Upside/Downside - Grow Your Profits and Cash Flow
Poor profits and cash flow got you down?
My name is Matt Cooley and value creation has always been central to my career, from start-ups to multi-billion-dollar product lines. As a finance executive at successful companies, I've noticed a thing or two about what creates versus destroys value. In this podcast, we explore value creation and share a few laughs on the way to higher profits and cash flow.
Check out my website at www.upsidedownsidepodcast.com where you can share your email for my FREE one-pager: "10 places to look for higher profits and cash flow right now!"
I wish you the best on your value creation journey!
Matt Cooley
Upside/Downside - Grow Your Profits and Cash Flow
Ep 1: The Future of the Finance Business Partner with Mitch Peipert, CFO
Mitch Peipert, CFO of Thomas, one of New York City's longest continuously operating companies, joins podcast host Matt Cooley in a discussion about value creation and the key skills required of Finance Business Partners at today's leading companies. What skills matter, how to deal with change and the future of the role are all on the table.
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Matt
Hi, this is Matt Cooley, host of the podcast Upside Downside, where we explore what it takes to be the best finance business partner possible. I'm a finance business partner myself and former president of the New York City chapter of Financial Executives International. Prepare to meet professionals on the front line of value creation and hear their stories. If you'd like to suggest a future guest for this podcast or be a guest yourself, please reach out. Now on to today's podcast. Please welcome Mitch Piper to Chief Financial Officer of Thomas in New York City. Welcome, Mitch.
SPEAKER_00:Hey, Matt. Thanks, and thanks for having me on your podcast. I'm honored to be a guest, and I know this is going to be a huge success. I appreciate
SPEAKER_01:that. That's very kind of you to say that. Please tell us about your business, Mitch, and how you came to the role that you have today.
SPEAKER_00:Sure. Thomas for Industry is a 122-year-old fourth-generation family business. Thomas provides actionable information, data, analysis, and tools that align with and support today's industrial buying process. And its solutions include Thomas Network at thomasnet.com, industry's largest and most active buyer supplier network. I was recruited to join Thomas about 13 years ago as the VP of Finance. There was no CFO and being an online company, the position was simply called VP of Finance. When I joined and started to meet with vendors, they would ask for the CFO slash decision maker. I would then and say, you're speaking with him. So it was obvious that the CFO title was important. And so I asked for it and became the company's first CFO.
SPEAKER_01:Wow. 122 year old company still in operation. That's a pretty unique thing that you can say about yourself.
SPEAKER_00:Yeah. And about the company and just their fortitude to exist and last through so many ups and downs, you know, the pandemic is the most recent, but you know, they went through the great depression and everything in between. So kudos to Thomas.
SPEAKER_01:Wow, that's wonderful. So this podcast is about finance business partners. What are the unique attributes of a strong finance business partner from your perspective?
SPEAKER_00:Good question. I believe that strong communication skills are paramount as a finance business partner. You need to be a good listener and be able to provide feedback in a supportive way, yet balance that with a certain amount of authority. Passion is another important attribute. Bringing an appreciation for both the company and the business unit that you're supporting goes a long way. Bringing that whatever it takes attitude drives the positive energy that is necessary to be successful. And particularly in these times, fiscal responsibility is critical. Walking the fine line between being supportive and being the financial conscience of the company is a major part of this role.
SPEAKER_01:So balance is a theme coming through all three of those attributes. That's Correct. How important are digital skills? We hear all the time AI, machine learning, digitization in general. How important is that bucket of skills versus other key skills?
SPEAKER_00:Digital skills are essential to excel as a business partner today. Thomas' and most companies' successful pivot to work from home literally overnight was driven by the digital skill set that most of us embody today. From expertise in cloud-based software to working home, not just remotely but paperlessly, allowing for quicker virtual closes demonstrates this skill. But going further, we have skills in social media and now cryptocurrency, AI, and robotics, and they're playing a more important expanded role in both finance and finance support.
SPEAKER_01:Okay. Finance business partners are supposed to help navigate the road ahead, as we all can appreciate. I find though, with so much change underway across all aspects of our lives, exactly what that future looks like can be challenging, and especially if you're supposed to be advising your business partner. How do we do this? How should we do this consistently and effectively in an environment of so much change?
SPEAKER_00:Well, the strategic role that the finance business partners have played more in recent years have helped both support and drive the advances in technology that we've seen and helped drive this technology revolution that we're currently experiencing. COVID-19, which was a major disruptor, and you could say the biggest change agent of our time, has really accelerated the use of technology and the way finance business partners operate. So staying current with these developments, both within your company and externally, will allow you to remain effective. Additionally, consistent education, perhaps through online webinars, would be very helpful.
SPEAKER_01:Excellent. And where's this role headed and what should people be doing now to prepare for where it's headed, let's say in the next five plus years?
SPEAKER_00:Well, Matt, I'm excited about the future roles that we have as business partners. Certainly, as mentioned, technology will continue to be a major force into the future, but data is also becoming a major trend. Technology and AI is allowing us to identify deep metrics within our organizations. This leads us to a much more proactive and quicker decision-making process. Another trend will be doing more with less. Finding efficiencies within organizations, such as the new need for less office space, which for most companies is the second largest expense behind payroll, can provide huge savings. And finally, I believe that by creating value, we can actually transform the finance function into a profit center.
SPEAKER_01:I can hear you licking your chops on the real estate savings. Right on. Okay. This is wonderful. And I really appreciate you being with us today, Mitch.
SPEAKER_00:Oh, it's my pleasure, Matt. Thanks so much for having me.
SPEAKER_01:All right. And thank you to all our subscribers for listening to this episode of Upside Downside. And we'll see you next time. Have a good day.
