Chris Festog, the Senior Executive Vice President and Chief Financial Officer of Mutual of America Financial Group, emphasizes the importance of creating a strategic financial organization that thinks and acts strategically from the ground up. While traditional top-down strategic planning processes are essential for aligning organizations, focusing on building blocks at the grassroots level can be the linchpin to developing a world-class financial organization.
Festog’s strategic focus at Mutual of America began with a thorough assessment of his new team to determine their end goals, strengths, weaknesses, and assigned initiatives for the next one to three years. This strategic process fosters honesty within the team by identifying areas that need improvement and creating a clear vision for what needs to be accomplished. It ensures that each team member understands their assignment and how it contributes to the overall goal of improving and innovating in the short and long term, fostering organic accountability throughout the team.
However, having a clear strategic direction for the financial team is only part of the equation. Festog emphasizes the importance of aligning finance objectives with other departments within the company, such as information technology, sales, and operations. By sharing the finance team’s vision and objectives with other departments, transparency is increased, and a commitment to improvement is demonstrated. This alignment also encourages other departments to undertake similar strategic efforts, creating a culture of collaboration and integration across the organization.
Building a strategic culture within the finance organization requires a constant effort to balance important long-term objectives with urgent day-to-day tasks. Festog advocates for cultivating a strategic thought process among leaders and managers to shift from reactionary thinking to focusing on essential improvements and innovation. By fostering a culture of honesty, continual improvement, and dynamic problem-solving, the finance team can drive meaningful change throughout the organization, both in the office and out.
As a CFO, Festog believes in the importance of driving a strategic perspective not only within the finance team but also across the entire organization. By teaching the team about the business, encouraging honest assessment of performance, and promoting thoughtful, innovative workflow improvements, finance leaders can cultivate a new generation of thoughtful and intentional leaders. This approach can transform the financial organization and lead to lasting results in terms of improved performance and strategic alignment.
Overall, Festog’s emphasis on building a strategic financial organization from the ground up highlights the importance of honesty, transparency, and alignment within and across departments. By fostering a culture of continual improvement, innovation, and strategic thinking, CFOs can drive meaningful change throughout the organization and develop a new generation of leaders who lead with intelligence and intention.
