GrowCFO Show

Ryan Englin is based in Nashville and is the CEO at Core Matters. He also hosts the Talent Tackle Box Podcast. Ryan joins Kevin Appleby on the GrowCFO Show to discuss how to recruit great people by using tools and techniques that normally sit with your marketing team. Kevin and Ryan discussed the importance of having an exemplary process for recruiting and retaining staff. They emphasized the need for companies to implement a system, such as Core Matters’ CoreFit Hiring System, to automate and streamline the hiring process, allowing businesses to find and hire good people quickly.  Ryan and Kevin discussed how the COVID-19 pandemic exposed inadequacies in various industries, leading to job seekers realizing they have more control and options. They also discussed the importance of treating recruiting as a marketing activity and implementing an always-on process to attract and recruit the right people for the business.  Kevin and Ryan discussed the concept of creating a bench of potential employees to fill vacancies in a company. They emphasized the importance of nurturing relationships with passive job seekers through marketing funnels so that when they are ready to make a career change, the company is already on their radar.  Kevin and Ryan discussed the importance of building and managing a finance team. They emphasized the need for leaders to constantly look for great talent, spend time on team development, and focus on retention and recruitment to ensure the team’s success.  Kevin and Ryan discussed the importance of finding employees who are a good fit for the company’s culture and values, as well as the need to present an attractive online presence to potential job seekers. They also emphasized the use of an applicant tracking system to automate communication and stay on top of the hiring process. Ryan and Kevin discussed various topics including onboarding, reviewing and refreshing culture, the impact of inflation on wages, cost reduction strategies, activity analysis, and the importance of delivering on promises to justify price increases. They also emphasized the need to simplify, standardize, and automate processes for efficiency and profitability.  https://youtu.be/D2V2w8UqeYc Links Finance jobs at GrowCFO GrowCFO Future CFO Programme The Talent Tackle Box Podcast Ryan Englin on LinkedIn Kevin Appleby on LinkedIn Timestamps Introducing Ryan Englin. (0:11) How do you teach people how to fish? (2:06) How to recruit better people? (6:44) How do we square the circle? (11:42) Passive job seekers vs. active job seekers. (14:17) Recruiting is part of who we are. (19:37) Have the right bait and the right gear. (24:28) Onboarding is about culture and people. (28:17) How to create opportunities to have a best friend at work? (33:08)

Francesco Zappala was Kevin Appleby’s guest on episode 136. Previously he spoke about his journey to CFO and how an Italian ended up setting up a company from scratch in Chile, South America. Francesco is the CFO of a major construction company. He returns to talk about dealing with a construction project that is in distress. Summary Kevin and Francesco discussed the challenges of managing projects in distress, particularly in the construction and infrastructure industry. They highlighted the importance of proactive cash flow management, monitoring warning indicators, and being prepared for unexpected events like the pandemic that can significantly impact project finances. Kevin and Francesco discussed the importance of building trust and strong partnerships with clients, suppliers, and subcontractors in order to navigate financial challenges and mitigate risks. They emphasized the need for transparent communication, fair contracts, and mutual support to ensure successful project outcomes and long-term business relationships.  Francesco and Kevin discussed the importance of considering clients in a global way, managing reputation, and complying with ESG principles in the construction industry. They also highlighted the challenges faced by companies entering new markets and the need for ESG to be ingrained in the DNA of organizations.  Francesco and Kevin discussed the importance of managing risks and maintaining a strong safety culture in a company. They emphasized the potential consequences of not taking responsibility for mistakes, such as financial distress, damaged reputation, and loss of clients.  Francesco and Kevin discussed the importance of prioritizing safety in the workplace and creating a culture of openness and partnership with clients. https://youtu.be/uJA-pftpldY Why might a construction project get into financial distress? A major construction project can end up in financial distress due to a combination of various factors. Construction projects are complex endeavours involving numerous stakeholders, significant investments, and multiple risks. Here are some common reasons why a major construction project might face financial difficulties: Cost Overruns: Unexpected expenses and cost overruns can occur due to changes in project scope, design modifications, price fluctuations in construction materials, and unforeseen site conditions. Failure to manage these costs effectively can strain the project’s budget. Delays and Time Overruns: Project delays can lead to increased labour costs, extended rental of equipment, and penalties for not meeting contractual deadlines. Time overruns can also result in lost opportunities and revenue for the project owner. Inadequate Planning and Design: Poor planning and inadequate design can lead to errors, rework, and inefficiencies during the construction process, contributing to increased costs and delays. Contractual Disputes: Disputes between project parties, such as contractors, subcontractors, and owners, can result in litigation or arbitration, leading to legal expenses and delays in project completion. Financing Challenges: Difficulty in securing adequate and timely financing can lead to cash flow issues, hindering progress and causing financial strain on the project. Insufficient Risk Management: Failure to identify and manage potential risks, such as weather-related disruptions, labour shortages, or supply chain issues, can lead to unexpected financial burdens. Inadequate Project Management: Poor project management practices, including inefficient scheduling, lack of communication, and inadequate coordination among stakeholders, can result in project inefficiencies and increased costs. Change Orders and Scope Creep: Frequent changes to project scope can disrupt the construction process, increase costs, and delay completion. Economic Downturns: Economic downturns can impact the demand for construction projects, leading to reduced revenues and lower profitability. Environmental or Regulatory Issues: Unforeseen environmental or regulatory challenges may require costly remediation efforts or modifications to comply with legal requirements. Subcontractor Default: If a subcontractor defaults or goes out of business, it can cause delays and additional costs to find replacement contractors. Poor Financial Management: Inadequate financial management, including inaccurate budgeting, cash flow mismanagement, or improper accounting practices, can lead to financial difficulties. Natural Disasters and Force Majeure Events: Natural disasters or force majeure events can cause significant damage to the construction site, resulting in additional expenses and delays. To mitigate the risk of financial distress in major construction projects, careful planning, risk assessment, effective project management, and contingency planning are essential. Engaging experienced and reputable contractors, architects, and project managers can also enhance the project’s chances of success. Regular monitoring of project progress, timely communication among stakeholders, and proactive problem-solving are crucial to ensuring the project stays on track and within budget. Links GrowCFO Future CFO Programme My Journey to CFO via International Corporate Finance with Francesco Zappala (episode 136) Francesco Zappala on LinkedIn Kevin Appleby on LinkedIn Timestamps What happens when a project gets into trouble? (0:11) Managing costs and contingencies. (3:51) The supply chain problem. (7:27) Dealing with risks and mitigating risks. (10:44) Importance of trust and reputation. (16:22) Sustainability in the mining industry. (20:26) How to deal with projects in distress. (24:41) Getting the right culture and best practices. (29:43) The importance of safety and culture. (33:31)

Catherine Clark is head of mentoring at GrowCFO. She frequently supports her mentees when they need to have a difficult conversation. Difficult conversations can take place for a variety of reasons, In this episode Kevin and Catherine discuss the challenges of a difficult conversation and why you shouldn’t avoid such conversations. They highlighted that a difficult conversation can cause anxiety and stress, but approaching it with curiosity and open questions can lead to better understanding and resolution. It’s possible you could be either the instigator or the recipient of the conversation, and Catherine and Kevin explore both positions and provide some great guidance that you can follow in whichever role you find yourself in. Catherine and Kevin discuss the importance of having difficult conversations and how to approach them. They emphasise the need to believe in a positive outcome, understand differing viewpoints, acknowledge emotions, and maintain empathy and open communication. They discuss the need for open communication, avoiding knee-jerk reactions, finding the right time and environment, and being specific in order to prevent misunderstandings and maintain productivity. Kevin and Catherine discuss the importance of providing constructive feedback. They emphasize the need for open communication, timeliness, creating a conducive environment, and being willing to engage in uncomfortable conversations for personal and professional growth. https://youtu.be/ZUqEbx_3N1k Links Mentoring at GrowCFO with Catherine Clark Catherine Clark on LinkedIn Kevin Appleby on LinkedIn Susan Jeffers – Feel The Fear And Do It Anyway: How to Turn Your Fear and Indecision into Confidence and Action on Amazon UK and Amazon US Timestamps What’s a difficult conversation? (0:11) What’s going on in our brains to make difficult conversations feel like difficult things to talk about? (1:46) How to have difficult conversations with people. (4:00) You can choose how you behave and how you show up. (8:37) How do we see ourselves in these difficult conversations? (11:12) What to do if you’re upset about something. (16:17) Avoid written response, make it a spoken response. (18:14) How do we deal with difficult conversations as the recipient? (19:59) If you’re instigating the conversation. (23:26) How do you conduct difficult conversations online? (25:43)

Edmund Zagorin joins Kevin Appleby on the GrowCFO Show. Edmund is CSO of Arkestro. Arkestro helps your team make buying decisions, faster, and at scale using Predictive Procurement Orchestration Kevin and Edmund explore anchor bias and consider how CFOs can help their procurement teams avoid anchor bias and use predictive modelling to make better buying decisions. https://youtu.be/5kV-IWd3fAU Anchor Bias and Predictive Modelling Anchor bias, also known as anchoring bias, is a cognitive bias that refers to the tendency for individuals to rely heavily on an initial piece of information (the “anchor”) when making decisions. In the context of procurement, anchor bias can significantly impact the effectiveness of predictive modelling. Predictive modelling in procurement uses historical data and statistical algorithms to forecast future outcomes. However, if the initial data or ‘anchor’ used in the model is biased or inaccurate, it can skew all subsequent predictions, leading to flawed decision-making and potentially costly mistakes. There are two main types of anchor bias: self-generated and externally provided. Self-generated anchor bias occurs when the individual creates the anchor based on their own knowledge or assumptions. Externally provided anchor bias, on the other hand, is when the anchor is provided by an outside source, such as a vendor’s initial price quote. For example, if a procurement professional uses the cost of a previous contract as an anchor when forecasting future costs, they might ignore changes in market conditions, material costs, or supplier capabilities that could lead to higher or lower costs. This could result in budget overruns or missed opportunities for savings. Similarly, if a supplier’s initial price quote is used as an anchor, it could influence the procurement professional’s perception of what is a reasonable price, potentially leading to overpayment. How to Mitigate Anchor Bias in Predictive Modelling To mitigate anchor bias in predictive modelling, procurement professionals should consider the following strategies: Use Multiple Data Points: Instead of relying on a single piece of information, use multiple data points to create a more accurate prediction. This could include data from different suppliers, contracts, or time periods. Challenge Assumptions: Regularly question and validate the assumptions that underlie your predictive models. This can help identify any potential biases and correct them before they impact your forecasts. Seek Diverse Opinions: Consult with colleagues or industry experts to get different perspectives. They might provide additional insights that can help adjust your anchor. Train and Educate: Provide training and education on cognitive biases for procurement staff. Understanding these biases can help individuals recognize and mitigate them in their own decision-making processes. While anchor bias can pose a significant challenge in predictive modelling for procurement, it can be mitigated through awareness, careful data analysis, and ongoing validation of assumptions. By doing so, procurement professionals can make more accurate predictions and better decisions. Edmund shared his procurement, strategic sourcing, and data science background, and discussed the importance of collaboration with business stakeholders to achieve the best outcomes for all parties involved. Edmund and Kevin discussed anchor bias in procurement negotiations and how the use of predictive models can help avoid it. They also talked about the impact of first offers on price variance and the asymmetry in technology and data between buyers and sellers. Edmund and Kevin discussed how predictive models powered by AI can enable procurement and finance teams to negotiate with suppliers more effectively by using behavioural analysis instead of traditional cost or value frameworks. They also talked about the challenges in the relationship between procurement and finance, including the need for predictable savings and understanding which categories are strategic. Edmund and Kevin discussed the flaws of the traditional procurement process and proposed the use of predictive models to determine the most preferred supplier before the procurement process even begins. They also questioned the effectiveness of the weighted matrix system and debated whether both parties should feel like winners after a negotiation. Edmund and Kevin discussed the benefits of using predictive modelling in procurement and the importance of considering the emotions and psychology of supplier interactions. They also emphasized the need to measure the right KPIs and avoid incentivizing the wrong behaviour in procurement teams. Links GrowCFO finance team training GrowCFO Quests Mentoring at GrowCFO  Edmund Zagorin on LinkedIn Kevin Appleby on LinkedIn Timestamps Introduction to today’s show. (0:11) What does Arkestro do and how does it help organisations with procurement? (1:30) What is Anchor Bias? (5:30) Anchor bias and how it works. (9:26) Predictive models are one of the effective ways that sales teams can avoid anchor bias. (13:30) Where did the CFO and the finance team come into this story? (17:43) Reverse engineering your success to get the best deal. (22:19) How do you put a value on quality in procurement analytics? (27:30) Why is the procurement process so antiquated? (31:40) Edmund’s clear messages for the procurement team: Get your KPIs right. (36:59)

Dr Shan Nair is an entrepreneur and consultant on international expansion. He was the first to spot and develop the niche market of International Expansion Services (IES) which was previously fragmented. In the process, he has worked with many early-stage companies that have since become household names such as Tesla Motors, FaceTime and Sonus Networks. His role is to promote the services offered by Nucleus, a one-stop organization for U.S- based companies who wish to expand globally. Shan has a doctorate in nuclear physics from the University of Oxford. He has received multiple recognitions for his contribution to US, UK and Indian business. During August GrowCFO will be running a quest to help premium members plan the opening of an overseas office. For many, the overseas office is the first step on the ladder to international expansion. Shan and Kevin discussed the reasons for international expansion during difficult market conditions. They highlighted factors such as cost-saving opportunities, availability of skilled labour in certain regions, and the importance of considering government incentives and ease of doing business when choosing a country for expansion. Shan and Kevin discussed the challenges of expanding a fintech company globally, including the need for expert help in navigating legal, accounting, tax, and HR compliance requirements. They emphasized the importance of adequate budget, thorough research, and understanding the specific regulations and liabilities in each target market. Shan and Kevin discussed the expansion of Chinese companies into Europe and the reasons behind their reluctance to expand into the United States. They also touched on the challenges of operating in China, such as poor IP protection. Kevin and Shan discussed their experiences in the energy sector, including the challenges of privatizing nuclear power and the issues with ageing coal-fired power stations. They also touched on the financial and technical aspects of their work, such as calculating liabilities and reducing emissions. https://youtu.be/u73FGRZBQXo Links GrowCFO finance team training GrowCFO Quests Mentoring at GrowCFO  Dr Shan Nair on LinkedIn Kevin Appleby on LinkedIn Timestamps What makes you an expert in international expansion? (0:11) Why is now a good time to expand? (1:43) Why companies are looking at other countries, particularly Eastern Europe, Poland, Czech Republic, and Slovakia? (5:13) Why are you looking at people that might want your services in Spanish elsewhere? (8:42) What’s the main issue with expanding into other countries? (10:06) What are some of the tax compliance requirements that you need to be aware of? (12:58) What are the five things you’re most likely to get wrong when starting a business? (16:40) Common places that companies in the US and Europe want to expand. (20:39) Why are Chinese companies looking to expand in Europe more than in the US? (23:41)

Dan DeGolier joins Kevin Appleby on the GrowCFO Show to discuss the provision of fractional CFO Services. Dan is the founder at Ascent CFO Solutions. He discussed his background and career journey, including his experience in public accounting and working with venture-backed companies. He describes how his firm, Ascent CFO Solutions, has grown to include a team of 38 professionals who provide various financial services to clients, including capital raising and outsourced accounting. Dan and Kevin discussed the challenges faced by companies in terms of fundraising, cash conservation, and revenue growth. They also talked about the impact of automation and artificial intelligence on their work, with Dan expressing cautious optimism about leveraging AI to improve efficiency and effectiveness. Kevin and Dan discussed the implementation of automation in finance, explicitly using tools like Power BI to create customized dashboards for clients. They also emphasized the importance of understanding key performance indicators (KPIs) and cash flow management for businesses of different sizes. Dan and Kevin discussed the importance of planning for a potential business exit and the benefits of working for a CFO firm. They emphasized the need for a thorough understanding of a company during the onboarding process and the ability to provide flexible and varied experiences for professionals. In the conversation, Kevin and Dan discuss the importance of communication and time management skills in client interactions. They also mention the need for a diverse background and the use of screening tools like the CVI to find the right fit for the role of CFO. https://youtu.be/VbslboMHIkk Links GrowCFO finance team training GrowCFO Quests Mentoring at GrowCFO  Dan DeGolier on LinkedIn Kevin Appleby on LinkedIn Timestamps Welcome to the show, Kevin Appleby. (0:12) Fractional CFO vs. full-time CFOs. (2:48) How chatbots are changing the way we write. (8:17) What are some of the biggest trends that Dan is seeing in the industry? (12:03) How do you determine which data bits are the most important? (14:59) Why you need to have investors in your business. (18:37) Working with multiple CFOs and companies. (21:52) How do you onboard people in multiple roles into numerous clients? (26:42) How do you avoid making those mistakes because they could be very expensive? (31:14)

GrowCFO mentor Susana Serrano-Davey joins Kevin Appleby to discuss fear. Fear often holds you back from achieving your potential and can limit your career development. Fear is almost entirely self-generated and is therefore completely within your control. But how do you face your fears and take that control? In this episode, Susana and Kevin discuss facing fears, including common workplace fears such as fear of being fired, fear of making mistakes, and fear of ridicule. Susana shared her personal experience of overcoming her fear of scuba diving and how facing fears can unlock opportunities. Kevin and Susana conclude the episode by providing strategies to help you face your fears. Susana and Kevin discussed the common fears that hold people back in their careers, such as: the fear of ridicule, the fear of making mistakes and the fear of losing one’s job. They emphasized the importance of facing and challenging these fears to grow as a leader. You must acknowledge and overcome these fears to reach your full potential. As a finance leader, you may feel the pressure to have all the answers. When you are new to a role you might suffer from a lack of confidence and impostor syndrome. In each case, it is essential you reframe these fears and acknowledge that it’s okay to not have all the answers and that failure is a natural part of the learning process. Kevin and Susana concluded by discussing strategies for overcoming fear, including managing internal dialogue and supporting oneself. https://youtu.be/_Y6k0sF__DE Links Susana’s Book “I Wish I Had Known” is available at Amazon UK and Amazon US Find your next role on the GrowCFO job board Mentoring at GrowCFO with Susana Serrano-Davey Susana Serrano-Davey on LinkedIn Kevin Appleby on LinkedIn Timestamps Today’s topic: face your fears. (0:12) What does fear have to do with finance? (3:33) The fear of ridicule and the fear of presenting. (8:06) The fear of losing your job and how to overcome it. (13:02) The fear of making mistakes is a game-changer. (19:18) The more senior you are, the greater the pressure is to have to produce the answer. (26:03) There’s one single strategy that works with fear. (30:54) The fear of ridicule and volunteering. (35:12)

Wolter Rebergen, Commercial Director at Younium joins Kevin Appleby on this week’s GrowCFO Show. Together they take a look at the latest developments in subscription pricing for a SAAS business and what this means for the finance leader. They discuss subscription models, including pricing and packaging. They also talked about challenges such as revenue recognition and the potential benefits of user-based pricing. Kevin and Wolter discussed the evolution of subscription pricing models for SaaS and tech companies, including the trend towards usage-based models. They also noted the impact of economic downturns on customer behaviour and the shift towards pay-as-you-go models. Kevin and Wolter discussed the benefits and challenges of a pay-as-you-go pricing model, including the need for accurate revenue forecasting based on customer usage and the potential impact on sales commissions. They also explored the importance of customer retention and engagement in maximizing use and minimizing churn. Wolter and Kevin discussed setting prices for a subscription-based service by analyzing the leader, filler, and killer products. They also talked about the importance of tracking usage and customizing pricing for customers, as well as the need for tools to manage subscriptions and recognize different types of revenue. Kevin and Wolter discussed the benefits of variable pricing in the SaaS industry, including usage-based and role-based pricing. They also talked about the importance of adapting pricing models as businesses grow and change. https://youtu.be/7AeGHnHTXXg Links GrowCFO finance team training GrowCFO Quests Mentoring at GrowCFO  Wolter Rebergen on LinkedIn Kevin Appleby on LinkedIn Timestamps What is a subscription pricing business? (0:12) How subscription models can get complicated quickly. (3:17) How do you know if you’re doing a cost reduction? (9:04) What is a real booking-based financial metrics? (11:23) What is a subscription? What is the commission? (14:54) How would you set the price for your leader products? (17:06) What is a tool to manage the subscription? (21:23) How are we going to make that estimated recurring revenue from usage count in the multiplier? (23:04) Value-based pricing is one of the most common use cases. (27:36)

Francesco Zappala is CFO Chile for Italian construction giant Impresa Pizzarotti. His c.v. includes KPMG and Harvard Business School and an impressive career in corporate finance. He joins Kevin Appleby in this episode of the GrowCFO show to discuss his journey and how he became the finance lead and helped Impresa Pizzarotti build a brand new business in South America. Francesco talked about his journey in building a career in financial services internationally, starting from a trip to the States with his dad when he was 14 or 15 years old, studying in different universities in Spain, having an internship in Madrid, working in a consulting company in Italy, and being offered to go to Turkey for a professional experience, which led him to South America and eventually becoming a divisional CFO in Chile. Francesco discussed his experience working for Impresa Pizzarotti, a global general contractor, and the challenges he faced working in different regions such as South America and adapting to different cultures and management techniques. He also talked about the company’s focus on big construction and infrastructure projects, as well as their move towards renewable energy and technology. Francesco discussed his background in financial services and how it translates to his current role as CFO for a general contractor in Chile. He also talked about the challenges and growth of the organization, and his involvement in various aspects of the business including finance, accounting, mergers and acquisitions, tax and legal, internal audit, human resources, general services, and IT. Francesco discussed his role in a company project, from finding the right partner to dealing with financial distress situations. He also talked about the challenges of starting a business during the pandemic and the importance of working closely with clients to ensure project success. Kevin and Francesco discussed the impact of COVID-19 on the construction industry and the importance of staying humble and getting the job done. They also talked about the possibility of discussing turning around a distressed project in a future conversation. https://youtu.be/V0_xEBJPqnk Links GrowCFO Future CFO Programme Francesco Zappala on LinkedIn Kevin Appleby on LinkedIn Timestamps Introduction to today’s guest. (0:11) What is the most difficult part of moving from region to region? (1:55) The challenges of working in Chile. (5:55) What exactly does Impresa Pizzarotti do? (8:40) How does that translate into what he’s doing now? (12:57) How to bring the best practices from the finance industry to the corporate world. (14:47) How big was the organisation in Chile when you joined? (19:19) How involved do you get in individual construction projects? (21:19) What is the credit cycle like at Impresa Pizzarotti? (25:40) Francesco’s advice for a younger version of himself. (28:15)

Peter Mckenzie is The C-Suite Coach. He helps busy senior leaders regain energy and focus, increase impact and reach peak performance. Peter is the latest member of the GrowCFO mentoring team. Based in Barcelona Spain, Peter is the general manager of Anticipa Real Estate. He joins Kevin Appleby on the GrowCFO show. Peter discussed his background in finance and how he transitioned to general management and became a coach and keynote speaker. Peter worked in auditing for three years before taking a sabbatical to learn Spanish and become an English teacher in Spain. He later returned to the finance world, working for Citi Group for 20 years and touching various businesses before joining GrowCFO. Peter discussed his experience as a CFO in the financial sector, including his involvement in mergers and acquisitions. He also talked about his journey in public speaking and how it is an important skill for CFOs to have in order to effectively lead and influence their teams and organizations.29:24 Peter and Kevin discussed the importance of resilience, courage, and grit for CFOs, especially during challenging times. Peter also shared his experience of transitioning from a CFO role to a general manager role, highlighting the value of gaining experience outside of finance. https://youtu.be/Xykjf9gy998 Links Mentoring at GrowCFO  Peter McKenzie’s Mentoring Bio Peter McKenzie on LinkedIn Kevin Appleby on LinkedIn Timestamps Introducing Peter McKenzie (0:11) How Peter ended up in Spain. (2:03) How he got started in the financial industry. (4:17) Peter’s background with Coopers & Lybrand and PwC. (6:36) The post-merger integration process. (8:49) Peter’s story of how he learned to love speaking in public. (10:36) The importance of public speaking for CFOs. (13:04) Resilience is a requirement to have the drive and the courage to make mistakes. (15:39) Getting comfortable with feeling uncomfortable. (18:20) The moment you’re not doing a CFO role, are you doing a general manager role? (20:14)