The Transformative Role of a CFO

Welcome to Wolf’s Byte: Sales and Marketing for B2B Tech, where I interview industry experts for insights on creating content that drives sales.

"I went back to the VP, and I said, hey, why are we pricing this so low? I can see this salesperson's point... It kind of makes sense to me. We don't want [our brand] to become a discount brand. It's becoming really popular.

[VP] said... you know, these guys, half the time they have their sorry, but they have their head up their ass... they're not listening... you just gotta give them instructions. Tell them what to do.

Man. You just discounted that person's intelligence… they don't know the ‘why’... most people are pretty smart. Maybe they choose not to do it for another reason, but if they don't know the ‘why’, they can't do it."

For Issue #3 of this newsletter, I interviewed Amanda Shepherd, a growth-focused chief financial officer specialized in revenue growth, change management, team building, and process transformation.

The story snippet above encapsulates her core message to enterprise-level companies. This experience served as a turning point in her career that she further quantifies with this statement:

“How do you expect to get a result if you're not going to communicate... that has got to be the biggest, just the biggest fail that I see in corporations."

With a background in accounting and finance, Amanda undertakes projects holistically, focusing on building high-performing teams, automating processes, and ensuring effective communication throughout the change management process.

Her professional experience covers a wide range of industries including energy/utility, banking, travel, education, and distribution.

She's distinguished herself as a leader in financial operations overseeing a $350 million P&L as well as by managing a key product line for a $1.3 billion educational services company.

Amanda's current path involves a transition to technology and private equity / venture capital areas. More specifically, she's passionate about helping growth-stage enterprises build the company and support they need.

Strategic Overhaul in a Turbulent Landscape

Amanda's journey began when she encountered an enterprise company in dire straits regarding talent and operations. A lack of strong leadership had left the organization in disarray, lacking people, processes, and clear records.

As a newly on-boarded CFO heading into two acquisitions, she took the reins to redefine roles, create efficient processes, and implement a new Enterprise Resource Planning (ERP) system to replace the outdated infrastructure.

The challenges were multifaceted – from the absence of reconciliations and records to the need for defining roles post-acquisition. Amanda adopted a strategic mindset, created organizational charts and developed the necessary processes for the entire administrative side of the business.

The implementation of a new ERP system marked a crucial turning point, allowing the company to transition from an outdated inefficient model to a sophisticated and scalable one.

By assembling a successful team and streamlining processes, Amanda facilitated the collection of $150,000 in receivables that would have otherwise been unattainable.

Additionally, the recovery of over $300,000 in delinquent accounts receivables showcased the effectiveness of her approach.

Organization-wide automation became a cornerstone, revolutionizing tasks such as invoicing, reconciliations, and product delivery.

Communicating the 'Why'

When I asked Amanda how she was able to achieve those results from a practical perspective, she pinpointed a common issue among enterprise-level companies – the failure to communicate the 'why' down through the ranks.

She further detailed the specific instance shared in the introduction of this post:

A lack of essential guidance resulted in organizational discord by working against the strategies and policies set by the C-suite.

To remedy this, Amanda facilitated communication in two key steps.

First, she learned about the existing communication gap from the CEO, who understood the importance of cascading information down the hierarchy. Wanting to delve deeper, she participated in ride-alongs with the sales team to witness firsthand the disconnect between strategy and execution.

Second, she addressed the pricing policy issues that surfaced during the ride-alongs. By questioning the 'why' behind seemingly insubordinate pricing decisions and advocating for clear communication, she was able to bridge the gap between sales teams and the executive level.

The key realization was that without understanding the rationale behind decisions, individuals simply can't execute them effectively.

Amanda's Insights on Building Success Through People, Automation, and Financial Strategy

Achieving Strategic Alignment Through Communication

Clear communication is the linchpin for success.

According to Amanda, it's not enough to dictate directives. The rationale behind decisions (especially investing decisions) must be transparently communicated throughout the organization. To that end, she further suggests creating a narrative that employees can relate to, which fosters a sense of purpose and understanding.

Alignment is crucial for effective execution and ensures that employees at all levels contribute meaningfully to the company's success. By developing a culture of transparency and open communication, organizations create a shared vision that inspires and motivates their workforce.

Why You Need To Invest in Your People

"Most companies are so focused on their product. Without your people, you don't have a business. People run, manage, and grow your business.

Your people aren't going to be happy with the company and perform if they can't trust the management or get the information they need."

Investing in your people is not just a business strategy; it's what Amanda emphasizes as the cornerstone of success.

For that reason, she encourages a proactive approach to prioritize employee well-being. This involves providing a workplace culture built on trust, respect, and support.

Beyond competitive salaries, consider comprehensive benefits, professional development opportunities, and a work environment that promotes a healthy work-life balance.

Open communication channels, regular check-ins, and an inclusive decision-making process contribute to cultivating a positive and trusting work environment.

By investing in your people, you not only enhance employee satisfaction but also create a resilient and committed workforce that is crucial for sustained success.

Employee Well-Being

Amanda also advocates for initiatives that go beyond standard benefits, including increased vacation and personal time off, enhanced 401k benefits, and innovative approaches like fund committees.

Recognizing the connection between employee well-being and organizational success, Amanda's advice is rooted in creating a work environment that promote physical and mental health.

This goes far beyond compliance and reflects a commitment to the holistic development and satisfaction of the workforce.

In Amanda's experience, organizations that prioritize employee well-being are more likely to attract, retain, and inspire a high-performing team.

Why You Should Invest in Automation for Long-Term Gains

While the initial expenditure may seem daunting, Amanda's advice is rooted in the long-term benefits that automation brings.

Her approach involves a careful analysis of the specific needs and processes within the organization.

Identifying areas where automation can bring the most significant impact is key. Whether it's streamlining financial workflows, automating routine tasks, or implementing advanced analytics tools, the goal is to create a more agile and responsive organization.

This strategic investment is not only essential for future growth but also ensures adaptability in rapidly evolving landscapes.

How the CFO Role Is Evolving

Amanda emphasizes that CFOs are no longer confined to the traditional role of bookkeepers; they are now key strategic advisors to the CEO.

Reporting exclusively to the CEO for ethical and security reasons, CFOs play a central role in shaping the financial direction of the organization.

Furthermore, CFOs bring a unique perspective that spans beyond financial management to encompass broader business strategies.

Recognizing this evolution allows organizations to tap into the full potential of their financial leaders, transforming them into architects of sustainable growth and risk mitigation.

Strategic Oversight

Amanda's advice extends to recognizing the multifaceted role that CFOs play in overseeing various aspects of the organization.

No longer confined to financial matters, CFOs are integral in the following areas:

• Driving cost-cutting initiatives

• Facilitating revenue growth

• Cross-collaborative process improvement

• Mitigating risks

• Shaping overall business strategy

Bridging the Gap Between Finance and Marketing

Amanda advocates for an integrated approach to marketing planning that involves close collaboration between finance and marketing teams.

Her advice is to always start discussions with a focus on ROI. Again, marketing leaders should initiate communication by stating the 'why' behind their efforts.

When done successfully, buy-in from the CFO helps to ensure marketing spending translates into tangible revenue growth.

One More Thing… Navigating Interest Rate Swaps for Growth Phases

Amanda strongly advises organizations to explore strategic interest rate swaps during an environment when interest rates are low.

Interest rate swaps are akin to playing the stock market by leveraging low-interest rates to lock in savings.

Her advice emphasizes the importance of regularly assessing and adjusting financial strategies, especially before entering a growth phase.

For instance, in 2020, Amanda successfully convinced her CEO to revisit interest rate swaps, resulting in substantial savings of $10 million.

If you're seeking to navigate the complex landscape of finance and organizational structuring needed for growth, Amanda's strengths lie in strategic leadership, effective communication, and transformative change. You can start the conversation by connecting with her here on Linkedin.

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