WEBVTT 1 00:00:07.590 --> 00:00:09.930 It sounds like you need to get conviction 2 00:00:09.930 --> 00:00:11.670 and almost say from day one, "Hey, 3 00:00:11.670 --> 00:00:13.620 we're going to be a leader in what's happening 4 00:00:13.620 --> 00:00:16.050 in this business transformation more broadly." 5 00:00:16.050 --> 00:00:18.030 When I became CFO, it was very clear 6 00:00:18.030 --> 00:00:19.560 that we had the tiger by the tail. 7 00:00:19.560 --> 00:00:22.200 The company was rapidly scaled from about 15 million 8 00:00:22.200 --> 00:00:25.200 of revenue a quarter up to over 700 million. 9 00:00:25.200 --> 00:00:27.660 We could keep growing at the pace we had been growing, 10 00:00:27.660 --> 00:00:30.300 only if finance really led the charge. 11 00:00:30.300 --> 00:00:32.550 You have to have your house in order. 12 00:00:32.550 --> 00:00:34.530 The finance foundation 13 00:00:34.530 --> 00:00:38.520 has to almost be operating at like an eight out of ten 14 00:00:38.520 --> 00:00:40.890 because when you challenge the business, 15 00:00:40.890 --> 00:00:42.450 some people will embrace it, 16 00:00:42.450 --> 00:00:44.460 some people will be defensive. 17 00:00:44.460 --> 00:00:46.110 The defensive people will look 18 00:00:46.110 --> 00:00:48.030 for any chink in finance's armor. 19 00:00:48.030 --> 00:00:49.530 We had to change. 20 00:00:49.530 --> 00:00:51.510 We had to be able to grow the team more efficiently. 21 00:00:51.510 --> 00:00:54.750 We had to embrace automation and really enable the change 22 00:00:54.750 --> 00:00:57.390 and drive the change throughout the organization. 23 00:00:57.390 --> 00:00:59.190 I think it's a very unique situation 24 00:00:59.190 --> 00:01:01.560 when transformation starts at the top 25 00:01:01.560 --> 00:01:02.940 and trickles its way down, 26 00:01:02.940 --> 00:01:04.680 that's not usually what happens, right? 27 00:01:04.680 --> 00:01:08.100 You need to figure out how to create that first push, 28 00:01:08.100 --> 00:01:10.470 and if you can't do it in in another area 29 00:01:10.470 --> 00:01:12.180 because they need the cost resizing 30 00:01:12.180 --> 00:01:15.810 or something like that, you've got to stand in as the CFO 31 00:01:15.810 --> 00:01:18.720 of the business and drive your own transformation. 32 00:01:18.720 --> 00:01:20.340 You're going to ask the organization to go 33 00:01:20.340 --> 00:01:23.250 through an enormous transformation no matter what industry 34 00:01:23.250 --> 00:01:25.860 or what function, being out in front 35 00:01:25.860 --> 00:01:29.328 and showing how you lead, how you set the vision, 36 00:01:29.328 --> 00:01:32.070 how you motivate, where you win, 37 00:01:32.070 --> 00:01:34.650 and where you've got opportunities that didn't work so well 38 00:01:34.650 --> 00:01:36.240 or to regroup a little bit. 39 00:01:36.240 --> 00:01:38.910 I think it's always helpful to have credibility, 40 00:01:38.910 --> 00:01:40.357 to be the first one out and saying, 41 00:01:40.357 --> 00:01:41.940 "Hey, I'm willing to take this 42 00:01:41.940 --> 00:01:44.400 and we're going to learn this together." 43 00:01:44.400 --> 00:01:46.800 Being the chief performance officer, you're going to have 44 00:01:46.800 --> 00:01:50.400 to push the other functions to a level of discomfort. 45 00:01:50.400 --> 00:01:51.510 That's your critical role. 46 00:01:51.510 --> 00:01:53.190 You can't know as much as they know, 47 00:01:53.190 --> 00:01:57.750 but you have to make sure that they're pushed to the point, 48 00:01:57.750 --> 00:02:00.510 right, where it benefits the shareholder 49 00:02:00.510 --> 00:02:02.280 because that's one of our primary jobs. 50 00:02:02.280 --> 00:02:04.200 You need truth-tellers 51 00:02:04.200 --> 00:02:08.010 to tell you exactly what's going on, when to participate, 52 00:02:08.010 --> 00:02:09.930 what questions to ask, and what to press on. 53 00:02:09.930 --> 00:02:12.870 I found one of the best sources were the front line, 54 00:02:12.870 --> 00:02:15.240 staying in constant touch with the front line, 55 00:02:15.240 --> 00:02:17.010 whether it's within accounting or analytics, 56 00:02:17.010 --> 00:02:19.080 or more broadly within the operations, 57 00:02:19.080 --> 00:02:21.900 that front line is often the the best source for the insights 58 00:02:21.900 --> 00:02:24.120 of things that are working or not working. 59 00:02:24.120 --> 00:02:26.490 So many companies don't have 60 00:02:26.490 --> 00:02:29.310 what I call an operating mechanism. 61 00:02:29.310 --> 00:02:32.460 How do they come together and develop a strategy? 62 00:02:32.460 --> 00:02:35.280 How does that strategy turn into operations? 63 00:02:35.280 --> 00:02:37.980 How does the operations turn into a budget? 64 00:02:37.980 --> 00:02:41.700 Those three very large things can be a catalyst 65 00:02:41.700 --> 00:02:43.530 for the finance team. 66 00:02:43.530 --> 00:02:46.980 You use those three very large business processes 67 00:02:46.980 --> 00:02:48.150 to your advantage. 68 00:02:48.150 --> 00:02:50.820 You can drive tremendous change. 69 00:02:50.820 --> 00:02:52.800 That transformation will then drive 70 00:02:52.800 --> 00:02:53.820 the rest of the business, 71 00:02:53.820 --> 00:02:55.560 and you will then become an expert 72 00:02:55.560 --> 00:02:58.740 in that area for the whole company. 73 00:02:58.740 --> 00:03:01.440 And that way you'll get the resources you need 74 00:03:01.440 --> 00:03:04.740 and the attention you'll get from the board will be 75 00:03:04.740 --> 00:03:07.540 the way you'll be able to drive the rest of the company.