Consumer Packaged Food Company Stabilizes in the Face of High Executive Turnover
A family-owned grower and producer of organic consumer packaged food products faced the departure of a CFO with 10 years of company experience, followed shortly thereafter by the departures of the controller and FP&A manager. These departures created tremendous instability in the company in the face of the annual budget and year-end audit.
A NextLevel executive was brought in as CFO to bridge the gap between the departure of the prior CFO and the entry of a replacement. When the controller and FP&A manager left shortly afterward, he worked quickly to hire and onboard an interim controller and interim FP&A manager to stabilize the finance department.
The NextLevel executive then worked to renegotiate bank covenants to provide breathing room after two recent defaults during the regime of the prior CFO. He also launched formal weekly cash forecasting and developed macro-level budget targets for the leadership team to minimize budgeting iterations and workload.
During this process he also identified $200,000 of tax credits the company previously believed it was ineligible for, and worked with the VP of Manufacturing to develop a model incentive plan to improve performance in a key department.
Finally, he assisted with the technical skills vetting for the hiring of the permanent CFO and successfully transitioned his position when a candidate was hired.
As a result, the company:
- Completed its year-end audit with no findings
- Entered the new fiscal year with realistic bank covenants
- Established an achievable budget pathway for the permanent CFO to follow
- Mitigated the impact of the turnover on the remaining finance and IT team members