Leaders of Modern Finance Ep. 21 – Modernizing Financial Systems, Hosted by Ben Murray ft. Karen Friar
On this episode of the Leaders of Modern Finance podcast, host Ben Murray, founder of The SaaS CFO, welcomes Karen Friar, CFO at Benco Dental.
A Storied Journey to CFO
The road to leadership positions within finance is seldom the same for any two CFOs. The position has become less insulated, therefore, it is more common for people with a variety of backgrounds to find themselves in charge of financial systems. It is usual, though, for financial leaders to bounce between organizations. This provides them with a host of experiences that prepare them to take the financial helm at any given company.
Karen Friar’s background is a unique divergence from the modern path that many take. It is a journey that has prepared her to steer her organization in a positive direction. Particularly in the face of the modern changes to the role. Karen began her financial career at the same company that she now helps to lead. She started as an intern with Benco’s finance department, and she worked her way up the ladder to eventually become Benco’s CFO. The experiences that many modern CFOs achieve organically from their natural career trajectory came to Karen through conscious effort.
Staying at the same company for nearly two decades did not provide many opportunities to experience diverse approaches to finance. Nor did it provide experiences of how financial systems operate across different industries. These experiences had to be sought out by Karen. She chose to surround herself with peers working in various financial roles in diverse industries. Karen used this learning tool to create a holistic understanding of how finance operates outside of her own organization and industry.
Despite her desire to understand outside perspectives, staying with the same company her whole career also came with great benefits. Being an intern, staff accountant, and eventual CFO over the course of twenty years allowed her to see organizational changes from within. These intimate glimpses into an evolving business went on to shape her approach to leadership within a changing culture and industry.
Modernizing Technology
Finance has changed dramatically since Karen began her career. As far as she is concerned, one of the most important characteristics of a successful CFO is the ability to adapt to these industry changes. One of the clearest examples of how organizations can modernize their systems comes by way of technology. Tech innovation alone has significantly streamlined nearly every facet of the industry even in just the last decade. Taking advantage of these systems can save time, and allow energy to be spent in other areas that make for a more efficient business.
One such innovation that Karen has been making use of at Benco is an RPA, or Robotic Process Automation, system. An RPA system trains software bots to do some of the more mundane and repetitive tasks normally undertaken by human workers. This work can include data entry, supply chain management, or any operations tasks mappable to automated workers. At Benco, Karen uses these RPA systems to keep her team focused on work that adds value to her organization. She prevents anyone from doing a job that, at the end of the day, simply requires a body capable of performing keystrokes.
These software bots are also capable of performing manual tasks at a faster rate than human workers. This increases a business’ overall efficiency, therefore ensuring that each member of her team has more time and energy to dedicate to creative tasks that require innovative solutions. Consequently, Benco is better able to respond to a changing industry landscape.
In addition, Karen spearheaded an effort to undergo an ERP update that streamlines communication and synergy across departments. Leveraging the latest technology in all possible areas of work has allowed Karen to create a financial system at Benco that performs its base financial duties in the most efficient ways possible. Technology is not the only way she’s modernizing her organization, however. According to Karen, technology may not even be the most important innovation to pay attention to.
Modernizing Culture
Technology is not the only thing that changes with the times. Society at large is also in constant flux. That means that the attitudes and expectations of the people who make up an organization are a dynamic element of any business worth paying attention to. Karen knows this, and she believes that the CFO needs to be as in tune with the people that run their financial systems as they are with the systems themselves.
In an attempt to incorporate the human element of her team into her financial analysis, Karen utilizes several non-traditional KPIs. These metrics measure customer and associate satisfaction. While not financial metrics in themselves, these are nonetheless important for Benco’s success. Incorporating them into her data stream allows Karen to see where improvement is needed in typical operations, like sales and customer support. However, these metrics also reveal ways in which intangible assets, like culture and work environment, could improve. This in turn can create a more productive and sustainable team structure.
The Covid-19 pandemic provided an opportunity to better understand the modern needs and desires of Benco’s workforce. Karen has worked to adapt her organization to these changing needs. For example, the adoption of a hybrid work environment opened a larger talent pool for recruiting and allowed for more employee autonomy outside of the office. In addition, Karen has encouraged Benco to be more transparent in the options for vertical mobility. These cultural changes allow Benco more hiring options in finding team members that fit neatly within the company culture. In addition, motivating those team members to be more productive because they feel that their current needs are being met and that their work will be rewarded. This adaptability in the area of human assets has allowed Benco to maintain high morale and employee longevity. This comes despite the crisis that caused so many businesses to struggle with employment.
Merging People and Systems
Karen’s success is not only due to her willingness to modernize technology or to be flexible with the needs of her team. Rather, it is a product of being able to see the way these two elements work together. She not only made accommodations for her team’s wellbeing but quantified them into useable metrics in Benco’s ERP system. When implementing the RPA system, it served not only to make her team more efficient but also to provide space for them to do the creative work that only they could do. It was never a matter of simply keeping pace with new standards and innovations. It was also about understanding how new systems could open opportunities for her and her team when implemented properly.
Many view a holistic CFO as one who takes an interest in the financial and operational role of their organization. Karen wants to move beyond this. In her eyes, the successful CFO understands the work their organization does, as well as the people who do that work every day.
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