Of course, every finance leader needs to understand the mechanics of accounting and know how to identify the financial implications of management’s decisions. Their preparation should also include learning from their experiences—and this includes mistakes, says Ian Charles, chief financial officer with Flexe, an on-demand warehousing solution.

In particular, identifying the optimal candidate for a job is one of a leader’s most difficult and critical responsibilities, Charles notes. It’s also far from straightforward. It’s easy to believe that you’re hiring a star who will move the organization to the next level, only to discover that the individual isn’t as exceptional as he or she appeared as a candidate. In other situations—say, when it’s necessary to fill a role quickly—a candidate who appears less inspiring at the outset can turn out to add tremendous value to the organization.

To improve his track record when hiring for critical positions, Charles has beefed up his interview process. He begins by interviewing several dozen individuals. From this group, he chooses two or three finalists. All go through at least several rounds of interviews, with both Charles and other members of his team.

To be sure, this can mean balancing rigor with market realities. Given the tight job market at the moment, good individuals can find plenty of great opportunities, Charles adds.

Also key to hiring well is adeptly balancing the interests of multiple parties, including the board, management, and employees. Focusing too heavily in one direction can lead to unintended consequences. For example, a goal of maximizing share price will impact the board, investors, management, and employees differently. Charles notes that in the early days of his career, he would lean toward maximizing share price for the board rather than focusing on employees’ needs. “I’ve learned from that mistake as well,” he says.

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