Twenty years as CFO, David Brosma believes there are fundamental business principles that will help businesses thrive throughout the period of external challenges and market or regulatory changes. As a result, according to Brosma, CFOs need to keep the company's focus simple, even as the world becomes more and more complicated.
Through positions in high-growth technology companies such as WP Engine and Rackspace, as well as publicly traded multinational companies including Valero Energy, Brosma has discovered that success often depends on two key factors. Customers and employees.
Last December, Brosma was appointed CFO of Smarsh, a Portland, Oregon-based company, to offer SAAS products that allow financial institutions, government agencies and other highly regulated sectors to remain compliant with the Digital Communications Act.
In an interview, Brosma discussed adjusting teams about organizational priorities, the importance of adaptability, and which industry the fully supported employee base is important to win.
He worked for companies at a variety of maturity stages, from high-growth technology companies to public multinationals. How did these experiences shape our approach to the role of CFOs?
I have the privilege of working with incredible companies in maturity and diverse industries, ranging from oil and gas to high tech. Each experience shapes my approach to the role of CFOs.
For example, in public multinationals, we have seen first hand the positive impact of data-driven, outstanding initiatives that can prioritize collaboration and foster overall efficiency. Both are important benefits for managing complexity at scale. Operations in this environment also instilled discipline in reporting and communication, highlighting the value of maintaining transparency with markets, investors and internal teams.
Meanwhile, my time at a high-growth technology company has taught me the importance of adaptability and flexibility. Leading these traits has become invaluable to my career. Other leaders and employees respect CFOs who are strict in decision-making and open to different perspectives. The CFO's responsibility is to identify opportunities to invest in innovation while strengthening existing businesses and promoting sustainable levels of growth and profit. That cannot happen without a collaboration-first mindset.
Leadership also needs to share a common understanding of the business and prioritize coordination regarding the key objectives of the entire team. Investing in interorganizational relationships is an important aspect of the role of CFOs. As a CFO, I have learned that I have a potential level of influence [me] It strengthens inter-functional relationships and drives exceptional outcomes in the end.
What advice would you give to other CFOs operating in complex, highly regulated industries where rapid change and uncertainty is the norm?
Control what is controllable. A customer-centric focus is always beneficial, but it can be essential when dealing with challenging situations. Customers are at the heart of any business, and the signs of great leaders are obsessed with it. These leaders leverage unique customer needs to inform your strategy and deliver the best possible day to day outcomes.
Employee engagement must also be prioritized. Employees play a key role in acquiring the heart and heart of their customers. A fully supported employee truly aligned with the company's mission will provide outstanding service and drive customer loyalty. In the face of adversity, the power of a strong employee-based to achieve long-term success cannot be overstated.
What are the key factors in building a sustainable growth strategy that balances long-term goals with the immediate challenges of a dynamic market environment?
Today's dynamic markets, which are heavily affected by macroeconomic and geopolitical headwinds, have become consistently rewarding for investors, but building sustainable growth strategies is becoming increasingly difficult. In this environment, management alignment on corporate priorities and key investments has become more important than ever.
There are three important components to promote that alignment.
- Effectively prioritize. Effective prioritization assigns resources and time to the features with the highest potential for positive impact, thereby ensuring maximum productivity and minimizes corporate waste. Leadership should leverage data-driven heuristics to assess and nurture investments based on expected outcomes and market trends, ensuring informed decisions that drive greater adjustments.
- Listen to the customer's voice. By seeking feedback regularly and engaging in public conversations with customers, businesses can access valuable resources for decision-making, while also fostering loyalty. Customer-first business practices also encourage teams to consider the needs and preferences of specific customers when developing new products or messaging.
- Measure performance. Companies cannot improve what they don't measure, making robust reporting processes an important consideration. To assess performance, it is essential to implement both short-term metrics such as profit, sales, customer satisfaction scores, and long-term metrics such as market share, customer lifetime value, and brand reputation. These data points go beyond financial metrics and metrics to provide a comprehensive view on the performance and health of a company.
How do you think CFO positions will evolve over the next few years?
The pace of progress accelerates as new technology emerges. Future CFOs must be builders of long-term value and champions of innovation. AI is already changing the way we do business. The potential value of a CFO is immeasurable. By providing detailed and actionable insights into key business processes, financial situations and market trends in the face of future complexity, AI will not only witness change. They promote it aggressively through bold, AI-powered action.
