The CFO Coach

The War for Talent, Part 2

The War for Senior Executive Talent is just beginning to heat up. Interesting, and useful, information in the CFO.com article, "Baby Boomer Brain Drain Looms."

–– The long-dreaded era of Baby Boomer retirements has finally dawned, and with the oldest Boomers turning 62 this year, the fallout may reach epic proportions in the early years of the next decade.

Where “age discrimination” used to be rampant, up-and-coming top–performing senior executives with a clear and compelling marketable value proposition will be in hot demand.

–– That means many companies will be hard-pressed to shore up their finance functions with leaders as experienced as those they have had until now.

Those passive candidates who are in demand will have even more opportunities coming their way, with salaries and incentives to match their potential to contribute.

–– The Bureau of Labor Statistics estimates that over the next 10 years there will be a 15 percent decline in workers age 35 to 54, concurrent with a 25 percent increase in demand.

Statistics validate that the War for Senior Executive Talent is indeed heating up!

And the importance of grooming successors is growing. Coaching, mentoring, and grooming those coming up behind you is the single most important thing you can do for the future generations (our children and grandchildren).

–– "We are seeing movement now, a real urgency that even 18 months ago did not exist," said David de Wetter, senior consultant for human resources transformation at Watson Wyatt Worldwide.

There is still skepticism about a shortage of talent in the States … just wait another 18 months. While commodity candidates may still be denying a shortage of talent, top–performing candidates will have their choice of opportunities.

Which makes me wonder how that will impact the current statistic that the average tenure of a CFO is currently a mere three years!

–– Another shift, according to de Wetter, is that some companies are moving away from grooming specific people for specific future executive roles in favor of a more fungible approach. The idea is to create leadership pools, composed of people who display qualifications as leaders that are transferable enterprise-wide.

This is such an interesting concept. Given the community– and colloraborative–mindedness of the Baby Busters and Mosaics, this strategy might actually work! “Leaders often remind us that what got us where we are is not the same stuff that will get us where we want to go.” George Barna

–– Losing any top talent is bad enough, but corporations face the very real fact that they will lose a majority of their top talent in a very short time span.

That projection should scare most companies while making A–players jump for joy. Of course, if you are a top–performing finance executive who can’t be found by the people who need to know about you … there might not be any reason for you to jump.

The Passive Candidate

I stumbled across an interesting article today in Jim Stroud’s The Recruiter’s Lounge. Curiously, to me at least, is that I found this article through Twitter and then tracked down the author through Linked In. Yes I twit and tweet … do you?

Anyway, Karen Mattonen is a recruiter who was ranting (her word not mine) about the myth of the passive candidate. While obviously written for the recruiter audience, I believe her points can be enlightening to job search candidates and my favorite prospects … those senior finance executives who are employed but positioning themselves to learn about new opportunities.

My readers may remember that upon returning from the Kennedy Conference last October, I commented on the overriding theme … these internal recruiters were all in search of the Passive Candidate.

So Karen’s article provided some additional fodder for a topic I find near and dear. My favorite excerpt from her article follows:

“As a TPR [third party recruiter], the clients I represent want me to locate the passive candidate, maybe they have searched the boards and did not find the talent for the position, the position is at a senior level, and those candidates generally may not be found on the boards, maybe the position being filled could be compared to finding a needle in a haystack…."

Wouldn’t you like to have a recruiter relationship with someone like Karen? Like all other networking relationships, it pays to build them before you need them.

Career Killers

CFO.com recently published an article, “Restating: The Career Killer,” CFOs fired for erroneous financial reporting are finding it difficult to secure comparable jobs — if they can get one at all.

Here’s an excerpt from my recent article “4 Tips for Avoiding Brand Suicide” that can also lead to difficulty finding your next opportunity.

Never, ever, ever lie.

A no–brainer, right? Apparently not, because people are constantly making the news about careers that are ruined because someone grossly exaggerated (or flat out lied) about something in their background.

You may remember the high–profile MIT admissions dean who incorporated just enough untruths in her résumé to undo her career. And of course a Notre Dame football coach gained notoriety when his résumé lies were uncovered. And the latest tombstone to make national front page news is the Dinner: Impossible chef. His goose was over–cooked.

Just imagine the gruesome details that would haunt a senior–level finance executive. Remember the TV show, the “Untouchables”?

The Internet is a global lie detector, and eventually all lies will be uncovered. Little white lies, exaggerations, and misstatements can be just as devastating as big lies. 

Networking Myths

Savvy networker Liz Ryan has busted some common misconceptions about networking in her article, "Top 10 Myths About Networking."

I stumbled across this article while following a thread about poor networking etiquette. Always, always, always ... networking is about giving in order to receive. The quickest, and deadliest, way to kill future relationships is through selfish motives ... often borne of desperation.

Relationships, including recruiter relationships, must be built BEFORE you need them. Networking is most effective when you are not in desperate job search mode. Reach out and give to others today so you can ask for help in the future.

Don’t get Bear Stearnsed!

In CFO.com's article, "Finding a Job in Lean Times ... Things to keep in mind when looking for work during an economic slowdown," is an interesting read. Particularly enlightening, I think, is this excerpt ...

"Because of the Bear Stearns meltdown and fears that other financial services firms might cut back on staff, a flood of job hunters has poured into the market in recent weeks. But they are fighting for fewer available positions, with some finance executives deciding that now is not the time to leave a stable post to take a chance on a new one."

It might be a good time to sit tight, but to some degree staying might not be the decision of the executive. Something might be coming down the pike – a new CEO, an acquisition, a disgruntled board – and it might be someone else who decides it’s time for the executive to leave.

Now, today, is the time to become proactive in managing your career. Since the average time for finding that new position is currently around 7 months, it makes sense to begin planning your next move, ramping up your networking, and building a visible online presence … before you need to.

Recruiters’ most desired candidate is one that is currently employed. The moment the executive walks out the door … even with a nice severance package in hand … his marketability can take a big hit.

Don’t get Bear Stearnsed! Take control of your career while you hold all the power to do so.

Tips for Better Networking

My friend and colleague, Jason Alba of JibberJobber fame, posted a very thorough list of networking tips from author and speaker Thom Singer. Jump on over ... you might learn something you can implement immediately.

If you haven't yet explored Jason's great contact management tool (JibberJobber) for managing your networking contacts, I highly recommend you give it a try.

CFO Turnover

Why is CFO turnover so high? David McCann’s article in CFO.com addresses the fact that one–quarter of Fortune 1,000 lost (for one reason or another) its senior finance leader in 2007.

These two excerpts point to the facts, but the article in its entirety is a must–read.

“For large-company finance chiefs considering job switches, the good news is that a lot of CFO positions are opening up. The bad news is that those who land one of them might not have it for long.”

“Being a CFO at a very large company is a precarious position indeed. ‘The average tenure of a [Fortune 1,000] CFO right now is less than three years,’ Michele Heid, co-managing partner of the finance practice at Heidrick & Struggles, told CFO.com. ‘Five years ago, it was closer to five years’.”

Knowledge is power. With a “here today, gone tomorrow” culture surrounding senior–level finance executives, the questions is … how are you going to use that knowledge?

You can do nothing of course. But when (and it is more likely when, not if) you find yourself on the curb, your marketability will have taken a big hit.

Or, you can begin to proactively manage your career much like you proactively run your company. Where do you want to be in three years? In five years? What do you need to do and who needs to know about you in order to get there?

Isn't there an old adage that goes something like ... failing to plan is planning to fail?

The Buzz about NotchUp

NotchUp is making the rounds in the career industry … a new and innovative way of finding those top performing candidates every employer covets. Whether you buy into its philosophy or not, it’s a hot topic. I recently read an article by Recruiter Dr. John Sullivan addressing some of these issues from a recruiting perspective.

This excerpt really struck me, and I wonder … could it also apply to the passive candidate?

"You don't have to utilize NotchUp in order to improve your candidate flow, but you do have to improve your employment branding and interviewing approach. If you're one of those individuals who is constantly complaining about the shortage of qualified candidates, maybe it's time to look in the mirror and realize that it is actually your approach to employment branding, recruiting, and interviewing that is causing your shortage…. The fact is that talent shortages for any single firm are caused by weak branding/recruiting strategies and practices."

If I might seek some grace from Dr. Sullivan, I’d like to re–phrase his comments from a candidate’s perspective.

... in order to improve your candidacy interest, you have to improve your executiv e branding and interviewing approach. If you're one of those individuals who is constantly complaining about the shortage of company interest, maybe it's time to look in the mirror and realize that it is actually your approach to branding, searching, and interviewing that is causing your shortage…. The fact is that prospect shortages for any candidate may be caused in large part by weak branding, networking, and search strategies and practices, combined with a tendency to value (and emphasize) what you did rather than how you delivered and its associated impact.

Thoughts?

Change

There are numerous truths about change. Here are four important ones that relate to your career.

1. Change is inevitable. That means, you have the choice to be proactive or reactive to what will be coming your way sooner or later.

2. Change causes fear among people who know you. That means, when you are ready to move you might find yourself surrounded by naysayers … presumably looking out for your best interests.

3. Change is driven by a desire to change. That means, it is important to look within yourself to find the motivator(s) that will force you to move.

4. Change makes you uncomfortable. That means, if you aren’t uncomfortable, you’re probably not growing. If you are floundering in stagnancy, you probably aren’t as successful as you could be.

For my full article around Change, Opportunity, and Your Career, send me an email and I’ll happily send it your way.

The Most Connected Man on Earth is in the Forum

I am so excited that Ron Bates will be joining us in the Forum on February 19 at 4:00 p.m. Eastern. And you might be, too when you find out who he is!

Ron is a Search Consultant with Executive Advantage Group’s Silicon Valley Office. With +35,000 direct contacts across multiple on-line professional networking platforms, Ron has been referred to as "the most connected man on Earth." You can view his detailed networking profiles on LinkedIn and Ecademy.

Many of you who were kind enough to participate in the research survey mentioned Linked In and networking as some of your challenges. For example, a few didn’t really understand the importance of being on Linked In or, they were on Linked In but didn’t really know how to use it or, want more networking connections and would like to understand how Linked In can help increase connectivity and visibility.

Well, from a career perspective, who better to ask than “the” most–connected person who just so happens to be an Executive Recruiter. Ron is not only knowledgeable about Linked In, he is knowledgeable about how recruiters use Linked In and he is a great person to add to your network.

If you are a member of the CFO–Career–Forum, log in and register today for our conversation on February 19 at 4:00 Eastern. If you are not a member of the CFO–Career–Forum but you are a senior-level finance executive and want to join the call … register here! If you are not available at 4:00 p.m. Eastern on February 19, the call will be recorded, but you must register in advance to receive the recording.

Additionally, we want Ron to answer YOUR questions about Linked In. Please email those to me at cindy@cfo-coach.com prior to the 19th (the earlier the better so we can get them in the queue) or IM them to me during the call at Coach Cindy.