Speaker: Michael Reeder, CFO - UK
How did you set the context for asking the question?
Michael Reeder: I believe the way into asking the question about what the entrepreneur/owners want for the business is simply by starting the conversation about forecasting and future planning and strategic planning. You can't do that without understanding what it is the owner wants from the business, the part they expect to play in it, what they expect to take out of it, when they might want to exit. Talking about forecasting and strategic planning is second nature to an FD so I don't think there's any problem in getting yourself into that conversation in the first place.
What question specifically did you ask?
Michael Reeder: I guess a couple of specific questions you might ask as part of the planning process and trying to understand where the owners fit into those plans or around what human resources are going to be required to meet the strategic objectives and goals that you've already discussed, and where do they fit into those resources? Are they going to be actively involved and devote all their time to the business or do they want to sit back and pursue other goals? What they want from the business will come out of discussions like that. You don't need to ask the question directly à la Giuseppe. Other questions simply around exit planning will open up a whole discussion about how the business fits into their life and what their future plans are, and from that you can work out pretty easily what it is they want from their business. You don't actually have to ask the direct question.
What was the response from the client?
Michael Reeder: I found with virtually every client once you start that conversation about future plans, they very quickly respond with their ideas about where the business is going, how they fit into that, and you can't stop them talking about it, and just using some listening skills and thinking about what they're saying can give you a real insight into where they want to go. I was able to answer Giuseppe's question for all my clients immediately I was asked, because I've had those conversations as part of becoming part of their business and becoming their trusted FD.
Do you feel asking the question somehow deepened the relationship? If so, in what sense?
Michael Reeder: Yes, I think discussing those longer-term plans and asking that question about where they want to go, shows you have a genuine interest in their welfare. You're not just looking at the business and invariably they confide in you their fears, their hopes. You can start to talk around those and how the business might help them meet those hopes and those dreams. So yes, if you can get into that conversation and become their helper, their assistant, in getting to where they want to go, then certainly the relationship deepens and they will bring to you other things that are sort of on the periphery of the business, outside-the-business ideas that they might not otherwise have done if you were just simply the Finance Director for their existing business.
Is there anything else you’d like to add/share? Learnings?
Michael Reeder: I guess my advice on asking this question or discussing this kind of topic is don't start too soon. Some clients have a fairly fixed idea of what a Finance Director is. I've got my most recent client, just nine months now, he had a very clear idea of why he wanted a Finance Director and what Finance Directors do. And it's only now that little questions are coming up and you begin to chip away at the what lies underneath and what the plans are, where things fit in. And because you're an experienced FD you can answer or address some of those or you know someone who can. Often that's the case and that's your route into those longer-term plans and what they really want out of the business that you're helping them with. So be patient. Don't ask on day one. Some clients will just think you're really weird and 'What are you asking me that for? You're just here to crunch the numbers.' You have to prove yourself first. Once you do, and once you get in, then that should be the basis for a long-term relationship. Good luck.
