From CFO to CEO

1
From CFO to CEO

• Mike Harris
• Chicago
• June 26, 2009

2
My Background

• BS Accounting, UW-Parkside CPA
• Associate at Wind Point Partners (VC fund)
• CFO of Alternative Resources (ARC) 1989 to 1995
• Founder and CEO of Jefferson Wells 1995 to 2001
• Founder of Adams Harris, Sagence Group, The Novo
  Group and Patina Solutions

3
The ARC Experience

• Start-up IT temporary staffing firm (1989)
• VC backed (Wind Point Partners)
• From zero to 50 offices and 130 million in sales
  in seven years
• IPO on NASDAQ in 1994
• First time CFO role for me
• Proactively pursued non-financial activities
• Stoked my competitive drive to do more than the
  numbers
• Exposed me to the importance of culture

4
What I did at ARC to Prepare for CEO Role

• Took on two troubled branches
• Wrote marketing materials / worked on branding
  and positioning
• Attended sales and management meetings
• Visited field offices
• Went on sales calls client thank you visits
• Started the middle market initiative
• Told the ARC story to investors and others

5
Time to move on

• ARC not ready to promote me
• I had the fire, needed to tend it
• Felt confident in myself
• Knew the ARC model very well
• Willing to take risks financial and professional
  
• What is worst that can happen?
• Jefferson Wells, here I come

6
Jefferson Wells

• Started in late 1995 with my own money
• Internal audit, accounting , tax and IT security
• Quickly obtained VC funding (early 1996)
• Grew from zero to 131 million in sales in five
  years
• 2,000 employees and 25 cities
• Sold to Manpower in 2001 for 174 million in cash
• First time CEO role for me

7
Typical CFO Descriptors

• Accountable
• Watch dog
• Efficiency
• Deadlines
• Costs
• Sales prevention
• Budgets

• Financing/capital
• Internal issues
• Management
• Reporting and filings
• Controls
• No
• Absolutely not

8
Typical CEO Descriptors

• Vision
• Culture
• People
• Strategy and direction
• Clients and customers
• Yes

• Leader
• Energetic
• Passionate
• Spokesperson
• Sales generation
• External issues

9
Things to do when still a CFO

• Be a strategic thinker and planner
• Go see clients and customers
• Get out of your comfort zone
• Focus on leadership development and training
• Build communication skills
• Generate and share bold ideas

10
Things to do when still a CFO

• Befriend / help the sales leadership get
  involved in selling efforts
• Volunteer for duty trouble spots, task forces,
  special projects
• Build alliances and partnerships
• Join other Boards
• Find a CEO mentor

11
Things to do when still a CFO

• Groom a replacement CFO
• Prepare very well for Board interactions
• Important to have a plan/roadmap for your own CEO
  development

12
Now you are the CEO

• Different mind-set at work each day
• Must learn to understand and manage power
• Dont get too bogged down in the numbers
• Lead and inspire, not manage
• Be courageous and confident
• Utilize teamwork - let the teams work

13
Now you are the CEO

• Lots of selling as a CEO know how to do it and
  enjoy it
• Hiring great people is most important job as CEO
• Take risks be willing to fail
• Use analysis and discipline to your advantage
• Do CEO level things - employees want that

14
Scenarios, Plans and Tactics

• Start your own company or buy a company
• Look for a leadership opportunity of a division
  or subsidiary in your current company
• Make your desire to become a CEO known
• Spend time with folks who have done this before
• Change companies (ARC did not promote me)
• Start small and grow into the role
• Might have to take a pay cut

15
CFO to CEO Trends

• Between 1999 and 2005, the number of Fortune 500
  companies with a COO dropped from 249 to 204
  (Source Crist Associates)

• 20 of Fortune 100 CEOs were once CFOs,
• Up from 12 10 years ago (Source CFO Magazine)

16
In Conclusion

• CFOs can be great CEOs understand the
  differences
• Be bold and take risks
• Understand mistakes will be made along the way
• Learn from observing find a mentor
• Be patient, confident and realistic
• Plan for your future and commit to the plan
• If I can do it, anybody can do it.