Formula for FP&A success at high-growth companies: Greg Lopez
Apr 16, 2024
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Greg Lopez, a seasoned CFO and consultant, shares his formula for FP&A success including transitioning from bigger companies to startups, defining key metrics, developing talent, and navigating the challenges of cyber attacks. He emphasizes the importance of a commercial mindset and building a feedback loop in finance teams. Lopez also discusses his favorite KPIs and the benefits of scenario planning in Excel.
Choosing a finance career based on character traits and passions is crucial for success in the field.
Developing a commercial mindset as a CFO involves collaboration with departments to drive business growth.
Implementing structured processes from larger companies can benefit startups, balancing structure and flexibility.
Analyzing KPIs like contribution margin and sales cycle velocity informs strategic decision-making for growth.
Anticipating talent development challenges and cybersecurity risks is essential for future business resilience.
Deep dives
Greg Lopez's Journey in Finance and Business
Greg Lopez discusses his entry into the world of finance and business, highlighting how his logical and rational nature led him to choose a career in finance. He shares his positive experiences and opportunities that arose during his tenure at Broadridge, emphasizing the importance of understanding business operations and finance's investigative role within a company.
Financial Leadership and Strategy with Greg Lopez
Greg Lopez delves into his approach to financial leadership and strategy, stressing the significance of finance as a partner in driving business growth and decision-making. He emphasizes the shift in the CFO role towards a commercial mindset, focusing on collaboration with various departments, particularly sales and marketing, to achieve strategic alignment and enhance business outcomes.
Lessons from Large Companies Applied to Startups
Drawing from his experience at larger companies, Greg Lopez discusses the importance of structure and process in business operations, highlighting the value of implementing well-defined processes in startups. He emphasizes the impact of first impressions on stakeholders and suggests translating successful practices from large enterprises to startups while maintaining creativity and innovation.
Navigating Processes and Flexibility in Business Growth
Greg Lopez addresses the balance between implementing processes and fostering flexibility in a growing business, particularly emphasizing the need for scalability while maintaining agility. He underscores the importance of adapting processes to facilitate growth stages and stresses the significance of recognizing signs that indicate the necessity for structured processes, especially as a company scales.
Financial Metrics and KPIs for Business Success
Discussing key performance indicators (KPIs), Greg Lopez highlights the importance of analyzing metrics such as contribution margins in physical goods businesses and sales cycle velocity in B2B software companies to drive growth and profitability. He advocates for defining and tracking relevant metrics, aligning them with operational goals, and leveraging customer feedback to inform business strategies.
Adapting to Technological Advancements and Security Concerns
Greg Lopez anticipates challenges related to talent retention, technological advancements, and cybersecurity threats faced by companies in the coming years. He emphasizes the need for reskilling and leveraging technology tools, especially to mitigate cybersecurity risks given the increasing digital landscape and dependence on data-driven operations.
Excel Tips and Scenario Planning with Greg Lopez
Sharing a valuable Excel feature, Greg Lopez introduces the watch window function for scenario planning and modeling. He showcases how this tool facilitates real-time scenario analysis by monitoring selected cells' responses to input changes. This feature enables dynamic scenario planning and enhances strategic decision-making by providing instant feedback on model adjustments.
Personal Insight into Greg Lopez's Passion for Basketball
In a personal revelation, Greg Lopez expresses his love for pickup basketball, highlighting how the sport mirrors professional dynamics in teamwork, strategy, and adaptability. He draws parallels between on-court dynamics and professional interactions, emphasizing the importance of adaptability, trust-building, and situational awareness.
Connecting with Greg Lopez
For further interactions with Greg Lopez, individuals can reach out to him on LinkedIn, engage with him on X, or contact him via email. His online presence and professional communication channels offer avenues for networking, collaboration, and information exchange with Greg.
Wrap-Up and Conclusion of the Podcast Episode
In conclusion, the podcast episode featuring Greg Lopez delves into various facets of financial leadership, business strategies, and operational challenges. Through insightful discussions and practical examples, Greg offers valuable perspectives on navigating financial landscapes, fostering growth, and adapting to industry trends. His expertise in scenario planning, metric analysis, and embracing technological advancements elucidates key considerations for individuals and companies in achieving sustainable business success.
Greg Lopez has served as the CFO and VP of operations at companies including Futurism, a digital media company, Wirecutter (acquired by the New York Times) and Gawker Media (acquired by Univision). Now Greg is a consultant at high-growth companies working with clients ranging from a “family owned business doing $20 million”, “SaaS businesses doing $10 million a year” to private equity-backed business doing $500 million a year.”
In this episode he provides his formula for success in FP&A and finance:
How a career in finance suited my character traits and passions
Learning the full aspects of finance, FP&A and business partnering
Building to a commercial mindset as CFO
Acting as an investigative journalist for the business
Why finance needs to lead in defining metrics in a startup
Moving from a bigger company to a startup - what you need to know
Increasing the feedback loop in finance teams
Expectations of CFO in a startup
Favorite KPIs - from contribution margin and profit to Sales cycle velocity
Variables and determining drivers for the business
One of the biggest finance challenges - developing talent and cyber attacks
Lightning round: pickup basketball and lessons for finance
Best Excel feature: introducing Scenario planning and modeling using Watch Window
How A Hulk Hogan Lawsuit Launched A Career in M&A | Greg Lopez
https://podcasts.apple.com/us/podcast/how-a-hulk-hogan-lawsuit-launched-a-career-in-m-a-greg-lopez/id1642784919?i=1000606411968
Financial Intelligence, Revised Edition: A Manager's Guide to Knowing What the Numbers Really Mean: Berman, Karen, Knight, Joe, Case, John: 9781422144114: Amazon.com: Books
Startup CXO: A Field Guide to Scaling Up Your Company's Critical Functions and Teams (Techstars): Blumberg, Matt, Birkeland, Peter M., Dorsey, Scott: 9781119772576: Amazon.com: Books
The Ten-Day MBA 4th Ed.: A Step-by-Step Guide to Mastering the Skills Taught In America's Top Business Schools: Silbiger, Steven A: 9780062199577: Amazon.com: Books
Amazon.com: Financial Planning & Analysis and Performance Managem
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