On me operating in waves....

During one of my low moments, I asked Jim why he didn't express confidence in my ability to handle the combined Web/Media role.  Was it my ability, or something else?

Jim explained that he has always believed in my ability to get things done.  I had developed an incredible command on the business and leaders enjoyed working with me.  This was the reason he was willing to consider relocating me.  But there were a few reasons for his hesitation:

One reason was that I operated (and maybe still do) in waves.  When I was in my upward trajectory, I could handle all aspects of the business and had many supporters in Cambridge.  But I was also sensitive to feedback and could be in a downward spiral, hard to get motivated, go quiet, etc.  In those times I needed to get a human connection and had to get motivated.  His tip to me was: as I work to become the CFO somewhere, I need to work on ensuring that my highs aren't too high, and my lows aren't too low.  A CFO has to be emotionally consistent and stable.

Other concerns at the time was my location handicap and the fact that one of the leaders (GB) didn't like me much.  Jim philosophically believed that while a finance leader doesn't need to be best friends with the business leader, it is important for the business leader to like the CFO.  Also that the CFO needs to be physically located next to the business leader.

On environment to thrive....

Jim typically didn't give specific advice.  He would share experiences from his life and then leave it to me to decide.  But in one of the discussions, he said:  Nitin, as someone who has been listening to your experiences for the past 9-10 months, I'd say that you want to be in a place that gives you the environment to thrive.  A place that helps you ramp, and gives you the room to apply your strengths.  And this doesn't seem to be the kind.  You need to focus on learning what you can and want to, and move on.  It's ok - some places work, some don't.  It can be simply a fit issue.

As you think about your CFO roles, you want to be in places that are special - where your fire can burn bright and you feel like contributing, are able to contribute, and are contributing.  If you don't see that, you shouldn't spend much time.

On how the stage of Company drives the type of CFO....

In one of his reflective moments, Jim made a fantastic comment:  Often the stage of maturity of a company determines the kind of CFO they hire.  An early stage company that's mostly dealing with fund raises and aggressive burn often tends to hire a CFO that's a cheerleader.  Knows how to pitch a business and give comfort to investors.  A more mature company goes for a traditional operational CFO that knows how to setup the machine to help scale.  

He then went on to walk me through the CFOs that headed Akamai finance over the years:

TW:  He was a sell side analyst before he became a CFO at Akamai.  He was a cheerleader mainly, knew how the street works, what investors look for, etc.  But he wasn't a CFO in the traditional sense.  He was more outward focused than experienced in setting up the machine.

JK: As Akamai grew and became more mature, they brought in JK.  He was like the elder statesman of the street.  Investors trusted him and respected him.  He was brought in to bring stability in Akamai's perception and he was hugely successful.  But he wasn't as keen or fired up in setting things up.

JDS: He was a good CFO who helped in setting up Akamai finance as a scalable function.  He had the balance of being outward investor focus and helping the company setup for scale.

Again - the moral is: as you think of a CFO job, it is important to assess the stage of maturity of the company and how it fits with the CFO that you are - operational, balanced, cheerleader.  Whatever type you are, you are required to have the investor focus and drive valuation for the business, it's mostly about what's your natural inclination.

On how much time does a new CFO get to learn the business...

After my recent experience and some self reflection, I asked Jim - how much time does a new CFO really get to learn the business and get ready to pitch it?

Jim responded - typically, a CFO will get 3-5 months to learn about the business and get ready to pitch it.  That may seem like not a long time, but that's what one gets.  It is therefore critical to approach each conversation with a lens of investor relations and pitching, even while working to setup the machinery.  For operational CFOs like Jim and I, setting up the machine will always be a lure given it's ease and direct tangible impact.  But that's the challenge of the job.  

When I countered with me being outside the industry and covid environment, he acknowledged the hurdles.  He commented that the remote environment definitely slow the learning process, but CFO job is unforgiving that way.  Also, that this is the reason why companies prefer bringing in CFOs from within the industry - because it's easier to ramp. 

On how a CFO can evolve focus to becoming a cheerleader...

One of my conversations with Jim revolved around developing a investor relations focus.  He said two things - one a framework, one his own experience...

1) Framework: As a CFO evolves focus from setting up the machine that helps a business operate and scale, he/she should think about three things:

- Alignment - a CFO needs to be aligned with the overall pitch, vision, direction, etc. that CEO is trying to lay for the company.  This alignment is critical to ensure that the CFO is able to pitch the business and strategy in tandem and independently with investors.  If there is misalignment or lack of belief, it requires harder work to prepare and pitch the story. 

- Awareness - a CFO needs to be aware of the business, the levers, the tradeoffs and choices.  This awareness is all about having a certain level of depth of understanding.

- Articulation - A CFO needs to be able to convey the story with command and clarity.  Investors prefer working with and trusting CFOs that convey the story with confidence and clarity, with belief.

2) Experience:  Jim shared with me his first experience after he became Akamai's CFO.  His appointment was announced on an earnings call after which he went on the road with the then CEO for an investor day.  His role was to be an observer as Paul (the CEO) was to present the pitch to investors.  But on the day of the presentation, Paul came down with the flu and had to fly back home - leaving Jim to manage the pitch.  Jim hadn't even seen the deck, never mind prepared to present.  Jim however ended up presenting it - wasn't his best work (by his own admission), but he was able to get by.  The moral of the story being: you will never be ready to pitch the business, till you get the BIG job and are thrust into a place to pitch.  You have to mentally get ready well before the opportunity presents it self.