Richard B. SosciaAnalysis of Preferred Job Positions

The Chief Financial OfficerWhen I consider a position in which I’m deeply interested, I research the position to insure my experience, expertise and skill set are ideal for that position. Once these are in place, I look at the position to determine the values I can bring to the Company, its employees and its customers and list what I believe are the essential characteristics of the position.

This analysis is what I consider key to being an excellent Chief Financial Officer.

The position of Chief Financial Officer in any organization is diversified and multi-functional. While his/her most important function is assisting the Chief Executive Officer by adding an element of mutual support, he/she is required to assist the CIT in the transformation caused by the abundance of technology and the analysis of big data and function as a change agent with other departments. The CFO helps to assess the situation, take out obstacles, and adapt to change which improves the ability to achieve goals and mitigate risk.

ASSISTING THE CHIEF EXECUTIVE OFFICER

The main elements of support are helping to assess the situation, take out obstacles, and adapt to change which improves the ability to achieve goals and mitigate risk. In assessing the situation the CEOs needs a CFO who helps them determine the “lay of the land” by projecting financial needs, modeling new ideas or preparing “what if” scenarios.  The CFO works within the organization to build relationships with other functional areas and determines what their needs and opportunities are.  They also represent the company externally to bankers and investors to determine what opportunities the company has for growth.  A CFO helps bring clarity to the situation so that better decisions can be made.

CEOs are excellent at developing new ideas. The CFOs are excellent at identifying problems.  In taking out obstacles the CEO looks to them to provide solutions rather than to simply point out how things can go wrong.  A CFO doesn’t shoot down each new idea, but looks to find a creative way to make the idea work in a financially sound way.

Most CFOs react to change by seeking to stabilize the environment.  Since most CEOs are great initiators of change, this can lead to frustration on both parts.  One way a CFO can avoid the frustration is to be a sounding board for new ideas.  If the CFO is part of the vetting process, he or she will not only be more likely to be on board with the new idea but will also be able to guide the creative process in a way that ensures a greater degree of success.  As a result, the CFO develops a better understanding of company goals and is more comfortable contributing their own ideas on how to grow the company.  A CFO realizes that the best way to address change isn’t to fight it, but to adapt to it.

ASSISTING THE CHIEF OF INFORMATION TECHNOLOGY:

The changes and transformations catalyzed by modern technology are becoming key factors to a business’ survival. Disruptive technologies, particularly those based on the Internet, cloud computing and social media (the “Third Platform”) and Big Data analytics, are forcing long-established businesses to rewrite their business models and go-to-market strategies. The changes in IT that are enabling this Third Platform and driving new data analytics is the next new technology wave impacting businesses, so it’s critical that the business prepare to ride the wave rather than be engulfed by it. Several companies that did not change were unable to survive. Managing this scale of corporate transformation requires many of the skills CFOs have. In fact, few are better placed to bridge the line of business silos and support the CEO in assessing and analyzing new risks, building business cases for transformative investments, and performing ‘blank page’ planning for the future, relatively unencumbered by attachment to legacy investments and infrastructure. Although still crucial to their role, governance, compliance, stewardship and fiduciary responsibility are not the only ingredients necessary for business growth. Innovative CFOs are recognizing this transition and looking to support the business with the broader challenge of building a platform for growth and future competitiveness. This requires the CFO to make the transition to a broader strategic adviser using the following core principles:Understand the wider business. The strategic CFO needs to have a broader understanding of the business, rivaled only by the CEO. This demands an insatiable curiosity, wide-ranging reading and close collaboration with the lines of business heads. Innovation and transformative thinking may well come from an unexpected source; it needs to be cultivated, assessed and shepherded through the business where it has potential.

Be optimistic and champion the opportunities for transformation. The CFO’s financial and analytical backgrounds mean they sometimes focus on the negatives rather than the positives. But they need to find a way to be an enabler of solutions rather than simply the barrier in order to build their credibility as a strategic adviser to the C-suite. Finding a way to say “yes” to a given business problem enables growth and innovation, saying “no” will maintain the status quo and can lead to stagnation.

Steer business innovation. Disruptive technology is changing the way companies go to market, serve customers, and develop products. It is even having an effect on the markets they enter. CFOs need to help companies lead the market; rather than be led by it, by keeping abreast of how technology is affecting the dynamics of their market and keeping ahead of change if possible. This may mean making some bold decisions, funding and facilitating new kinds of technology infrastructure, R&D or setting up internal support functions as new profit centers with charge back models. Either way, the CFO is well placed to support other leaders in the business in developing and championing new ideas.

Changing the CFO’s image in the leadership team. The CFO must be vocal and keep the wider management team updated on their progress and initiatives. The CFO’s should ensure their contributions are valued. If the CFO can demonstrate how transformation and innovation can deliver greater competitive advantage to the business, as well as for the lines of business leads, they will be better placed to secure the trust and authority needed to help steer the business.

The CFO should embrace the role as a ‘change agent’ for the business and become a key driver of the transformation agenda.

ASSISTING THE OTHER DEPARTMENTS AS A CHANGE AGENT

As a change agent, the CFO contributes strategic initiatives throughout the company. A strategic initiative (SI) is an endeavor intended to achieve three interrelated outcomes: • A boundary-spanning vision or “strategic intent”• Realization of important benefits to “strategic” stakeholders andTransformation of the organization These strategic initiatives enhance the goal of most CEOs to grow the company profitably.  CFOs can help their organization reach this goal by cutting costs, improving productivity, and assisting in developing sound pricing strategies. Since the CFO has control over most overhead costs, they usually are very skilled at cost cutting.  CFOs looking to improve productivity can often make the most impact by helping to determine what the company’s key performance indicators are and developing reports to track these KPIs. A CFO shares the leader’s vision and helps him or her achieve it. That is why I am seeking the position of CFO with a progressive, challenging and innovative Company that has a long-range perspective. 

DIRECTOR OF TAXATIONThe Director of Taxation is a multi-functional job subject to the Internal Revenue Code, Generally Accepted Accounting Principles, the Securities and Exchange Commission and the policies and procedures of the Sarbanes-Oxley Act. Since corporate taxation encompasses one of the largest expenditures of a corporation, the Tax Director must possess a high degree of technical knowledge in Accounting, Tax, Finance, Economics and Business Administration. Since tax policies and procedures are based on laws passed by Congress, many companies seek individuals with law degrees but an accountant with an MBA and CPA will usually be more familiar with the analytical skills necessary to interpret the underlying information generating the tax information. However two skills that are based on jurisprudence are tax briefs which follow the procedures for a legal brief and tax compliance under both the Tax Code and Generally Accepted Accounting Principles.

The Director of Taxation is normally responsible for:1. Domestic Taxation;2. Multi-National Taxation;3. Taxation of Employee Benefits and Pension Plans; 4. Mergers and Acquisitions;5. Tax Preparation;6. Tax Accounting 7. Tax Disclosure

Accordingly, the tax department is more productive if separate teams are responsible for Domestic Taxation, Multi-National Taxation and Mergers and Acquisitions.

The ideal Tax Director is familiar with technical tax requirements (Tax Provision and Compliance processes) as well as internal tax and reporting policy. She/he works in a highly visible environment and is responsible for providing tax guidance, managing and updating company tax policy as it pertains to domestic taxation, international taxation, taxation of Mergers and Acquisitions and taxation on pension and other benefit plans.

 

DOMESTIC TAXATION

Domestic taxation requires researching new and proposed domestic tax law to determine how the company will account for technical tax law as well as presenting information on new domestic legislation or policies to key stakeholders. In addition, since companies are usually located in different state with their own tax laws, primary considerations in selecting any state to establish a business must be the impact of their tax laws and the ability to obtain concessions from the states for locating the business in that state.

MULTI-NATIONAL TAXATION:

Since most companies have international operations, a key consideration is the study or determination of tax on a business subject to the tax laws of different countries or the international aspects of an individual country's tax laws. Systems of taxation vary among governments, making generalization difficult. Taxes may be levied on varying measures of income, including but not limited to net income under local accounting concepts, gross receipts, gross margins (sales less costs of sale), or specific categories of receipts less specific categories of reductions. Unless otherwise specified, the term "income" should be read broadly. The Tax Director must be familiar with the tax treaties, methods of taxation, the ability to recharacterize income in a manner that reduces taxation In developing any tax concept, the Director must be skilled at writing tax briefs in the form used by attorneys. That is the primary reason, I spent one year going to law school.

MERGERS AND ACQUISITIONS:

In determining the most profitable method of merging or acquiring another company, there must initially be a strong economic reason. Such reasons include taking advantage of changes in the economy, technology or industry; developing synergistic marketing; entering a new product line or restructuring the operational infrastructure. Generally, a Company sees an economic need: capitalize on an opportunity, go through change management, increase process development, establish new technology, develop risk assessment systems or stay ahead of the competition. The essential dynamics is to develop a business plan that proves the concept is marketable, increases growth, maintains a leadership position, and increases ROI and EBITDA. Once that is developed, the cost of implementing the plan internally or implementing it through a Merger or Acquisition must be considered. Two factors that will determine the best approach are the time constraints and the tax implications. The Tax Director manages domestic acquisition due diligence and implements post acquisition planning.

TAXATION OF EMPLOYEE BENEFITS AND PENSION PLANS:

One area that seems prime for tax law is taxation of employee benefits and pension plans. Most tax laws set up tax penalties, tax liabilities and tax changes to restrict theses areas and generate income for an infraction of the law. This goes hand in hand with the constant battle between Employers and Unions in negotiating Union Contracts. As a result, companies have used bankruptcy to terminate pension plans and union contracts. The Tax Director has substantial influence in determining the new tax law provisions and works with the CEO and CFO to determine how to control the rising costs of these benefits.

Other Responsibilities:1. Lead internal team for the quarterly and annual worldwide income tax provision preparation in accordance with US

GAAP reporting.2. Manage domestic acquisition due diligence and implement post acquisition planning.3. Oversee all aspects of US taxation, including federal and state income tax return preparation, review sales and use

tax filings, and income and sales/use tax audits.4. Oversee FIN48 documentation & calculations5. Review and analyze quarterly forecasted P&L and impact to the overall income tax rates6. Monitor the current and deferred taxes for all domestic and foreign entities7. Conduct internal training sessions related to tax accounting8. Participate in tax process optimization, develop and implement procedural changes and/or processes to improve the

tax function.9. Maintain quarterly SOX 404 internal control procedures for tax accounting and ensure proper documentation.

VICE PRESIDENT - INTERNAL AUDITINGThe Scope of Services of the Director of Internal Auditing is as broad as is his background and experience. While the Institute of Internal Auditing is the recognized international standard setting body of the Internal Audit Profession, it is the primary responsibility of the Director to train and develop a productive internal auditing organization that is familiar with all aspects of the Company, and the related roles for which they are responsible. The Director must have a strong background in accounting, finance, economics, technology and operations. He/she should have experience as an external auditor, preferably with a large CPA firm and should have been involved in both local and multinational audits spanning from start-ups to Fortune 100 companies. It is also beneficial if he/she worked outside the accounting area as consultant or operations manager.

The main characteristics of a high-functioning Director of Internal Auditing include:

1. Aligning Internal Audit contributions with strategic objectives,

2. Leveraging continuous monitoring and data analytics to improve efficiencies and risk based execution,

3. Retaining and building core competencies that are in high demand right now,

4. Serving as a leadership incubator for high potential talent across the organization,

5. Conducting performance measurement and reporting on what really matters to the Audit Committee and other stakeholders,

6. Establishing risk-based plans to determine the priorities of the internal audit department, consistent with the organization’s goals, and

7. Insuring Internal Compliance with the Sarbanes-Oxley Act.

In pursuing these characteristics, the Director implements best practices and insure the following activities are maintained:

1. Organizational independence: Professional internal auditors are mandated by the IIA standards to be independent of the business activities they audit. This independence and objectivity are achieved through the organizational placement and reporting lines of the internal audit department. The required organizational independence from management enables unrestricted evaluation of management activities and personnel and allows internal auditors to perform their role effectively.

2. The effectiveness of internal control: Internal auditing activity is primarily directed at evaluating internal control broadly defined as a process, affected by an entity's board of directors, management, and other personnel, designed to provide reasonable assurance regarding the achievement of the following core objectives for which all businesses strive:

Effectiveness and efficiency of operations.Reliability of financial and management reporting.Compliance with laws and regulations.Safeguarding of Asset

Management is responsible for internal control, which comprises five critical components: the control environment; risk assessment; risk focused control activities; information and communication; and monitoring activities. Managers establish policies, processes, and practices in these five components of management control to help the organization achieve the four specific objectives listed above. Internal auditors perform audits to evaluate whether the five components of management control are present and operating effectively, and if not, provide recommendations for improvement.

 3. Risk management and assessment: Internal auditing professional standards require the function to evaluate the

effectiveness of the organization's risk management activities. Risk management and assessment is the process by which an organization identifies, analyzes, responds, gathers information about, and monitors strategic risks that could actually or potentially impact the organization's ability to achieve its mission and objectives.

An organization's strategy, operations, reporting, and compliance objectives all have associated strategic business risks - the negative outcomes resulting from internal and external events that inhibit the organization's ability to achieve its objectives. Management assesses risk as part of the ordinary course of business activities such as strategic planning, marketing planning, capital planning, budgeting, hedging, incentive payout structure, credit/lending practices, mergers and acquisitions, strategic partnerships, legislative changes, conducting business abroad, etc. Sarbanes-Oxley regulations require extensive risk assessment of financial reporting processes. Corporate legal counsel often prepares comprehensive assessments of the current and potential litigation a company faces. Internal auditors may evaluate each of these activities, or

focus on the overarching process used to manage risks entity-wide. For example, internal auditors can advise management regarding the reporting of forward-looking operating measures to the Board, to help identify emerging risks; or internal auditors can evaluate and report on whether the board and other stakeholders can have reasonable assurance the organization's management team has implemented an effective enterprise risk management program. Major strategic initiatives are implemented to achieve objectives and drive changes. As a member of senior management, the Director of Internal Auditing may participate in status updates on these major initiatives. This places him/her in the position to report on many of the major risks the organization faces to the Audit Committee, or ensure management's reporting is effective for that purpose.

4. Involvement in corporate governance: governance is the policies, processes and structures used by the organization’s leadership to direct activities, achieve objectives, and protect the interests of diverse stakeholder groups in a manner consistent with ethical standards. The internal auditor is often considered one of the "four pillars" of corporate governance, the other pillars being the Board of Directors, management, and the external auditor.

5. Organize and manage the internal audit department, increasing productivity, researching technical accounting and auditing issues and updates, educating members of the organization about the role and responsibility of the internal audit function; implementing a process of continuous monitoring of audit findings, insuring on-going training of audit staff and evaluating staff performance after each audit, developing audit plans based on risk assessment, specific criteria, specific issues, special projects and recent changes and developments.

6. Assign teams of auditors trained in computer technology, security, procedures and policies to continuously assess the IT function based on both announced and unannounced audits.

7. Developing a uniform system of electronic work papers and findings to facilitate on going reviews.

VICE PRESIDENT - FINANCEThe Vice President of Finance (VP-Finance) looks after the overall management of the financial operations of the organization, and is mainly involved in planning, organizing and controlling the financial resources. Although these are huge tasks within themselves, the responsibilities of the VP-Finance are not confined to these responsibilities alone. In certain areas of responsibilities, she/he coordinates with the Chief Financial Officer and together they form a comprehensive, synergistic working team. These primarily include forecasting, budgeting and strategic planning: 1. Forecasting: VP-Finance is responsible for all corporate forecasting. This includes sales and revenue forecasts as well as competitor forecasts. The VP-Finance builds forecast models and metrics to accurately predict the outcome of a potential or proposed business transaction. These transactions may include expansions, mergers, acquisitions, capital projects or divestitures. These forecasts are usually developed for executive level leadership. 2. Strategic Planning:

Strategic planning is a critical responsibility of finance. Many capital expenditures, mergers and acquisitions and major expansions take months or years to plan. Strategic planning is vital in making these projects successful. Pro forma financial statements, projections and success metrics are all required for project approval. Planning for projects of this magnitude requires financial professionals with extensive education and work experience.

3. Compliance: They are responsible for compliance and regulatory issues pertaining to the financing activities of their organizations. The VP-Finance is involved with all financing sources for his organization. This includes activities related to stock and corporate bond activity, equity investors and all non-traditional financing sources.

4. Subject Mater

The VP-Finance is the expert on compliance and regulatory issues related to finance. She /he will consult with counsel and executive leadership on proper financing activities and all necessary and required disclosures. She/he is responsible for adherence to the corporate finance policies, and usually reports any deviation to the chief financial officer.

5. Investment Activities: The VP-Finance is responsible for some or all investment activities. Financing activity varies greatly depending on the size of a company, but all companies have some degree of investment activity. These investments could be as simple as a money market account or simple interest-bearing account. However, in large companies, investments may include corporate securities, annuities and taking stakes directly in other companies. Finance directors need to be well-qualified for the tasks, duties and responsibilities they are going to handle in the organization. Financial management and controlling the entire finance domain is no mean task. You need to be careful while planning and utilizing the organization's financial resources. A small mistake could result in a big loss, which might impact the entire organization. Certain skills that companies seek are: • Master’s Degree in Finance or Financial Management;• In-depth knowledge of GAAP, taxes, SEC reporting, and management systems;• Accuracy with detail, planning skills, timeliness, organizing, efficiency and a high sense of urgency; • Advanced oral and written communication skills, along with good interpersonal skills;• Ability to handle the pressure of priorities that change frequently;• Proficient with MS Office, especially excel.• Experience in public accounting; and,• Prolific reader.  

THE MANAGEMENT CONSULTANTEveryone has an opinion but not everyone is a consultant

Management Consulting is the practice of helping organizations improve their performance, primarily through the analysis of existing organizational problems and development of plans for improvement. Organizations may draw upon the services of management consultants for a number of reasons, including gaining external (and presumably objective) advice and access to the consultants' specialized expertise. The Management Consultant covers a wide net work including strategy consultants, business consultants, technology consultants, IT consultants, marketing consultants, etc. My areas of expertise are strategy, business, financial and technology consulting. A successful consultant has a strong work ethic, is passionate about helping clients achieve success, generates trust and is enthusiastic about probing deeply into an issue to develop a strategy that is unique to resolving the issue.  The process of consulting varies according to industry and local practice. A consultant is engaged to fulfill a brief in terms of helping to find solutions to specific issues or to find solutions to broad issues that may require change. The specific consulting project is primarily the request of senior management. The ultimate consulting project is considered from the point of management and the consultant based on consultant’s analysis of the Business.

As a result of my exposure to and relationships with numerous organizations, I am aware of industry "best practices", the impact of changes in the industry, the economy and technology, providing organizational change management assistance, development of coaching skills, process analysis, technology implementation, strategy development, or operational improvement services. I often bring my own proprietary methodologies or frameworks to guide the identification of problems, and to serve as the basis for recommendations for more effective or efficient ways of performing work tasks.

The characteristics of the successful management consultant include: Discipline and Motivation: Successful management consultants must be highly motivated and interested in their work, because the hours are usually long. As a result, top consultants must be disciplined enough to be able to handle what is often a considerable workload; knowing how to prioritize tasks and using time management. Since management consultants often work with little supervision, they must be able to stay on task without continual reminders.

 

Analytical and Creative Skills: The best management consultants can climb even the steepest learning curve quickly. They can come into a new company, gather information, assess the problem and offer a solution; they may be hired to implement the solution as well. As a result, they have terrific analytical and problem-solving skills. A company that hires a consultant may be looking for an out-of-the-box solution, so consultants should display creativity during the problem-solving process. Top consultants provide remedies that are both creative and practical.

Communication and People Skills: Good consultants are able to develop a trusting relationship with employees quickly and easily; they are good listeners and have excellent spoken and written communication skills. As noted in many articles "consulting is about communication" as well as business. Those who enjoy and thrive in both tend to make good consultants.

Strategic planning and analytics:The initial growth in consulting was financial consulting based on the Glass-Steagall Banking Act introduced in 1930 driven by demand for advice on finance, strategy, and organization. Since then successful consultants bring a rigorous analytical approach to the study of management and strategy. This allows them to know both the quantitative and qualitative attributes of a Company to develop a strategic plan that enables them to go beyond the original issues and look a other concerns that require assistance.

These characteristics require an essential skill set that encompasses: • Impeccable researching skills (desk research, telephone interviewing and face-to-face);

• Outstanding analytical and syntheses skills (e.g. the ability to delve into deep data analysis and then synthesize the key messages / "so whats");

• Excellent written communication (to produce word and PowerPoint reports);

• Strong PowerPoint presentation creation (essential for developing client presentation packs late at night!);

• Commitment to delivering excellent client service (i.e. the desire to put in the long hours when you have to ensure a quality deliverable for the client);

 

  

• Excellent verbal communication skills (e.g. being able to communicate in a structured manner during internal and external meetings);

• Excellent team skills- successful consultants are able to work in diverse teams, under tight deadlines, to deliver quality work for clients;

• Highly organized - days may include various activities.  The ability to schedule and follow through with these activities is vital;

• Sales skills - consulting is a business, selling your talents and your product is a skill that must be developed.;

• Objectivity - lack of bias when working with others to deliver robust independent insights