EP 015 - The Paranoid CFO with Alex Urmersbach, CFO at Kiavi

Strategy of Finance

In this episode, Alex Urmersbach, a four-time CFO, shares his journey in the finance world and provides insights into the role of a CFO. He discusses his international experience and the transition to becoming a CFO, as well as the lessons he learned from the dot-com bubble and the 2008 financial crisis. Alex also shares his experience managing remote teams and offers advice for young professionals aspiring to become CFOs. He highlights the importance of strategic planning, fundraising, and financing strategies in the CFO role. Additionally, he discusses the challenges and motivations of being a CFO and provides tips for success in the first 100 days in the role. In this conversation, Alex Urmersbach discusses his approach to identifying and developing talent within an organization. He emphasizes the importance of finding individuals who have good perspective, think critically, and take ownership of their roles. Alex also highlights the value of promoting from within and fostering ongoing dialogue with managers about career paths and goals. Additionally, he shares his definition of a successful career, which is focused on personal growth, challenging environments, and having a seat at the table to impact outcomes.

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Chapters

01:01 Introduction and Background

04:32 International Experience and Transition to CFO Role

05:40 Early Years in Finance and Long Tenure at Bank of America

12:59 Lessons from the Dot-com Bubble and 2008 Financial Crisis

15:39 Managing the COVID-19 Pandemic at Teleperformance

18:15 Transition to Kiavi and the Real Estate FinTech Lending Space

21:08 Managing Remote Teams and Building Rapport

23:38 Establishing Cadence and the Future of Finance

28:02 When to Hire a CFO and Their Value to the Company

33:56 Short-term Loans in the Home Loans Market

37:16 FinTech company vs. Traditional Lender

40:20 Fundraising and Financing Strategies

43:35 Advice for the First 100 Days as a CFO

50:52 Making Informed Decisions Before Joining a Company

52:39 Motivation and Challenges of Being a CFO

54:28 Advice for Young Professionals Aspiring to Become CFOs

59:55 Defining a Successful Career

01:01:57 Lightning Round

01:06:14 Conclusion

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Takeaways

• International experience and exposure to different cultures can shape a professional's perspective and adaptability.
• The role of a CFO goes beyond financial management and involves strategic planning, decision-making, and enabling other departments.
• CFOs need to be proactive in managing risks and staying informed about market trends and potential challenges.
• Building strong relationships with internal and external stakeholders is crucial for a CFO's success.
• Technology advancements, such as AI and BI tools, are transforming the finance function and enabling CFOs to provide valuable insights and drive growth.
• CFOs should focus on creating enterprise value, optimizing financial operations, and aligning financial strategies with the company's goals.
• The timing of hiring a CFO depends on the company's financial stability, growth stage, and funding needs.
• Short-term loans in the home loans market cater to the demand for fixing up and selling older homes, providing opportunities for growth and profitability.
• CFOs play a critical role in fundraising and financing strategies, managing capital, and ensuring the company's financial health.
• In the first 100 days as a CFO, it is important to build relationships, understand the business and financial models, assess the financial status, and develop a plan to create value.
• Young professionals aspiring to become CFOs should think like owners, develop a holistic understanding of the business, and focus on building a strong finance team.
• CFOs face demanding work hours and need to balance work-life commitments, but the role offers intellectual challenges and the opportunity to make a significant impact. Look for individuals who have good perspective, think critically, and take ownership of their roles.
• Promote from within and foster ongoing dialogue with managers about career paths and goals.
• A successful career is defined by personal growth, challenging environments, and having a seat at the table to impact outcomes.
• Engage in high-quality discussions and surround yourself with smart people to stimulate personal growth.

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Quotes

"The super CFO... is really a proxy for the CEO."

“First thing you learn that there are different ways to do things… people and countries and cultures have different backgrounds and histories… You just need to get flexible and understand that people want to do the right thing.”

“Even if you're backed by big investors, it doesn't last forever if you can't deliver on business and growth goals.”

“It's easy to put things into a PowerPoint. But at the end of the day, it comes to materializing and delivering value from those initiatives.”

“Once you are in the C-suite, you really need to live with the consequences of the decisions that you make.”

“You gotta be very paranoid of risks that are out there. And often these are risks that are hiding in plain sight. So, looking back at the big financial crisis and the big bubbles that were out there, it was all there, but you are so much wrapped up in the day-to-day, you have a real trouble seeing those risks that are looking out there. So that's why I'm sort of, I'm always paranoid.”

“You gotta be fast if those things happen (like COVID-19 Pandemic). And it is very difficult to make decisions if you don't have the data set to make good decisions.”

“The mortgage business is a very low-margin business and there's a lot of volatility in the business. If interest rates go up, our business drops by 50%. If interest rates go down, then business expands.”

“I have one rule: I don't like any surprises. So, there's an expectation that I want to hear sort of the bad things and the good things before they are being distributed within the organization.”

“I want finance to be embedded in the market-facing functions. I want that finance is the owner of record for all the analytical stuff that's being done.”

“The CFO needs to be more than just a scorekeeper. That is sort of the minimum thing. The finance organization looks at numbers all day long, and I think they need to do more. They need to enable other departments. They need to point out where there are opportunities for growth, for cost savings, and all those things.”

“We have come to the point where the average income in the United States doesn't allow people to buy the average home.”

“I'm looking for people that, I wanna promote and bring up, do they really think like owners.”

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Where to find Alex Urmersbach:

LinkedIn: https://www.linkedin.com/in/alexurmersbach/

Twitter: https://twitter.com/AUrmersbach

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Where to find Kiavi:

LinkedIn: https://www.linkedin.com/company/kiavi/

Twitter: https://twitter.com/kiavi_inc

Website: https://www.kiavi.com/

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Where to find Rohit:

LinkedIn: https://www.linkedin.com/in/rohitagarwal001/

Twitter: https://twitter.com/podcast_SoF

Email: [e-mail]

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Sponsor:

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