RSS feedsMicrosoft Dynamics' research into the views of MDs and corporate headhunters found that just 38% thought their FD would succeed in the role of MD or CEO.
“His focus is too narrow, with no real knowledge of the market sector or what we do… he just knows if we are making a profit or loss,” said one respondent to the research.
Despite this, almost two-thirds (63%) of headhunters said their FD clients are looking for MD or CEO roles.
By far the most important element of the FD’s role, according to MDs, is measuring and monitoring business performance, with the ability to drive growth coming second. While MDs listed compliance as being the third most important element, this was well down the list and, in a separate question, came out as the top gripe that MDs had with their previous FD.
In fact, 54% of the MDs surveyed thought their previous FD spent too much time dealing with compliance issues, with 46% believing they were too focused on data, rather than strategic business issues.
Strong financial management skills (80%) and strategic experience (46%) were the top two priorities for MDs when looking for a suitable FD candidate. One respondent said the fact that the candidate was “a bit of a mover and a shaker, rather than a backroom person” lay behind the reason to recruit.
One respondent said that any prospective FD must have “an understanding of our industry and an ability to keep up to date with the bombardment of legislative, financial and European industry standards and laws” that the company must abide by.
More than three-quarters of the MDs questioned said their next FD is likely to come from another company, rather than having risen up the ranks internally – something of a blow to any aspiring financial controller.
