Upfront: The Tone at the Top

What makes a CFO a dynamic leader? Business Finance's editor in chief, Laurie Brannen, asked Blythe McGarvie, former CFO of Bic Group and author of the upcoming book "Fit In, Stand Out: Mastering The FISO Factor for Success in Business and Life," to be published by McGraw-Hill in September 2005.

Laurie Brannen: Few would deny that the person at the top needs to set an example for the rest of the finance organization. What are some of the most important things that CFOs can do to demonstrate leadership by example?

Blythe McGarvie: Every person has an important role and needs to be treated with dignity. When the CFO treats other associates and outside contacts with respect, the entire organization recognizes this. Respect for others and using your own personal power and the power of your position judiciously demonstrates leadership. Good leadership also means gaining different perspectives. Often, people within walking distance who may not be part of our direct responsibilities can provide more information and communication to help gain a broader perspective and, therefore, help in making balanced judgments.

LB: Spreading the right ethical tone throughout an organization requires a serious investment of time in communication. What is the CFO's role in ensuring that the company's ethics policy is enforced?

McGarvie: Ethics spread based on actions, not words. One of the most important actions is hiring and firing people. Those who do not have the right values, even if they deliver results, need to be dismissed promptly. If they stay, they can be a problem, and it shows the rest of the organization that you don't walk the talk.

LB: Can you give us an example from your own experience?

McGarvie: As CFO of Bic Group, the French company that makes disposable pens and lighters, I made a mistake when I hired a candidate for treasurer. During the interview and reference process, her attitude toward peers was not evident. Using the "4L" model described in my book, she turned out to be what is labeled as a "Lucifer," someone who has high skills but low values. Once hired, she kept her office door closed and didn't communicate with her subordinates, peers or me. She made little effort to fit into the culture and, as a result, couldn't play an effective role on the company's financial team. I tried to discuss these problems with her repeatedly; she continually asserted her technical competency. Within three months, we were having the formal, documented discussions required for termination in France.