How CFOs can avoid the ‘innovator’s dilemma’

This was the theme luckWednesday’s Emerging CFO virtual event, presented in partnership with Workday (CFO Daily sponsor). says David Duncan, consultant, speaker, and author of The Secret Lives of Agents. luckJeff Colvin says there is a universal challenge that every large, successful company faces.

“It’s about the need to strike a balance between investing in the core business and investing in revolutionary new innovations that may look very different from what has made them successful up to this point,” Duncan said. For companies that give up on innovation and revolutionary technology, it may end up being a costly mistake. In a recent article, Colvin contrasted the divergent paths that made Microsoft a $3 trillion powerhouse and stable company Intel.

CFOs have “the ability to decide to prioritize innovation if they have the right setup in their companies,” Duncan said. In reference to the famous Clay Christensen’s bookHe also noted that avoiding the “innovator’s dilemma” requires having the right set of conversations around the table. The CEO and CFO play a critical role in assessing where the company stands today and aligning everyone around a strategy on where they think the future is headed. It gives you the conviction to start investing in that direction,” Duncan said.

Another tip from Duncan: “Once you have that strategic clarity about the direction you want to go, it’s important to create mechanisms in the organization to pursue different types of innovation with different rules and metrics, give them labels, and also take responsibility.”

Partnerships can also foster innovation and help companies remain competitive. During the session, Clare Rauh-McDonough, Rivian’s CFO, explained that the electric car manufacturer and Volkswagen Group launched their new car Joint venture. Known as Rivian and Volkswagen Group Technologies, the total deal size is worth up to $5.8 billion. Rivian contributes a software development team and core software suite, in addition to its electrical hardware, McDonough said. She said there was a “really exciting innovation roadmap yet to come and we are now working to develop and use those proven technologies today in their vehicles.”

Antonio Carlos Garcia, executive vice president and chief financial officer of Embraer, said the Brazilian airline is “very successful now with all our business units.” For example, 59 aircraft were delivered In Q3which represents an increase of 37% year-on-year. Embraer, now the world’s third-largest aircraft manufacturer, was pulling ahead, while rival Boeing was facing serious headwinds.

There can be a lot of innovation in big companies, but CFOs have a central role in determining what creates value and what doesn’t, Garcia said.

happy vacation.

Cheryl Estrada
sheryl.estrada@fortune.com

Leaderboards

Some notable moves this week:

Kelly Steckelberg He has been appointed CFO of Australian unicorn Canva, a developer of creative design software, effective 26 November. Steckelberg resigned from video conferencing platform Zoom in August after seven years as the company’s CFO, and remained in the role until last month to help with the transition. She oversaw Zoom’s 2019 IPO as CFO, so her appointment is largely seen as a step toward going public.

Ken Cook He was appointed CFO of Wendy’s company (Nasdaq: WEN), effective December 2. Cook will succeed Gunter Bloch, who has served as CFO since 2016 and will leave the company at the end of the year. Cook most recently served as head of financial planning and analysis at United Parcel Service (UPS). In previous positions at UPS, Cook served as CFO for the U.S. domestic sector, previously held leadership roles in investor relations and treasury, and served as CFO for South Asia.

Michael J. Gray He will resign as executive vice president and chief financial officer of the company Madison Square Garden Entertainment (NYSE: MSGE), which operates the sports arena of the same name, Radio City Music Hall, the Beacon Theater and the Chicago Theater, as of November 20. Grau was appointed to the position in February and began his term in April. He will be succeeded by Lee Weinberg, who will serve as interim CFO. Weinberg has served as senior vice president of business and financial operations since the company’s separation from Sphere Entertainment in April 2023.

Rick Goldberg He was appointed CFO of S&P Global Commodity Insights, a division of Standard & Poor’s Global (NYSE: SPGI), effective November 1. Goldberg joined the company in August 2011 and most recently served as CFO of S&P Global Market Intelligence, a position he has held since July. He also recently took on the role of CFO of the company’s newly created main client office, a move initiated by new CEO and President Martina Cheung.

Glenn Eisenberg He will retire as a corporate CFO Labcorp (NYSE: LH), a laboratory services company, as of December 2. After spending 10 years in this role, he will remain with the company as a special advisor to the CEO until April 2025 to assist with the transition. He will be succeeded by Julia Wang, who will also serve as Executive Vice President. She most recently served as CFO of global oncology company BeiGene, now known as BeOne Mediciones.

Michael Abrams He was appointed CFO of NRX Pharmaceuticals Company (Nasdaq: NRXP), a clinical-stage biopharmaceutical company. Abrams succeeds interim CFO Richard Naredo, who will continue to support the company’s finance function and other projects. Abrams has nearly three decades of experience as an executive, investment banker, director, and senior advisor, including serving as CFO for Arch Therapeutics, RiseIT Solutions, and FitLife Brands.

Steve Rush He will step down as Executive Vice President and CFO of Natural Gas Spire (NYSE: SR), effective January 1. Rush, who joined the company in 2009 and became CFO in 2013, will continue to serve as a senior advisor until his retirement on April 1. He will be succeeded by Adam Woodard, who has served as vice president and treasurer at the company since 2018 and also became CFO of Spire’s facilities business a year later.

Big deal

Here is a new report from luckLeo Schwartz: “SEC Chairman Gary Gensler Resigns, Leaving a Legacy of Division and Controversy over Cryptocurrencies.”

US Securities and Exchange Commission Chairman Gary Gensler announced on Thursday that he will step down from his position on January 20, the date of the inauguration of President-elect Donald Trump.

“Since taking office in April 2021, Gensler has battled with industry groups across Wall Street, pursuing an aggressive campaign for rulemaking and enforcement measures that often put him at odds with the companies his agency oversaw,” Schwartz writes. Gensler was appointed by President Joe Biden. “It is common for agency heads to step down after the election of a president from the other party.”

Go deeper

Here are four luck Weekend reads:

“Anthropic CEO slams VC Marc Andreessen’s argument that AI shouldn’t be regulated because it’s just math” by Callie Hayes

“Google shares fall after Justice Department calls for sale of Chrome” by Greg McKenna

“Why Robinhood Is Spending $300 Million to Buy a Wealth Management Platform” by Alicia Adamczyk

Walking more could add up to 11 years to your life, study says. Here’s How” by Annie Friedman

I heard

“The thing about Steve was that he cared deeply about his people. Sure, he could be meticulous and demanding at times, even to the point of calling him ‘tyrannical’. But above all, he was a kind, respectful and compassionate leader. These are the qualities that made him great.” And not his lapses in screaming and obscene language.

—Shalini Govil Pai, vice president and general manager of TV at Google, writes about the co-founder and former CEO of Apple Inc. In a new article luck Opinion article, “I Worked with Steve Jobs. Here’s What He Had to Say About Leadership Style Today.”