During my years as a CFO, I would share this formula with my team: NP + E ≠ P. Spelled out, it means non-performance plus an excuse do not equal performance. I let my team know it fell under E to discuss their reasons for failure to deliver on commitments.
Michael Dinkins, President & CEO of Dinkins LLC
Michael has spent more than 40 years in finance, including a distinguished 17-year career with General Electric and GE Capital, and CFO roles with five different publicly traded and privately held companies. Michael currently serves on the board of directors for Community Health Systems and the National Council on Compensation Insurance. Michael Dinkins is president and chief executive officer of Dinkins LLC, a financial services firm connecting business owners seeking capital with lenders seeking borrowers.
When I began writing this article, I flashed back to being in a meeting with Larry Bossidy, then vice chairman and executive officer of General Electric, along with other members of his finance team. The lively exchange about strategy and execution left a deep and lasting impression on me, the most junior person in the room, which is why I still talk about it more than 25 years later.
Global finance leaders are collecting data to support their plans to grow in spite of known and growing challenges that lie ahead. It’s time for finance executives to fully empower the execution of these plans because the future of their companies truly depends on it.
Capital management is dominating financial news of late. Pundits everywhere are digging into the impact of the current economy on corporate repatriation, higher inflation expectations, equipment expenditure levels, stock buy-back plans and more – all of which likely require involvement from the board when it’s time to make a move.
As one experienced CFO to another, I think we can probably agree that there is an urgent need for progressive finance strategy. Companies are operating in a global business environment of growing complexity. Things have dramatically changed on the outside. In response, there needs to be more innovation from the inside to create growth while continuing to balance opportunity and risk with sound judgement and right timing.