|
Case study No.2 |
When a firm is about to 'fly away', it is the time for the 'flying financial manager' to come and to make efforts to keep our feet on the ground.
When a company wants to increase its sales return from 3 million Euros to 70 million Euros within 3 years, such a dramatic growth changes the role of its financial manager.
The company at issue - let us name it 'Sunflower Ltd.' - is engaged in the supply office furniture and provides full-range services with a pronounced emphasis on high-tech. Sunflower Ltd. faced the situation described above at the end of the 90's. The company successfully survived the recession of the industry in 1989 and 1990, and, during the subsequent boom, it won tenders for more and more complex projects that required much more skill than their former practice was in the field of finances and complex planning.
Former tasks did not require more than the employment of a part-time financial manager, who concentrated mainly on precise book-keeping and cash management. The new tasks called for a financial manager of higher caliber. However, since they were only at the beginning of the upward trend in business, Sunflower Ltd.'s management and chief executive officer did not want to take too great risk by employing a full-time financial manager with high salary, although the need for such a person was growing from day to day.
Then they found the right solution; the person they needed was an interim financial manager. Interim Management, together with the responsible managers of Sunflower Ltd., defined the task to perform and the qualities of the person required. Within a few days, Interim Management found the right candidate. Mr. Eugene Griffin, who was known by the profession as the 'flying financial manager' - as he had earned his fame mainly by acting as an interim manager - had plenty of experiences in financial planning and controlling of growth targeted projects, in managing company growth and in the implementation of international transactions. Mr. Griffin signed a contact for a definite period of 3 months. The effects of his work could already be felt in the second month and the volume of orders increased exponentially. The extension of Mr. Griffin's contract by another 3 months became a must.
By the end of the 6th month, it was clear that the company had achieved the planned rate of growth and that there was need for a full time financial director of high caliber. Since Mr. Griffin earned great respect at Sunflower Ltd., the management decided to offer him the post of full-time financial manager. To their great surprise, Mr. Griffin thanked for the confidence put in him, but refused the offer, because he wanted to continue his carrier as a 'flying financial manager'. The management of the Sunflower Ltd. also realized that it is flexibility, objectivity and independence that make interim managers capable of facing great challenges successfully, namely the lack of any former personal records and involvement in the internal corporate matters of the company helps them to concentrate solely on the achievement of the targets and this is what makes them so efficient. After having found his successor, a full-time financial director, Sunflower Ltd. gave a small farewell party in honor of Mr. Griffin and, encouraged by the good experiences gained, they still regularly use the services of interim managers.
|
|
