Parachuting in for Change
Interviewed by Olivia Wolak

Interview with Peter Welch, Interim CFO, Turnaround		 Date Interview: 02/03/2010
Date of Credentialing: 02/10/2010
Credential expiration: 02/10/2011
 

You’ve been in the US for 30 years and lived in the UK before that. How does your international experience help to differentiate you?

You can’t place a set value on overseas engagements. You are certainly thrown into extremely difficult situations. There are language barriers, cultural and environmental differences, especially in the Eastern Bloc, that many have no comprehension of.

One of the aspects of leadership, being in senior management, is recognizing that you are not there for your own gratification, per se; you are not there to politicize your position. You are there to help the group of people you’re managing, to grow the company.

I understand you recently took a short-term position in and around Afghanistan?

Yes, in an interim role, through January. I will be initially traveling around in less-than-perfect conditions in Afghanistan under a USAID, Cash-for-Work program.  Then I’ll bring that knowledge back to Singapore to recommend improvements to systems and procedures, especially as the program is growing. 

What draws you to this type of assignment?

It’s a personality thing; I am a strong-minded entrepreneurial guy. And I like the idea of being able to call on all of my experiences.  You build upon each experience going from place to place. I can be “parachuted” into any location, anywhere.  I can go to Cairo, Sudan, Bosnia or Afghanistan, look around and see what’s different. Most people can’t do that.

That is a unique ability.

Even in the darkest places, the local people are wonderful, kind and loving. It’s amazing to see kids laugh and have fun, even with guns and IEDs all around them.

How did you get into this line of work?

I held progressively senior positions in the UK and I was studying for the British ACCA--professional accounting exams. When I came to the US in 1980, I consolidated that by getting a Masters in finance, graduating with distinction, in Massachusetts. After my last full-time position, I decided that I wanted the opportunity to build my own organization as a global consultant and so Sox International and ContractualCFO were born.

I can be ‘parachuted’ into any location, anywhere. I can go to Cairo, Sudan, Bosnia or Afghanistan, look around and see what’s different. Most people can’t do that.

What did you learn as you transitioned to interim leadership?

Moving into interim assignments on a full-time basis was really a progression; it requires building up a significant portfolio. One of the aspects of leadership, being in senior management, is recognizing that you are not there for your own gratification, per se; you are not there to politicize your position. You are there to help the group of people you’re managing, to grow the company.

 

 

Parachuting in for Change -- Peter Welch, Interim CFO, Turnaround
Peter Welch is a highly experienced educational/training expert, accountant, senior financial manager/interim CFO, and entrepreneurial development specialist/interim CEO. His 30+ years of financial consulting experience spans the globe, assisting organizations with multibillion dollar budgets to small startups in such countries as Egypt, Bermuda, Japan, Iraq, and Afghanistan, to name a few.

Tell us about a home run in your career.

One company wanted someone to build a financial model. While I’m not a technician, I’m very technical. I’m extremely good at developing econometric financial modeling—building models and wearing the CFO hat.

You sharpened that ability at PeopleSoft.

I know how to go in and do stuff. This is unusual in someone with my background. Today, you really have to be able to wear a multiplicity patch. You have to know what the technical stuff is and you can’t be blinded by technical or IT people saying, ‘What does he know? He’s just an executive.’ What they don’t realize is that I’ve done things like HTML programming and ERP architecture.

How did this “multiplicity patch” come in handy in this particular assignment?

I ended up designing and building an accounting-based financial model for the company from scratch. It was a nice, lock-tight, flow-through model. The company used my model to eventually recapitalize. I was thrilled that they were –and are still – happy with my work.

How do you measure your management skills?

The measurement is in the growth of an employee. You get a person with the right attitude and you can make them into anything. That is true success.

With what industries do you have the most experience?

When I look at the spread across a number of years, I’ve had a mix of manufacturing, software, service companies and financial services. Often corporations make the presumption that you need 10 to 15 years of experience in an industry. That’s nonsense. Just give me 30 days.

How so?

You have to understand the revenue and expense drivers, what turns the business around, what turns the business on, who the customers are, what differentiates them – all the standard things that apply to any company and industry on a global scale.

Is this specific to an interim position?

Yes. Within a very short time period—as little as six to eight weeks—you really pick up everything that’s going on in that organization. You start building a portfolio of these projects and you have the ability to compare and contrast organizations similar in size or dimension. You can’t do that if you are simply a career person.

How is the mindset of a “career person” different?

There are folks today who are unemployed, and suddenly, lo and behold, they become consultants. There’s a huge difference between being a dedicated interim CEO as opposed to filling in between jobs. It’s a completely new attitude; it’s a perspective that is 100 percent planned and focused. There is no such thing as nine to five or Monday to Friday. You have to understand that you are there 24/7, whenever the client has needs or demands.

Everything that was, isn’t necessarily imbedded in some religious fashion. It can be questioned and it can be changed. Let’s consider alternatives to the way we used to do business. And let’s see if there’s a better way now.

When you’re not in 24/7 mode, what do you enjoy doing?

I love cycling. I’ve ridden about 5,000 miles on my bike in some interesting places, such as Puerto Rico and Dubai.

What keeps companies from moving forward?

My frustration is with how many times companies and corporations resist any kind of change. I hear all the negativity of the ‘we can’t’ and ‘we shouldn’t,’ but I don’t hear people saying why these are bad decisions.

What do you hear?

Underneath the surface there are personal insecurities, job insecurities and career concerns, which lead to an unwillingness to bend and be flexible. Often times when senior people make negative comments I don’t think that they are keeping their fiduciary role and corporate responsibilities in mind.

Often corporations make the presumption that you need 10 to 15 years of experience in an industry. That’s nonsense. Just give me 30 days. You have to understand the revenue and expense drivers, what turns the business around, what turns the business on, who the customers are, what differentiates them – all the standard things that apply to any company and industry on a global scale.

In a recession what should companies focus on?

It’s an opportunity for companies to clean house. Do it during a recession and you’ll grow and prosper exponentially as the economy gradually recovers. Process flow mapping will highlight all the dark and hidden areas companies love to pretend don’t exist. Use activity-based management analysis, and productivity and returns will take on new meanings and heights.

How exactly?

Say ‘okay, we know we aren’t doing things right, so let’s go through the place, build flow maps—information process mapping—and figure out who does what and why they are doing it. Literally, let’s take the whole corporation, the concept of each division, and understand that everything that was, isn’t necessarily imbedded in some religious fashion. It can be questioned and it can be changed. Let’s consider alternatives to the way we used to do business. And let’s see if there’s a better way now.’

How many companies are going to do that?

Very  few. But those are the winners. 

Thank you, Peter. Best of success with the Afghanistan project and your next engagement.

 

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