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Critical Metrics to Help Finance Teams Advance as Strategic Partners
Are the metrics that you are currently tracking truly reflective of your overall business performance?
If you’re looking to get your finance transformation off the ground—it’s time to use data and analytics more effectively. Improving access to data will enable finance teams to speed up time-to-insight and empower the business to become more responsive in the face of uncertainty.
In this webinar, we take on the much-talked-about topic of the key metrics that finance teams need to be tracking.
We have Caitlin Haberberger, CFO at Mezmo, sharing first-hand information on how finance teams are already tapping into the immense benefits of tracking the right metrics.
Caitlin discusses strategies for finance leaders at all levels, to architect change for 360° value. That’s not all — you will also come across some rich insights on effective communication, building trust, and influencing business decisions.
In short, we cover:
- How do you leverage financial metrics at different stages of your business lifecycle — from pre-product-market fit to publicly traded companies?
- How can businesses harness the strength of collaboration to guarantee data accuracy and consistency across teams?
- When is the right time to invest in a specialized tool to streamline workflows and free up valuable resources?
- What skills are essential for translating financial data into clear, actionable insights for CEOs, boards, and other teams?
- How do business maturity and scalability impact your decision to adopt new technology for data management?
- Success Paradigm for CFOs in 2024 and Beyond: As CFOs face an extraordinary number of decisions to make on compressed timelines, we also talk about how they can accelerate strategic decision-making, unlock greater shareholder value, and drive sweeping enterprise reinvention.
Speakers:
Caitlin Haberberger, CFO at Mezmo
- Two decades of experience in leading finance functions at renowned tech companies
- Previously worked with Amplitude, Turnitin, Flite, and Clever Inc.
Hosted by:
Apurv Bansal, Founder of Zenskar
Webinar Summary
Q. What role does listening play in leadership within the finance function?
Listening is critical for anyone in a leadership role, especially within the finance function. It’s about understanding the needs of different teams, getting insights into their challenges, and then using that information to provide relevant data and solutions that support business decisions.
Q. How can finance professionals contribute to leadership, even if they are not in senior roles?
Finance professionals can contribute to leadership by spending time across the organization, talking to teams like product or marketing to understand their needs and performance metrics. Curiosity and learning from different functions help finance professionals make better decisions and add more value to the company.
Q. What is the evolving role of a CFO in a modern SaaS company?
The role of the CFO in modern SaaS companies has shifted beyond financial modeling and forecasting. CFOs are increasingly expected to be data stewards, consolidating and analyzing data from different departments to inform strategic business decisions. This includes understanding financial implications, risks, and business opportunities.
Q. How has the CFO's role changed in response to business challenges like international expansion?
The CFO now plays a more proactive role in business decisions, such as international expansion. For example, before moving into new markets, a CFO might question the customer demand, local data privacy laws, or operational challenges like setting up local infrastructure. They need to evaluate the full scope of a decision, including risks and costs.
Q. What are the most important financial metrics a CFO should track in a SaaS business?
Common SaaS metrics include ARR growth, churn rates, customer acquisition costs (CAC), and gross margins. Beyond traditional metrics, a CFO should also focus on operational efficiencies like reducing data storage costs, which directly impact profitability and scalability.
Q. How do financial metrics differ for companies at different growth stages?
The metrics that matter shift as a company grows. Early-stage SaaS companies, especially pre-product-market fit, focus more on customer acquisition and market learning, while post-product-market fit companies track CAC, sales rep productivity, and efficiency. Public companies might also focus more on profitability and return on investment.
Q. How do you align business teams on financial metrics?
To ensure alignment, it's important to establish clear definitions and reliable data sources from the start. When presenting metrics to the board or other teams, simplify and highlight the key metrics that indicate whether the business is on track. Regular communication and shared data definitions help avoid confusion.
Q. How do you make complex financial data understandable for non-finance teams?
The key is to communicate complex financial data clearly and in simple terms. Start with high-level metrics, such as cash flow or customer growth, that align with the company's strategy. For deeper insights, tailor the data to each team’s needs, providing them with the most relevant metrics for their work.
Q. How do you ensure finance teams focus on the right metrics?
In finance, it's crucial to narrow down the most meaningful metrics that directly impact business goals. Having a solid understanding of the company's lifecycle and phase, whether it’s pre- or post-product-market fit, helps prioritize metrics like cash runway, customer acquisition, and profitability.
Q. How can finance leaders use creativity in problem-solving?
Creativity in finance comes in when working through customer contracts or budget constraints. For example, a CFO might find a flexible approach to negotiate a deal that aligns with the company's financial structure while also accommodating customer needs, driving revenue without compromising financial integrity.
Q. When should a company invest in specialized tools to track financial metrics?
Specialized tools should be considered when business needs evolve beyond spreadsheets, especially when the company has grown enough that data collection and analysis are becoming cumbersome. The decision depends on whether the business model is settled enough and whether investing in the tool would save significant time and resources.
Q. What are the key challenges when integrating financial tools across business functions?
A common challenge is data discrepancies, where different teams are using various systems or spreadsheets. Finance leaders must ensure that there’s one "source of truth" for data, which is critical for aligning teams and making informed decisions. Cross-functional collaboration is key to resolving these disconnects.
Q. How do you ensure data integrity when working across different business teams?
Data integrity is achieved by establishing clear, shared definitions for key metrics and processes across all teams. Ensuring that everyone is pulling data from the same source and adhering to the same standards prevents misalignment and misinterpretation of financial information.
Q. What strategies do finance leaders use to communicate financial performance to the board?
Finance leaders need to focus on key metrics that indicate whether the company is on track. Rather than getting bogged down in too many details, they should present the most important data—like cash flow, profitability, or customer growth—and explain the story behind the numbers. This keeps everyone focused on what matters most.
Q. How do finance leaders foster effective communication between teams?
Effective communication in finance teams is about building strong business partnerships. It’s not just about the numbers; finance leaders should spend time with other teams, listening to their challenges, providing financial insights, and helping solve business problems. This collaborative approach enhances understanding and decision-making across departments.
Q. How can finance professionals ensure their decisions align with the overall business strategy?
Finance professionals can align their decisions with the business strategy by deeply understanding the company’s goals and challenges. It’s important to track and analyze the metrics that reflect those goals and communicate financial insights that support strategic decision-making, whether it’s in marketing, product development, or sales.
Q. How can a CFO balance short-term financial goals with long-term business objectives?
A CFO balances short-term and long-term goals by maintaining a clear view of both cash flow and strategic growth. In the short term, the focus might be on maintaining liquidity, while in the long term, the focus is on profitability and sustainable growth. Regularly revisiting and adjusting the strategy ensures alignment between short-term actions and long-term objectives.
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