Orchestrating Business

Author:  Jan Lotter, Portfolio CFO at The CFO Centre, with expertise in Banking Financial Services (Insurance)

Running a business has a rhythm and can easily be compared to an orchestra. Every orchestra needs a conductor, someone that can stress the musical pulse so that all the performers can follow the same metrical rhythm.

Often the founder or CEO of a small business is the self-appointed ‘conductor’ of the business.  They are also the head of sales, the finance person, the marketing person, and the head of operations. Imagine being the conductor of an orchestra while having to play the drums, first violin, trumpet, and the triangle every now and then. That’s exactly what I find when I start a new assignment with a business owner: a well-intended individual who is doing the best they can, but who just can’t (and definitely shouldn’t) do everything.

Appoint the right conductor

If you had to compare a business to an orchestra, you’d probably put the CEO in the conductor position. He or she is the person in charge, who calls the shots and leads the direction of the business to ensure a harmonious environment for all, right? No, wrong. The first position the CEO should give up to free up some of their time is that of conductor. They should step away and rather fill the role of band manager ensuring the seats are filled so that the orchestra has an ever-growing audience they can perform to. Or even composer to ensure the band will always have new pieces they can perform.

Who should then be stepping in as conductor? In all my years in the financial sector, I realised that the finance people in the business are in a very unique position to fill this role.  They have access to all the crucial information within the business, but they lack a real ability to utilise it appropriately. Finance people are predominantly “numbers” people and not always the best at converting information into the right narrative.  Appointing a seasoned CFO can help to address this issue. It needs to be a well-versed objective person that understands that the language of business is finance but, has also mastered a way of creating simplicity out of complexity, establishing a clearly understood narrative the team can relate to and stay in tune with.

The most important beats you can’t afford to miss

Two of the biggest reasons why small businesses fail, is because they miss the most important beats in the rhythm of the business. Often, you’ll find entrepreneurs don’t invoice for work they do or when they invoice, they don’t collect the funds outstanding. Imagine having a sold out show every night but no money in your bank account to show for it. I’m sure you can see how this is not sustainable.

The CFO can ensure systems are put in place and routine work is done on time to allow the business to tick over every month and that there is cash in the bank.

Make music together and establish meaning

When a business owner appoints people in different roles, they expect them to deliver without necessarily explaining the value of their contribution. Having a top-notch seasoned CFO on board gives the team access to mentoring and coaching that they would not otherwise have access to.

I am predominantly involved in the financial services sector. This is an industry that relies very heavily on people and their ability to perform tasks on time and in full. Very quickly you realise people are not your most important asset – they are your only asset. Imagine an orchestra where the instruments sit on the chairs with no-one to play them. That’s often what happens when a business owner tries to play every instrument themself or when they do appoint people they but don’t empower them or give the right guidance for success.

When team members understand their individual contribution to the bigger picture they are more willing to engage, take up their individual responsibility and play their part more passionately.

But can I afford to appoint a CFO?

I would like to challenge the notion by saying this: you cannot afford not to. Without experts on board, entrepreneurs accept terms from decision makers they rely on without having credible instruments to counter or challenge them. By appointing a seasoned CFO as a partner on your team, you invest in an expert to advise you on where you can perhaps make more noise and do better business. You won’t find an orchestra questioning the affordability of the conductor.

First, you need to make a mindset shift to understand that the right investment in the right people or partnerships in certain positions can yield returns for growth. When you understand partnering with a seasoned CFO is an investment and not an expense you will see it translate in the bottom line of your business and you will throw out the question of affordability.

“No one can whistle a symphony. It takes a whole orchestra to play it,” said Halford E. Luccock, and I so agree. Realising you can’t go at managing your business alone is the first step in running a successful business. Now, don’t waste time trying to conduct the whole orchestra when your passion and strength perhaps lies in composing the music or selling out performances.”

Get in touch with The CFO Centre, to discuss how you could orchestrate your business to be more effective and efficient.