MAKING THE PIECES FIT
By Kate Plourd

Soon after David Dreyer joined AMN Healthcare in 2004, he faced a personnel crisis. One of his new divisional controllers was isolating himself from the team, not communicating with direct reports effectively, and hampering the productivity of the finance department. Dreyer spent two months trying to better integrate the controller. Despite the efforts, it became clear to both that the new employee was unable or unwilling to walk in step with the company’s culture. The controller quit.

As Dreyer and other CFOs can attest, cultural mismanagement is a common problem that emerges when they hire a new executive. Given the current demand for finance talent, the probability of a bad fit in that department is magnified, says Michael Watkins, author of The First 90 Days: Critical Success Strategies for New Leaders at All Levels. “You always hope the [person doing the hiring] factors in something about the organization’s culture,” says Watkins.

While telltale signs of a cultural mismatch may be difficult to spot in the hiring process, it doesn’t take long for them to manifest on the job. Bradford D. Smart, president of Smart & Associates Inc., a management consultancy, says indications range from direct reports’ complaints that the executive doesn’t listen, to the executive’s
failure to accept procedures that differ from his previous experience.

What can a CFO do if he or she believes that a recent hire is turning out badly? Smart suggests taking a coaching approach. “Clarify goals and responsibilities,” he says, “provide ongoing advice, and if the person [continues to] fall short, make clear the [benchmarks] that need to be achieved.” This can be useful on two fronts. With tangible guidelines, the person may be able to improve. Or, as Smart says, “The person is apt to quit before getting fired.” In fact, Dreyer tried this method on a Friday and the controller turned in his notice the following Monday.

Ideally, CFOs should take measures early on to prevent a problem from emerging. Appropriate steps include introducing the newbie to key business leaders before the start date and assigning a mentor to guide the initiate through the first 100 days.