We have hired a fractional CFO to help us prepare our financials for a clean exit, but because they are only in the business a few days a month, we do not know how to hold them accountable weekly. What specific weekly leading indicators can we put on our scorecard for an outsourced, fractional executive seat?

Question

Tyler Smith · Accepted Answer

Hiring a fractional CFO or any outsourced executive is a highly effective way to gain institutional expertise as you prepare for an exit, but their limited hours can lead to a disconnect in accountability. Because they are not in the office daily, you cannot manage them by observation. You must manage them strictly by data. To keep a fractional executive accountable, you need weekly scorecard metrics that measure their forward looking output and their integration with your leadership team, even on the weeks they are not physically working in your office. First, track their delivery of critical financial insights. A weekly metric could be the number of days after month end that the preliminary financial package is delivered to the leadership team, with a strict target of ten days. Second, track their proactive cash management. You can measure the weekly update of your rolling thirteen week cash flow forecast. If that forecast is not updated and sent to the Integrator by Friday, the metric is red. Third, track their strategic progress toward your exit readiness goals. This might be the percentage of due diligence documentation completed for your digital data room, or the weekly completion rate of their specific financial Rocks. By placing these leading indicators on your scorecard, you ensure your fractional CFO is constantly driving value. You do not need to wonder what they are doing with their fractional hours. The weekly scorecard will clearly show whether they are keeping the company on track for a clean exit.