Changing role of the CFO through COVID-19 and beyond

Saras Seth, a career interim of several years, joined Prince’s Trust as Interim Chief Finance Officer earlier this year and has since joined permanently. I recently caught up with him to discuss his experiences of leading as a CFO through lockdown and how the priorities within his role changed during this time.

How did you feel about going into lockdown not long into your new role?

It was as a challenge; I was a new member of the team but as the CFO I was central to most of the decisions being made within the organisation at this time. I had to learn how the organisation worked very quickly. As an experienced interim, I quickly assimilated what needed to be done. I had a similar experience four years ago whilst I was at the BBC. At the time, we had no offices for three-four months, and I had to manage the whole team remotely. Being an interim did not affect how I behaved, you look at what needs to be achieved and endeavour to get it done, no matter what.

How has your role at Prince’s Trust been able to respond to the pandemic and beyond?

Currently the main objective for any CFO is to preserve cash. In the current climate the finance professionals have become the most important cog in the wheel, and they drive the organisation forward whilst also adopting a defensive/ survival mode.  Most CFOs will have this skillset and you find yourself almost taking control of the ship, providing guidance inside and outside of the organisation. You find yourself running lots of scenarios and numbers and what the hypothesis are, updating the board and the team constantly. The role becomes critical as it is the only one that can present what might happen in the future.

We discussed the CFO role being the driver for change within organisations. How would you describe your leadership style and how have you motivated your teams during this change journey?

Interestingly, during the pandemic there have been far fewer staff for the business to manage due to furlough. All organisations have their own DNA, processes, and momentum but with fewer people you find yourself trying to navigate a business which is becoming leaner. You make structural changes within the organisation and learn how to operate with less staff.  Staying positive is important and to succeed over this period, you must simplify things. At the Trust we looked at what adds value and focused on that. Being clear with the team on what you expect to be achieved and give realistic timelines.  It feels more prescriptive (due to remote working) and there is more clarity and centralisation. To keep the organisation engaged, you must know what you need to stop or continue doing to keep the business on track.

How do you think your role might be changing as we emerge from the pandemic? 

The role of a CFO will be challenging for the next three to five years. The challenges that will be in place for this role will be one of constant evolution. Mapping forward as far as possible but not committing too far forward in a hard sense. There will be more scrutiny and focus on the delivery of our services and to navigate the future you will need to be as agile and as nimble as possible. Organisations will start to centralise a lot of their processes and then outsource to reduce committed costs. 

What changes do you see for finance more generally as we look to the future?

There will be a bigger focus on governance and oversight by the Trustees. It will cover GDPR, risk, forecasting and safeguarding. There will be an increase in scrutiny from the board and specifically the Treasurer in this current environment. My current challenge right now is governance, forecasting, asset management and commerciality.

Give us your insight into what positive changes have occurred due to COVID?

We have found ways of stopping doing things which were not adding value and have focused on the tasks that pay dividends. One of the insights we have had at the Trust is that remaining teams have become focussed more on core processes and Charities will have to find a balance between the value add they require and the amount of resources they want to commit to things ; we may find that many Charities are over-resourced as delivery models change.

What has been the biggest challenge?

Trying to improve processes and quality of insight whilst working remotely.  It has been challenging trying to relay information virtually through technology. Working on projects remotely without excellent collaborative digital tools has been difficult.

What have you learned about yourself in lockdown? 

I have found out I am not a big fan of working from home and I have learned that the work/life balance line has become exceedingly blurred!

What will be your next priorities at the Trust? 

My next focus will be on the improving the quality of information. 

 

If you would like to discuss this is more detail please contact yomi.johnston@starfishsearch.com

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Positive Action Vs Positive Discrimination

One of the first questions I am asked when discussing a recruitment campaign is ‘can you guarantee a diverse shortlist?’ To answer anything other than ‘we will do everything we can but there are no guarantees’ might be disingenuous; nevertheless, it’s hugely frustrating for councils to hear.

It is inevitable that selection panels will be disappointed with homogeneous shortlists. Countless studies have for years confirmed that genuinely diverse workforces are more creative, innovative, and produce better decisions. They also have a deeper understanding of their customers and audiences. We know that councils are persistently under the spotlight as organisations who should be getting this right.

The Black Lives Matter movement has shone a brighter light on social inequality and diversity and will be a powerful catalyst for change. For now, however, we can achieve progress together through the choices we make locally. Doing this properly means gaining clarity on some basic principles.

First, what is positive discrimination? An employer falls foul if they appoint or seek to appoint an individual based purely on a protected characteristic rather than experience or qualifications. Protected characteristics include race, gender, age, disability, religion, and sexual orientation.

It is illegal under the Equality Act 2010 to set quotas to recruit or promote a specific number of people with a protected characteristic. There are of course some occupational exceptions e.g. a women’s refuge can apply a requirement for its staff to be women.

Second, what is positive action? Positive action became legal in 2011 and comes into play when an organisation is deciding between candidates who are equally qualified. In this situation, an employer can choose to appoint an individual from an underrepresented group if they are as qualified and fit for the role as the other candidates.

Positive action can also include employers taking measures to address issues within their organisations to support employees with a protected characteristic to overcome disadvantage and discrimination.

In an effort to leave unsuccessful diversity recruitment strategies behind, many organisations are now implementing targeted development programmes for existing staff. These can be very effective in progressing fourth and fifth tier managers whilst enhancing the reputation of your organisation. Councils need not work in isolation; you could partner and work within regional clusters to develop talent and OD programmes that extend opportunity and choice for our future leaders.

As experienced recruiters we are already playing a valuable role in enhancing diversity in different sectors. Coaching and guidance on navigating unfamiliar recruitment processes is a small part of the puzzle but has enormous impact in helping to fulfil potential. 

To find out more contact penny.ransley@starfishsearch.com

 

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2020 and the rise of the wholehearted Board

The longerterm implications on boards of 2020 will not only affect the way they operate in future, but also how they are built and how they are led. Both the Covid-19 crisis and the Black Lives Matter movement have shone a light brightly on some longstanding issues that many suspected were already there. The transition from the pandemic now forces positive change and growth. While governance structures, and trustee selection and utilisation, are ripe for review, for some boards the events of 2020 have already led to a much more fundamental look at the board’s role and capability. Here, thedevelopment of those teams is perhaps based on a realisation that experience and skills alone are not enough to govern well. Instead, resilient, sustainable boards require people who bring their whole selves to the board room to participate: diversity in its truest sense.   

 

Perhaps the four biggest questions boards are now asking themselves are: 

  1. Are we still relevant? Even for boards that have previously championed inclusion and diversity, this remains a massive question. In order to govern their organisations effectively, and to have rich and rounded debate, boards must be able to reflect the experiences and perspectives of their audiences and client groups. Inclusive and balanced boards with diversity that reaches through and beyond the most talked about or visible protected characteristics is essential. Painting by numbers on a board is not enough: boards that move with confidence into the future will be diverse in a three-dimensional way – their background, their experiences and their engagement. They will be supported by a board culture that sets the conditions for true diversity to flourish and reach its potential in terms of creativity, insight, ‘connectedness’ and challenge power.
  2. Are we still talking about the right things? One of the mistakes many boards make lies in forgetting to take a step back and review whether they too need to change in line with the executive they are overseeing. Executive leaders are looking to their boards more than ever before to support them in navigating uncertainty, and to help them innovate and seize opportunity in a challenging transition phase. Boards are exposed and their organisations vulnerable if they are unable to provide the right gauge of leadership at the right moment. Boards that have come through Covid successfully have been adaptable as a team and as individuals, able to assess quickly the implications of environmental factors on service users and audiences, and have had the visibility they need across huge swathes of the operating environment to make connections.
  3. What does this mean for our people? Boards are rightly asking themselves whether they are still equipped with the right skills, experiences and perspectives. Plans for board succession may now change radically, or be further defined in a way that takes a broader range of qualities, values and attributes into account. Subject matter expertise,capacity to support and scrutinise in key areas (such as data or legal, people and finance) and leverage and influence will still be valued by boards to a greater or lesser degree. However, the broader life experiences that have until now been viewed as somehow separate to professional value will gain in importance, with the rise of a new and more rounded view of what it means to be an effective board member.
  4. Who are we choosing to walk forward with? A time of crisis, of review and then of consolidation will emphasise the importance of friendships and alliances. This is a time to think laterally about those partnerships that will count in delivering impact. There is no doubt that the events of 2020 have been a catalyst for new conversations; while competition for resource will intensify, there is a major opportunity to break down unhelpful barriers between organisations where they share common goals. Now is the time when finding willing partners and embracing innovation and creativity together can be more valuable than ever – and more fulfilling. 


W
hile pre-2020 many boards have looked great on paper and felt good in practice, there is now an unrivalled opportunity to move to a new way of being. After all, a year of tough decisions, of unprecedented demand on time and potential, must mean something positive in the end. It is precisely this challenge that the spirit of many trustees and their chairs was always meant for. 

 

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How to hire great finance leaders through economic uncertainty

It seems that almost every TV and radio advertisement is using the slogan “now more than ever” at the moment.  Now more than ever, we should be shopping at Aldi.  Now more than ever, we should be dying our grey roots…  Well, now more than ever, organisations need to think hard about how they can recruit the very best finance leaders.  

The role of Finance Director or Chief Financial Officer is not only an essential part of a charity’s mitigation of negative risk; great FDs are trusted partners to the Board and Senior Management Team as they assess the healthy risks required to capitalise on new opportunities in a challenging market.  Below are our observations on how charities can hire the very best talent first time.

The evolution of the Finance Director across the Social Sector over the past decade has empowered and enabled finance leaders to operate in a genuinely advisory capacity at the heart of decision making.  Only by having a great finance leader can an organisation really achieve its ambitions in an intelligent, well-managed and sustainable way. Do not be afraid of taking appropriate risks when hiring any great leader; be sure to challenge your own thinking and perceptions when you meet an impressive candidate who does not 100% meet your initial brief.  Not only will lateral thinking open up the doors to a wider and more diverse talent pool, it will probably also get you and your Board thinking differently too.

Starfish Search provides senior executive search and interim management services to create strong and diverse leadership teams. Our focus is on developing effective leadership by enabling people to fulfil their potential. We promote individuals from all backgrounds and want new leaders to be encouraged to enter the frame. As trusted partners, we provide balanced, thoughtful recruitment advice based on intelligence and insight and ask the difficult questions that help clients appoint the best, not the predictable.

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Senior recruitment in the social sector: what to expect

As we emerge from the crisis phase of the COVID-19 pandemic, organisations are once again starting to think about the future. 

For many, May and June 2020 will present the first opportunity to take stock and assess the impact of the coronavirus response, while starting to plan different scenarios for the remainder of the year. For others, the remaining Spring months offer the opportunity to progress recruitment to critical roles that was originally planned for February and March. 

We have continued to support our clients throughout the lockdown period. Our three key messages for organisations who are considering recruitment to non-executive, Director and CEO appointments in the months of May, June and July are:

If you are a talented executive director looking for your first CEO job, this is your moment. CEO appointments in mainstream sectors or subject areas are still attracting a strong response. Expect to see fewer serving CEOs in the field; unless these candidates had planned a move for themselves in 2020 and were already open-minded to it, they may be less likely to engage with the idea of a move at the moment. 

Many leaders we have spoken to feel a duty to their current Board and are loyal to their teams. With fewer experienced competitors in the field, this is the time for talented executive directors to shine. If your organisation is open to a first-time CEO, you may have exceptional choice.

Expect higher numbers of applicants for senior executive roles. Although it is still too early for many organisations to count the true cost of COVID-19, uncertainty and nervousness within the workforce is nonetheless reflected in significantly higher applicant numbers. 

If you are advertising a role that has a mainstream role title, expect to receive a higher than normal level of interest. It is likely that this response will be drawn from a variety of sectors. 

While this may sound appealing to those seeking a cost-effective approach to recruitment, beware: within the higher numbers, we have experienced a much higher volume of candidates who have not given consideration to the organisation or context. 

While overall numbers are up, focused search is still producing the top contenders for jobs; effective and thorough screening is also essential. We anticipate further increases as we enter the Summer period, once it becomes clear that organisations are unable to continue employing the same numbers of staff.  

Searches for particular Chair and Board member appointments will take longer to complete. Overall, the market of suitable and available non-executives has contracted. This is because high calibre applicants who are already serving on boards are now being asked to increase their time commitment significantly, in order to help those organisations through the transition phase. For many, this will make it impossible to commit to a new role for the time being.  

The lockdown period has presented an unrivalled opportunity to access very senior people without the usual structure and boundaries of the working week. Paid non-executive Chair posts are continuing to attract a good response, subject to the usual considerations (financial health of the organisation, reputation and strategic priorities). 

Voluntary chair roles where the organisation is funded through contracts, membership or another comparatively stable source, are also continuing to attract high quality applicants in smaller numbers. 

All Chair candidates are taking their time to carry out additional due diligence and may require greater access to detailed information. Mainstream charities with a historical reliance on fundraising, for example, may appear to present a more mixed opportunity, especially while the impact on future income is yet to be understood. For this reason, our role as advisers and brokers on these appointments has become more fundamental. 

….

All organisations will need effective leadership and governance if they are to transition successfully out of the current period. They must have the right skills, experiences and perspectives at the top to make confident choices about the ‘new normal’, and to begin the process of planning for a new future. 

These appointments continue to require outstanding people with the vision, commitment and tenacity needed to take organisations, and possibly parts of the sector, forward. While current conditions mean there may be additional questions for candidates to ask, these roles remain outstanding opportunities to restore, revive, and deliver positive change for good.   

Towards the future: why professional interim managers have a role to play in the post COVID-19 transition period

The crisis phase of the COVID-19 pandemic has continued to evolve at an unprecedented pace. But while those charged with leading and governing organisations – across all sectors – remain focused on steadying the ship, the last week marks a sizeable shift in thinking and attitude. In particular, the many leaders we have stayed in touch with during this period – wherever they are working – have now started to look ahead. 

Few will tell you that they have the answers. Like most of us, they have been listening to an increasing number of influential voices, each busy painting a picture of what our lives may look like as we come out of the biggest global health crisis of our lifetimes. From these varied sources, we are all starting to shape our own view, and piece together our own emerging picture of what the future could hold post lockdown and, longer term, post coronavirus. 

Even in such unprecedented times – and very likely precisely because of them – effective leadership depends on practical, real world solutions. For many organisations, continued uncertainty and ambiguity will delay long term commitments. However, the skills of interim managers – especially in handling change and transformation, and in sense-making from chaos – will make these professionals a fundamental part of the senior transition team.

Here are our top six observations on how best to source and utilise the best interim talent:

1.As we emerge from crisis management to business continuity, organisations are likely to find internal capacity is limited and look to appoint strategic advisors on a short-term basis, for example in areas such as workforce planning or financial modelling.

2.A recent YouGov poll commissioned by the RSA( https://flo.uri.sh/story/262445/embed#slide-0) showed that fewer than 10% of people want a complete return to normal after lockdown is lifted and organisations will already be thinking about their future delivery models and the impact on their workforce. Even though people feel confined by lockdown, most have valued the time at home and agile working. Digital capacity within organisations was mobilised at lightning speed and will likely go further.  As organisations build capacity and seek investment in technologies to enable more remote working, we expect to see a spike in requirements for interims with experience of digital transformation and innovation.

3.Organisations will be starting to onboard employees virtually; this will continue and can be utilised for Interim hires. Interims have proven track records in their fields and can be relied upon to deliver on objectives set even in a virtual environment.

4.The future of some organisations is already uncertain. We are expecting to see more collaboration (including mergers) between similar organisations to survive; this puts added strain on stretched workforces. We work with many Interims who have specific talents around Mergers and Acquisitions, Restructuring, Organisational Design. Strategic intervention at this time could add significant value. You may not have the expertise internally and acting quickly will pay dividends. External interim leaders can make tough decisions without fear of fallout from the organisation.

5.The environment we are working in now is unchartered territory especially for CEOs – consider hiring Interim expertise at CEO level, Interim Managers can empower you to make the best strategic decisions for your organisation. 

6. You may have gaps on your leadership team and a weakened infrastructure at this time means more work for the CEO – Interim Managers can help fill these gaps and give extra capacity to executive teams.

The interim market is strong. Outstanding experienced leaders can be accessed quickly and cost effectively by any organisation looking for remedial or specialist support. Like everyone else, people who have chosen to invest in an interim leadership career are keen to add value and expertise to organisations in these changing times. Many are uniquely equipped to join senior teams at short notice and provide essential support with their trademark resilience. As we move deeper into the stocktaking and transition phases of the COVID-19 response, we would encourage organisations to think laterally about the solutions they may need, and to consider the benefits that this community can offer.

Can you really hire to roles in the Social Sector in such difficult times?

The last few weeks have seen more dramatic change and upheaval than many of us have experienced in our lifetimes, with limitless different personal and organisational reactions to the covid-19 situation as it has continued to unfold. Despite everything, organisations still need leaders who can help strengthen their response to the crisis, and transition out of it, whether new Board members, interim or permanent staff. 

We have been asked the question about when and if it is worth recruiting at the present time. Starfish Search has remained available to support the Sector during this period and our advice to those leading organisations, based on our own experience, recognises the unprecedented times we are in. Here are our top five observations:

  1. While organisations choose to respond one way or another, response to this situation is personal. As one client put it, when deciding whether to continue hiring in such a fast moving situation “this is both everything and nothing”. The nature of this particular stage of the crisis, and lack of precedent for it, has elicited the widest range of personal responses and about as many shifts in perspective and priority. The most challenging aspect of searching in these conditions is the requirement to connect with people at a time when there are so many different reactions, and before people can really see the light at the end of the tunnel. It can be hard to anticipate and takes skill, sensitivity and time.     
  1. Messaging needs careful thought. While we have been searching throughout this period, the style of engagement we have used has been different. Searches at the moment need to be framed in the current context, highlighting the hiring organisation’s role and position. A strong focus on delivering outcomes for the organisation and those who depend on it, rather than the ‘process’ of recruitment, is helpful along with clear and honest messaging. 
  1. Professionalism will mean loyalty for many. Accepting and respecting values is everything when hiring at this precise moment. For some CEOs and Directors, it is not the right time to consider a move although many will happily start the conversation and forge links. Those who had planned to make a move this year, pre coronavirus, are engaging well and searches are moving because of them. Those who can see how their organisations may transition out of it are also engaging, although it may feel like early days. The real test lies in the ability to secure commitment from top candidates. Many feel a strong sense of duty to their current organisations and teams. When leaders have been furloughing staff, they are naturally concerned about the ethics and optics of recruiting at the same time. But again, the situation is moving quickly.
  1. Time and access is on our side. Longer timescales are giving people the mental space they need to consider a new opportunity properly and at a pace they can manage as they lead organisations while juggling work and home lives. Technology – such as Zoom – has made it easy to engage with people meaningfully despite social distancing measures. In some instances, engaging with people outside of the confines of a traditional office environment have made for a richer connection, and of course, we are all expecting the practices of old to change for good. As ever, flexibility in the process is helpful. Levels of accessibility at the moment are exceptional making this a productive time to hold conversations with people about their current experience and pressures, along with their plans for the future.   
  1. Proceed with non-executive search. Levels of availability, combined with the emphasis on good governance and stewardship to steer the course make this a good time to search for non-executives. Bear in mind that highly effective non-executives with existing board appointments may be in increasing demand by their current boards as the impact the coronavirus crisis starts to become clear, and the route out of it. Some non-executives may find that, after all, they are not in a position to consider taking on something new. For them, this is not just about the period of lockdown, but about being there to support the longer term future of their organisations.

Many organisations are holding off making decisions about hiring now for obvious reasons – they are still in crisis mode, are experiencing major financial and broader uncertainty, or are simply not yet in a position to prioritise particular posts. But it is, for many, a question of time; as the situation evolves, organisations and the sector at large will begin the process of transition. We will all have a role to play in shaping the ‘new normal’ and building the future together.

However, others will need to and want to proceed with recruitment for key roles at the present time and there is no need not to, so long as the process remains sensitive to the circumstances. Flexibility is key. Some searches will move slower than others depending on the role or even the prevailing values within that community. But all search can succeed with sound and realistic planning and an authentic focus on engagement and connection.

Embracing transparency

Earlier this year we held a client round table event under Chatham House Rule to discuss the topic: ‘If transparency builds trust, what’s stopping us from embracing it?’ 15 charity CEOs and Industry leaders joined us. Thanks to 11 London and Trust Impact for partnering on this event  and Kate Lee, CEO of Clic Sargent for giving such an insightful and honest appraisal of how transparency around impact reporting has created positive change both internally and externally at Clic.

In an age of misinformation, trust and transparency hold powerful currency. But in the non-profit sector, the fear of speaking honestly about failures is still holding many leaders back. Are they right to be afraid, or should they take the plunge and issue a ‘warts and all’ impact report?

Last week, 11 London teamed up with non-profit experts Starfish and Trust Impact to hold a breakfast event with 15 charity CEOs and industry leaders, hosted by broadcaster Liz Barclay, where we discussed how speaking honestly about failure can build trust. Here are 11 key insights from our debate about why it’s good to be transparent – and how to go about it:

WHY:

#1: Being honest about your failures means people believe your success stories: one charity that saw an uplift in major donations was told: ‘Because of the honesty, I believed everything else’. 

#2: Transparency also builds engagement: your donors and beneficiaries will feel included in your challenges (as they should), rather than sold to. 

#3: Honesty can win awards as well as hearts – as Clic Sargent’s ‘Hands up, we’re not perfect’ annual review proved.

#4:  The cultural pressure that ‘this must work’ can freeze things up.  Conversely: ‘Transparency has improved our internal culture. Because people have permission to fail, they’re trialling stuff.’

#5: Integrity is important to a new generation of job candidates – a transparent organisation attracts a bigger, better pool to recruit from.

HOW:

#6: You can’t start being open with the outside world if your own team don’t feel they can admit their failures. So grow a culture of transparency within your organisation first.

#7: Build psychological safety in your team. By giving people permission to fail, and ensuring that ‘failure’ isn’t seen as personal, you also empower them to learn.

#8: Your donors and beneficiaries are part of your team, so talk to them as though they are – you could even ask service users to write your review!

#9: Honesty provides a real opportunity to educate people about how complicated your work is – so don’t be afraid to be complex with some audiences.

#10: Thank your team members personally for being honest – one CEO recommends a handwritten letter.

AND FINALLY…

#11: If you’ve already aired your dirty laundry, no one else can wave it around. One CEO was told by a journalist: ‘I couldn’t find anything out you hadn’t already said.’

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