Reading List: Answers for growth-minded CFOs and controllers

In The Answer Book for Growth-Minded CFOs and Controllers, ($249, Business 21 Publishing), John Hiat provides an “idea guide” to solve day-to-day issues. He talked to Healthcare Finance News about how those ideas can be used by healthcare CFOs and controllers.

Q. Please give us a brief description of your book, and share with us what you think is its most important take away for readers.

A. The Answer Book for Growth-Minded CFOs and Controllers delivers actionable ideas (for) CFOs and controllers (to use) day-to-day, in plain English. It's broader in scope than most books targeting CFOs because it goes beyond cash and financial management to cover things like risk management, employment law, leadership and management. These are subjects many CFOs and controllers are not exposed to or familiar with as they move up the ladder, yet must deal with when they reach top management. I think learning the full scope of risk their organization faces – not just on the financial side – is a real eye-opener, and the most important takeaway.

Q. How can your book be of use to financial administrators in healthcare?

A. Year after year, financial challenges rank #1 in surveys of healthcare executives. Many ideas in the Answer Book deal with improved forecasting, managing cash flow and controlling expenses – all of which are likely top-of-mind with healthcare financial administrators. Just one example is the likelihood of having to serve patients who opt for high-deductible plans with high co-pays in health insurance exchanges. Chasing after self-pay dollars is going to require more time and resources.  

Q. Your book was published in 2006. If you were doing an updated version, what are some of the tips you would include for CFOs today?

A. The technology landscape has changed dramatically, and I would encourage CFOs to look at cloud-based approaches to banking, finance, accounting and other recordkeeping. The payoff can be huge in reduced IT cost and footprint, and the data security available from cloud-based providers is more bulletproof than you can ever afford to have in-house.

I would encourage CFOs and controllers to rethink workflows throughout the organization to eliminate wasteful and costly bottlenecks and duplication of effort. Many companies (including hospitals) have applied Six Sigma thinking and become leaner organizations as a result.

CFOs need to step back and take an enterprise-wide look at all the risks they face, which ultimately affect bottom line performance and ROI for shareholders. There is environmental risk, product risk and reputation risk – all of which need to be mitigated. These days, all it takes is one negative Twitter or YouTube post (from a customer or patient) to go viral and it can play havoc with your financial results. Hint: Have a disaster recovery plan in place (see page 39 in the Answer Book).

Q. Is there something about your book that I haven't asked that you would like to add that you think is important for readers to know?

A. Most definitely. Because they are trained as accountants (often coming from CPA firms), a lot of CFOs and controllers are great at the technical skills needed – but light on the "soft skills" that leaders need, such as motivating people, dealing with conflict in the workplace and making sure that their people feel valued. The Answer Book gives them the help they need. It may, in fact, be the most valuable part of the book.