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A CFO Success Story: Sajid Malhotra, CFO of Limelight Networks

Sajid Malhotra, CFO at Limelight Networks

The following is a summary of our interview with Sajid Malhotra, who was appointed CFO of Limelight Networks in April 2016, as announced in CFO Moves. Prior to being appointed CFO, Sajid was Chief Strategy Officer at Limelight Networks, and worked in strategy roles at Convergys, NCR Corporation and AT&T.

Samuel Dergel: Please tell us about what motivated you to become CFO

Sajid Malhotra: Professionally I recognized the higher responsibility and opportunity to assist in turning around the business. In my previous role as head of strategy, I could influence but this was clearly a lot more.  The personal motivation was that I have a desire to assist other company Boards and being at a C-Level position would facilitate that goal.

SD: What challenges did you face becoming CFO when you were not classically trained for the role?

SM: I was at the right place at the right time. There was an abrupt departure of the CFO and I expressed interest to be the next CFO. I knew that the role would be a challenge but I felt, based on the underlying support team, there was low probability of failure and a very high probability of success. I felt I possessed the right skill set to turnaround the business for all stakeholders and wanted to take on the challenge of being a key member to turn a broken business into a successful one. Despite the position being outside of my comfort zone, I recognized, it was an opportunity I should not pass up.

SD: Did you find it challenging to move into the CFO role, acquire a new team and get the results that you need (or able to get them to perform)?

SM: I am a firm believer of not reducing workforces and in giving the incumbents the first chance. I believe keeping and motivating my team is the first order of business.  My job is to make the team and the environment I inherit better. Over the course of my 30-year career, I have let the same principle guide me, regardless of the company, the industry or size.

SD: What do you feel are the key qualities for successful leadership?

SM: Leading by example, honesty and transparency, is a requirement.  Leading by example and letting my team see how I interact with all around me, my sense of commitment and responsibility helps modify team behavior accordingly.  People self-learn and perform.

SD: How important is it to have your people believe in you?

SM: Extremely important.  I cannot do this alone.  With my team, I can.  My resume, experience and capabilities are important elements to getting a job but to be successful, it is all about the team working together towards a common goal and with a clear and unified purpose.

SD: How do you deal with change?

SM: I don’t think people handle change well in general. I have found that when you get the first series of changes and are successful, momentum picks up, employees attitudes change, and the trend becomes your friend.

SD: How are relationships important to you?

SM: Strategy and M&A are transactional roles.  The CFO position requires higher engagement and entanglement, not just with the employees, but with vendors, customers, shareholders, community and competitors.  I may have underestimated the amount of time investment required to be good at all this.  It is a requirement for success.

SD: In your experience, what has been the difference between giving advice vs. taking advice?

SM: I always found it easy to give advice to CEOs, CFOs and boards but taking advice is 180 degrees different.  Much, much easier to give and I have higher respect for those who constantly receive.

SD: How important is time management to a CFO?

SM: The CFO position requires a lot of time to do the job well and everyone is asking for your time. It is very easy to get buried in work if one does not manage time well and so, it is crucial to manage it well. We only have 24 hours in a day and time is an equalizer. Do a few things and do them well.  Delegate the balance to trusted team members.  Opportunities will only return what you invest in them.

SD: What advice do you have for contemporaries considering taking on the CFO role?

SM: Self-awareness as well as conviction are key. The CFO is the gatekeeper to the value vault.  Do it well and you create value, do it poorly and you destroy value.  Setting expectations and priorities before accepting the role rather than figuring them out after you have accepted the position is important.  Ask for help.  Take help.  Leave personal biases at the door.

SD: Now that you’ve been CFO for over a year, what is your impression about the Office of the CFO?

SM: The CFO is most often the second most important role at any company, and for good reason.  I find it an honor to be a CFO.  I am temporarily occupying a position and an office.  I need to make sure I don’t dilute the role for those who will follow me.

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A CFO Success Story is a feature of Samuel’s CFO Blog, where Samuel Dergel follows up on his book, Guide to CFO Success, speaking with CFOs featured in CFO Moves and CFO Moves Canada, Samuel’s popular and comprehensive weekly report on CFO Movement across the USA and Canada.

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What Makes a Great Modern CFO?

Being a great CFO is about much more than just looking at the numbers.

Accounting may be a technical field, but the modern finance department cannot thrive on technical skills alone. Every client I speak with is adamant about this when looking to make a hire: the best CFOs don’t just “get” the numbers, they are also great leaders and strategic thinkers.

I asked a number of advisors which qualities distinguish the best CFOs when writing my Guide to CFO Success, and they narrowed these down to three.

TABLE 1.1 What Is and What Is Not a CFO?

What a CFO is not What a CFO is
Accountant Strategic
Bean counter Leader
Number cruncher Advisor

 

1. The Strategist

The finance department has been playing more of a partnership role in the organization, and CEOs are increasingly looking to their finance leaders to help drive wider business strategies. It is not enough to simply report on performance at regular intervals; CFOs need to make decisions and shape their action plans based on the company’s ambitions.

What’s more, as the keeper of all the company’s data with a view of every department’s objectives and performance, CFOs must also step up and play an active role in refining and aligning business strategies.

2. The Business Leader

As the CFO steps out from the shadow of the finance department and sits at the right hand of the CEO, they are becoming a true business leader in addition to leading their teams. I liken the CFO’s knowledge to Solomon-like wisdom that comes from years of experience, finely-tuned business acumen and a deep understanding of the number behind sound business decisions.

With the finance department as a whole shifting away from traditional accounting, CFOs also need to lead by example while broadening their team’s skillset. Versatility is the hallmark of today’s finance professional and CFOs need to find ways of attracting and hiring people that will help strengthen the finance department’s position in the business.

3. The Resident Advisor

Perhaps the biggest change in terms of the CFO’s role in business today is that their advice is not only valued—it is necessary.

Businesses are currently dealing with a wave of disruptive competitors and fast-changing customer expectations, while also managing a global talent shortage and volatile financial conditions. The wisdom and experience of finance leaders makes them indispensable in the boardroom as companies look to tackle one of the most uncertain economic periods in decades.

As part of this, CFOs also need to be able to sell their ideas. It is one thing to develop a robust and well thought-out plan to help the business tackle its challenges, but unless CFOs can articulate their ideas to non-finance experts these plans may never get off the ground.

A quick word on skills

A strong background in finance principles is essential to any CFO. A seasoned finance professional will have developed a large bag of tricks over the years that make them ideally suited to managing complex numerical issues.

However, many of these skills won’t differentiate CFOs from their colleagues with similar backgrounds. It is business consultancy skills such as strategic thinking, team management, and inter-departmental coordination that will set the best finance leaders apart and help them establish the finance department as the strategic core of the business.

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This blog was originally published in Oracle’s Modern Finance Blog.

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A CFO Success Story: Aidan Cullen, CFO of CliQr

Aidan Cullen

Aidan Cullen, CFO of CliQr

The following is from an interview with Aidan Cullen, recently hired as CFO of CliQr, as announced in CFO Moves. This interview was edited for clarity.

What has helped you become a successful CFO over the years?

I’ve always been a long term planner and thinker. I started my career in public accounting getting the fundamentals. I then went into internal audit consciously thinking about where I need to go for my success. That gave me an understanding of what’s underneath the hood of a company. From there I started to specialize in the functional roles and business partnerships, so I went to engineering and managed an engineering group worth about 120 million dollars. After that, I went into another company and managed a sales organization and was a business partner for sales services and support.

When you start to get into a specialized business like engineering, you look at all the portfolios and investments and really begin to understand how things roll in a company. Similarly, with sales you start to understand what incentivizes salespeople, what motivates them and how you get the most productivity out of them. Then you become more of a generalist and you start to move into and become more eligible for a CFO role. At that point you really have the depth to be able to go down a thousand feet and then come back up specifically when you’re dealing with the executive level management.

  • Quick Takes from Aidan on…

    Growing from Controller to CFO:
    A lot of us are very technically and operationally qualified and the next part of that is the chemistry and the synergy that you have with the executive team.

    How to move upwards and onwards:
    If you build up and broaden your experience and your accomplishments and consistently perform… I think that will open any door.​

    Networking and a new job:
    We spend so much time trying to build a network and then when we get into a new job we tend to forget about that network.

    Why CFO Peer Groups are important:
    It’s very important to keep a close check on what challenges other CFOs face in the market these days.

    Building your network:
    You should value your network and you should always think about building and expanding on your experiences.

You went from an engineering organization to a sales organization, both of which have very different requirements and very different world views. How did you transition at an early age to those perspectives? What did you learn from that?

I suppose I was just fortunate. I got in to the engineering role and the engineering VP at that stage got promoted to the general manager of a business unit that had a value of $1.7 billion dollars. So I was fortunate to move in with the VP and become the general manager’s number one finance person – the CFO. When I moved into the sales company, I specifically moved in as the number two. They didn’t have a CFO at the time and I moved in with the COO. The main concerns they had, operationally in the company, were in getting the financials restated due to the software changes that were going on, specifically around revenue recognition. In the company that I joined, several of the competing companies had their financial statements restated. Fortunately, because of my operational background in external audits and looking at the business side of things, I was able to take that role on and I spent a good year really reengineering the sales organization – specifically from an operational perspective. So that was just a bit of fortune and I just stepped up to the role. And when you actually have a bit of experience behind you, it’s nice to have that exciting challenge.

I’ve seen that a lot of CFOs who – while they were certainly smart – were at the right place at the right time. What was it about you that helped you get to that first CFO role?

I think it’s my assertiveness. It’s a little bit of planning and being willing to step up – having the energy level to step up to the next level and perform. As you start to get in, a lot of us are very technically and operationally qualified and the next part of that is the chemistry and the synergy that you have with the executive team and also with the CEO. It’s that business partnership that makes it all gel together.

What were some challenges you faced when you and the CEO thought differently? What have you done in your career that has made that CFO/CEO relationship work?

I think there are a few you areas that I would look at. The first that comes to mind is the ability to scale a company from, say, a 20 million dollar company to a 100 million dollar company. There are certain roads and paths to take. You would first look at the financial portfolios system or the ERP system and ask: which is the best one to scale? What are the key resources that you need to have? Each time you have to make some decision it impacts the business and may impact the CEO and executive team. So they’re truly critical decisions because they have a long term impact. That’s more the long term side of it.

On the operational side, I have the skills that I need from a sales operation perspective that I can use to go underneath the sales organization and understand the key issues associated with productivity, the sales model, the pricing and so forth. Because of this, sometimes the CEO or the VP of Sales do not see eye to eye with me. Through my perspective on certain things, I can justify it from the numbers, from looking at the facts, looking at trends, building them out and being able to start to perfect models and sales projections. Because of this, I started to gain respect from my peers and especially the CEO and then I moved forward and it got better. Everything started to get better.

What can you share about the process that moved you forward to your new role?

I think the key is networking. If you build up and broaden your experience and your accomplishments and consistently perform – especially in the CFO capacity – I think that will open any door. I think that’s the key to success. In my case, I’ve worked in many companies and I’ve met a lot of VCs and board members. I consistently keep in contact with them and these doors remain opened and the friendship and partnership are there.

One of the VCs on the board here opened up the door for me and connected me with CliQr. From there it just took the normal steps to get the position. I have kept in contact with all the top financial recruiters over the years – whether I am looking for an opportunity or not. If I can touch base, even if it’s only once a year, I’ll try to keep an eye on them and say hello. We spend so much time trying to build a network and then when we get into a new job we tend to forget about that network. And it doesn’t take much to maintain these relationships.

What tool do you use to ensure that you stay in front of everyone you want to stay in front of on a regular basis?

That’s a difficult one. I don’t have any specific tool. I kind of identify it and put it in my calendar on a quarterly basis. I do like sports, though. I tend to see if I can play golf with some of the executives. I might go to an event with them. Some of the banks that I deal with invite me out. For example, one of the financial recruiters is having an event here and it’s typically at an event like that where I catch up with my peers in the industry and have a drink and socialize.

Another process that has worked for me in the past is I will meet with CFOs on a semi-annual basis.We go to lunch and without getting into numbers we discuss the business process and we go into networking. The world of finance changes an awful lot. Technology changes and business and financial market changes. It’s very important to keep a close check on what challenges other CFOs face in the market these days. I enjoy that. We spend time together sitting around the table and then we reconvene in another six months’ time. It’s a great forum for keeping pace with what’s going on in the markets.

What are you excited about joining CliQr?

CliQr represents a fundamental shift in the IT market. We’ve seen the internet bring a lot of change. It has changed almost everything. The cloud is today’s internet in my mind. It has the ability to change everything about the way business interacts with information technology. CliQr is pivotal in this change. It plays a major role. It’s a transformation from the old rigid data centers to today’s desire to logically place applications across diverse environments and include the data centers across private and public clouds all in one place. This is what CliQr does. In my mind, the market’s real, the product is very very real and we’ve got really smart investors in the company (like Google Ventures and Foundation Capital -to name a couple). My colleagues here are very smart. It’s a nice working environment. To me, these are all key ingredients to success.

What are some of your objectives to help the company along and make a bigger impact in its success?

The major one is to scale the company. CliQr is at the point where it has gone through with a Series C and financing and we’re at that stage of growth. The next stage is global expansion and building out the enterprise and the sales into the various geographic regions. Those are the major challenges and in confronting them I bring in head counts and business processes. I did the same thing at Gigamon, where I expanded and brought in a new ERP system for a manufacturing company and broadened the sales geographic regions.

Where do you hope to take this?

I think one would always love to take it to IPO. Companies are not sold now, they are bought. So the strategic intention is to build this up to a company that can go IPO. I have not brought a company to an IPO process yet. I’ve filed an F1, but I’ve never been on the other side as a public CFO.

What advice would you give people trying to build themselves up on a path to success as CFO?

You should value your network and you should always think about building and expanding on your experiences. Try to look at the end of every year and assure that you’ve added some accomplishments to your resume or background. I think it’s important to meet regularly and get a pulse check with your peers to see if you’re keeping touch with how things are working out. Specifically, your skill set versus the market. Finally, I think it’s good to follow smart money. These days we’ve got some super VCs in the Valley. They do an amazing job and when you can actually get a line through to these VCs, they truly do mitigate the risk that we have as CFOs. In looking at opportunities, these are the people you should start to follow.

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A CFO Success Story is a feature of Samuel’s CFO Blog, where Samuel Dergel follows up on his book, Guide to CFO Success, speaking with CFOs featured in CFO Moves, Samuel’s popular and comprehensive weekly report on CFO Movement across the USA.

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A CFO Success Story: Christine Russell, CFO of UniPixel

Christine Russell, CFO of UniPixel

The following is from an interview with Christine Russell, recently hired as CFO of UniPixel, as announced in CFO Moves. This interview was edited for clarity.

SD: Congratulations on your move to UniPixel. What are you excited about in your new role?

CR: I have been a Silicon Valley CFO for 30+ years and I’ve been involved in all kinds of different technologies. I’ve worked in many different industries, but there is a fundamental formula consisting of three elements for success that I’ve found in my companies and if they have this formula to start with, then they are going to meet with success.

First, the company really needs to be serving a large market (in the multi-billions) and that way in your growth cycle if you’re capturing only 10% of market share, you’re still a company with hundreds of millions of dollars in revenue. I’ve never enjoyed going to companies that are targeting a niche market where you don’t need 80% of the market and you’re a 200 million dollar company and there’s nowhere to go from there.

The second criteria is the product needs to be something that’s really useful and can be differentiated in the market. It can be either technological advantages, cost advantages, usability or some combination of these. It has to be something that people really need, and not something that we need to go out and convince everyone they need. Finally, the CEO needs to be a leader – somebody thoughtful, decisive, and with a bias for action. They need to have an impeccable reputation in the industry. Someone I’m really proud to present to investors and who customers can stand beside. To me, UniPixel has all of these elements – a multi-billion dollar addressable market in touch screen devices that have both technological and cost advantages and a CEO with a deep background in display and optical and who has run public companies before with great success.

  • Quick Takes from Christine on… 

    The formula for a great company:
    1) Serves a large market.
    2) Creates a useful and differentiated product.
    3) Has a really well-rounded CEO.

    Networking: Successful networking means making lifelong friends and giving back.

    Successful Female CFOs: Executives need to make their career a priority. There is no such thing as balance. It’s a compromise. It’s what you choose to do with your life.

    Females on Boards: Recruit your board by individual, irrespective of race, sex, country of origin. Hire the best for the board. Period.

    Managing your Board: Over-communication and transparency creates trust.

    The Best CEOs for CFOs: Confident CEOs are able to share their powerbase with the CFO and treat them as a trusted partner.

    Advice to up-and-coming female CFOs: Be absolutely fearless. Brainstorm with your other executives, and shut up and listen – you will learn a lot.

SD: How do CFOs get matched with great companies? What did you do to get to this company?

CR: I was approached for the UniPixel opportunity by a colleague who I knew in Silicon Valley for many years. He introduced me to the CEO, Jeff Hawthorne, and told me that he had worked with Jeff before and that he was an excellent and effective CEO. He told me that Jeff was respected for his deep knowledge in the display and optical industry. So a personal recommendation is extremely valuable. Always.

The way I joined my prior company was through a board member who was a committee chair who I knew from professional organizations. So again, it’s about who you know.

SD: How did you become so well networked?

CR: First of all, because I don’t really like the concept of networking, I think of people as friends. Friends help one another. I’ll tell you a little story about how I came to know some of these people, especially the gentleman who recommended me at Vendavo: I belong to a professional organization called Financial Executives International and I always enjoyed attending the Silicon Valley meetings. One day they approached me and asked if I would be willing to become the president of the organization. I was doing an IPO for a company at the time so I said I was too busy. I was set straight by one of my corporate outside lawyers. He looked at me and asked if I enjoyed going to the organization and if I found it helpful. So I said oh yeah, the people are wonderful. And he said, so when do you give back? I left his office and I immediately called up the board and told them I would accept the position. I have no idea how I did that while I was doing an IPO, but I did it, and then those people went on to become very good friends of mine and they really helped me. They help you and you help them.

SD: Most Senior Finance Executives don’t do enough networking.

CR: No they don’t, and I think they’re missing an opportunity to meet people who can be a lifetime friend and find out about opportunities that go both ways. They look out for you and you look out for them. And I will say that executive recruiting certainly has its own place. A search firm located me through my LinkedIn profile for a previous position that I held at Evans Analytical Group.

SD: If you look at the percentage of women at the CFO level, it’s not representative of the number of females in finance. What is your take on that?

CR: First of all, I think there are more women in HR and finance than there are in many other positions. I think that you have to have a certain amount of ambition and time that you’re willing to devote away from your family if you want to see the executive staff table. I was once on a panel where one of the panelists got a question asking a woman how she balanced her work and home life. Her response was you don’t. She devoted a lot of time to her work life at the expense of her home life. There is no such thing as balance. It’s a compromise. It’s what you choose to do with your life.

SD: What are your thoughts on the social discussion about females on boards?

CR: I’ve always thought that you should recruit your board by individual, irrespective of race, sex, country of origin, or anything that is unrelated to finding the best people you can who will accelerate your business. I know I’m going against the grain by saying that, but I think that a board member has to be highly qualified to be a board member. Especially in these times of challenges and activist investors. You need to have the very best qualified individual you can find.

SD: How have you as CFO managed to get the best relationship possible with the board that you had at various companies throughout your career?

CR: I have learned to over-communicate with the board. I will communicate very regularly and frequently and I wait for people to tell me “Christine, quit calling me!” Then I know that I’ve done enough communicating. I’m very transparent with them if there are problems or issues. If there is anything they don’t like about something, they can talk to me about it. But over-communication and transparency create trust.

SD: Some CFOs have said that the CEO can sometimes get in the way of effective communication with the board. What’s your take on that?

CR: I think that’s a valid comment. Just as there are all kinds of personalities of people in the world, there’s all kinds of personalities of CEOs. Some are very transparent and some are very controlling, but you’re not going to have someone become CEO if they don’t have a controlling personality. Some are more concerned about protecting their relationship with the board and trying to keep that relationship exclusive, seeing as it’s about power. More confident CEOs are able to share that powerbase with the CFO and treat them as a trusted partner.

SD: Where do you get the energy for all of the many accomplishments you have had in your career?

CR: I don’t know what else to do! I don’t have hobbies, I don’t play an instrument, and I can’t sing or dance… I’m a working cat! That’s what I do. And I’m good at it and I think as long as I have the ability to contribute and help create jobs, companies and ROI for investors, I’m going to keep doing it.

SD: What advice would you give to a young female CFO?

CR: I would say that you have to be absolutely fearless. One of the things that I did wrong earlier in my career was I thought I had all of the answers, but if you don’t get buy-in with some of the other members of the executive staff, it doesn’t really matter. Enter in the brainstorming conversations with the executives. Ask for everyone’s ideas, no matter how crazy those ideas may be. Create a common mind rather than coming in with all of the answers. Shut up and ask others what they think!

SD: What are you most excited about in your new role?

CR: I’m really excited about this being a pivotal time for UniPixel. We just acquired the Atmel touch film technology and the production facility in Colorado Springs. We are combining the best aspects of the UniPixel technology that we worked on with Kodak and the Atmel technology to come up with something that is more than just one plus one. I’m also very excited about the CEO I’m working with. The number of people he knows and who greeted him at a recent information display convention in San Jose was very heartening for me.

I recently visited the newly acquired Colorado Springs facility and the energy level there is amazing. These people are now able to work with a much smaller, more nimble and flexible company rather than being under a small vision of a large company. The energy level there is still like a start-up.

SD: What is the top thing you need to accomplish in this new phase of the company?

CR: Finance and admin are thinly staffed. I have to get comfortable with a minimum amount of support and identify the positions that I need to upgrade, as well as bringing in proper software and processes for finance. Even though that’s a lot of work, it’s an advantage because you’re not inheriting someone else’s ideas for a business.

SD: Is there something that you feel you would like to tell the CFOs who read this blog?

CR: Stick together! Form groups and partnerships. Join professional organizations and become a cohesive group so that if you’re ever in a bind –finding yourself in need of a boilerplate template for a sales commission plan for staff delivered software, for example – you can pick up the phone, email or text another CFO and ask if they have ever dealt with something similar. Those kinds of professional contacts and friendships are amazingly helpful and allow you to shortcut so many of the things that you would otherwise be handling alone.

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A CFO Success Story is a feature of Samuel’s CFO Blog, where Samuel Dergel follows up on his book, Guide to CFO Success, speaking with CFOs featured in CFO Moves, Samuel’s popular and comprehensive weekly report on CFO Movement across the USA.

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A CFO Success Story: Craig Foster, CFO of Amobee

The following is from an interview with Craig Foster, recently hired as CFO of Amobee, as announced in CFO Moves. This interview was edited for clarity.Craig Foster

SD: Congratulations on your move to Amobee. What made you want to move there?

CF: I thought Amobee was an incredible opportunity. I’ve worked at a late-stage private that then went public. I’ve worked in Investment banking, consulting to those types of companies. My first CFO job was at Ubiquiti, which was a ride into the public company landscape. I thought Amobee was a great opportunity to work with a very late-stage private company (we are actually a division of SingTel) with aspirations of becoming our own public entity. I thought that really fit well for me.

SD: What are some of the challenges that you are excited about at Amobee?

CF: Amobee is a very young company, a product of 3 different transactions that have come together. My investment banking background has a lot to do with M&A, those types of transactions. These were 3 companies that needed to come together as a single operating unit on worldwide basis. I think it is going to be really interesting bringing them all together.

SD: What’s the size of the company right now?

CF: We have about 450 people currently, and doing hundreds of millions of dollars of revenue.

SD: What experiences have you had in the past that you feel will really help in your new opportunity?

CF: A long time ago, I worked for LoudCloud. They were a late-stage private company, and they were all over the place. It was a high growth company that was trying to find its sea legs in terms of an operating business model. You had an incredible amount of talent from a management stand point. There was a lot of great energy that went into the company. When I worked at LoudCloud, I saw the entire life cycle of the company right in front of your eyes. From a VC Start-up, it then became public company and the business model was challenged then we ended up selling. I thought it was great to live through both the entire up and down of a corporate infrastructure.

After leaving LoudCloud is that I went to business school to get more training. I had this great experience with LoudCloud, but I really wanted to consult to companies that were facing the same issues. How do you deal with High Growth? How do you deal with changing business environments? What’s the best path for exit? Those are key points of any company’s life cycle, and to be part of that was pretty empowering. I chose the banking path because I thought it would be the best way to work the most companies as quickly as possible.

SD: When did you realize that you wanted to become a CFO and that was the path that you wanted to take?

CF: I was really enjoying my banking career. I was the lead banker when we took Ubiquity Networks public, and I had a very good relationship with the management team. When Ubiquity was making a CFO change after the CFO announced he was resigning, I put in a number of candidates I knew from my time in banking. After they went through the candidates, they said “why don’t you take the job”.

At the time I really hadn’t considered the CFO path.

I think in the back of your mind when you’re doing investment banking you kind of wonder what the end game is. At some point you don’t want to be 60 years old and getting on a plane 7 days a week for hour long meetings. Some of the people in investment banking move into a corporate development role, some down cycle their investment banking and work for a smaller firm so they can have a little more career control.

When I heard about the opportunity, I said to myself that while I hadn’t really thought about the opportunity, the upside is absolutely tremendous. If I was thinking of an end game for my investment banking career, I couldn’t think of a better opportunity to walk into a multi-billion dollar company from Day 1 and assume the role of the CFO. It was the chance of a lifetime.

SD: You moved from investment banking to a CFO role where it wasn’t part of your plan but it was an exciting opportunity. What are some of the things that surprised you when you made that transition?

CF: I’ll tell you why I really liked the role, then I’ll tell you about what surprised me.

Everyone in investment banking sees themselves as a top tier McKinsey consultant, except they know a lot about finance. The issue is that when you’re in banking, you’re really not accountable for the end game of the deal. You’re putting two companies together from an M&A standpoint, but at the end of the day you don’t live with the transaction. The execution of the transaction becomes someone else’s problem. You can package an IPO, but you don’t live with the company and have to be there for the next 10 earnings cycles. You’re not empowered, and you don’t have much accountability passed the transaction.

As I started thinking about what I would like to do in my career, I thought that having 1000% accountability for transactions and decisions that you make would be really exciting.

That’s how I talked myself into that this is something I could do, and that I wanted to do.

I’ll tell you what my biggest concerns were – and then I’ll tell you what my biggest surprises were.

When I first started my career, I did public company accounting with PwC in New York. I did that for 3 years as entry level, early career kind of stuff. I then moved away from the core accounting. My initial concern was “how long would it take me to get back in the fold of day to day accounting operations so that I was comfortable signing the financial statements?”

I knew that was going to take a lot of effort on my side, besides the fact that the company had a lot of strategic and operational changes that they needed to make. It’s a line by line understanding of where the dollars are going before you can get comfortable. I had to lock myself up. It took me the better part of a couple of months to get to the point where I felt that I was extremely well versed where the company was and where it was going.

And then what surprised me was that you kind of think of a company as an entity, using a battleship analogy, where it’s really hard to turn a company because it has its own trajectory and culture. What I found was that in a company with 500 people or so, is that you can make impactful changes very quickly and that was the biggest surprise to me. You can come into a new organization with new ideas and make substantial changes and have them permeate all the way through the organization. And you can see the results almost instantaneously.

As an example, when I started, the company’s DSOs were in the high 60s. I was told that this was the industry standard that’s the way it’s done. We objectively looked at the problem and said there are ways to make some changes that will fundamentally change the way that we look at this, how we collect money and close the gap between what we’re getting paid and what we’re owed. At the best, the company got that down to 24 days. That was a substantial improvement.

One person can come in and really make a change for the better. I was a little bit naïve thinking that, regardless of the leadership, making change is very difficult within an established organization.

SD: CFOs are sometimes looked at as Mr. or Ms. “No”. How did you connect with your peers and what did you learn from that experience?

CF: I was fortunate that I did not walk into a situation where we had a tremendous amount of cash constraints. We were in a high growth mode, so it was more like “what is the most opportunistic way to leverage our spend so we can get higher returns”. Our recipe for success was making individual business units accountable for their time and expenses. Meaning, if you’re building an R&D project, how are you budgeting your time and the resources that you have, that meets the deliverables that are in front of you.

Plans change, projects change, scope changes. As long as there is a dialog and have a collaborative way to think about the end game, as long as there is accountability, everyone is on the same page. At the end of the day, you can say that either it was a successful venture or it wasn’t, and you have some way to benchmark it. It’s not that you’re sitting there saying no. You are empowering people so you can make the right business decisions.

SD: What career advice do you wish you were given before you started your MBA?

CF: I wish I had made the move to CFO sooner.

SD: How do you manage all those multiple goals that you want to be able to accomplish with only 24 hours in the day?

CF: We are around the world, so I use Skype a lot. I have a lot of business partners here, a team that supports me, and I’ve empowered them all, in certain aspects of the business, to affect change. I think they were a little bit afraid to do that, for fear that will be some ramifications of making those decisions. I’m using the leverage points that I have, which are the people that I work with. In some cases, I have seen some major gaps in the finance function that need to be automated, and we’re making investments to automate those. I believe we will be able to find a lot of efficiencies based on those two pieces.

SD: What do you find exciting about the environment at Amobee?

CF: Strategically as I was thinking about my next position, I wanted to get closer to software. I’ve been working in a hardware environment, and everything is software driven, even if it’s hardware. The differentiation is in the software layer. I wanted to get closer to a company that was using software to differentiate itself.

The industry that I work in, digital marketing for mobile, has a lot of “me too”. Our company is built on an analytical platform that allows you to analyze and justify your marketing spend against how it is being received in the field. I thought this was really empowering, and I like models that is extremely differentiating in a ‘me too’ environment. What I saw here is a company that has great technology, a very powerful sales engine, and needed a lot of help on the finance side to get things coordinated. For me, this is a project within a project within a project, and believe that if executed correctly, we can accomplish great things. I think this is a very exciting opportunity.

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A CFO Success Story is a feature of Samuel’s CFO Blog, where Samuel Dergel follows up on his book, Guide to CFO Success, speaking with CFOs featured in CFO Moves, Samuel’s popular and comprehensive weekly report on CFO Movement across the USA.

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The C-Suite Relationship Map

I am fortunate to speak with hundreds of executives each year, in addition to those that I follow and track. Over the years, I have learned a lot about success, what works and what doesn’t, from these talented leaders.

One area that successful executives have in common is their ability to get the best out of their corporate relationships. No matter the discipline of the C-suite executive, their technical ability is just the base upon which they start having an impact on their organization. The CXO is not an island, but is integrated into an ecosystem that is mutually dependent. The success of any executive relies on others. Those who recognize, nurture and sustain successful corporate relationships are those that accomplish more.

My blogging and recent book, Guide to CFO Success, focuses on my primary audience, the CFO and the Office of Finance. Some of the content is CFO specific, but the guidance with respect to relationships applies across the executive suite. Guide to CFO Success spends a few chapters dealing with relationship management for the Chief Financial Officer. A key tool in this discussion is my CFO Relationship Map, a copy of which is visible below.

CFO Relationship Map - October 2014

While I created the Relationship Map for my discussion with my Finance audience, this Relationship Map is useful to all executives who wish to succeed in their own environment.

The Relationship Map is a graphical representation of the areas of corporate relationships. They include who you work for (at the top of the map), who you work with (internally, on the right of the map, and externally on the left), as well as those that support you (your team).

In the CFO Relationship Map, you’ll notice that the CFO reports to the CEO, Board and Investors, and works with the other executives of the company internally. The CFO has a number of important outside relationships, which can include bankers, lawyers, auditors and other advisors. And, as I say in my book, the CFO can only be as good as the team they have allows them to be.

Depending on your own situation, your personal Relationship Map will look different. However, like other executives, you have people you work for, work with internally as well as externally, and have people that support you.

To read the full article on the BlueSteps Executive Career Insider Blog at this link.

You can also map out your own relationships, using this blank Relationship Map or by creating your own.

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Do CFOs Listen to Podcasts?

As someone who creates content aimed at the CFO and other senior finance executives, understanding what Senior Financial Officers like to consume as content is important. There is a lot of different types of content out there. Traditional content creators like TV, newspapers and magazines are no longer the only providers of professionally oriented content. Professional services firms, associations and groups, software providers and anyone that wants to get the attention of a Chief Financial Officer is creating content to catch the attention of this Very Important Decision Maker.

When preparing to write my book, Guide to CFO Success, I created a CFO Advisor group to seek the opinions of senior finance executives and learn from their actual experiences. As part of my ongoing quest in providing fresh and relevant Finance oriented content, I reconstituted my CFO Advisor group so that we can all learn and grow.

I recently polled my CFO Advisors on their content habits, and will be sharing some of their insights over the coming weeks.

To begin with, I thought it would be interesting to understand whether CFOs listen to podcasts. Most of the content I have created over the years have been in text, whether on my blogs, in other media articles, as well as my recent book. I have never created my own podcasts, but I have been interviewed for a few podcasts over the past while.Do CFOs Listen to Podcasts

As you can see from the graph, about half of my CFOs do listen to podcasts, while 12% of them tune in to podcasts on a regular basis.

It is interesting to see that CFOs are beginning to take a shine to the podcast as a form of content delivery. To get a better understanding of the value CFOs are getting from podcasts, as well as the future of podcasting focusing on senior finance executives, I spoke with Jack Sweeney, host of CFO Thought Leader, a series of podcasts sharing firsthand lessons from leading Chief Financial Officers. I had the opportunity to be interviewed twice by Jack for his CFO Thought Leader podcasts, and appreciated his insights and questions, which led to the creation of valuable content of interest to the CFO.

“Like many people, my “content consuming” behavior has entered a period of great change. I find I’m adopting the ways of my teenagers (early adopters). We depend almost exclusively on our TV’,s DVR and we take an iPad on family trips so we can access Netflix anytime and anywhere. Meanwhile, I’ve begun to listen to the NPR podcast on weekends simply because I added the app to my iPhone.

I find that there is a noticeable shift in my behavior and meanwhile, from everything I’ve read I’m not alone.  Why would the behavior of CFOs be any different? Clearly, it’s not, and while CFOs may be laggards when it comes to behavioral changes, they are without question changing their behaviors with the rest of us.  Also, I’ll mention once again the car industry’s adoption of in-dash apps over the next few years will also quickly grow the podcast listening audience (CFOs included).” – Jack Sweeney

Sweeney also pointed me to this quote from Tom Webster, VP of Strategy at Edison Research.

“The continued penetration of smartphones in America is changing behavior significantly. We are now seeing activities that were dominated by desktop usage in 2013, flip dramatically to become mobile behaviors. For millions of Americans, the smartphone has become ‘the first screen.’”

Podcasting is just one more distribution channel for content of interest to finance executives. Will CFOs choose podcasting as one of the major ways for them to consume relevant and interesting content as time goes on? Is podcasting a great way to get the attention of the busy CFO?

Stay tuned.

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The CFO & CHRO: The discussion continues. Listen in.

On Wednesday August 13, 2014, I was interviewed on DriveThruHR by Nisha Raghavan.

In our discussion, we touched on a few points about the relationship between Human Resources and Finance. Here are some of the topics Nisha and I discussed.

  • Who should HR professionals report to? The CEO or CFO?
  • Discussed CHRO Moves and CFO Moves and the difference between the visibility CFOs and CHROs get.
  • Discussed Samuel’s new book, and what it says about the importance of the CFO having a strong relationship with the CHRO.
  • HR and Finance are critical support functions that need to work together to make the business successful. A deeper discussion follows on how HR and Finance can work well together.
  • How CHROs can benefit from a close relationship with the CFO, as well as how the CFO can benefit from a close relationship with HR. A business partner approach is very effective.
  • Where should companies find finance talent? Everywhere. The right senior finance talent is much harder to find and attract. Companies cannot afford to hire the wrong CFO. There is not only the cost of hiring wrong, but companies are missing the upside of hiring a great CFO as well.

Go ahead and listen in to the entire conversation:

Internet Radio with DriveThruHR on BlogTalkRadio
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Samuel’s CFO Blog is published by Samuel Dergel, CFO and Finance Executive Search Specialist and Finance Executive Coach.

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5 Reasons why Recruiters are Passing Over your LinkedIn Profile

Dear Reader:

I have been blogging on this site for almost 3 years now. An ongoing topic has been the usage of LinkedIn for financial executives and professionals.

I just started posting blogs on LinkedIn as well. I will be cross posting the beginnings of the blogs. I encourage you to read the blog in its entirety on LinkedIn.

Thank you for your continued support,

Samuel

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I appreciate LinkedIn. I have been a member for over 10 years and am the 23,531st person to have signed up.

I work in executive search. My personal specialty is CFO and Financial Executive Search. Working with my colleagues at Stanton Chase across the US, Canada and around the globe, I use LinkedIn as a networking tool to help me develop and maintain relationships with people that I want to keep in touch with.

In my weekly CFO Moves blog, I link through to the LinkedIn profiles of Chief Financial Officers that appear in my report on CFO hires, retires, promotions and unhires.

I have written about the value of LinkedIn in previous blog posts. In my recent book Guide to CFO Success: Leadership Strategies for Corporate Financial Professionals, published by Wiley & Sons, I surveyed my 87 CFO Advisors about social media use, and LinkedIn is, by far, the most popular and regularly used social media tool for senior financial executives.

LinkedIn is certainly not the only tool that I work with to advise, attract, assess and aid my clients in the acquisition of exceptional CFOs. However, I do spend a good amount of time looking at people’s LinkedIn profiles. This puts me in a good position to comment on reasons why your profile is being passed over by recruiters.

To read the full blog on LinkedIn, please click here.

Contact Information

You can reach Samuel by:

Telephone
San Francisco: +1 (415) 738-2070
Montreal: +1 (514) 907-0925

Email: [email protected]