From Finance Specialist to Strategist: Mastering the Strategic Mindset

Megan - 00:00:18: Today, my guest is Gabriel Teixeira. Gabriel is a seasoned finance leader with a proven track record of driving growth and efficiency in the fast-paced world of consumer packaged goods. With over 15 years of experience across diverse finance functions, including controllership, FP&A, commercial finance, and supply chain finance, Gabriel has a deep understanding of business operations and a strategic mindset for navigating complex financial landscapes. Having led initiatives ranging from business turnarounds to the setup of new functions, Gabriel is a champion for collaboration, fostering high-performing teams in dynamic environments. His career has taken him across Latin America and the United States, where he has honed his ability to adapt to cultural differences and regulatory landscapes while maintaining consistency in financial practices. Gabriel is passionate about finding simple yet sustainable solutions to complex business challenges and is deeply committed to continuous learning as the key factor for a successful career in finance. Today, you can tune in to hear Gabriel share his insights on the evolving role of a finance leader in and beyond the CPG industry, the importance of building strong teams, and the key strategies for navigating a rapidly changing business landscape. Gabriel, thank you very much for joining me on today's episode of CFO Weekly.

Gabriel - 00:02:18: My pleasure, Megan. Thank you for having me.

Megan - 00:02:20: Yeah, today our topic focuses on broadening experiences to become a more well-rounded and complete finance professional. And I myself am really looking forward to learning about you and your experiences on this topic. So let's jump right in.

Gabriel - 00:02:37: Absolutely. Looking forward to share with you and the audience. And once again, it's my pleasure to be here today.

Megan - 00:02:44: Yeah, so if you could just start with kind of a background on who you are and how it is that you got to where you are today.

Gabriel - 00:02:52: Absolutely. First of all, who I am is my first full-time job is being a parent of two. So we have two boys under five. They keep me really busy. And that's a little bit of who I am when I'm not working. In terms of my career, my career has been a dynamic journey across various finance functions within fast-moving consumer goods, from controllership to FP&A, commercial and supply chain finance. I've worked in challenging environments, collaborating with diverse teams across Latin America, North America, and around the world. This journey has equipped me with a strong understanding of business operations, a strategic mindset, and a passion for driving growth and efficiency. My current role as Finance Director of the Diageo North America allows me to navigate, to leverage my diverse experience, to contribute to the company's strategic direction, but also unlock very strong execution. I'm driven by a desire for continuous learning and the belief that the finance plays a critical role in shaping the organization's strategy and execution. I started my career in Brazil. I'm originally Brazilian. And the last two years, I've been living here in the US.

Megan - 00:04:10: And I'm just curious, what motivated the move?

Gabriel - 00:04:12: I've always lived in São Paulo, and I've been working with people around the world, traveling, but living in São Paulo. And as a family, we decided we don't want to leave this world without living elsewhere. And an opportunity came to join the North America business, which is a major business for the Diageo, and we decided to try it. It's been a very fascinating journey of learning personally and professionally, indeed.

Megan - 00:04:39: And do you live in New York now?

Gabriel - 00:04:41: Yes, that's where our offices are based.

Megan - 00:04:43: Okay. How have you found the United States?

Gabriel - 00:04:46: It is a lot of learning. I would expect it more similarities, I must say, but everything's a little bit new. And really, it doesn't matter your background or how old you are. When you go to somewhere new, you still don't have an address, you still don't have a bank account, a phone number. And going through all those hurdles as a grown-up, it's something challenging for sure. So when you, I guess it goes to all people that are going to different countries on assignments or even for full-time jobs, it never underestimates the cost of the ramp up. So you actually feel home. But it's a very nice country. It has so much to offer and so much to learn from. So we are really enjoying.

Megan - 00:05:31: Yeah, that's awesome. I have a lot of respect for people who can kind of pick up and move to a new country because it is an adventure and not always an easy one.

Gabriel - 00:05:40: It is easy if you're not alone. So I'm very happy to have my family with me.

Megan - 00:05:45: That's nice. And as you look back on your career, what personal values or principles have been the most important guiding lights for you in choosing where and when to make the next career move?

Gabriel - 00:05:58: Right. My guiding principle has always been to seek roles where I can make a tangible impact and contribute to something bigger than myself. I like to think myself as a purpose-driven person, and I'm really driven by the opportunity to learn, to grow, working with talent teams and dynamic environments. This has led me to embrace diverse roles and industries, but number one thing has been always seeking for continuous learning and development. I'm also a believer that a role is as big as you want it to be, so not necessarily you need to radically change the function you work on to have a diverse experience, but it's more about how you tackle each of the opportunities that appear in front of you.

Megan - 00:06:48: And your career spans across various finance functions in both in-market and corporate settings, including financial planning, commercial finance, and supply finance. So how has this diverse experience shaped your perspective on the role of finance, and maybe specifically the CFO, in terms of navigating complex financial landscapes?

Gabriel - 00:07:12: The most important thing I learned from great leaders was to consider the consequences two steps ahead. By challenging myself to go to new functions or markets multiple times, I built an holistic view of the business and was able to provide insightful advice, even though I was not the subject matter. So being able to ask the right questions and promote a data-driven approach to problem solving do not require ultimate expertise, but rather curiosity and good listening skills. Another thing that is important to keep in mind as we navigate through complex environments is that not just making a decision is also making a decision and sometimes the worst we can make. For example, not reacting to a category that has potential to threaten your market share position can be really dangerous. And I am a big fan of the 80-20 rule that should be applied both in terms of how much information you need to decide, but also what are the 20% of the things that you really need to pay attention and gear the organization's attention to the 20% that will really move the needle of the business.

Megan - 00:08:27: Yeah, that's great advice. Particularly the piece about not making a decision is still making a decision.

Gabriel - 00:08:34: Sometimes we forget that.

Megan - 00:08:36: And in your tenure at Diageo and Remy Cointreau, you've led initiatives ranging from business turnarounds to the setup of new functions and from leading multifunctional teams to defining long-term strategies. So how is it that you approach the challenge of balancing short-term financial goals with the need for sustainable long-term growth?

Gabriel - 00:09:00: Yeah, this is a question that I get a lot and we ask ourselves a lot too. But in reality, sustainable growth requires a balanced approach. We always need to achieve short-term financial goals, but not at the expense of long-term value creation. This involves investing a lot in innovation, talent, and strategic initiatives. That position the company for future success. Being externally curious, I would say, is certainly a very important and critical role of any finance professional as to unlock the balance of the short and long-term goals. I like to think that the short-term operations cannot be managed by the executives, but rather by their teams. So building strong teams that we can really rely on to decide the short-term small decisions and constraints in execution is key to unlock executives to focus on the future value creation and really have a balanced approach on short and long-term.

Megan - 00:10:08: And with your background in leading high performing teams, can you share some strategies that you've been able to employ that foster collaboration and drive success within these teams, especially in dynamic and fast paced environments like the consumer packaged goods industry?

Gabriel - 00:10:27: Right. Thank you for the question. I'm a stronger believer of shared goals. So in large companies, it's very easy to get distracted or siloed by the multi and different functions priorities. And I think that is a unique power by having shared goals. So it obviously starts with what we want to deliver within the year or within the next three years and cascade down to teams that balance a good quality of smart and individual goals, but are linked to other teams and other functions. So we can really foster that collaboration. It costs because it requires time invested behind setting the right goals and making sure that individuals are still accountable for their individual commitments. However, there is a lot of value by building that shared vision across the different functions.

Megan - 00:11:28: And do you have any advice on how it is you create those shared visions or maybe get everybody on the same page before the project starts?

Gabriel - 00:11:39: Right. So one question that I get a lot is about finance transformation, right? So how we tackle finance transformation within specific areas or how we deploy finance transformation from global functions to markets. And a finance transformation is only a real transformation if it involves the business priorities and the other business functions. So the first thing when we think about any type of project or objective functionally is to consider all the implications across the organization and on the right KPIs that we should track to really make that transformation impactful for the business. And then having an alignment with the other functions, sharing the benefits of what we are trying to achieve and getting the commitment that both teams will have the same goals and will be tracked against those same goals.

Megan - 00:12:37: And one of your areas of expertise is in commercial finance and strategy. So how do you integrate financial insights into commercial decision making? And what role do finance professionals play in driving revenue growth and market expansion strategies?

Gabriel - 00:12:55: That's a good question. I believe that finance professionals play a critical role in providing data-driven insights and analysis to inform commercial decisions. This includes understanding market trends, like I said, being externally curious, customer behavior, and competitor strategies to support revenue growth and market expansion initiatives. Understanding the value chain of the business is also a very core competence of the finance function and also a great way to find revenue growth opportunities. Finance holistics view is quite unique and can it be critical to find ways to expand its market? For example, big industry players can combine efforts with strategic retailer partners who are looking to expand, for example, their e-commerce operations. And that can be beneficial for both companies combining resource towards the same strategic goal. That type of contribution is a type of contribution that a finance professional that has an holistic view, touch every aspect of the business, and is very externally driven can make and can support both the market expansion, but also revenue growth avenues.

Megan - 00:14:14: And speaking of data-driven insight, do you think it's possible for finance professionals who have spent their entire career within a finance silo to make those insights? Or do you think it's necessary for people to get outside of finance at some point within their career and see different aspects of the business.

Gabriel - 00:14:40: I'm a believer that any route can be very positive. If a finance professional sees himself or herself as silent, maybe it's more about a self-reflection in terms of how we as finance individuals are approaching our roles other than the function itself is siloed. So as long as we remain curious, as long as we remain externally focused. And we see ourselves as business leaders, maybe I don't see finance as a siloed function. There are specialists, right? So taxes is obviously we need expert matters to handle taxes, also accounting. But those professionals also can be externally curious and not perceive themselves as finance professionals, but business leaders.

Megan - 00:15:34: And you've worked in multiple countries across South America and now in the United States. So what do you see as the biggest cultural differences between those two regions? And how do you adapt or how have you adapted your financial leadership approach?

Gabriel - 00:15:52: That's a good question. Effective leadership requires understanding and respecting culture nuances. This means that adapting communication style, building trust through open dialogue, and ensuring the financial practices align with local regulations and business norms are critical. But also, always, I try to be myself. And I'm a big fan of showing vulnerability. And I believe that's a key unlock to create mutual trust and mutual respect. And I don't think it is culture-specific, regardless of where we are. At the end, we are all human beings and by showing vulnerability, we can unlock a powerful connection that will drive better value creation. There is actually also a lot of value to bring perspectives from different markets, as the world in the end is more global than ever. So looking for those opportunities, we would be surprised how similar we are at the end. And how the small things we see in one market or the other can benefit everyone. The other thing is big companies have their own set of financial principles and standards that are applied globally. So as long as you are well-versed on those, there should be no barriers in maintaining consistency. For smaller business looking to expand, though, it is certainly something that I would advise to consider defining global standards and global financial practices before expanding globally. So you ensure that the right level of controls environment is live across the different operations.

Megan - 00:17:40: And throughout your career, you've been involved in acquisitions and divestments, contributing to the development of business cases and strategic decision-making processes. So what are some of the key considerations that finance leaders should keep in mind when they're evaluating potential acquisitions or divestitures?

Gabriel - 00:17:59: Right. Evaluating acquisitions and divestitures requires thorough assessment of financial and strategic implications. It's absolutely essential to conduct due diligence, but also understand the market dynamics. If it's a new industry or an expansion of industry, understanding its unique dynamics and also making sure that you account for the potential synergies and risks before making any significant decision. One common mistake is assuming that through an acquisition or a disposal, a company will start doing things that have not done until then, especially things that require culture change. For example, we should only consider an increase in productivity of an acquired business, If we do have evidence that your organization can do it, or if you know that you are acquiring such capability. Another important element is to consider local expertise for local acquisition. Global companies should always leverage on its global structure, but local knowledge should not be discounted during such major projects. Otherwise, you will be surprised.

Megan - 00:19:19: And as businesses and technology continue to evolve, and as you look out into, let's say, the next five to 10 years, what do you see as the most significant challenges or maybe even opportunities facing finance leaders in general or specifically in the consumer packaged goods industry?

Gabriel - 00:19:41: Consumers are more demanding than ever. And with all the digital disruption and increasing regulatory scrutiny, which are not unique elements to the CPG industry, there is absolutely a lot of challenges ahead. I believe that opportunities are very visible and we should leverage on e-commerce growth. We will be surprised of the amount of industry that has not yet gone through the e-commerce revolution. And also be mindful of sustainability initiatives while taking into consideration personalized customer experience. So basically having a digital first mindset is a must from both processes and businesses point of view, because that's there to stay. As a finance leader, I would say that we must always embrace agility, being humble that we don't know everything and the world is changing pretty rapidly. And innovation is critical for growth. It's easy, it's hard though to be data-driven and make data-driven decisions when we don't have a lot of data. So having data governance and a whole digital agenda as top of mind is absolutely key to remain relevant and to grow in the next five to 10 years.

Megan - 00:21:09: And you've mentioned that you have a passion for collaboratively solving complex business problems with simple yet sustainable solutions. So can you share with us an example of maybe a particularly challenging problem that you encountered in your career and how you approached solving it?

Gabriel - 00:21:27: Sure. Thinking about business challenge that I can share here, I must say that one example involved is trendlining a complex budgeting process. By empowering the teams to own their budgets, which led to significant efficient gains. So we were tasked to define the next year budgets within two weeks, a process that would typically take two months to happen. Under such pressure, you don't have any other option that is not radically simplified. And they're a big fan of simplification. To be honest, we were positively surprised by the accuracy of the budget that was set in two weeks. The overall process, what made the success of this, let's say, radical simplification. Was to involve a way fewer process than what we would typically do. So we only involved the experts to provide the key inputs, obviously minimizing the inputs needed to run the budget. And we also relied on a range of outcomes instead of defining very specific metrics. And that actually unlocked teams to take more risks and aim higher. Than what we would typically go for when you are committing to a single number. I think this is a good example that exemplifies my belief in finding practical solutions that simplify processes and empower individuals to make decisions.

Megan - 00:22:54: Yeah, that's a great example. So as you think about finance leaders of today, what key characteristics do you think they need to be successful?

Gabriel - 00:23:07: Yeah, I'm trying not to repeat myself because I've mentioned about being externally curious. So not looking at only your current processes, taking each role as shape the role as you want it to be. Don't stick to current role description. Think broader than that and try to shape the role to your liking. But I think the number one is really trying to learn as much as possible. If you ask me what keeps me awake every night, it's really, like I said, I'm a father of two. Both are under the age of four. And what motivates me and keeps me awake every night is to challenge myself to prepare them for the unknown. And that's pretty much what we have to do now as finance leaders, given the amount of new technologies and volatility that's out there. I remember when I was five years old, there were way less options on the path forward. And I believe we are in an era which requires adaptability, critical thinking, and resilience. My goal is to equip not only my teams, but also my children with the skills and mindset. They will need to navigate an ever-changing world that's not going away, technology advancements that we simply cannot keep up to everything that's coming, and the environmental issues, as well as the global connectedness and how the landscape is changing every day. I am motivated to cultivate in them, children and teams, a sense of curiosity, empathy and the courage to embrace change. I think that's the number one mindset. There is no more fifty-five or six hard skills that you have to master to be a good finance professional. It's really about embracing change and trying to prepare ourselves the best, whatever the future may hold.

Megan - 00:25:02: I love that answer. Thank you very much for sharing that. And yeah, I don't want you to repeat yourself. So if you are here, just let me know. But for our listeners who do want to become more well-rounded. Are there specific areas they should be focusing on, like a stint in FP&A or a stint outside of finance? How would you recommend going about becoming more well-rounded?

Gabriel - 00:25:32: Right. I like to think my career, and that's what I tell my teams, is a beehive. So traditionally, we would think our careers as a path forward and actually a path up, trying to get to the next level, to the next level. If you think about the competence that we need, critical thinking, all the soft skills, right? So critical thinking, communication skills, storytelling skills, but also the hard skills, so accounting, strategy, commercial finance. I would highly encourage individuals to think about their roles, the roles that would give them the most exposure to the competence that they believe they need to develop. And again, the function doesn't matter as much as we like to think they do. It's really about the experience and what are the competence that you are getting from the different positions. I must add also that there are two things that regardless of the position you are into that you can do. One is volunteer to different projects. I remember I was in accounting and I volunteered for acquisition business case that had nothing to do with accounting. And it was one of the most amazing experience I could have because without noting, I was very junior in my career, but sitting alongside the CFO, just listening, observing him, his considerations regarding the business case that we put together. I still remember that actually happened 15 years ago. So that's those type of moments and projects are key and will define, will shape your confidence and your skills sets. The other thing is go to a podcast, go to summits. So be there with people that are from different industries, that have different backgrounds. Talk to entrepreneurs. They will certainly bring a different view and just be attentive to what those people with diverse backgrounds have to say. Because they might give you an idea of something that you should be doing in your current role or what are the other experiences that you should look for to become a more complete professional.

Megan - 00:27:50: Yeah, I think I see a common theme throughout your career and maybe even your life. And it's one I see pretty often these days in the leaders that I speak to. But that's to step outside of your comfort zone and try new things.

Gabriel - 00:28:05: And make mistakes. It's obviously if you do new things, you will make mistakes. Parenting for me, it was one of those things that taught me a lot. I have to handle my anxiety. I have to manage others' expectations at all times. So the more diverse are your experiences, I think the more you grow. And dealing with failure in a way that is kind to yourself, learning from it is absolutely a must in order to unlock true learning.

Megan - 00:28:36: Gabriel, thank you so much for being my guest today.

Gabriel - 00:28:39: Thank you, Megan. It was a pleasure. Thank you so much for the questions. And yeah, looking forward for the next episode.

Megan - 00:28:46: Yeah, I really enjoyed speaking with you. And thank you so much again for finding the time to be here with us today and sharing your experience and knowledge.

Gabriel - 00:28:55: Yeah, thank you. Thank you for the invite.

Megan - 00:28:57: I wish you all the best. And to our listeners, please tune in next week. And until then, take care.