In our last article, we talked about how to measure the success of an internal chief financial officer. As the CFO’s responsibilities have grown, many companies have turned to outsourced CFO services providers to help them improve financial management and profitability, as well as increase shareholder value.
In the same way that it’s important to measure the success of a staff CFO, it’s also critical to gauge the success of an outsourced CFO services provider. In some ways, this is even more important, since your company will likely make a significant investment of both time and money into the services of an outsourced CFO.
In support of gauging an outsourced CFO’s success, this article…
…looks at some quantitative and qualitative ways to measure performance. The article suggests first focusing on comparing outcomes to goals established at the beginning of the engagement – and then recommends five potential outcomes along with concise questions to ask in the evaluation process.
By considering all of the above factors, Los Angeles and Southern California business leaders should be able to gauge whether or not an outsourced CFO services engagement has been successful or not. These factors include qualitative measures like productivity, margins, expenses and controls, as well as more quantitative factors like peace of mind and a sharper strategic focus.