Coworking is a recurring segment where we talk to CFOs and other leaders in the finance space about their experiences, their companies, and the larger economy. Let us know if you are—or you know—a CFO we should interview.
Jason Godley is CFO of software developer Xactly. As a finance leader, Godley has learned to balance a company’s overall strategy with specific asks from other C-suite leaders. He likened the job to that of a diplomat who may sometimes have to push back on some requests. Godley wrote to CFO Brew about these needed skills in communication and diplomacy that future finance leaders may not be aware of, and how the role of finance leaders has changed over the years.
This interview has been edited for clarity and length.
How would you describe your job to someone who doesn’t work in finance?
I like to tell people that in addition to the day-to-day aspects…the role of CFO can be compared to a diplomat. A large part of the CFO routine entails balancing the holistic strategy and financial needs of the organization while supporting the specific needs of other C-suite executives. The financial requests by my business partners may not always be able to be met. Juggling all this in tandem with growing the business, while maintaining a disciplined “business-minded” approach to spending and managing costs, requires more than a strict P&L view of the world.
How do you think the CFO role has changed over the past five to 10 years?
I think historically, and even today, there’s the ground-level blocking and tackling that is required to be CFO. You’ve got to close the books, make sure you have a clean audit, and have the traditional FP&A functions, and etc. However, I think it’s very important for the CFO to understand, what is the long term plan of the business [for the next] two to three years, both strategically and what does that look like from a financial profile perspective? Whether you’re a public company, private equity-backed company, or a venture-backed company…you kind of know where the world is headed. I think it’s important for the CFO to understand that because embedded in that is clearly value creation. Either you are trying to get your stock price up, you’re trying to sell your company if you’re private equity backed, or you’re trying to raise capital as a venture-backed company. [You should] know these milestones in the future that are embedded in the long-term forecast of your business.
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What advice do you have for future CFOs?
I believe there is one large misconception about the role of CFO—finance leaders-in-training often believe the role will focus heavily on data and formulas. While having a strong grasp on financial analytics is crucial, what they don’t teach you in finance courses is the importance of communication. Without clear, concise, and persuasive communication, CFOs are left juggling multiple requests and are pulled in different directions to satisfy stakeholders. A savvy CFO will learn when and where to really draw the line, as well as how to articulate the why behind their decision-making to the board.
And then, I would say: We are running a business, we are not running an Excel spreadsheet, or a budget, or whatever. We are running a business. Numbers are designed to be a mechanism to measure the performance of something…Don’t lose sight of what we’re trying to do, which is build the long-term value of the business.