2. The Problem … Or Symptoms of the Problem? “… The average CFO tenure today is less than 30 months …” “ 1 in 7 CEOs will turnover in 2006.” “ CFO turnover doubled in 2006 , likely to reach 2,500 terminations.” “ April ‘07 brought earnings season…and another 18% jump in CFO turnover vs April ‘06.” Liberum Research
6. Performance Gap Results from a Variance in Required and Possessed Capabilities Executive Start Date Performance Requirements Executive End Date Performance Gap: Resulting in No Operational Leadership, Process/Functional Deficiencies and Vacancy Required Capabilities Capabilities Possessed Over time, the gap between the skill-set and expertise possessed by the executive, and that required by the prospect continues to grow as the organization undergoes transition. That performance gap results in lack of operational leadership, and process deficiencies. Ultimately, it often results in the executive being asked to leave, or leaving on own accord… a vacancy. That further exacerbates the problem of “no leadership”, and “deficiencies”.
7. Performance Gap Repeats During Business Lifecycle Executive Start Date Performance Requirements Executive End Date Executive Start Date Executive End Date Executive Start Date Executive End Date Throughout the lifecycle of a business, this cycle repeats itself, in many cases meaning the “ideal” fit in the previous cycle presents a performance gap in a future cycle.
13. Client Value Study: PowerDirect BEFORE TATUM TATUM SERVICES WITH TATUM Desire for veteran, CFO-quality financial leadership within budget and timing constraints Tatum CFO Services Tatum provides part-time financial expertise and strategic leadership to quickly help manage current situation and plan for growth Absence of accounting and financial reporting acumen reduces management’s ability to take on strategic initiatives while managing daily operations Tatum Controller Services Tatum establishes and oversees controller function to manage effective financial operations, freeing management to focus on growth strategies Need for strategic guidance to help focus fast-growing company on new opportunities Tatum Consulting Tatum establishes ongoing routines and systems for strategic review, leading to introduction of new product and organizational breakthroughs “ We have really made major progress, and I attribute an awful lot of that to Tatum.” Sue Sampson, Co-owner and Vice President of Marketing