"Lessons I learned the hard way, and I have seen companies pay the price of these mistakes with their very survival. After years of consultancy work and collaborating with boards of directors and companies that did not fail suddenly... I discovered that the flaw was rarely in the market, but rather in choosing the team—first and foremost among them, the wrong CFO."
Top 10 Points I Learned from Experience:
- A real CFO does not reassure you... rather, they worry you at the right time. False reassurance is far more dangerous than temporary loss.
- Do not be fooled by a CFO who talks about profits but does not talk about cash. Profit is an accounting opinion; liquidity is a reality.
- Ask them about the worst-case scenario, not the best plan. Anyone who cannot see the decline... does not deserve to lead the ascent.
- A good CFO rejects decisions you love... if they are dangerous. Someone who always agrees with you... is not a true decision partner.
- Do not test them on the monthly closing; test them on explaining why one month succeeded and another failed.
- Beware of someone who beautifies numbers to please you. The CFO exists to protect you from yourself.
- A real CFO links every decision to the cost of capital. Anyone who does not know the price of money... does not know its value.
- Do not look for someone who only knows the standards. Look for someone who understands the economic reality behind them.
- A strong CFO builds a system... they do not depend on their own presence. Relying on individuals is an institutional weakness.
- Evaluate your CFO with an important question... Did they spot the danger before it happened to us? The most expensive CFO is not the one who masters financial statements, but the one who prevents you from making a decision you will regret.
By: Mohammed bin Saleh