A Chief Financial Officer (CFO) is responsible for managing a company’s financial activities and information, which includes financial planning and strategy, risk management, budgeting and forecasting, capital management, investor relations and financial reporting. This makes them critical to a company’s financial health, strategic direction, and overall success. When interviewing candidates for a CFO position, taking a holistic approach that assesses both their expertise and leadership qualities can be tremendously beneficial.
Below are some insightful questions you may want to ask when interviewing a CFO candidate, along with the goals behind each one.
1. Which ERP systems, reporting tools, and dashboards have you used? What is your experience implementing and integrating these new tools?
The goal of this question is to help you understand the candidate’s technical expertise and familiarity with enterprise resource planning systems. Their experience with reporting tools and dashboards can indicate their adaptability, as well as their ability to deliver business-critical, accurate, and timely financial data.
2. How would you characterize your leadership style? How do you build high-performing teams?
Your CFO’s leadership style should align with your company culture to optimize the team’s dynamics, morale, and productivity. As part of the C-suite, the CFO will help set the tone of the entire company, and it’s important to understand their approach to managing people, engaging employees, and building effective, successful teams.
3. What is your motivation and interest in securing this position or seeking a new role? Also, based on past challenges, what key factors are essential in your future organization?
Just like leadership style, it’s important to understand the candidate’s motivations and ambitions. Knowing this information upfront can ensure you’re finding someone whose professional goals match with the company’s vision for the role. Remember that the interview process is not just a one-way conversation—it’s an important tool for gauging the candidate’s workplace needs and preferences.
4. What experience/significant accomplishments do you have driving business development from a financial analysis and forecasting focus?
When it comes to finance, many CFOs are skilled at looking in the proverbial rearview mirror—but this individual will also play a key role in future forecasting. Seek out a CFO with a proven track record of guiding an organization toward growth and profitability.
5. Can you discuss your experience with mergers and acquisitions? What roles have you played in the financial evaluation, due diligence, and integration processes?
Experience in mergers and acquisitions (M&A) is invaluable, especially for companies looking to expand or restructure. M&A work is intricate and takes place in a highly regulated environment, requiring significant attention to detail. An experienced CFO will ensure that each step of the process is executed smoothly and delivers the intended financial benefits.
6. Can you describe your experience developing and managing budgets? How do you approach forecasting, and what strategies do you use to ensure accuracy and alignment with the company’s financial goals?
Budget planning is another complex process that must consider the needs and perspectives of a wide range of stakeholders—some of whom are often competing. An effective CFO will understand how to align budgets with the company’s strategic objectives and the best way to justify and communicate any changes to organizational leadership.
7. Can you describe your experience in managing banking relationships? How have you negotiated terms or structured financing/lines of credit?
By asking this question, you’re probing the candidate’s ability to secure and manage the financial resources necessary to support the company’s growth, stability, and overall financial health.
In Closing
When interviewing a potential CFO, be sure to dive into their technical expertise, as well as their leadership capabilities, strategic vision, and alignment with your company’s goals. Evaluating all these factors will deliver a leader that can support your business’ long-term success.
How Should I Find a Chief Financial Officer?
Partnering with an executive search firm like TalentRise can help ensure your organization is developing the right job description, promoting it effectively, and asking the most valuable questions during the interview process—all while delivering an exceptional candidate experience.
If you’re ready to find the right Chief Financial Officer for your organization, contact us today.
This blog was authored by Talent Consultant Barbara Strother.
