Function: Operations

How to find the right-fit interim CFO for your growing business

September 15, 2022 Sean Mooney

I get asked a lot of questions about how to build a business, and how to do it with as few headaches as possible. Not that I’ve totally figured it out, but I’ve certainly made my fair share of missteps and gratefully have learned something along the way. From investing, to hiring, to reducing headcount, to managing the ups and downs of an economic recovery period—one thing remains unchanged: leadership matters. And if you’re talking about key leadership positions, the one that companies most often get wrong is the CFO. 

Why? Well, the answers are as varied as the reasons they fail, but it generally has to do with asking the right questions from the beginning. In other words, the interview process is often to blame.  

I wrote an article for CFO Magazine about “hiring the right interim CFO” and how to ensure you set your company up for success when it comes to hiring one of the most important positions. Whether you are looking for an interim CFO (who can move into a full-time position) or looking for a full-time financial executive, here are some things you should know before you greenlight your new hire:

8 Things To Know Before Hiring An Interim CFO

 

  1. If you are a PE-owned company and need to bring in a short-term finance chief, find someone who has worked for a PE-backed company before. 
  2. The interim executive needs to have a track record of wins. That generally means a significant tenure at multiple companies. 
  3. Find someone with industry experience, because it’s much easier to stand at the finance helm of a manufacturing, healthcare, IT, or services company if you’ve done it before. 
  4. Similarly, the interim CFO should have experience working for a company of similar size and scale. 
  5. It’s not enough to understand the numbers (sales, revenue, overhead) — you need someone who understands what the numbers mean. 
  6. For the best results, find a pro who has a high IQ and a high EQ (emotional intelligence), because the interim CFO needs to quickly gain favor from others in the organization to gather information and build a story around the numbers.
  7. Be sure to have conversations with key stakeholders in a candidate’s prior roles. Choose the references; do not use the references the candidate gives. 
  8. While enthusiasm is a wonderful aspect of a new leader, a short-term executive should have a stabilizing effect, not a disruptive one.

For more details and to read the full article in CFO Magazine, click here. 

Interested in connecting with a CFO or interim CFO in our network? Contact our head of sales, Scott Bellinger, here.

In the Know: Organizational Design & Effectiveness

September 14, 2022 Delaney Walker

As part of an ongoing series, we’re sharing real-time trending topics we are hearing from our 500+ PE firm clients. In our most recent installment, Private Equity Consultant, Ryan Perkins, shares why the inflation-driven recession has caused firms to prioritize bringing in organizational design & effectiveness resources, and what types of those resources are being utilized the most.

Learn more by watching the video below.

Interested in connecting with interim CHROs, HR-focused consulting firms, or org design consultants? Contact us now to get quickly connected to the exact-fit, PE-grade resources you need.

 

Video transcript:

The inflation-driven economic downturn has created a complex environment, causing private equity firms to take unique action, balancing right-sizing before the storm with retaining and recruiting key personnel. With human capital being a strong input for ensuring success through this downturn, PE firms are bringing in specialized third-party resources to resolve organizational design and effectiveness needs. Here are a few specific resources that we’ve seen our clients engaging on.

Number one, Interim CHROs. Bringing in experienced interim CHROs with deep industry knowledge is a great way to ensure the human capital needs of your portcos are in steady, expert hands. An effective interim CHRO can steer the HR ship during a recession, ensuring your portco will have the right people in place to get through the downturn and position your portco for growth moving forward.

Number two, HR-focused consulting firms. Specialty firms are a great tool that private equity firms utilize to gain expertise on corporate structure and talent output, without adding personnel directly into a portco. Consulting firms that have experience working with private equity-backed companies can be extremely advantageous when making decisions around comp and benefits, staffing needs, restructuring projects, and expansion requirements during an economic slump.

And number three, organizational effectiveness consultants. Process optimization is essential to keeping up with the pace needed to thrive in times of uncertainty. Organizational effectiveness consultants ensure that processes within your portcos will help them run towards the storm by evaluating them as they currently exist, and suggest any required changes according to their industry expertise.

For private equity firms, uncertain economic times should be treated as times of opportunity. Ensuring the organizational design and effectiveness of your portfolio companies can be the difference between generating momentum versus treading water in a recession. At BluWave, we have the private equity-grade resources to position your portcos for growth, no matter the economic landscape. For information on how to get connected with best-in-class, organizational design and effectiveness groups, or any other third parties you may need, contact us today at info@BluWave.net.

 

 

 

In the Know: Positioning for Growth in a Recession

August 16, 2022 Delaney Walker

We’re sharing real-time trending topics we are hearing from our 500+ PE firm clients as we combat ongoing recessionary and inflationary pressures. One of our Private Equity Strategic Account Executives, Cydney Dicken, talks about why and how leading PE firms are taking action to increase their portfolio’s equity value during these uncertain times.

Learn more about what PE firms are doing as they prepare to run towards the storm by watching the video below.

Interested in addressing competitive opportunities, optimizing profitability, or recruiting and retaining the right talent? Contact us here. You can also learn more about the specific ways we drive value for PE firms by connecting them to the exact-fit resources they need by reading our case studies.

 

 

 

Interim Executive Immediately Needed To Set Up Procurement Office

VP immediately needs a top interim executive for portco

A large cap VP came to us with an immediate need for a 3-month interim executive to set up a procurement office at one of their portfolio companies. Focused on healthcare technology, the portco didn’t have an existing procurement office. They were procuring technology from a variety of vendors and were ultimately looking to achieve a 10% savings opportunity with creating a procurement function. The firm was looking for the interim executive to set up quarterly business, inform potential cost optimization, and identify near-term wins and opportunities on this cost saving initiative.

BluWave identifies interim executive to fit exact criteria

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade interim executive needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of interim executives that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted candidates from our invitation-only Intelligent Marketplace that fit their exacting needs.

 

The firm connected with presented provider to start procurement initiatives immediately

Within a couple of days of the request, the PE firm was introduced to three exact-fit providers. The client then selected their top choice that had led five previous PE-backed procurement initiatives. The provider was able to start the project immediately, integrated the team right out of the gate, and started working towards the client’s objectives and setting up the procurement office.

 

Field operations expert needed for niche industry

SVP needs expert to improve operations performance for construction services portco

An SVP of a northeast-based PE firm came to us with an urgent need for an ops performance and improvement expert that could improve the management of their construction services portco’s field ops team. The PE firm was not confident in the head of field ops strategic leadership abilities and had noticed technician productivity was down and technician churn was up. They quickly needed a field ops expert who had seen a wide range of sizes and sophistications in field operations teams, and ideally had a strategic HR lens, to observe their teams and diagnose and roadmap improvements that could be made in order to increase productivity and reduce churn. The PE firm was looking to engage a provider immediately.

BluWave has pre-vetted operations performance consultant within network

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade operations performance & improvement needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of operations consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select BluWave-vetted operations consultants from our invitation-only Intelligent Marketplace that fit their exacting needs.

Firm engages expert to drive operational improvement in portco

Within 24 hours of the request, the PE firm was introduced to three exact-fit operations performance & improvement providers that specialized in working with growing services businesses to improve their field operations team. The client selected and engaged their top choice, and the service provider was able to immediately assess gaps, identify opportunities, and create an improvement roadmap for the company.

 

Big Data Analytics Consultant Critically Needed

Urgent data analysis needed to evaluate portfolio company

A LMM VP came to us with an urgent big data analytics need for a technology-focused portfolio company that they were evaluating. The PE firm recently retained access to some of the target’s transactional data sets and the size of them was overwhelming. They needed an expert with a strong analytics and B2B background that could take the data and create cohort analyses from it. With LOIs due in one week, they urgently needed a consultant that they could connect with pre-LOI so the consultant could then hit the ground running post-LOI.

BluWave has pre-vetted analytics consultant specialized in diligence

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE-grade big data and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics consultants that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted specialized consultant from our invitation-only Business Builders’ Network that fit their exacting needs.

Firm engages exact-fit data analytics consultant to immediately start project

Within the same day of the request, the PE firm was introduced to an exact-fit provider that specializes in analytics consulting during diligence. The client was engaged and was able to start the project immediately post-LOI. The provider was able to dedicate their resources to create a systematic method of creating meaningful analyses from the data sets and ultimately provide the client with the exact insight they needed.

Urgent Analytics Expert To Create eCommerce Sales Strategy

Critical need for business analytics provider specializing in ecommerce sales

A middle market PE firm director came to us with an immediate need to optimize their portfolio company’s ecommerce sales via third-party platforms. With two of their primary sales channels being the world’s largest third-party ecommerce platforms, they knew they needed to optimize the opportunity that existed there. The PE firm and portfolio company were in need of a business analytics expert with a strong ecommerce background that could look at their third-party sales data and provide recommendations on how to increase the sales they made via these channels. They needed a provider that could provide holistic strategic recommendations that could be presented at the company’s board meeting in a couple of weeks.

Using our extensive network, BluWave identifies pre-vetted specialized provider

Leveraging our founder’s 20 years in private equity, we have extensive frameworks for assessing PE- grade business intelligence and analytics needs. BluWave utilizes technology, data, and human ingenuity to pre-map, assess, monitor, and maintain deep pools of analytics advisors that uniquely meet the private equity standard. We interviewed the PE firm to understand their specific key criteria, and then connected the client with the select pre-vetted specialized business analytics consultant from our invitation-only Intelligent Marketplace that fit their exacting needs.

Firm successfully connects to niche ecommerce analytics consultant

Within 24 hours, the PE firm was introduced to multiple, specialized service providers with the exact-fit niche ecommerce analytics experience they were looking for. The client confidently engaged with their selected consultant and was able to start the project immediately. The provider started the project by first understanding the client’s sales data that existed on these platforms and then began to draw insight on how opportunity in these channels could be optimized through key word optimization, product tagging, and more.

Vital Procurement Consulting Group for Supply Chain Issues

Manufacturing company in need of procurement consulting group

A food & beverage manufacturing company needed a procurement consulting group that could generate input cost savings. Having been recently acquired they needed a resource to develop and implement a sophisticated purchasing and procurement strategy for them. With COVID and inflation leading to supply chain issues and fluctuating prices on their raw materials, they urgently needed a procurement expert with experience in this specific section of the food and beverage raw materials market that could dig into the numbers and create a tactical plan.

BluWave identifies exact-fit provider meeting company-specific criteria

The client reached out to BluWave and within several hours, we interviewed the company to understand the details & nuances of their need. BluWave utilizes technology, data, and human ingenuity to pre-map assess, monitor, and maintain deep pools of best-in-class procurement consulting groups. Mapping the specifics of the company’s need to our network of third-party resources, we identified an exact-fit procurement consulting group for the client.

Company selects procurement consulting group, combatting supply chain issues

Quickly after the initial scoping call, we introduced the company to the exact-fit, pre-vetted service provider from our Intelligent Network that we had identified met their exacting criteria. The client confidently engaged the provider and they quickly helped the client get their procurement strategy on track while also cutting unnecessary costs in the supply chain.