Leaders of Modern Finance Ep. 17 – Transitioning to the Public Sector, Hosted by Ben Murray ft. Betsy George

On this episode of the Leaders of Modern Finance podcast, host Ben Murray of The SaaS CFO welcomes Betsy George, Chief Financial Officer at the City of Oxnard.

Private Sector Roots

Though she now finds fulfillment in working for Oxnard, Betsy didn’t always intend to pursue public sector work. Before her current role as a public CFO, Betsy worked for NYK, a private shipping business based out of Los Angeles. It was an operations-heavy industry. Despite being responsible for the financial side of the company, Betsy went out of her way to familiarize herself with the daily operations. This holistic way of approaching the CFO position would serve Betsy well in her future at Oxnard.    

After a time of working out of the Port of Los Angeles, NYK was seeking to move its administrative offices to New Jersey. Betsy didn’t want to leave California and so began seeking employment elsewhere. About the same time that NYK was relocating, a position opened at the Port of Los Angeles. The city needed a finance director. Since the Port of Los Angeles was a city deeply involved in the shipping industry, Betsy’s prior time at a shipping company made her an ideal candidate. But she was initially hesitant to accept the job.

She’d always assumed that public sector work was second-rate compared to the private sector. It was supposedly not as fast-paced and the work seemed duller. A few conversations with public sector workers quickly dispelled these misconceptions. Betsy found that the public sector was full of talented, intelligent people working for their community. It seemed to be a rewarding environment. Betsy then accepted her first government position and soon after would find herself the CFO at the City of Oxnard.

Public Sector Challenges

Though she would come to enjoy working for Oxnard, Betsy’s introduction to the public sector was a culture shock. The most obvious difference was the rigid approach to spending. In private business, Betsy had some leeway in what she spent money on. If she wanted to buy her team dinner or bring donuts into the office one morning, it could be put on a company credit card. So long as it was budgeted and accounted for, there was no issue.

At Oxnard, however, there were strict spending rules. Betsy was working with money acquired from the public. Even something as simple as coffee for her coworkers could be considered a gift of public funds, which was strictly prohibited. 

This new mindset translated into the bigger picture of Betsy’s new work. It was no longer up to a small executive board to implement large-scale spending. There was still a board to report to (though it was now the city council), but they were not the loudest voices in determining Oxnard’s financial plan. Since every project would be funded through public money, the public would have a say in how it was spent. Essentially, Betsy’s team now consisted of 200,000 people.

This increased scale extended to the full scope of Betsy’s work. Before, she had only dealt with the logistics of shipping. Now, her work involved all the finances of shipping, public transportation, water infrastructure, public park maintenance, emergency services, and much more. There was a seemingly infinite number of things she had to be aware of at all times. Many CFOs might be overwhelmed by this kind of transition. Betsy, however, had been preparing for this role even while working in the private sector.

Adapting to a New Industry

Despite the initial culture shock, Betsy was poised for success in the public sector. Her time with NYK had prepared her to face many of the changes she would experience at the City of Oxnard. Having worked in the shipping industry, Betsy had experience in large-scale logistical operations. This experience translated well into public work. At Oxnard, Betsy was often juggling diverse projects. Because of her time at NYK, this was a somewhat familiar work environment.

Betsy had an advantage beyond the standard experience she had gained. In private industry, Betsy had taken a keen interest in understanding her company’s operations. This was not common for people in her financial field, but it served her well at Oxnard. She carried her operational interest into the public sector and it allowed her to adapt to her new role. She was able to quickly grasp the needs of various sectors of Oxnard’s operations and was then able to build the most efficient budgets and financial plans to achieve the city’s goals. 

It’s for this reason that Betsy encourages her fellow public sector CFOs to involve themselves in operations. Operations are the lifeblood of a city’s financial plan, and an effective CFO takes interest in them.

Betsy also jumped at the opportunity to involve the community in the city’s finances. Passion for serving the community was a common thread she noticed when she first spoke with public sector employees before leaving NYK. Despite losing some of the freedom associated with private work, Betsy also developed this passion. She felt a deep responsibility to use the public’s funds well. She would go out of her way to seek public input. This was especially helpful when funds were tight and only certain projects could be taken on. Betsy’s desire to serve her community was as great an asset as her financial experience.

Learning New Systems

All this is not to say that Betsy was fully prepared to enter the public sector. There was still a learning curve she had to overcome.

In particular, Betsy had to familiarize herself with GASB (Government Accounting Standards Board). GASB is the source of generally accepted accounting principles used by US state and local governments. Having never worked for a public entity before, Betsy had never been subject to these standards.

Her mode of budgeting was also forced to shift. In private business, revenue was often inconsistent. Betsy had been accustomed to doing monthly budget check-ins to account for this fluctuating revenue. At Oxnard, however, funds were often set annually. Because revenue was based on annual taxes and government grants, it would rarely change month-to-month. Because of this, Betsy began doing project-based budgeting. She would conduct budget reviews as new projects were completed or adjusted.

Betsy’s experience taught her much as she transitioned from private to public industry. She believes a competent CFO working in the public sector must be adaptable. It was Betsy’s adaptability that allowed her to master the new systems and standards she was forced to learn.

In addition, Betsy encourages fellow public CFOs to take an interest in operations. Her prior experience in operations at NYK allowed her to smoothly transition into her role at Oxnard. 

Throughout her journey, Betsy has never lost her willingness to learn something new. It has perhaps been her greatest asset. With a humility towards learning and a willingness to adapt, there’s no reason that any financial leader shouldn’t be successful in the public sector.

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