After the IPO, he moved to Dow Chemical as its vice president and controller. Then in 1999, he signed on as Federal-Mogul's CFO — an external candidate brought in to do the job.
More than anything else, Lynch believes finance department managers need to exhibit leadership to help further their careers. "You don't need to be a CPA to lead people," he asserts.
He also says it's unfair to expect a prospective finance chief to be an expert in a whole host of fields. "I know of few CFOs who can be a working-level treasurer, controller, internal auditor, or IT manager all at the same time, though they may have once performed those roles." While he says a CFO must understand finance, accounting, treasury, control, and budgeting to lead effectively, "it is not humanly possible or sensible to be all those functions."
Lynch divides people between leaders, managers, and doers. The doers are the 50 people in the jungle hacking their way through it with machetes. The managers are four people setting the work schedule and training people how to hack. The leader is the one shinnying up the nearest palm tree to declare 'We're hacking our way through the wrong jungle.'
Challenge, Challenge, Challenge
Lynch does have some advice to the treasurers, controllers, and VPs of finance hoping someday to shinny up that palm tree. "Get as much diverse experience as possible," he says. "Excel in your area, but at some point in time when you've proven yourself, offer up your service in another area to obtain exposure to different things. Always try to learn as you go along, but also demonstrate your leadership capabilities by not accepting the status quo. Instead, challenge it."
Cognos's Manley offers similar counsel. "The ones that succeed get out of their boxes," he says. "You must understand how a business is run and how you can provide value to line management to help drive results every day. Always challenge others' beliefs if you believe them wrong. I can say 'no' as well as any CFO, but what makes the difference is that I can explain it, too."
McGowan spouts the same line: "CFOs must have the courage to ask the truly tough questions, like why are we making this investment, what's the strategy, and where are the returns? We're the ones who represent the shareholder in asking these tough questions."
As for Taylor of EPIX, he says his hunt for someone to take his old CFO job is drawing to a close. "I think I've got the perfect candidate," the CEO boasts. "He's got the right balance. He started in public accounting, is a CPA, has lots of financial experience, and even been a CFO before. I'm hoping to conclude the deal next week."
Given the tight market for top-notch CFOs, Taylor may want to get on the phone right away.
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