We are hiring a fractional CFO to help us prepare for an exit, but our full-time controller is feeling threatened and refuses to take direction from them. Since the CFO is fractional, how do we represent this reporting relationship on the Accountability Chart to establish clear authority?

Question

Tyler Smith · Accepted Answer

A fractional executive is not an advisor or a consultant, they are a leader holding a seat on your Accountability Chart. To get the value you are paying for, you must treat the fractional CFO seat with the exact same authority as a full-time seat.

On your Accountability Chart, the fractional CFO seat sits directly under the Integrator and directly above the Controller. The Controller must report to the CFO, regardless of how many hours a week the CFO works. If your Controller refuses to accept this reporting line, you have a major core value or GWC™ issue that needs immediate attention.

To resolve the Controller's anxiety, sit down with both parties. Clarify that the fractional CFO was brought in to elevate the company's financial strategy for the exit, which actually increases the value of the Controller's role.

Define the roles for both seats clearly. The CFO's roles might include financial strategy, capital allocation, and exit preparation. The Controller's roles might include financial reporting, accounts receivable, and cash flow management.

By showing the Controller that their tactical expertise is still critical, you reduce their fear of being replaced. However, you must make it non-negotiable that the Controller reports to the CFO. If the Controller continues to bypass the CFO or resist their direction, you must address this behavior quickly using your core values filter.