FC career path of the week

There was a lot of talk earlier this week about common sense returning to ITV with the appointment of Michael Grade as chairman. At last, said the media crowd, a TV person running the organisation, not a beancounter! (Although what's got less attention from the meeja folk is that FD John Cresswell is likely to be Grade's number two as COO... Smart guy, our Mike.)

Well, I sympathise. A bit, anyway. Good CEOs with accountancy qualifications know their limits and concentrate on running the business, appointing the best talent in the production roles. (Interestingly, I think the only reason to make Grade chairman instead of "creative director" is that the company has such poor morale that having a true figurehead is essential. He probably wouldn't have settled for anything less that the chair, anyway, but I doubt he'll be on the audit committee or spending all his time with shareholders. Enter Cresswell.)

And then I found this story about the new vice-chairman of Monmouthshire Building Society, one Robert Williams. He was formerly managing director at Mills & Boon - having been its financial controller. There are lots of stories like this, but it's a timely reminder that smart finance guys with a breadth of vision and a willingness to get stuck in can succeed as leaders at companies that require creative, brand-driven growth.

Why growth companies are a great option for ambitious finance people

I've just got off the phone from a CEO of a property management company that did an MBO earlier this year. It's a big expansion capital deal - the business was turning over £4m a year and was focused on one particular area of property management. The team saw an opportunity to buy a much larger rival, which has not only given them much bigger volumes of business (critical in a low-margin operation like property management), but has also helped them diversify their income streams with differnt types of clients and a couple of high-growth niche operations in related areas. Total raised: £8.5m, £5.5m from the bank and £3m from a regional PE player.

Great stuff, and a fantastic challenge for the finance functions of both the buying company and the acquired businesses - it's about financial discipline, growth and diversification. The guys in those teams will also get exposure to PE, which looks great on the CV.

But the big win? Well, said the CEO, one exit route being considered is an AIM flotation at the back end of 2008. But since the company has never produced consolidated accounts before - but will have to to March 2007, along with comparatives for 2006 - they're looking seriously at switching to International Financial Reporting Standards.

It's brilliant for the company. Since they've got a mountain to climb anyway (the consolidateds and the comparatives), they may as well do IFRS as UK GAAP. It'll be more or less the same workload. But it will also get them ready for the flotation should that be the exit; and if it ends up being a trade sale, how convenient for a quoted buyer if the numbers are all IFRS-ready.

It's also brilliant for the senior guys in the finance function. They get to step onto that learning curve way ahead of most other accountants. The FC will be able to say they're well versed in both UK GAAP and IFRS - which gives them a huge advantage and loads more options when it comes to their next assignment.

We've said it before: growth companies with dynamic and valu-focused management teams are the best place to learn your trade, move outside your comfort zone and super-charge your career. IFRS is just one example of how that happens.

Speaking of FC jobs you'd like...

I think we have a winner. Charles Hammond is financial controller at Cable & Wireless Seychelles. Actually, it's better than that. He was FC until CEO Usman Saadat was forced to leave over work permit difficulties. So he's now interim CEO. Man, just when you think it can't get any better...

(And there's one FC I ought to interview about climate change, I guess...)

More new roles for FCs

Just a quickie: Finance Week reports that Chrysalis financial controller Simon Winder is now a trustee of the company’s pension fund. These days, the group FD role is seen as incompatible with trusteeship, so I guess that makes sense. But as FC, Winder will still have some some conflicts - most notably if he's a member of the scheme and certainly if (or when) he gets a few share options. Pensions: it's a minefield.

Just in case you were still wondering

Saw this FC job ad just now. Sums up everything I've been saying about how the role has changed and pushed the finance number two into the old FD's job (my emboldenings):

Salary: £60k + Bonus + Bens
Location: Mid Kent
My client, a rapidly growing Healthcare business, is looking to recruit a truly commercial FC. The prime objective is to add value whilst ensuring the financial systems are maintained, controlled and developed creating an accounts function capable of delivering sustained business benefit in a changing environment.
Key elements of role:
* Driving major change through business reporting
* Managing (parts of) re-engineering programme integrating back and front office systems
* Standard responsibility for procedures, controls and liaison with external parties
You are likely to have had experience of managing larger teams and will be looking for a role where you can have a clear understanding of the future strategy of the business. You are likely to be driven and ambitious whilst still having a keen eye for detail. Excellent prospects."

Says it all, really. That could easily have been a "modern" FD role ten years ago (and still could be in some companies). If your business (or your current FD) doesn't take this approach to the FC role, it's time to move.

More jobs at the leading Equity finance professionals site...

Want a top FD job? Be a top FC

Just back from the FDs' Forum, Richmond Events' annual finance function fest aboard the cruise ship Oriana. The unoffocial theme this year seemed to be personal and career development, testament to my long-held assertion that from the management accountant to chairman of the audit committee, finance executives now need to have great communication, delegation and interpersonal skills if they're to succeed.

Unsuprisingly, the sessions focused on careers got a great turnout from the assembled FD and FC delegates. (And the fact that there were a fair number of FCs, but the suppliers on board were also delighted, is testament to the purchasing power now held by numner twos, I think...) One speaker was asked about how an established FD might go about engineering a step up to the big leagues (FTSE 350). It's tough if you haven't built a career in that sort of organisation, but the best advice was to take a number two slot in them and work up from there - even if the title is theoretically a step down.

Well, it looks like good advice: over at FTSE 100 oil and gas play, Jann Brown, the group financial controller, has been announced as Kevin Hart's replacement as FD. (Hart is off to be a CEO at a smaller company.) That shows what we've always said here: that the FC role is no longer a pure-play number cruncher. Like the FD role a few years ago, it's been shifted into a more strategic, advisory role. And that's true in all sizes of company, not just the FTSE power-players. Bored FD of a static company? Find yourself a broad FC role in a bigger, but growing, business - and if you get your first taste of private equity experience that way, you're adding a crucial component to your CV for when that PE-backed FD role comes around.

But note also: "Elsewhere, Simon Thomson, the commercial manager, has been appointed legal and commercial director." Which, I think, suggests that companies are more willing now to share out some of the roles that got dumped on the FD in the past (such as legal). And that means an FC with strong communications skills and a strategic mindset will find the transition to the top finance role even easier.