Strategic Networking For CFOs In Transition

Recently, I met with a CFO in transition to discuss networking strategies. The CFO was seeking to expand his network and identify key individuals who could help him secure his next position. I was able to share my experiences with him because I had been in similar situations in the past.

Networking is a vital tool for business professionals, especially during job searches. Research shows that 70% of all jobs are not published publicly on jobs sites and as much as 80% of jobs are filled through personal and professional connections. Opportunities will arise more quickly when a CFO launches a thorough, but targeted networking campaign. A CFO can determine the optimal people to connect with by identifying a company’s size and ownership structure.

Key groups for networking include:

Company CEOs and Other Board Members - These decision makers know of CFO hiring and firing decisions, as well as planned but unannounced CFO transitions. They are often open to networking with new CFOs to identify potential future hires. CFOs in transition should meet the CEOs and Board members who they have previously worked with as well as request introductions to others. CEOs and other board members can assist with networking for all size companies, and in both publicly held and privately held companies. Not surprisingly, CEOs and board members will be more likely to meet with CFOs who have remained in contact with them beyond times of a job search.

Venture Capital and Private Equity Firms – Individuals from these firms influence CFO hirings and firings in their portfolio companies and often serve on their boards. CFOs seeking positions in privately held companies should align their networking efforts with firms that match their target company size - venture capital firms for smaller early-stage companies and private equity firms for larger organizations. A partner at a firm is more likely to meet an unknown CFO when introduced by a venture capital or private equity firm they have previously co-invested with.

Professional Service Providers – Professionals including lawyers, accountants, insurance and benefits brokers, investor relations firms and financial printers may be aware of their client companies’ open CFO positions. This is particularly true of law firms, which often have a partner attend a client’s board meetings. Law firms and accounting firms often have deep enough relationships with certain board members to arrange networking meetings. Also, accounting firms are particularly strong advocates for CFOs who previously worked at their firms. Professional service providers can assist with networking for all size companies, and in both publicly held and privately held companies.

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Peers - These individuals may be aware of CFO opportunities because a retained search firm or other individual has contacted them. In addition, they may have relationships with board members, venture capital firms and private equity firms. Peers can assist with networking for all size companies, and both publicly held and privately held companies.

Retained Search Firms – Retained search firms often have CFO practices, and the firms actively work to expand their contacts. A transitioning CFO should widely distribute their resume to retained search firms for inclusion in their databases. Outplacement firms, such as Keystone Partners, can provide targeted recruiter lists. However, a CFO can also build their own list of retained search firms through internet searches and professional groups’ communications that share job leads. Retained search firms are commonly engaged to fill CFO roles at both public and private companies.

Professional Senior Finance Groups – Organizations including the CFO Leadership Council, the HTFEN and the FENG share job leads, and some offer professional meetings which facilitate peer networking. These senior finance groups can assist with networking for all size companies, and both publicly held and privately held companies.

All others – General connections may occasionally lead to CFO opportunities or introductions to key individuals. While less beneficial than the groups above, CFOs should not ignore these general contacts when they network.

The CFO I met is targeting mid-sized public and private companies and has outlined a focused networking strategy. For public companies, he will prioritize Board members, retained search firms, professional service providers, and peers. For private companies, his order is Board members, venture capital and private equity firms, professional service providers, retained search firms, and peers. This targeted approach enhances his chances of finding the right opportunity.