Chris Festog, the Senior Executive Vice President and Chief Financial Officer of Mutual of America Financial Group, discusses the importance of strategic planning in developing a world-class financial organization. He emphasizes the need for CFOs to shift their perspective from a top-down approach to creating a strategy that is aligned with the goals and objectives of the entire organization. Festog believes that this shift in perspective is crucial in building honesty within the team and ensuring that everyone understands their role in achieving the organization’s strategic goals.
Festog highlights the importance of conducting a strategic assessment when joining a new team to identify the strengths and weaknesses of the team, technology, and processes. By creating one- and three-year plans focused on specific initiatives and assigning responsibilities accordingly, the team can work towards a clear vision of what needs to be improved and innovated upon. This clear vision helps to focus the team and ensures that everyone is aligned towards the same end goals, leading to organic accountability throughout the team.
In order to achieve success, Festog emphasizes the need for strategic alignment within the organization. Once the finance team has defined its objectives, it is important to share this vision with other departments such as information technology, sales, and operations. This transparency not only helps to align the finance team’s initiatives with those of other departments but also serves as an example of how strategic thinking and well-defined objectives can inspire other areas of the company to undertake similar efforts. This dialogue between divisions provides valuable feedback on initiatives and integrates them across the company.
Fostering a strategic culture within the finance organization is a constant challenge for CFOs, as they must balance the need for strategic thinking with day-to-day operational demands. By cultivating a discipline of honest assessment and continual improvement, CFOs can help their teams shift from a reactionary approach to a focus on essential improvements and innovative problem-solving. Festog believes that integrating this approach to work can enhance the hybrid work environment and drive thoughtful intelligence and intentional effort among leaders, ultimately transforming the financial organization.
Given the unique perspective that corporate finance has over the entire company, CFOs are in a prime position to drive a strategic perspective not only within their own team but across the organization as a whole. By teaching the team about the business, driving honest performance assessments, and developing strategic improvements in workflows, technology, and personnel, CFOs can create a new generation of leaders who lead with intelligence and intentional effort. Festog’s insights highlight the importance of strategic planning and alignment in developing a world-class financial organization.
