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.
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