Building a World-Class Finance Organization

CFO Q&A

Bruce Felt led finance teams through three IPOs at FullTime Software, SAP SuccessFactors & Domo. He joins us in the “Q&A” Series with direct and actionable advice on how to build your finance team.



Q: What framework should I use to build my Finance team?

I use a 4-phase framework to build an efficient mechanism for companies of any size.



Phase 1: Foundational Finance Operations

Surviving. Team must manage all money going in and out, recording and managing transactions efficiently and accurately. Get really good at it. Focus on automation and measure success by increased transactions per person.



Phase 2: Controlling the Business

Build policies, processes, and systems that do the work for you, enabling efficiency and creating powerful levers to control the business. Assemble functional experts and continue automating crucial tasks.



Phase 3: Planning and Business Partnering

They will design and implement seamless integration between finance and other business functions. These leaders should build strong relationships with the rest of the org, helping other business leaders understand financial implications of their decisions. They help the business plan and are integrated into the operations of all the functions of the organization.



Phase 4: Integrated Financial Excellence/Value Creation

Bring in seasoned professionals who are adept at holistic thinking, have a deep understanding of the business value drivers and shareholder value in the organization. Strong relationships with business partners have been established and finance offers smart, proactive solutions to business challenges.

Ideally, the leader in Phase 4 can articulate a clear vision for the evolution of the finance function and align each team member with their role, promoting talent tracking and retention.

This approach delivers an efficient, cost-effective machine where high-level, value-added thinking prevails, fueled by automated processes and systems. Well-run finance organizations using this model can deliver 2-3 times the output of those that do not.



Q: How do I know what phase my company is in now, and how do I bridge the gap?

Write down the 4 phases on the left side of a sheet of paper. On the right, list where you currently spend most of your time. It will quickly become clear which phase you are entrenched in, and what holes there are to fill.



Q: What should be my first finance hire to make this happen?

Start with an exceptional controller for foundational phases; add specific talent as you grow.



Q: How do I evaluate the person I have?

Do they have the skills, experience and leadership ability to build and run phases 1 & 2? Great accountants can be a strong start, but must be well-versed in systems and processes, so they can design effective automation as they build.