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Of course, every finance leader needs to understand the mechanics of accounting and know how to identify the financial implications of management\u2019s decisions. Their preparation should also include learning from their experiences\u2014and this includes mistakes, says Ian Charles, chief financial officer with Flexe, an on-demand warehousing solution.

In particular, identifying the optimal candidate for a job is one of a leader\u2019s most difficult and critical responsibilities, Charles notes. It\u2019s also far from straightforward. It\u2019s easy to believe that you\u2019re hiring a star who will move the organization to the next level, only to discover that the individual isn\u2019t as exceptional as he or she appeared as a candidate. In other situations\u2014say, when it\u2019s necessary to fill a role quickly\u2014a candidate who appears less inspiring at the outset can turn out to add tremendous value to the organization.

To improve his track record when hiring for critical positions, Charles has beefed up his interview process. He begins by interviewing several dozen individuals. From this group, he chooses two or three finalists. All go through at least several rounds of interviews, with both Charles and other members of his team.

To be sure, this can mean balancing rigor with market realities. Given the tight job market at the moment, good individuals can find plenty of great opportunities, Charles adds.

Also key to hiring well is adeptly balancing the interests of multiple parties, including the board, management, and employees. Focusing too heavily in one direction can lead to unintended consequences. For example, a goal of maximizing share price will impact the board, investors, management, and employees differently. Charles notes that in the early days of his career, he would lean toward maximizing share price for the board rather than focusing on employees\u2019 needs. \u201cI\u2019ve learned from that mistake as well,\u201d he says.

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