CFO Studio Magazine - Curt Allen, CFO, Subaru

20 WWW.CFOSTUDIO.COM 1st QUARTER 2015 Discussions between Bushman and the three different CFOs he has worked with have gone best when the CFO understands the operational challenges and Bushman has a clear understanding of the financial implications. The most difficult issues arise when the company has to make large raw material purchases, based on a forecast of future sales, says Bushman. The need for unbudgeted cash expenditures for improvements can also lead to contentious discussions. “Many times from an operational standpoint we’ll see a no-brainer investment,” says Bushman, “something that will yield us a nice return on investment. It’s an improvement to the process, but because of cash restrictions, there may be a bottleneck getting the approval internally.” He says it all comes back to the timing of an investment. Bushman says that because he has built a partnership with the finance group, he monitors the cash flow—expenses and accounts receivable—and can see when it might not be wise to request a big equipment purchase. “By sharing the [financial and capital investment needs] information regularly, we’re able to see the same concerns before they happen, so we can plan accordingly.” Risk management is part of most CFOs’ DNA. That’s why they delve into expense control for overtime, repairs, and unanticipated equipment maintenance. “These things tend to be challenging to an organization, but especially for the finance group, working from a forecast standpoint,” says Bushman. There can be finger pointing or not, depending on how the CFO and operations executive have built their relationship. Bushman says that CFOs today are more educated than in the past about supply chain challenges. “Let’s face it, our customers and the end consumer are all focused on lower prices, so our focus has to be in driving our costs down on the manufacturing and supply chain side to remain competitive.” The way he describes it, the supply chain is “our bread and butter today and tomorrow, serving the customers each and every day.” The other side of the business, sales, creative, and R&D, “are developing new business and creating our future. ... But if you have limited cash for investments, how are you going to divvy it up so you have a strong and healthy future but you’re also meeting the expectations of your customers today?” Working together the CFO and the VP of operations are meeting that challenge at forward-looking companies. C INTERACTING WITH THE CFO Get published in CFO Studio magazine. Find out more at www.cfostudio.com Achieving Balance in Your Company’s Occupied Real Estate As your company evolves, achieving balance will be essential to its success. That’s true of the real estate your company occupies, too. Balancing transaction structure of multiple properties requires intelligent planning, not only of your company’s real estate, but more importantly based on your company’s operational, financial, M&A, and other objectives. At Real Estate Strategies Corporation, we plan and execute portfolio-wide and single transactions to enhance our clients’ real estate and their businesses. So, before you consider another transaction anywhere in North America, contact our CEO, Andrew Zezas, for a confidential discussion about how your company can achieve greater and more profitable balance in its occupied leased or owned real estate. Advisors to CFOs, General Counsels, Management, and Boards Licensed Real Estate Broker in Multiple States 732.868.0000 x111 +