Basic Skills Back In Demand.

• Author: Connet, Mel

Although California enjoyed a wonderful runup as the New Economy bloomed, it has endured a harsh year as the high-tech market -- especially the dot-coin sector -- fell sharply out of favor. With a slowing economy, failing companies with questionable business models and sinking stock prices, CFOs are wondering what's in store for the next few years.

As Silicon Valley-based executive recruiters, we have lived the New Economy ascent and meltdown. In a year's time, we've seen many dot-coms go under while survivors and older technology companies cut jobs. Gone are the go-go days when 29-year-olds with great ideas reigned supreme. Now, as the reality of a slowing economy sets in, a renewed focus on profits, as well as sound financial management, is again front-and-center for companies across all industries.

Despite the failure of so many high-tech companies, the market for top CFO talent remains strong. But the guidelines set by companies for finding and retaining top talent are changing. This reality, not limited to Silicon Valley, has implications for all of American industry.

Companies are again embracing the importance of seasoned management. We are seeing a shift in values from a growth-oriented, "sky's the limit" model to a recession-based, results-oriented business culture focused on bottom-line profitability as the most important CFO qualification.

"Two or three years ago, there were a lot of technology companies looking for CFOs, but if you didn't have IPO [initial public offering] or capital-raising experience, you couldn't get past the first conversation," says Dave Krause, CFO of ShipLogix, a start-up, Web-based transportation management service company that enables shippers and carriers to collaborate in real time.

Krause joined the company in 2000 at the height of dot-coin fever. Now, as the company attempts to secure a second round of financing that doesn't look promising, Krause has begun "testing the market" for available CFO positions, and is discovering that one key advantage he has is his previous background with large, well-established companies.

"I'm seeing a need for solid financial executives, particularly at the highest levels," says Krause, who responded to 12 CFO job postings and received positive responses from all but two. "In this new environment, companies need CFOs who can execute the company s strategy, get the company to a positive cash flow (if it isn't already) and ultimately, take it to, or help it maintain...