Problems of mono-companies

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Monofirm teams most often work in a single space: a common office, building, etc. The main advantage of such a structure is the ability of each employee to have both an administrative and functional manager in the person of one person. He is also the head of this department.

The positive aspects are obvious - there buy bitcoin email list is no need to resolve issues related to the distribution of employees' working time for interaction with functional managers located in other territories.

Among the disadvantages, one can highlight the insufficient knowledge of managers about the possibility of using a functional hierarchy. The accumulated experience of managing monopoly enterprises rarely suggests the advisability of introducing functional links.

Problems of mono-companies

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You may be surprised to hear your lawyer suggest responsibility for training managers on contracts. What if your company's chief accountant takes on the role of trainer for sales staff? Can a marketer be responsible for training managers on product knowledge? Do sales and store employees really need to be involved in the company's marketing efforts?

The legalization of the functional manager position will provide an opportunity to introduce a new position of internal consultant for specialists from all departments of the company.


Is there career growth for functional managers?
A McKinsey study found that just under 15 percent of effective executives, such as CFOs, CMOs, chief commercial officers, chief technology officers, and general counsels, make it to the CEO position. The rest, among a select few, have found success as operational leaders in other organizations, managing large operational units or leading operations.

The CEO position is at its most powerful when his or her hands-on experience underpins critical business objectives. Companies at the forefront of significant digital transformations can benefit from having a CTO in the top spot. In turn, elevating the CMO to the front row can be an effective move for a company rethinking its brand portfolio.

Similar organizations pursuing growth strategies based on mergers and acquisitions or significant cost cutting often look to CFOs.

Research suggests that more than 70% of previous CFOs promoted to CEO at FTSE 250 companies were selected because of cost-cutting programmes or merger and acquisition strategies.

Is there career growth for functional managers?

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Despite the diversity of experience among functional leaders, they share a common challenge: little management experience. To explore the challenges and opportunities functional leaders face, we conducted a detailed analysis of data from 599 former CFOs.

The majority of functional leaders are CFOs, which is a key source of information for our research. The challenges faced by CFOs transitioning to CEO mirror the key challenges faced by other functional leaders.

For functional leaders, the challenge is the lack of general management experience. The majority of former CFOs who became CEOs in the study account for three-quarters of all CEO appointments at FTSE 250 companies.

They compensate for their lack of experience by leaving finance for a time. Sometimes, non-finance experience comes from other functional roles. In other cases, CFOs develop their skills by taking on additional strategic roles on boards or by joining other boards. Broader experience like this can be gained through serving on boards that select executives.

In solving such problems, professionals can develop intuitive decision-making skills that go beyond specific numbers and data. After all, most often, CFOs operate with numbers when resolving complex situations.

About 90% of CFOs who become CEOs succeed by being promoted from within rather than hired from outside. A deep understanding of personalities and corporate culture can help a new leader inspire staff as he or she formulates the company's strategy.

With insider status, a leader also often faces the need to renegotiate relationships with former management colleagues who may be competitors for the CEO job. Our research found that approximately 75% of former CFOs joined other management teams within two years.