PE-CXO’s Success Stories cast a spotlight on private equity-backed operators and the tools and tactics they leverage to create real value. In each entry, a world-class executive details a practical solution to a critical business issue. To be featured, contact mallory.stokker@pe-cxo.com with the subject line “Success Story.”
Executive: John Pence, CFO (most recently at Beneplace) and multi-time PE-backed finance lead.
Challenge: Gaining credibility as a new CFO; elevating a pedestrian accounting unit to the pace and quality required in a sponsor-backed environment.
Solution: Aggressively re-engineering the month-end close process to gain instant credibility, evaluate existing team, and expand knowledge of the business.
For a new CFO, one of the best methods to quickly gain credibility is to get the accounting shop in order.
When I get exposed to a new organization, the accounting team is often accustomed to closing the books and filing reports as late as possible.
The existing process tends to be built around procrastination rather than proactivity, so establishing a faster, more efficient monthly close is at the top of my agenda. It’s very rare, especially in a sponsor-backed environment, to step into a CFO role and not encounter substantial room for improvement in that area.
A sluggish monthly close will drag down an entire business. When you go to your first board meeting, you’ll likely sit across the table from a group that has heard every excuse as to why things can’t happen fa...