Passing the torch: What happens next for small and medium businesses?
Report reveals SMBs are less likely to have a succession plan and are most
vulnerable to repercussions of a CFO departure
TORONTO, Oct. 21, 2013 /CNW/ - This week, as thousands of businesses celebrate
BDC Small Business Week™ in Canada, Robert Half uncovers a risk that affects
the future success of two-thirds of Canada's small and medium business (SMB)
market: succession readiness.
Who will take over when a CFO leaves? That is a question that only
one-in-three SMBs can answer with confidence, according to CFO Succession
Planning - a new report by the Canadian Financial Executives Research
Foundation (CFERF), sponsored by Robert Half Canada. This leaves a huge gap in
the future of a market that accounts for 45 per cent of the GDP and 60 per
cent of all Canadian jobs(1), cautions the report.
A number of factors compound the issue for SMBs. "On the horizon we face a
looming shortage of financial leadership in Canada, particularly those with
the requisite critical thinking skills, at a time when global competition is
on the rise," said David King, Canadian president of Robert Half Management
Resources. SMB companies must be prepared to keep the role of the CFO
functioning in order to avoid disruption to financial stability and long-term
"By virtue of their size, small and medium businesses are particularly
vulnerable as they are more likely to run leaner operations. In contrast to
larger organizations, there may not be the same pool of talent to pick from
internally to fill a CFO position," adds King. "With the boomer generation
expected to retire in the next five to 10 years, it's more important now than
ever for organizations of this size to not only think about what happens when
a CFO leaves his or her post, but to have a strategic plan in place that is
understood and shared among the C-suite and other employees whose role may
change as a result of a departure."
To help SMBs mitigate the effects of disruption within the C-suite, King
provides a few key takeaways:
-- Plan: The first step is to confirm a plan. It is not the
responsibility of the CFO alone to establish his or her
successor; every member of the C-suite should participate in
the development and execution of a succession plan.
-- Collaborate: In addition to members of the C-suite team,
companies should consider other employees whose roles may be
affected by a potential restructuring. The key to succession
planning is readiness - the more prepared the team is, the less
the impact of the departure.
-- Train: "Professional development and succession planning go
hand-in-hand," says King. "Starting when a CFO has given notice
is too late." Look to include employees who have the potential
and desire to advance within the organization in the succession
planning process, including the identification of any training
that may need to happen in preparation.
To hear more from one of our experts, Judy Munro, on succession planning, join
a complimentary webinar taking place this Wednesday, October 23(rd) at 9 a.m.
PT / 12 p.m. ET. Click here to register, using as RHSuccession as the code.
To access the CFO Succession Planning report, click here.
For more information or to schedule an interview with one of our experts,
please contact Naz Araghian at email@example.com or 416.350.2330.
About Robert Half Canada
Founded in 1948, Robert Half, the world's first and largest specialized
staffing firm, is a recognized leader in professional staffing services. The
company has seven divisions including Robert Half® Finance & Accounting and
Robert Half® Management Resources, for full-time and senior-level project
professionals, respectively, in the fields of accounting and finance. Robert
Half International has staffing and consulting operations in more than 300
locations worldwide, including locations across Canada. Find more information
at http://www.roberthalf.ca, and follow us on Twitter at
SOURCE Robert Half Canada
Naz Araghian 416.350.2330 ext. 62132 firstname.lastname@example.org
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