Deanna Struble, chief financial officer of Des Moines, Iowa-based Principal Financial Group, said the company has seen significant changes in recent years, including exiting certain business lines and expanding its global wealth management division. He has guided the company through significant strategic changes.
Her own role has also changed over her 30 years with the company, starting as an actuary. Ms. Struble spoke with StrategicCFO360 about managing change in the business and her CFO in general.
During your tenure as CFO, how have the changes in principal contributed to the company's growth and market capitalization increase?
At 143 years old, Principal has continued to evolve to meet the needs of our customers and grow our company. The strategic changes we have made over the past few years are no exception. We seized the opportunity to implement strategic changes that prioritized the evolving needs of our customers and the long-term sustainability and growth of our business.
The decision to exit certain business areas is rooted in our commitment to focus on our core strengths and businesses with opportunities for differentiation. By exiting businesses that are not closely aligned with our long-term strategic vision and financial goals, we have been able to reallocate capital and talent to areas where we see greater potential.
Our focus on growing our global wealth management division reflects the connection between investment management and other parts of our business, particularly retirement and insurance, and the growing demand for investment solutions and financial services around the world. This is because We have invested in expanding our asset management capabilities. This not only expands our product offering, but also allows us to meet the evolving needs of our customers on a global scale.
As a result of these strategic decisions, we have not only increased our market capitalization, but also become a more focused and agile organization, better able to navigate market challenges and take advantage of new opportunities. By focusing on our core strengths, we have further strengthened our ability to create long-term value for our customers and shareholders.
The business environment has experienced a variety of economic and technological changes, from changes in interest rates to the impact of AI and hybrid work models. How has the CFO role adapted in light of these evolving challenges and opportunities? How have you personally seen this?
In today's rapidly evolving financial services industry, my role as a principal, and the role of the CFO more broadly, has changed significantly. Although the CFO's core responsibilities remain rooted in financial management, risk management, and strategic decision-making, the tools and methods available to accomplish these duties have evolved significantly due to innovations in technology, data, and analytics. did. In the seven years since I've been in this position, his role has become much more strategic and no longer limited to the financial side.
I've personally seen this come true in several ways. One is to make greater use of tools to automate manual tasks, freeing up employees to focus on higher-value opportunities. This has now translated into prioritizing our technology and AI efforts to play an active role in driving the most impactful results for our customer experience and cost structure.
Perhaps most important is the nature of the CFO's relationship with other executives. I am working more closely than ever with Chief Information Officers, Chief Marketing Officers, and Business Presidents to understand the value created by effectively leveraging these functions and how that value is translated into financial metrics. I understand how to articulate.
In my role, I not only leverage the power of data and technology to make strategic decisions in a rapidly evolving landscape, but also increasingly focus on strategic initiatives that drive growth. I noticed that there was. I believe every CFO needs to carefully consider and embrace these changes, as it is critical for financial services companies to grow in the new digital era.
Like many other leaders, I have been asked to lead employees through periods of significant change in the nature of work. After the pandemic, principals returned to the office under a hybrid work system that required employees to come to work three days a week. Fortunately, within our financial community, our teams have largely embraced these arrangements, appreciating flexibility but still valuing in-person collaboration.
Can you tell us more about how your past experience, particularly as a leader in the U.S. insurance solutions business, has influenced your approach as CFO? How can you use it to make decisions?
My journey with Principal over the past 30 years has included many roles. From starting my career as an actuary to leading the U.S. insurance and group benefits business, each of my roles has deeply shaped my approach as his CFO. While not necessarily following a traditional path, my journey has provided me with a deep understanding of an organization's history, culture, and customer needs. This is invaluable in strategic financial decision making.
Most of all, my previous roles have taught me the importance of building a strong customer-centric strategy and the critical integration of strategic planning, financial results, and business execution. These items I carry with me into my current position.
I believe it is important for others to realize that there is no one path to becoming a CFO. Others in the role must also be confident that their background and unique experience can make an impact on the organization. This understanding leads to more informed, situation-aware decision-making and ultimately fosters a more resilient and positive leadership approach.
Looking to the future, do you think the CFO role will continue to evolve? What steps are you personally taking to continue to grow in your role?
Previously, CFOs were primarily responsible for financial reporting and compliance. Today, our role is to become a strategic leader within the organization, actively contributing to the company's overall strategy, and working closely with the CEO and board to provide key financial and financial support that drives growth and profitability. and witnessed a shift towards making strategic decisions.
As CFO of a publicly traded company, I also play a key role in communicating our company's strategy and financial decisions to current and prospective shareholders and analysts. I expect this evolution to continue and the role to continue to grow in importance and influence.
Beyond this, the role will continue to evolve with the industry, embracing technological advances and increasing focus on data-driven decision-making.
To stay at the forefront of this evolution, I prioritize continuous learning, staying up to date on industry trends, networking with colleagues, and fostering innovation within my organization.
But most importantly, collaborating and learning with my team and fellow executives teaches me something new every day. Their curiosity and passion inspires me to remain dynamic and responsive, always looking for the next steps we can take to meet evolving needs. our organization, customers and stakeholders;
