Leaders of Modern Finance – Global Expansion and Integration, hosted by Ben Murray ft. Simone Nardi

On this episode of the Leaders of Modern Finance podcast, host Ben Murray, Founder of The SaaS CFO, is joined by Simone Nardi, CFO at G-P.

Getting a New Perspective

Simone’s financial career began at General Electric (GE), where he learned the principles of financial leadership and worked within reliable and established structures. This opportunity provided him not only with a foundational education in core accounting fundamentals but also with his first experience working within a global organization. 

Simone began his career in his home country of Italy, but his work at GE meant that he was part of a company with offices all over the world and his colleagues were not limited to those working within his geographical region. He was in constant contact with people from different cultural backgrounds. Despite such differences, the established systems at GE provided a consistent working framework across the organization. Simone and his international colleagues worked with the same resources and toward the same company mission.

This introduction to globalization and diversity was an ideal training ground for Simone. He was able to experience different perspectives and still feel confident in the nature and quality of the work of his peers. At that time, GE already had years of experience working in the international market and had systems in place to deal effectively with cultural differences. Within this supportive and inclusive environment, Simone was able to work across Europe and Asia and make positive connections with diverse workforces.

Simone came to the US in 2005 to work with NBC and has since been part of multiple organizational expansions and acquisitions. He was primarily at the helm of the finances during these mergers and growth phases. However, his international experience has been a key asset in helping companies to shape their culture and operations as they expand into new markets.

Going Global

One of the first things Simone suggests to CFOs of expanding organizations is to take a keen interest in operations. Finances are intimately connected to both a company’s mission and how that mission is carried out. How resources are allocated is a direct reflection of company values. A CFO who is isolated within the finance department can create a fissure between what a company claims to value and what its financial statements reflect. Working with the operational side of the business is an opportunity for exposure to people who think differently. The chance to connect with those differences and learn from them is essential for the employees of any business seeking to expand into international markets.

Simone thrived as a consultant and was an asset to growing businesses. His early experience in bridging cultural gaps made it easier for him to connect with colleagues across the entire company. He was able to advise organizational leaders on how to do business in a new cultural environment.

Simone advised company leadership to pay attention not only to new markets opened up by globalization but to the new talent pool as well. For him, the best way to reach customers in a country whose conventions and culture are unfamiliar is to invite those customs and that culture into the organization itself. Focusing recruiting efforts on the organization’s target market country allows the business to navigate those differences from an economic standpoint. It can also provide opportunities to form professional relationships that allow individuals to grow in their appreciation of diversity. This kind of recruiting practice enables a positive feedback loop where the talent pool opens up more market opportunities and better market performance attracts better talent in the target country. 

The ability to create just this sort of diverse workforce is something that Simone thinks has been aided by the rise of remote work. Now, organizations have access to talent not only in emerging markets but also in potential markets. Rather than waiting to improve organizational understanding of cultural differences until after globalization, a diverse workforce should be seen as a resource to help launch that globalization.

Simone believes domestic businesses can take advantage of a global talent pool to improve their company culture and prepare them for future success.

Acquisition and Integration

Simone’s international background has been an asset for companies growing through international expansion as well as those going through mergers and acquisitions. To him, the same cultural principles that apply when branching out into an unfamiliar country also apply when trying to merge two businesses. The merging companies may have stark cultural differences and that can be a challenge for employees, especially for leaders who remain on board through those transitions.

In these instances, Simone encourages financial leaders to be the backbone of that integration. He believes they can be a driving force in smoothing cultural tensions. An acquisition or merger will almost inevitably involve disagreements between parties. Finances are a potential flash point where differences in values or vision may come to a head. In order to spearhead this integration effort, Simone suggests building in structural support to guide the transition.

At GE, Simone experienced systemic guardrails that allowed for differences and disagreements to be expressed in a productive way. CFOs can be part of creating systems in advance of major organizational transitions and get a headstart on navigating potential issues due to cultural differences, therefore, paving the way for future success.

Success Requires Experience

Simone’s exposure to diverse cultures and ideologies has contributed to his successful career. Without that experience, he wouldn’t have the requisite knowledge to guide businesses through change and growth.

For this reason, Simone advises fellow CFOs to pursue new experiences whenever possible. Moving through various roles within an organization, or being intentional about exposure to different ways of thinking, are two pathways toward professional development that are more important than ever in an increasingly global economy.

Modern finance is becoming inherently diverse. Even smaller organizations find it easier to do overseas business in the digital age. Navigating this new-world economy requires experience in diversity and financial leaders should go out of their way to acquire that experience.

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