Good morning. Staying ahead in a hyper-competitive market can be challenging for companies. But prioritizing innovation can make a difference.
That’s the subject of Luck‘S Emerging CFO virtual event on Wednesday, hosted in partnership with Workday (CFO Daily sponsor). said David Duncan, consultant, speaker and author of “The Secret Life of the Customer.” LuckGeoff Colvin that there is a common challenge that every large, successful company faces.
“It comes down to the need to balance investment in the core business with investment in new disruptive innovation that may look quite different from what has made them successful up to now,” says Duncan. this point”. And for companies that abandon the path of innovation and breakthrough technology, it can become a costly mistake. IN a recent article by Colvin, he compared the different paths that took Microsoft into a $3 trillion powerhouse and flattened Intel.
“CFOs have the power to prioritize innovation if they have the right structures in place within their companies,” says Duncan. In a reference to fame Clay Christensen’s bookHe also noted that avoiding the “innovator’s dilemma” requires having the right conversations around the dinner table, he said. The CEO and CFO have an important role to play in assessing where the company is currently and aligning everyone to a strategy where you think the future is headed. And that gives you the confidence to start investing in that direction, Duncan said.
Another piece of advice from Duncan: “Once you have a clear strategy about the direction you want to go, it is important to establish mechanisms within the organization to pursue different types of innovation with rules and regulations. different metrics, label them and also have accountability. .”
Partnerships can also spur innovation and help companies stay competitive. During the session, Claire Rauh McDonough, Rivian’s Chief Financial Officer, explained that the electric vehicle manufacturer and the Volkswagen Group launched their new products. joint venture. It is known as Rivian and Volkswagen Group Technologies, with a total transaction size of up to 5.8 billion USD. McDonough said Rivian is contributing to its software development team and core software team as well as its electrical hardware. There is a “really exciting innovation roadmap that is yet to come as we now work to develop and use those proven technologies in their vehicles,” she said.
Antonio Carlos Garcia, EVP and CFO of Embraer, said the Brazilian aerospace company is “quite successful right now with all of our business units.” For example, it delivered 59 jets in the third quarterincreased 37% compared to the previous year. Embraer, currently the world’s third-largest aircraft manufacturer, is leading the way while competitor Boeing is facing serious headwinds.
Garcia says that at large companies there can be a lot of innovation, but the CFO plays a central role in determining what creates value—and what doesn’t.
Wish you a nice weekend.
Sheryl Estrada
[email protected]
Rankings
Some notable moves this week:
Kelly Steckelberg has been appointed CFO of Australian unicorn Canva, a developer of creative design software, effective November 26. Steckelberg resigned from video conferencing platform Zoom in August after seven years as the company’s CFO, holding the position until last month to aid in the transition. She oversaw Zoom’s 2019 IPO as chief financial officer, so her hire was largely seen as a step toward an IPO.
Ken Cook was appointed chief financial officer of Wendy Company (Nasdaq: WEN), effective December 2. Cook will succeed Gunther Plosch, who has served as CFO since 2016 and will leave the company at the end of the year. Cook most recently served as head of financial planning and analysis at United Parcel Service (UPS). In previous roles at UPS, Cook served as CFO for the U.S. Domestic segment and previously held leadership roles in investor relations and treasury, and served as CFO of South Asia.
Michael J. Grau will resign as EVP and CFO of Madison Square Garden Entertainment (NYSE: MSGE), which operates the eponymous sports arena, Radio City Music Hall, Beacon Theater and Chicago Theater, effective November 20. Grau was appointed to the role in November. 2 and begins his term in April. He will be succeeded by Lee Weinberg, who will serve as interim CFO. Weinberg has served as SVP of business operations and finance since the company split from Sphere Entertainment in April 2023.
Rick Goldberg was named Chief Financial Officer of S&P Global Commodity Insights, a division of S&P Global (NYSE: SPGI), effective November 1. Goldberg joined the company in August 2011 and was most recently CFO of S&P Global Market Intelligence, a position he has held since September 7. He also recently assumed the role of CFO for the company’s newly established key account office, a move spearheaded by new CEO and president Martina Cheung.
Glenn Eisenberg will retire as chief financial officer of Labcorp (NYSE: LH), a laboratory services company, effective December 2. After 10 years in the role, he will continue to work at the company as a special advisor to CEO until April 2025 to support the transition. His successor will be Julia Wang, who will also serve as executive vice president. She most recently served as Chief Financial Officer of global oncology company BeiGene, now known as BeOne Mediciones.
Michael Abrams was appointed chief financial officer of NRx Pharmaceutical Company (Nasdaq: NRXP), a clinical-stage biopharmaceutical company. Abrams succeeds interim CFO Richard Narido, who will continue to support the company’s finance function and other projects. Abrams has nearly three decades of experience as an executive, investment banker, director and senior advisor, including as CFO of Arch Therapeutics, RiseIT Solutions and FitLife Brands.
Steve Rasche will step down as EVP and CFO of the natural gas company tower (NYSE: SR), effective January 1. Rasche, who joined the company in 2009 and became CFO in 2013, will continue to serve as senior advisor until retires on April 1. He will be succeeded by Adam Woodard, who has served as Vice President and treasurer at the company since 2018 and also became CFO of Spire’s utilities business a year later.
Great deals
ONE new report via LuckLeo Schwartz’s: “SEC Chairman Gary Gensler steps down, leaving behind a legacy of division and crypto feuds.”
US Securities and Exchange Commission President Gary Gensler announced on Thursday X that he will resign on January 20, the day President-elect Donald Trump takes office.
Since taking office in April 2021, Gensler has battled industry groups across Wall Street, pursuing an aggressive campaign of rule-making and enforcement actions that often made him uncomfortable, Schwartz wrote. Gensler was appointed by President Joe Biden as it is customary for heads of agencies to resign after the election of the other party’s president.
Go deeper
Here are four Luck Weekend reading:
overheard
“What’s special about Steve is that he cares deeply about people. Admittedly, he can be meticulous and demanding at times, even to the point of being called ‘tyrannical’. But above all, he was a kind, honorable and compassionate leader, it was these characteristics that made him great, not his shouting and profanity.”
—Shalini Govil-Pai, Vice President and General Manager of TV at Google, writes about the co-founder and former CEO of Apple Inc. Luck comments section“I worked with Steve Jobs. Here’s what he said about today’s leadership style.”
