CFO THOUGHT LEADER

It was late 2020 when Michelle Hook ended 17 years of fruitful career-building at Domino’s to accept a CFO appointment at fast casual restaurant chain Portillo’s.  

“The two things that I was looking for were to be passionate about a new brand and to feel a culture fit,” recalls Hook, who adds that she had long imagined someday leaving Domino’s to join a smaller company that she could help to grow.

“I just didn’t care about going to a bigger company or ‘X,’ ‘Y,’ or ‘Z,’” continues Hook, who tells us that she ultimately took a leap of faith with regard to there being a culture fit at Portillo’s.

“I actually never stepped into our headquarters until my first day on the job and had met in person only with the CEO, since this was during COVID times and the rest of the hiring process had been done on Zoom,” comments Hook.

Fast-forward 15 months to when the Omicron variant was still grabbing headlines and inflation had begun to rattle the economy—and Hook could not escape the notion that the traditional Portillo’s restaurant needed to change for the post-COVID world.

“I thought to myself, I think that we’re overbuilding our restaurants—we need to think about where the puck is going,” remembers Hook, who notes that Portillo’s dine-in customers in today’s post-COVID environment account for only roughly 35 percent of the chain’s volume.

“I had come from Domino’s, which didn’t have these big dining rooms and had built out a heavily digital business,” remarks Hook, who reports that Portillo’s digital business represents only 20 percent of overall sales.

This subject soon surfaced at an executive strategy session at which Portillo’s CEO, Michael Osanloo, tasked Hook and Portillo’s head of marketing with leading an initiative dubbed “Restaurant of the Future.”   

“I think that Michael knew that I’d take on the project by using a data-driven lens,” comments Hook, who points out that the project has involved “time and motion studies” involving specific restaurants and their conveyance activities within the kitchen.      

“Getting the engine right in the car is super important to us,” she says. “This will bring benefits not only on the cost side of things but also for our team members, who will find it easier to complete their work.” –Jack Sweeney

Not unlike that of many of his CFO peers, Derrek Gafford’s career path has been shaped in part by geography—specifically, by having its origins in a city that was at once home to a state college, the corporate headquarters of a marquee company, and a Big Four accounting office populated with new college grads.

In Gafford’s case, the city was Boise; the college, Boise State; the marquee company, grocery giant Albertsons; and the Big Four accounting house, Deloitte

“I had worked my way through Boise State in an Albertsons grocery store, which actually paid for a lot of my education,” explains Gafford, who upon graduating with an accounting degree would end up nabbing a job with Deloitte’s Boise office.

“Originally, the only job that I had ever really wanted was to work in finance at Albertsons,” he continues, “and guess what company became the first account that Deloitte assigned me to?”

After about 2 years with Deloitte, Gafford joined Albertsons’ internal audit staff, from which he eventually advanced to oversee the company’s audit department while reporting directly to Albertsons’ CFO.

“As an internal auditor, I had traveled the country visiting stores and distribution centers, so I had gotten a feel for the various aspects of the business and how the company operated,” recalls Gafford.

However, after 6 years with Albertsons, Gafford began to consider different finance leadership roles beyond Boise’s city limits.

“The way things were headed,” he remembers, “it seemed like I was going to be a lifelong leader of internal audit—which is not where I wanted to be. There was this small, privately held grocery company in Seattle that was looking for a CFO, and the CEO and I got along, so we packed up and headed north.” –Jack Sweeney

We are near the end of our discussion with CFO Svai Sanford when he permits us to unlock one last door to his past.

Unbeknownst to us, 20 minutes earlier, Sanford had handed us the key to its lock in the form of a short story.

The story had begun with Sanford receiving a job offer, to which he had replied, “Are you sure? I do not have any experience in this sector.”

His future boss had replied: “You will figure it out.”

At first, we were left wondering whether there had been something more that the future boss had known about Sanford—perhaps a piece of contributing evidence that had made him feel confident that Sanford could acclimate and succeed.

“There’s something in me that has always allowed me to figure things out,” Sanford had confided.

Sanford’s choice of words—“something in me”—had been interesting. Certainly, there is no shortage of problem-solving exercises along any CFO’s path, but he had already told us that his career track had likely been different from that of other CFOs—and we had sensed that the “something” to which he had been referring had not yet been disclosed to us.

Still, as Sanford had helped us to check off the requisite CFO career milestones via his engaging and modest narrative, we eventually had heard about his arrival in the C-suite—which for a moment had led us to consider how Sanford’s success story is not remarkably different from that of other CFOs.

However, that’s exactly why it’s so remarkable, or so we later realize.

As we enter the final minutes of our discussion, we learn that Sanford had arrived in the United States as a 13-year-old refugee from Laos, who with only a 3rd-grade education had entered a Kansas City high school while not yet speaking a word of English.

How does someone enter the C-suite some 20 years later after having surmounted such adverse circumstances?

Here’s where we find the key that Sanford gave us.

We think of the 13-year-old Sanford and hear the words of his future boss, “You will figure it out.” –Jack Sweeney

When Charly Kevers took his mentor’s advice and swapped a corporate development role at Hewlett-Packard for a tour of duty as a director of HP’s investor relations arm, he looked forward to tackling a variety of IR requisites, including crafting the messaging that follows a change at the top.

Two years and four HP CEOs later, Kevers exited HP knowing that his IR term (with its extra helping of CEO turnover) had afforded him a stint unlike any before it at HP.

“It’s a highly stressful role when you are standing in front of the Fidelitys of the world and they’re asking you a lot of questions beginning with ‘What does it mean for the business and what does it mean for my stock,’” explains Kevers, who subsequently stepped into a corporate development role at Salesforce. 

“That experience has since helped me by allowing me in many cases to rationalize things by saying, ‘Well, this is not as bad as what I dealt with there,’” comments Kevers, who these days, as CFO of Carta, appears to be focused as much on internal communications as he is on external PR.

“Having worked mostly for public companies, I‘ve been trained to not talk about any number that isn’t public information, but here at Carta, we are very transparent,” remarks Kevers, who adds that he is routinely surprised by how Carta employees respond to numbers.

“We’ve been very transparent about where we want to save money and have sought to explain why we care about gross margin and metrics like sales efficiency and other things that contribute to profitability, and I have been surprised by how much people will care about them and then take ownership of them by finding ways to improve these metrics,” reports Kevers, who notes that Carta’s efforts to achieve greater  transparency are visible on the company’s P&L, which now reports the gross margin for different product areas along with product-specific marketing and R&D spending.

“We can now look at how the Rule of 40 applies to every one of our product areas, so the board room discussions can be much more in-depth when it comes to discussing tradeoffs” observes Kevers, who seems to harbor as much enthusiasm for transparency outside the boardroom as he does for clarity inside its doors.

“If you’re transparent and explain what metrics need to be watched,” he says, “doing so really does help to drive productive discussions between finance and the rest of the business.” –Jack Sweeney

Looking back, Jeff Coulter is not exactly certain how he landed a spot on a team tasked with designing and implementing the first-ever budgeting and reporting processes responsible for tracking Procter & Gamble’s marketing dollars on a single worldwide system.

“P&G had hundreds of disparate setups that we had to bring into one system globally,” explains Coulter, recalling the effort behind the information systems upgrade with SAP software that many at the time (the year 2000) deemed to be a historic milestone not only for the packaged goods company but also for industry at large.

Coulter had been plucked out of Procter & Gamble’s Iowa City office, where he had been working as a cost analyst for such products as Pantene and Scope. The new assignment required Coulter to relocate to Cincinnati, where for the next 2 years he became involved in multiple aspects of the implementation, including the rollout of SAP end-user training across P&G globally.

“At the time, any career management at Procter & Gamble was essentially the result of a benevolent dictatorship—you were basically told where you were going to go next,” remembers Coulter, who adds that the experience and training that he gleaned along his P&G way made his time there a very worthy investment.

Still, Coulter was eager to return west. Living close to family had always been a priority for the young finance executive, and Cincinnati turned out to be not so short a stint.  

Consequently, while geography is perhaps not the first reason that people give for having joined Intel Corporation, for Coulter—who would first join the chip maker’s Portland, Oregon, complex—it was certainly among his top three impetuses.

To move from a consumer products company to a technology company may seem unconventional, but Coulter tells us that his love for learning and his growth mindset helped him to adapt quickly at Intel, where he would remain for the next 6 years. He emphasizes the versatility of finance, which allows professionals to work across various industries.

Says Coulter: “I love learning business models and figuring out how they’re making money and how to optimize that.” –Jack Sweeney

The year was 2015, but for Jeff Laborde, a seasoned finance leader kicking off his second C-suite tour of duty, it seemed as though the conference room that he had just entered had transported him back to 2005—or was it 1995?

Across the way, an executive who had noticed Laborde’s presence stopped the meeting and queried: “Jeff, what are you doing here? Why are you in my meeting?”

Caught by surprise and somewhat tongue-tied, Laborde recalls, he registered a less than articulate response to the question that had quickly swallowed up the room’s attention.  

Having only recently joined the company as CFO, Laborde was seeking to sit in on a number of meetings in order to better understand how the company operated. Given that this particular gathering had been expected to discuss go-to-market priorities for the upcoming quarter, Laborde had made it his business to attend.

“I was only following my instincts, and it came as a shock to me to find their swim lanes so impervious to being swapped or crossed,” continues Laborde, who adds that the experience highlighted for him the importance of fully understanding a role’s limitations before accepting an appointment.

It wouldn’t be long, though, before Laborde’s career transported him back to 2015. “I realized that I wouldn’t be happy in the strict silo of finance without understanding what’s around the corner,” he remembers.

Still, Laborde tells us, finance leaders who expect to cross lanes and enter different operational areas of the business must always be approachable, while at the same time being prepared to experience what he refers to as “Oh crap!” moments.  

He doesn’t provide us with much further detail here, but we assume that such instances involve developments that are perceived to put the operations of the business at significant risk. Nonetheless, Laborde’s advisory is less about managing risk per se and more about serving as a reminder to finance leaders to be mindful of the nature of their response to crisis.

“Stay calm, get your facts straight, don’t overreact—and just know that these moments are going to come,” emphasizes Laborde, who characterizes such moments as the status quo for CFOs who make looking around corners a priority.

For those finance leaders who do not, Laborde tell us, time travel remains a viable option.

He observes: “You shouldn’t assume that you’ll be welcome within core areas of the business. There are some CEOs and ownership structures that don’t expect or want the CFO to go there.” –Jack Sweeney

While the leadership journeys of many of our CFO guests began on an upper floor of a glass-and-steel skyscraper affording a wide-angle view of a cosmopolitan metropolis, that of Blackbaud CFO Tony Boor started at street level in Las Cruces, New Mexico, on the edge of the Chihuahuan Desert.

Less than an hour’s drive north of El Paso, Texas, Las Cruces is home not only to the main campus of New Mexico State University but also to a crowded schedule of holiday festivals and a varied collection of retailers—including motorcycle shops such as the one that Boor first visited in the mid-1970s.

“When I was 13 or 14 years old, I walked into a motorcycle shop to buy my first bike and they ended up hiring me to sweep floors and haul trash,” recalls Boor, who over the next 10 years segued from maintenance to the service department, to parts management, to sales management, to being general manager of the store.

“Thinking back now on being that young and running a business, I realize that I got a chance very early in my career to experience a firm from the other side of the desk, as I oversaw people much older than me and dealt with things like payroll, books, and accounting,” continues Boor, whose hours at the shop populated his high school and college years.

Nonetheless, in a family with a father who worked at the nearby White Sands Missile Range as a nuclear electrical engineer and other sons who were embarking on engineering careers of their own, the motorcycle shop entry on Boor’s resume did not go unnoticed.

Thus what might be surmised to have been a collective sigh of relief may have been heard when he decided to pursue an engineering degree at New Mexico State, thereby keeping safe the Boor family tradition. Or would it?

“I was actually in my senior year of college when I decided that I didn’t want to be an engineer because I knew from working in the motorcycle shop that I loved business,” reports Boor, who remembers his parents not being at all pleased that the timing of his decision was coming so “late in the game.”    

“It ended up taking me a little longer to be done with school, but I did switch over to accounting,” explains Boor, who would subsequently work for a number of the original Big Eight accounting houses before stepping into the ranks of corporate finance professionals—where the same qualities that had once served him well at the bike shop appear to have propelled his climb upward.

Says Boor: “A lot of what I learned in those very early years of my life and career had a big impact on how things have gone for me, even in these finance leadership roles.” –Jack Sweeney

Evan Goldstein tells us that it was at the end of another long day—after a week of long days—as he was walking to the parking lot adjacent to Genentech’s offices that he received a “gut punch.”

Becoming more self-aware of others is something that many finance leaders have told us that they have needed to lean into during their career, but few have shared with us the pivot to self-reflection as vividly as Goldstein, whose multi-decade finance career boasts an unusual dual-chamber architecture centered on 10 years at Genentech and another 11 at Salesforce.

“I refer to myself as a serial monogamist when it comes to my professional career and the longevity that I’ve experienced at both of these companies,” explains Goldstein, who credits his extended stay at both firms to the power of three: the people, the mission, and the innovation.

Still, Goldberg wants us to know about the long day that ended in Genentech’s parking lot.

For young finance career builders, arriving at the end-of-day parking lot can be somewhat likened to a runner breaking the finish-line tape, not to be awarded a medal, though, but to be met with the refreshingly cool evening air that routinely rewards a long day’s work.

It was in just such environs that Goldstein chose to thank a younger Genentech colleague for their hard work on an important and ultimately successful “deliverable.”

“After having just been promoted to the manager level, I had taken over short-term planning in the corporate organization and had hired this person—whose role I had had in the past,” reports Goldstein, who earlier in the week had presented the “deliverable” to Genentech’s leadership team.

“Here we had had this really successful outcome, and this employee was just doing phenomenally well,” comments Goldstein, who found himself alongside his young report as they made their way to the parking lot together.

“Thank you for all of your hard work,” Goldstein remembers saying—to which the employee then replied: “Yeah, well, I don’t think I want to do this.”

Such a response was like a punch to the gut, Goldstein recalls, and one that not even the fresh evening air could ease.    

The employee explained further: “Evan, you’re telling me what to do, and you’re not letting me figure it out.”

Looking back, Goldstein realizes that he was shortchanging the opportunities that he provided to others by failing to allow them to grow and develop along the way as they “added their own flavor to the process.”

Says Goldstein: “This was one of my turning points from a managerial leadership perspective—when I started to realize that it’s not just about what you deliver but also how you deliver it.” –Jack Sweeney

A brief summary of this episode

Marco Torrente kicked off his finance career inside the Milan, Italy, offices of SC Johnson, the household cleaning products giant headquartered in Racine, Wisconsin.

All told, he would end up spending 7 years in various finance roles at Johnson—including that of controller—while relocating first to London and then eventually to Geneva.

Looking back, Torrente tells us that the family-owned company created a “flexible culture” that valued autonomy and direct communication—two qualities that have been instrumental in shaping his approach to finance leadership.