Hiring for cultural fit
By the time a candidate reaches CFO level, the technical skills are a given. Candidates we put forward for a CFO role will always meet the technical needs of the job. We believe the key to recruiting a great long-term CFO for our clients is in getting the cultural fit right. This is far more important than technical accounting knowledge or industry experience.
What does cultural fit mean?
When there is good cultural fit, the candidate feels like they truly belong within your organisation, can bring their true self to work every day, and feels they can contribute and make a real difference driving change. From the client’s perspective, you feel the candidate ‘fits’ easily within the current organisational culture and environment. Your candidate’s personal and professional values will align with that of the organisation, yet still allow them room for growth and development in the role. People thrive in different environments; some enjoy a fast pace and high growth environment where dealing with ambiguity is the norm, while others work in a more measured manner: it’s about getting the fit right. You should be able to envision your perfect candidate thriving in the current workplace environment in the long term.
Why does cultural fit matter?
Studies have shown that companies that hire for cultural fit are significantly more likely to succeed than those that are hired for skills. In an environment where an employee feels psychologically safe, they are more likely to take risks, contribute holistically, and ask the right questions at the right time. When there is alignment between the candidate and the organisation, both can grow in the same direction. When the culture fits, the unique qualities that each employee brings will naturally flourish and thrive.
Why does cultural fit matter when hiring a CFO?
The CFO has one of the most influential roles in the company; they must align the financial strategy with the operational and the Executive, and work with the Board to balance growth plans with risk appetite. These days the CFO must wear many hats, as the role increasingly becomes more operational across the organisation. Hiring for cultural fit means that your new CFO will be able to influence across all areas of the organisation, helping the organisation transform and grow, but also seeing the space for their own growth and development. The qualities of a great CFO include empathetic leadership and the ability to drive transformation and change, whether it be in people and processes, digital and IT, ESG, or supply chain.
How to hire a CFO with the right cultural fit
Understand your environment
Think about your organisation and its environment. What are the key things happening on a day-to-day basis? Are you going through (or planning to go through) any major organisation transformations or changes? What are your organisation’s goals and growth plans for the future? What are the various personalities and working styles on the Executive Team, Board, and in the finance team? Revisit your company’s purpose, values, and culture and consider the right type of person to fit in and help you enhance these attributes. The better you understand your organisation and all its moving parts, the easier it will be to find the cog that fits.
Consider your candidate before and during the interview
Consider the profile of the candidate before you start interviewing. Other than industry and technical skills look for other attributes that will translate well to your business. For example, if they have led transformation and change or the types or organisations they have worked in – high growth, start-up etc… How have communications been with them? How well do they understand the brief? What questions are they asking? Will they work well with the Board? Why do they see themselves as a good fit and what development do they believe they will get from this role? What type of culture do they like to work in? Try to understand them on a personal level. Learn from your communications with them, what is on their CV (are they delivering succinct insights?), and consider their public social media platforms for deeper insight into who they are as a person.
Don’t just tick the technical boxes in your interview process. Ask them about their values and how they might see these reflected in your organisation. You should then be able to form a view of whether this person will be a good long-term fit for the organisation.
Keep it casual over coffee
When the formal rounds of interviews are complete invite the candidate to an informal coffee catch-up. Removing them from the workplace environment and formal interview situation will allow them to let their guard down and relax more, giving you further insights into them. Try not to discuss work or work-related issues, and instead get to know them on a personal level. What are some of their hobbies and interests? How easily is the conversation flowing? How are they reacting to their environment and others around them? These are some of the things that will help you to determine if they are your new CFO.
Hiring for Diversity and Adaptability
Change and the ability to adapt quickly are part of the world we live in. CFOs especially need to be agile and able to ride the wave of transformation. Guiding new ideas and innovations within your organisation requires the ability to see a given situation from multiple perspectives. Where possible, look for a new CFO with flexibility of thought and the ability to think outside the box.
A CFO with an appreciation of the importance of diversity will understand and empathise with your diverse team – meaning they can get the most from your team today and in the future.
Many clients are now actively seeking CFOs from more diverse backgrounds, as companies understand the value of different perspectives within the organisation. Don’t focus on what industries they have worked in but rather their leadership and ability to understand the key drivers and levers to pull, drive commercial outcomes, problem solve and bring a different lens. Moir Group always proposes a diverse range of candidates on any of our shortlists and believes that hiring with diversity in mind will strengthen your business and ultimately the bottom line.
Final Word
No matter the size or structure of your organisation, hiring a CFO is a big decision. Hiring a CFO that understands the technical aspects of the role, fits with the company culture and environment, and has room to develop is vital to their long-term fit and success and growth of your business.
Did you learn something new from this article? Would you like to learn more? Chat with one of our Executive Search team today for guidance on hiring your new CFO.
