In companies backed by private equity, the CFO is often hired to enhance the finance function’s professionalism.
That can mean better reporting, stronger controls, cleaner forecasting, more disciplined processes, and, in many cases, a major systems upgrade. For founder-led or family-owned businesses taking on institutional capital for the first time, it may mean implementing an ERP system where none existed before.
As a result, CFO candidates are often evaluated heavily on their technical experience. Have they led an ERP implementation? Which platforms have they used? Have they built out FP&A? Have they upgraded reporting processes?
Those questions are important, but they do not go far enough.
Implementation Is a People Challenge
A systems upgrade may look like a finance project. In reality, it often changes how work gets done across the company.
That is where the difficulty begins. People who have relied on the same forms, spreadsheets, habits, and informal processes for years are being asked to operate differently. They may understand the business rationale and agree that the company needs better systems, but when the change affects their daily work, resistance is natural. This is why change management is such an important CFO capability.
High-impact CFOs do more than select a system and manage a project plan. They know how to bring people along. They explain the change in practical terms. They understand where the friction will come from. They build credibility with the teams whose cooperation will determine whether the new system becomes part of the business or just another expensive initiative.
The Right Style Depends on the Company
Change management is not one-size-fits-all.
In some companies, the finance function has lacked discipline for too long. The organization may need a CFO who can create urgency, set clear expectations, and drive accountability. In other companies, particularly those that are founder-led and have long-tenured employees, coming in too aggressively can cost a CFO trust before the real work begins. In such cases, it is more effective to first listen, understand the culture, and then guide people toward a more professionalized operating model.
CFOs need to know when to push and when to persuade. Judgment is key to distinguishing what to do and when. And judgment like that is hard to evaluate from a resume alone. A resume can show that a candidate implemented a particular system. It rarely shows whether the candidate earned trust, handled resistance well, or turned a technical rollout into a new way of operating.
AI Raises the Stakes
This same lesson for system implementation is relevant to AI in finance.
Finance departments at companies of all sizes are exploring how AI can improve reporting, analysis, and forecasting. Like with ERP implementation, adopting AI involves more than just introducing new technology. The more challenging task is guiding employees to use AI effectively in their daily work.
AI adoption requires new habits, controls, and judgment about technology’s usefulness, risks, and where human review remains essential. Announcing AI use won’t ensure adoption.
A CFO effective at leading AI implementation will not only understand the tools but also help the finance team learn new ways of working with AI—maintaining accuracy, accountability, and trust throughout the transition.
What PE Sponsors Should Look For
For private equity sponsors and portfolio company CEOs, the lesson is straightforward: when hiring a CFO, do not stop at technical experience. Ask how the candidate led the change.
At Townsend Search Group, we believe this is where a deeper search process makes a difference. Anyone can identify candidates who have implemented a certain ERP platform or led a finance transformation on paper. The more valuable work is understanding how they lead and communicate, and whether their style fits the company they will be joining.
Some environments need a CFO who can drive harder. Others need a CFO who can build trust first. The right answer depends on the company, its culture, its ownership model, and its mandate.
ERP systems, AI tools, and new finance processes can all create value. But only if teams are led to embrace them. In a company where timelines are tight and execution risk is high, the CFO who can lead people through change is often the one who creates the most value.
About the Author
Tom Chinonis is a Senior Managing Director at Townsend Search Group and specializes in representing private equity firms with C-suite placement across middle market and lower middle market platforms across the country. Tom works closely with management teams and investment professionals identifying key leadership for multi-national organizations across wide ranging industries, typically with locations that serve both domestic and global markets. Tom began his career as a corporate attorney specializing in mergers and acquisitions at an AmLaw Top 50 law firm, then served as the CEO in multiple start-up organizations before joining Townsend Search Group in 2021.
