The Fearless CFO with Herman Hanssen

Today I was triggered by a digital ad from Massachusetts Institute of Technology; they asked me to join a training program called "New Space Economy." In this course, you learn about technologies, products, services, and business models for a future in space. It seems that the global space economy potential will reach USD 1.8 trillion by 2035. The space industry is growing beyond government-only operations to providing everyday services through the private sector. I find it very interesting to see new products popping up: reusable launch vehicles, miniaturization of satellites, earth observation apps, space tourism, and space debris management. We often talk about the mandatory skills and knowledge we believe everyone should have - perhaps this is a new area of skills to become future-proof. And this is not only interesting for engineers; it’s also very interesting for entrepreneurs, investors, and anyone wanting to understand what the future is bringing. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #SpaceEconomy #FutureSkills #Innovation #SpaceIndustry #MIT

As a CFO, a big part of my responsibility is to manage financials: growth, profitability, cash, working capital, and assets. We tend to express these things in terms of value. In our company, our employees are our most valuable asset. They are the ones who bring the magic when working with our customers or on internal matters. They bring knowledge, experience, skills, resilience, and positive energy to drive growth and success. And they do this day in and day out, always with a professional mindset. That's just amazing. Personally, I enjoy it most when I see our people growing personally and professionally. For this, I dedicate part of my time to mentoring and coaching, and it's available for anyone in our company, no matter their role, level, or ambition. It's always available when someone asks. I know this brings a big part of my joy at work. How do I know this truly? When I look back on my career path, the two things I remember the most are, firstly, the amazing bosses I worked for - those who helped me immensely - and secondly, the people I was able to help in their careers. I have worked on many breakthrough business and finance transformations, and they were successful, but what sticks most in my mind are the people I worked with. Today, at Bring IT, I am once again working with great people with a great mindset. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #EmployeeGrowth #Mentorship #PeopleFirst #CorporateCulture

At Bring IT, we are being guided by the EOS methodology. Last week in Durham, NC, we had a one-day session and discussed concepts like the accountability chart and quarterly rocks. We also had a dialogue about the fact that every organization and every leader will "hit the ceiling" a couple of times in their career. This is a normal symptom of growth. The only way to grow beyond this ceiling is to do two things: new thinking and new doing. EOS teaches us that there are 5 leadership abilities that help companies break through that ceiling. The one I personally like the most is "simplifying" so we all can understand. Sometimes we make things too complicated and do not see it ourselves anymore because we’ve gotten used to it. It’s very refreshing to receive the EOS outside-in view on simplification. A second winner for me is "structuring" to get all the right people in all the right seats. Here, we need honest feedback from our peers on our own performance. It’s not easy, but it’s extremely valuable, and if we can embrace feedback, we are able to grow. More to come in our next training day, which is planned for December. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching?#EOSMethodology #LeadershipGrowth #BusinessSimplification #ProfessionalDevelopment #TeamAlignment #EOS #Durham #NorthCarolina

Yesterday, I visited an Indian restaurant with my business friends. It’s called Viceroy, located in downtown Durham, North Carolina, USA. What caught my attention was the incredible vibe - many young people, a mix of nationalities, and a blend of business gatherings alongside friends. People were smiling, enjoying the food, and appreciating the friendly service. As we walked back home, I noticed that all the other restaurants on the street were experiencing a similarly vibrant atmosphere. Durham is growing fast. Duke University is bringing excitement to the town, and business is flourishing with entrepreneurial government programs like “Innovate Durham” and “Leveling Up.” New apartments are being built to meet the demand from people moving in. There are redevelopment projects underway to introduce more retail spaces and life science labs. Active community groups are generating economic opportunities for minority-owned businesses. Durham is truly leveling up, and it feels good to be in a town with such positive energy and an innovative mindset. Sometimes, we just need to walk around our neighborhood to get inspired by the good energy. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching?#DurhamNC #CommunityGrowth #UrbanDevelopment #Innovation #DukeUniversity #EconomicDevelopment #CulturalDiversity #PositiveVibes #BusinessCommunity

There are many effective tools that can help to set targets: SMART, OKR, and ROCKS are some examples. I have used them all, and they are effective for me. Here are some specific habits I follow when setting targets. First of all, I prefer not to spend too much time on setting targets; I prefer to invest the time in how to reach the target. Often, target setting becomes a goal on its own, whereas I believe the goal should be business progress. We need facts to set targets, and when we have the facts, we can set targets effectively. Target setting without facts is a waste of time. Secondly, targets should be inspirational; they should unlock innovation and creativity. This is a tricky area: unreachable targets are not motivational, and easy targets do not bring progress. It’s better to set targets together to avoid this dilemma. I ask colleagues, partners, and suppliers to set their own targets, and we have a shared dialogue to co-own the target together. Thirdly, I prefer leading over lagging targets, meaning I choose targets that trigger action and lead to progress instead of targets that stem solely from Excel planning without indicating a certain direction. For example, "sales growth of 20%" doesn’t mean much, but "increasing lead generation by 10% and improving win rate by 5% in the North American technology industry at our high-end portfolio" provides much more direction. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #CFOInsights #GoalSetting #LeadershipTips #DataDriven #FinancialStrategy #CorporateFinance #InspiringTargets #PerformanceManagement #CFO #Target #Goal #Aim

Yesterday, I met the leader of an organization specialized in peer advising, and it brought back some memories of how I applied peer advising in the past. My experience with peer advising is that it’s fast, to the point, trustworthy, and cost-effective. My definition of peer advising: find a person who is experienced in a business area and ask for advice on a very specific topic. Today, building these contacts is easy; I use LinkedIn, events, or companies in or around our own office building. I just ask for help, and the answer is always yes - it seems that professionals are willing to help each other. I also say yes when the question comes to me. Throughout my career, I applied peer advising when I needed to learn about a new function or market. To build my experience as a CFO, I changed my position every 2-3 years, moving from manufacturing to distribution, to sales & marketing, to M&A, etc. Each time, I had to learn the dynamics of the new business areas, so I would find someone who could provide experienced insights on the specific business topic I needed to understand. During my time as a CFO in Brazil, I adjusted this approach. I would plan five meet-and-greet meetings with peer CFOs in Sao Paulo - first with five peers in the automotive industry, then five in banking, then five in the food industry, etc. I continued this for two years, and my goal was always to learn one thing about doing business in Brazil, whether it was tax-related, talent recruitment-related, or network-related. I highly recommend the peer advising approach. Do it yourself or join an organization that can facilitate it. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #PeerAdvising #ProfessionalGrowth #BusinessInsights #CFOExperience #NetworkingTips #CareerDevelopment #LeadershipAdvice #Mentorship #LearningJourney #ProfessionalNetworking #LinkedInNetworking #KnowledgeSharing #IndustryInsights #SaoPaulo #Brazil #CFO #LinkedIn

As companies grow, complexity increases. Every year of growth, new business topics arise that were not there before. Growth demands cash flow to fund operations, and financial regulatory requirements quickly start to increase. As the company grows, financial planning and cost control are needed to protect profitability margins. Sooner or later, fundraising and investor relations become part of the growth agenda, and growth might include M&A, which brings due diligence and evaluation activities. I see growing companies going through these phases where CFO expertise is needed to provide guidance. CFO guidance can come from hiring a CFO or having a CFO advisor on the company’s board. The tools a CFO will typically use in these phases of growth include an integrated ERP system for accurate accounting and reporting, a BI solution for financial planning and analysis, a tax compliance function, a monthly financial performance review cadence, and automated approval flows. What you can expect from your CFO is data-driven decision-making, proactive risk management, transparent reporting to all stakeholders, financial compliance, and solid financial planning. With these, companies are guided to maintain financial health, scalability, and profitability when dealing with the increasing complexity that business growth brings. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #CFO #FinancialLeadership #Scalability #CorporateFinance #ERP #FinancialPlanning #RiskManagement #DataDriven #BusinessStrategy

What’s on my reading table today: "Down and Out in Paradise" by Charles Leerhsen This biography provides a closer look into the life of Anthony Bourdain, exploring his rise to fame and the personal struggles that came along with it. It’s an honest and revealing portrait of a complex figure in the culinary world. "Master Jiu-Jitsu, Master Life" by Paul Kinzea A practical guide that not only teaches the art of Jiu-Jitsu but also uses its principles to reflect on life. The book emphasizes the importance of adaptability, focus, and consistency - traits that apply far beyond the mat. "The Monk Who Sold His Ferrari" by Robin Sharma A spiritual tale of a high-powered lawyer who gives up his lavish lifestyle in search of true fulfillment. This book provides profound lessons on finding balance between success and inner peace. "Standing at the Edge" by Joan Halifax In this insightful book, Halifax shares wisdom on how to face uncertainty and difficult situations with grace and understanding. It's a profound exploration of human experience, offering tools to grow through life’s challenges. "Wanderlust" by Moon Travel Guides A visually stunning travel guide that inspires wanderers to explore the world’s most beautiful places. While focused on travel, it also fuels curiosity and encourages readers to discover new horizons in life. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #BooksToRead #PersonalGrowth #LifelongLearning #SelfImprovement

Last weekend we visited Granada, Spain. This beautiful city is full of memories of the past, showcasing Moorish designs and architecture. Walking at night in the small streets brings you back in time. The Granada Cathedral took more than 180 years to build. The Alhambra castle was built between 1238 and 1358, over a hundred years of building time. It seems that creating things to last takes time. I was reflecting on this in relation to business. Sometimes we are in a hurry to achieve our business objectives. And when we hurry, our processes and structures might not last; we have to keep changing and adjusting them. Perhaps it needs more business "architecturing" to build strong organizational foundations. For me, it's helpful when there is a clear 3-5-10 year strategy, with some more detailed business footprints. A week per year spent on strategy will pay back: it will bring more direction and stability when growing day-to-day. It will enable lasting processes, policies, and partnerships. Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #Granada #Spain #Alhambra #Architecture

I am a big fan of the 70-20-10 learning model. This best practice brings 90% of the learning outside traditional classrooms and focuses more on real-world experiential learning. 70%: Most learning comes from hands-on, on-the-job training. How to do this? Invite yourself to take on tasks in the area where you want to acquire new skills. By doing the tasks yourself, you will need to tackle real-life challenges, solve problems, and make ad-hoc decisions. This allows learning by doing, helping you acquire practical skills. 20%: Interactions with others help us gain different perspectives. This can come from peers, managers, or colleagues and may include mentoring, feedback loops, and shadowing. How to do this? Simply invite a colleague for a coffee and ask for feedback or guidance, or connect with an expert on LinkedIn and request a coaching call. 10%: Sometimes, formal educational learning is still necessary. This includes seminars, courses, workshops, and reading. I suggest picking a specific topic after the 70% and 20% learning because, by then, you’ll know if you still lack a specific skill or insight. I have personally used this approach throughout my entire career. For example, when I needed to learn about warehousing, I took three actions: - Spent one month in a warehouse, helping with admin tasks, the order-picking team, etc. (70%) - Found a warehouse expert to coach me for four sessions (20%) - Took an online course to learn about a specific related topic (10%) I have used this approach to learn about various business functions, such as warehousing, sales, marketing, finance, HR, manufacturing, and service. I have also used it to learn about different regions, such as Europe, Asia, India, and Brazil, as well as the business dynamics of different industries.? Herman Hanssen #BoardAdvisor #BusinessConsulting #Leadership #BusinessStrategy #BusinessGrowth #Entrepreneurship #GrowthMindset #LeadershipDevelopment #BusinessTransformation #LeadershipCoaching #Education #Skateboard