good morning It can be challenging for businesses to stay ahead in a hyper-competitive market. But prioritizing innovation can make all the difference.
That was the issue luck‘s The emerging CFO Virtual event on Wednesday, presented in partnership with Workday (CFO Daily sponsor). David Duncan, consultant, speaker and author of “The Secret Lives of Customers” said luckAccording to Geoff Colvin, this is a universal challenge that all large and successful companies face.
“It relates to the need to balance investing in the core business and investing in new disruptive innovations that may be quite different from what has been successful up until now,” Duncan said. And for companies that refuse to follow the path of disruptive innovation and technology, it can be a costly mistake. In one last article Colvin compared the divergent paths that made Microsoft a $3 trillion powerhouse and the flat Intel.
CFOs “have the power to decide to prioritize innovation if they have the right setup in their companies,” Duncan said. In a celebrity reference Book by Clay ChristensenHe also stated that to avoid the “innovator’s dilemma” it is necessary to have the right set of conversations around the table. The CEO and CFO play an important role in assessing where the company is today and aligning it in a strategy where you think the future is headed. And that gives you the conviction to start making investments in that direction, said Duncan.
Another piece of advice from Duncan: “Once you’ve got that strategic clarity about where you want to go, it’s important to set up mechanisms in the organization with different rules and metrics to achieve different types of innovation, to label and hold them accountable. “.
Partnerships can foster innovation and help companies stay competitive. During the session, Claire Rauh McDonough, CEO of Rivian, explained that the manufacturer of electric vehicles and the Volkswagen Group presented their new. joint venture. Known as Rivian and Volkswagen Group Technologies, the deal is worth a total of $5.8 billion. McDonough said Rivian will continue to support its software development team and core software stack, as well as its electrical hardware. “There’s a really exciting innovation roadmap still to come as we develop and deploy these proven technologies in vehicles today,” he said.
Antonio Carlos Garcia, Embraer’s EVP and CFO, said the Brazilian aerospace company is “quite successful now with all of our business units.” For example, he delivered 59 aircraft in Q3representing a year-on-year increase of 37%. Embraer, now the world’s third-largest aircraft manufacturer, has thrived, while rival Boeing has faced serious headwinds.
Garcia said there can be a lot of innovation in large companies, but CFOs play a key role in determining what creates value and what doesn’t.
Have a good weekend.
Sheryl Estrada
sheryl.estrada@fortune.com
Leaderboard
Some notable moves this week:
Kelly Steckelberg Appointed CFO of Australian unicorn Canva, developer of creative design software, effective November 26. Steckelberg left video conferencing platform Zoom in August after seven years as the company’s CFO, staying on until last month to help with the transition. He oversaw Zoom’s 2019 IPO as CFO, so his hiring is largely seen as a stepping stone to going public.
Ken Cook financial director was appointed The Wendy’s Company (Nasdaq: WEN), effective Dec. 2. Cook will replace Gunther Plosch, who has served as CFO since 2016 and will leave the company at the end of the year. Cook most recently served as head of financial planning and analysis at United Parcel Service (UPS). In his previous roles at UPS, Cook served as Chief Financial Officer for the US Domestic Segment, and previously held leadership roles in investor relations and treasury, and served as Chief Financial Officer for South Asia.
Michael J. Gray he will leave the position of EVP and CFO Madison Square Garden entertainment (NYSE: MSGE), which operates its namesake sports venue, Radio City Music Hall, Beacon Theater and Chicago Theatre, effective Nov. 20. Grau was appointed to the position in February and his term began in April. He will be replaced by Lee Weinberg, who will serve as interim CEO. Weinberg has served as Sphere Entertainment’s chief operating officer of business and financial operations since the company’s founding in April 2023.
Rick Goldberg Appointed CFO of S&P Global Commodity Insights S&P Global (NYSE: SPGI), effective Nov. 1. Goldberg joined the company in August 2011 and most recently served as CFO of S&P Global Market Intelligence, a position he held since July. He recently joined the newly created role of CFO in the company’s key account office, a move initiated by new CEO and President Martina Cheung.
Glen Eisenberg will retire as financial director Labcorp (NYSE: LH), a laboratory services company, effective Dec. 2. After 10 years, he will remain with the company as a special advisor to the CEO to help with the transition in April 2025. He will be replaced by Julia Wang, who will also serve as executive vice president. Most recently, he was CFO of global oncology company BeiGene, now known as BeOne Mediciones.
Michael Abrams financial director was appointed NRx Pharmaceuticals, Inc. (Nasdaq: NRXP), a clinical-stage biopharmaceutical company. Abrams replaces interim CFO Richard Narido, and will continue to support the company’s finance function and other projects. Abrams has nearly three decades of experience as an executive officer, investment banker, director and senior consultant, including serving as CFO at Arch Therapeutics, RiseIT Solutions and FitLife Brands.
Steve Rasch will step down as EVP and CFO of natural gas Spire (NYSE: SR), effective Jan. 1. Rasch, who joined the company in 2009 and became CFO in 2013, will remain as a general counsel until his retirement on April 1. He will be replaced by Adam Woodard. He has held the roles of VP and treasurer of the company since 2018 and also became CFO of Spire’s utility business a year later.
Great Deal
A new report according to luckBy Leo Schwartz: “SEC Chairman Gary Gensler Resigns, Leaves Legacy of Division and Crypto Trust.”
US Securities and Exchange Commission President Gary Gensler announced on Thursday X that he would leave his position on January 20, the date of the inauguration of President-elect Donald Trump.
Schwartz writes: “Since taking office in April 2021, Gensler has battled industry groups on Wall Street, pursuing an aggressive campaign of rulemaking and enforcement actions, often at odds with the companies his agency oversees. Gensler appointed him. President Joe Biden has made it a common practice for agency heads to step down after the election of a president of the other party.
Going deeper
Here are four luck read on the weekend:
listen
“The thing about Steve was that he cared deeply about his people. Granted, he could be strict and exacting at times, even to the point of being ‘tyrannical’. But above all, he was a kind, respectful and compassionate leader.
—Shalini Govil-Pai, Google’s director of television and CEO, writes about the former founder and CEO of Apple Inc. in a news release. luck opinion piece“I worked with Steve Jobs. Here’s what he would say about today’s leadership style.”
