Part Time CFOs Hired By Biotech and Pharmaceutical Businesses-Virtual Executive Business Model To Work the Algorithms for Profit
Posted Feb 22 2011 2:43pm
In healthcare we call this locum tenens and it looks like this move is going up the executive ladder. This is an interesting article as it looks at the individual having let’s say 4 different companies to where they are the CFO, they could choose to use any one of the 4 companies to add content to a conversation, etc. Of course having a contracted CFO job means no benefits so the companies look to save on that store front.
Now read on a little further, this is a new business model with finding and farming out part time CFOs. Maybe if this works well they could do the same for CEOs? <grin>. Sorry I couldn’t resist that last comment. What this is basically telling us is that any old person with some algorithmic background could fill many of these slots and again without a ton of company background and knowledge that’s what you are going to pretty much get, someone good with crunching numbers that will possess a small amount of actual product or service knowledge. Need a CFO, just grab one out of a pool. This certainly seems to be a bit commoditized if you ask me and again I wonder where will this all lead? I don’t fore see any hospitals, (yet) reaching out to grab one, but who knows. BD
Rebecca Dabora juggles being a company vice president with several other jobs. Leo Casey is a part-time chief financial officer for seven firms. And Larry Buchsbaum is stringing together a few executive-level jobs of his own after being laid off as a marketing director.
“People are just doing what they have to do to pay the bills, even if they’re not necessarily at the level that they were,’’ said Joanie Connell, president of the San Diego consulting firm Flexible Work Solutions.
Part-time executives generally work on retainer, don’t get health insurance or stock options, and run the risk of being the first to be shown the door if the economy takes a turn for the worse. But having more than one employer provides an added layer of job security that a full-time gig does not have, career consultants say.
Hatch sees such a demand for part-time executives that a year ago he founded his own CFO firm, Adrian Loring Advisors LLC in Concord. So far, the firm has two chief financial officers serving four clients, all of which are using CFOs for the first time.
Edimer Pharmaceuticals, a Cambridge biotech start-up, has brought in about a dozen part-timers to get its pediatric drug off the ground, including Dabora, vice president of manufacturing. Dabora worked full time at Biogen Idec for a decade before going into business for herself 12 years ago to have more time with her family.