Run the Numbers

Your Company Is a Utility Function: Here’s How to Pull the Right Levers

Aug 4, 2025
Join Michaela Lehr, a seasoned FP&A leader and former CFO of ActionIQ, as she shares her unique approach of treating finance like a utility function. She dives into how CFOs can effectively manipulate levers like growth and gross margin without causing chaos. Michaela discusses the significance of sustainable revenue versus quick spikes and the rising trend of "experimental recurring revenue" in AI-driven products. Additionally, she emphasizes the importance of effective communication between finance and engineering teams to drive better financial decisions.
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INSIGHT

Company as Utility Function

  • Companies can be viewed as utility functions balancing levers such as growth, retention, margin, and cash runway.
  • This microeconomic view helps optimize company value by weighting these variables according to priorities.
ADVICE

Get Upfront Customer Payments

  • Prioritize getting upfront cash collections from customers to significantly boost free cash flow.
  • Even if negotiations take longer, this improves your balance sheet without debt or investor expectations.
ADVICE

Gate Headcount by Milestones

  • Gate new headcount by performance and milestones to balance growth with expenses.
  • Consider augmenting staff with AI to avoid costly and sticky FTE investments.
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