Are you intentional and effective in building your network? Or, like so many, do you cringe at the very thought of it?
For CFOs, whether we like it or not, building and maintaining a network of strong relationships, internal to and beyond our organization, is critical to our success. So, during this holiday season, as you are enjoying get-togethers with family, friends and professional contacts, be intentional in building your network. It could make all the difference!
The power of the network
Several years ago, when I decided it was time to make a career move, I experienced first-hand the power of an effective network. I had been at Campbell Soup for many years, starting in Camden, NJ, at Campbell’s world headquarters, then relocating to Northwest Ohio to be the finance executive for Campbell’s largest supply chain operation. Even though the move to Ohio was meant to be for just a few years, I loved my role, and my family grew roots in Ohio. By the time I was ready for a career change, the kids were headed into high school, so it was not a great time to move away.
Once I shared with my local network that I was ready to make a change and clarified what I was looking for (i.e., to be CFO of a smaller, private company in Northwest Ohio), the power of the network kicked in. Indeed, after becoming CFO at Plastic Technologies, I learned from the board chair that five people in my network independently reached out to her, saying they “needed” to contact me. I have been enjoying my “new” role ever since.
8 benefits of networking
1. Organizational influence
Effective CFOs must be able to create direction, drive organizational alignment, build organizational vitality and collaborate with their team and cross-functional partners to produce extraordinary results. By networking internally, and building meaningful relationships with each person on a one-to-one basis, you will inspire trust and gain organizational influence.
2. Sounding board
During the COVID-19 crisis, the U.S. Small Business Association’s Paycheck Protection Program (PPP) was created for companies like mine. By reaching out to fellow small business CFOs and banking contacts, I gained invaluable insight into PPP eligibility requirements and the application process. Likewise, these contacts and several from public accounting firms enabled us to successfully navigate PPP loan forgiveness. As CFO, it can be helpful to leverage your CEO and other cross-functional partners as a sounding board, but the key to success is often engaging an external network.
3. Professional contacts
When I started in my current role, I quickly discovered we had been working with the same accounting firm, bankers, insurance brokers, payroll providers and other business partners for many years. I also noted many of these partners had become overly “comfortable” with us, rarely engaging with us let alone adding value. CFOs can lead the way in maintaining and building valuable relationships with these partners, even leveraging your network of professional contacts to shake up existing “partner” relationships from time to time.
4. Business trends and best practices
At a small business, everyone in the organization, including the CEO and members of the board, expects their CFO to be the resident expert on a wide variety of topics. For example, the CFO is their go-to for insights on key financial reporting, technology, regulatory, geopolitical and economic trends, including how such trends could impact their organization. Likewise, the CFO is their go-to for identifying and implementing related best practices. Connecting with fellow CFOs and actively engaging in professional associations like Financial Executives International (FEI) and the Institute of Management Accountants (IMA) are two of the best ways to build your awareness of current trends and best practices.
5. Talent pool
It can be challenging to find qualified talent, whether for temporary roles or a permanent position. When networking, always be on the lookout for individuals with strong credentials and experiences, even if there is no active search. Then, when an opening arises, you know who to call. Likewise, by informing your broader network of an opening, they may add candidate recommendations to your pool. And by building your talent pool via networking, you can avoid costly recruiter fees.
6. Professional development
As a certified management accountant and certified public accountant, I am required to obtain continuing professional education (CPE) each year. Although there are many ways to obtain CPE, participating in bank-sponsored luncheons with an economist, CFO roundtables, FEI speaker dinners, IMA conferences and other such events that include networking are more enjoyable options.
7. Social network
Being CFO, especially in a small business where your responsibilities range from traditional finance and accounting activities to wearing less traditional hats such as that of chief information officer, M&A leader, chief transformation officer and strategist, can be challenging and stressful. Your network, including both personal and professional contacts, can provide a great opportunity to relax, unwind and have fun.
8. Career advancement
As I shared, your network may even identify or open new doors for your career advancement.
Building your network
During the holiday season, travel typically slows and business quiets down, a perfect time to build your network. Reconnect with friends, family and professional contacts, whether over coffee, happy hour or a meal. Accept the many invitations coming your way from accounting firms, bankers, insurance partners and other service providers, especially those focused on networking. And create a game plan for intentional networking in the new year.
Specifically, polish up your LinkedIn profile, seek opportunities to speak at relevant conferences, become more active in your local FEI, IMA, Rotary or other such chapter, and consider joining a professional networking group like The Financial Executives Networking Group, The CFO Alliance or The Global CFO Council. Finally, carefully cultivate your network over time. As you do, those who started as mere professional contacts will become long-term friends.
