtual CFO can help you develop a program that accomplishes your goals and that trains employees to be leaders who want to ensure the business grows and thrives in the long term.
In addition to a training program that teaches employees how to be effective managers, it’s a good idea to develop a mentorship program. The program can be formal, where you pair current executives or managers with junior team members. It can also be informal, such as letting your team know that your door is open and you’re there to listen to feedback, comments, and ideas.
Don’t Be Afraid to Make External Hires
It could be the case that a member of your current management team is ready to move on, either into a higher-level role, retirement, or to another company. You might not have anyone lined up from the company to fill their shoes.
In that situation, making an external hire is the way to go. A well-connected vCFO can guide you through the hiring process, potentially introducing you to viable candidates or helping you narrow down the qualities you’re looking for in a new manager.
Hiring externally can be a controversial decision, especially if your business has established a management training program. Your vCFO can help you navigate the process, ensuring that there are minimal hurt feelings among your current team members and helping the new hire fit in with your company’s culture as smoothly as possible.
You want your business to continue on, long after you’ve stepped down and the other managers have moved on. The vCFOs at New Direction Capital can support you as your train the future generation of executives and managers. To learn more, contact us today.
How to Solve Challenges With a CFO Part 3: Retain Top Talent