Kelly Bodnar Battles - CFO / Quora at SaaStr Annual 2018 For many startups, figuring out when to bring on a CFO and what to look for in a candidate, is a black box. Quora CFO Kelly Battles will provide an overview of the role and outline how to identify a CFO candidate who can scale with your growth and partner effectively across your organization. Battles will share stories and lessons from her experience as a financial leader at both enterprise and consumer startups.

1. Demystifying the role of a CFO
Kelly Bodnar Battles
Chief Financial Officer

2. Overview • My background, beliefs and biases
• The role of a CFO
• What to look for in a CFO
• How a CFO partners across the company
• What CFOs are looking for
• Key takeaways

3. My
background,
beliefs and
biases
Background
1. The “Keep your options open” years
Engineering Undergrad
JP Morgan Banker
MBA
McKinsey Management Consultant
HP Corporate Development/Strategy
1 – Trained to be a data hound
2 – Importance of rigorous fact-based
decision making
Beliefs / Biases

4. Background
Background
1. The “Keep your options open” years
2. The “I finally figured out what I want to be
when I grow up” years – Operational Finance
Engineering Undergrad
JP Morgan Banker
MBA
McKinsey Management Consultant
HP Corporate Development/Strategy
IronPort Systems
Cisco
Host Analytics
Bracket Computing
Quora
EE #49
EE #198,234
EE #51
EE #32
EE #152
1 – Trained to be a data hound
2 – Importance of rigorous fact-based
decision making
1 – Let the data set you free
2 – Finance is in a unique role as “keeper of the data”
3 – The ongoing finance challenge is to evolve and
make the most of our role
Beliefs / Biases
Beliefs / Biases
My
background,
beliefs and
biases

5. The role of a CFO

6. The evolving
role of
finance
REPORTING
Business Results
DRIVING
Business Results
Bean Counter
Reactive
“2000 and late”
Rigid
Data
Business Partner
Pro-active
Real-time
Flexible
Information

7. The scope of
a CFO
can vary Finance & Operations
Accounting OtherFinance
Consol-
idation &
Close
Variance
Analysis /
Disclose
Corp Perf
Analysis
Budgeting
&
Forecasting
Financial
Statement
Prep /
Disclose
Trx Support
(Rev, Eq,
Payroll, AP,
AR, Cost)
Decision
Modeling
& Business
Case
Analysis
Investor
Reporting
& Relations
Investor
Reports
BoD
Debt,
Equity and
Banking
Corp /
Bus Dev
Allocation
Depts – IT,
Facilities
Other
Operations
Sales
Ops
Treasury
Audit Tax
Legal
HR
Process &
Policy
Financial Planning and Analysis

8. Your CFO
should deliver
the basics
Weekly / Ongoing Monthly Quarterly Annually
Operate the business
Transactions
Dashboards – operational
and financial metrics
Cohort analysis/
pattern shifts
Weekly +
Close
(Recons, Accruals)
Consolidation
Financial
statements
Variance reports
Forecast update
Monthly +
More detailed
variance reports
and analysis
Quarterly +
Strategic plan
Long range model
Budget
Audit

9. What to look for in a CFO

10. Balance
strategic and
operational
mindsets
Operational
• Doer
• Can run a process and build a team
• Grounded in reality
Strategic
• Thinker, unafraid of complexity
• Business partner
• Intellectually curious, analytical

11. Balance
looking back
with thinking
ahead
Stretch boldly
to the future
• Drive better decisions (analytics)
• Robust and efficient budget, FC and
LRM process
• Viewed a business partner
Live efficiently
in the past
• 5-6 day close and disclose
• Clear and succinct MRP
• Accurate, timely numbers

12. Balance
serving and
maintaining
oversight
Mind of a police officer
• Everyone stays out of jail
(compliance, clean audits etc)
• Confidentiality (EE responsibility)
Heart of a customer
servant
• Enablers versus blockers
• Roll up your sleeve, doers
• Policy and process only when needed
• Transparency (EE right)

13. Balance
frugality with
investing for
growth
Scalability
• Don’t get behind the 8-ball (PPT)
• Automate where possible
• Think like a public company
• Effective planning and fundraising
Frugality
• Watch burn/expenses closely
• Business case for every material decision
• Execs have understanding of
financial situation and team impact

14. More to
consider
when hiring
a CFO
• When to hire a CFO?
• MBA versus CPA?
• Banking versus operational finance experience?
• IPO experience?

15. How a CFO partners across the company

16. How a CFO
partners
across
the company What they
want from
CFO
CFO pitfalls
Role

17. How a CFO
partners
across
the company A true business partner
Tee up strategic choice
points
Enable accountability
“Let the data set us free”
Join them in the future
What they
want from
CFO
CFO pitfalls Too stuck in the past
Too risk-averse
Role CEO

18. How a CFO
partners
across
the company A true business partner
Tee up strategic choice
points
Enable accountability
“Let the data set us free”
Join them in the future
What they
want from
CFO
CFO pitfalls Too stuck in the past
Too risk-averse
Heavy process
Poor communication
Role CEO Other Execs
Visibility into the
business
Low-friction processes;
agility
Partnership, analytical
support
Responsiveness

19. How a CFO
partners
across
the company A true business partner
Tee up strategic choice
points
Enable accountability
“Let the data set us free”
Join them in the future
What they
want from
CFO
CFO pitfalls Too stuck in the past
Too risk-averse
Heavy process
Poor communication
Good soldier syndrome
Too little time on people
development
Role CEO Other Execs Finance Team
Visibility into the
business
Low-friction processes;
agility
Partnership, analytical
support
Responsiveness
Leadership
Seat at the table
Less time on the rote,
more time on the
fun stuff
To be masters of our
own destiny (without
spending a fortune)

20. A true business partner
Tee up strategic choice
points
Enable accountability
“Let the data set us free”
Join them in the future
What they
want from
CFO
CFO pitfalls Too stuck in the past
Too risk-averse
Heavy process
Poor communication
Good soldier syndrome
Too little time on people
development
Out of step with CEO
Surrenders to
group think
Role CEO Other Execs Finance Team Board
Visibility into the
business
Low-friction processes;
agility
Partnership, analytical
support
Responsiveness
Leadership
Seat at the table
Less time on the rote,
more time on the
fun stuff
To be masters of our
own destiny (without
spending a fortune)
Accuracy
Objectivity
Communication
How a CFO
partners
across
the company

21. What CFOs are
looking for
• Team and culture
• Market opportunity
• Product market fit
• Role specifics

22. Hiring a CFO :
3 Key
Takeaways
• The role of the CFO is evolving
- Expectations are rising on all sides
(exec team, finance team, board and CFO)
• To find the right CFO
- Start with needs of your business and business model
- Seek a candidate that strikes the right balance
- Interview rigorously with your target profile in mind
• Product market fit should drive timing of your hire