CFO Spotlight: David Brown, Smart DCC
With more than 20 years experience in commercial finance, our CFO Spotlight for April 2018 puts a focus on David Brown, Finance and Commercial Director at Smart DCC. With a career that began at SKY, moving to Eurostar and then becoming the CFO of the largest independent provider of pathology services to the NHS, David is now an Executive member on the Smart DCC Board.
We talk about the importance of cross sector experience, successfully manoeuvring through the many changes that come with a big business, balancing multiple responsibilties with family life and more.
HedgerWay: What have been the key events in your journey to CFO?
David: My training with Price Waterhouse, now PwC, gave me a great grounding in how business works, the professionalism and discipline around delivering to tight deadlines and dealing with clients. After qualifying in Audit, I transferred into Business Recovery which gave me the springboard into a commercial finance role, the first of which was at SKY, a very exciting, fast-paced environment where I learnt the value of insightful analysis and supporting internal customers. The move to Eurostar allowed me to explore my love of France and during a two year secondment to Paris, being the only Brit in the office soon brought my language skills to fluency. It was a jump into the deep end, where I thrived, allowing me to improve the financial analysis processes and decision making for the FD. This was all made possible with the support of a fantastic CFO at Eurostar, who has sadly passed away last year but what I learned from him still influences much of my decision making today.
Moving back to the UK, I was promoted into the Finance Director position at Eurostar, having to deal with a tough trading environment (post credit-crunch which affected revenues from business passengers); and acting as Company Secretary as well for a 9-month period. Delivering great customer service was imperative here and I also had fantastic experience of Boards, Audit Committees and Remuneration Committees learning from some amazing Executive and Non-Executive Directors.
The opportunity to be CFO at Viapath, one of the largest pathology services providers in the UK, was too good to turn down. Continuing the theme of my career of delivering exceptional customer service, in a public sector environment but with private sector disciplines, was central to the business. Equally important was demonstrating to the board that improved quality could be delivered with a more cost-effective model. A commitment on which I am proud to say that we delivered.
I crossed sectors again in 2016, into Energy with Smart DCC, a different industry but still that same resolute customer focus against a back drop of cost management and continuous improvement. Sitting on the main board for the critical national infrastructure roll-out of gas and electricity smart meters to 30 million homes, I lead the finance and commercial teams, responsible for driving cost reduction and ensuring that our supply chain is working hard for the benefit of our customers.
HedgerWay: Talk us through the transition between sectors you made from Travel, to Health and now Energy and the difference for your role.
David: Cross sector experience has been invaluable to my career, giving me breadth and perspective on how to best solve complex problems. Different industries, but often the same situations. I do feel that many employers miss out on great potential employees and the experience they bring, through only recruiting from within the same industries. When I’m recruiting, I welcome candidates with expertise gained in other sectors.
As a CFO, it is imperative that you are all over the numbers and have the credibility to influence the financial performance of the organisation. You are a vital business partner but you are also ‘the policeman’, ensuring that strong processes, controls and governance are in place. The key is to balance these two elements, supporting decision-making in a fast-paced environment while ensuring that they are delivered in the right way.
HedgerWay: You touched on the missed opportunities of only recruiting those with relevant sector experience, do you feel that transitioning to CFO is a natural progression route regardless of industry experience?
David: Yes. The skills required of a CFO are very transferable across different industries. A CFO manages financial performance of course, but mainly deals with people - with employees, suppliers, customers, advisors and regulators. These skills are all absolutely transferable regardless of the product or service offering. There will always be a need for subject matter experts to deal with specialist technical challenges for that industry, however the CFO’s skillset is applicable to many different business environments.
HedgerWay: What advice would you give to other aspiring finance professionals looking to make the step up to CFO?
David: Be a sponge. Get experience across the full finance spectrum, from preparing statutory accounts to involvement in external negotiations, cost reduction programmes and raising finance. Get in front of board members to understand what they need and learn as much as you can from them.
Think clearly under pressure. In the words of a former NED, ‘an average leader can manage through times of certainty, but only top leaders can manage successfully through periods of uncertainty.’ This has always stuck with me.
Work on your Emotional Intelligence. Whilst IQ doesn’t materially change for us over time, emotional intelligence can be learnt and improved, therefore it’s important to invest time in your professional development. Be curious, resilient and decisive, but don’t be afraid to check your thinking with others before executing.
Be versatile. A modern CFO has broad responsibilities so needs to be comfortable in all situations. A day for me can move from interviewing a potential new recruit, to a tough supplier negotiation, to a customer forum, to a meeting with our regulator. A CFO must embrace the opportunity and challenges that arise from the unbound variety.
HedgerWay: The roles you’ve undertaken have required you to oversee significant change within the businesses, what tips would you give to other finance leaders tasked within similar environments?
David: Change is a given, as is the constant drive for continuous improvement. I feel fortunate that I’ve always enjoyed the pace of these environments. However, true success is all about the people. Build a great team and agree clear objectives. Then with minimum guidance, while acting as a sound board, let them get on with delivering to a high standard. If they make a mistake you must shoulder the blame but when they get it right, which is more often than not, ensure they get the credit and recognition.
At Smart DCC, we are at the heart of transforming the energy industry for the benefit of consumers. We have a highly secure smart meter network in place throughout the country for the benefit of the consumer and for GB plc. The ‘connected home’ and the ‘internet of things’ is fast becoming a reality and with the technology and infrastructure in place, smart meters are just the start. This makes Smart DCC a uniquely exciting place to work. We are building a strong organisation designed to deliver great service for our customers.
HedgerWay: As well as your current role as CFO at Smart DCC, you are also a non-executive trustee and chair of the audit committee of charity, Mental Health Matters. Talk us through your role there and how you manage to balance two board roles with family life.
David: I am a trustee for MHM which does amazing work in supporting people with a variety of mental health needs across the UK. Amongst other things, the organisation provides housing support, helpline support and helps getting people back into employment. It is sustained through winning contracts from the NHS, CCGs and from local authorities; and whilst public sector budgets are being reduced, MHM has been growing, due to its reputation of providing a high quality service.
The financial reserves position is now reasonably healthy, which allows the Trustees and management team to invest in services for the future. I am always in awe of the work that MHM people carry out and their passion and dedication is inspiring. Mental health is a very important subject for us as a country and I’m lucky to be part of the organisation. I feel privileged to lend my 25 years of corporate experience to MHM to make sure that we have strong governance and controls in place. This allows the fantastic management team to deliver to a really high standard, which is the best way of winning a new contract when it comes up for tender. I’ve been fortunate that Smart DCC have permitted me to carry out this work and now it’s now starting to benefit us as an organisation as we roll out wellbeing and mental health support to our employees. I see this as an important role for Smart DCC as a supportive and responsible employer - we must treat our people as our most valuable asset.
Juggling everything can be difficult at times, especially with a young family and a wife who has an equally demanding job. We are a good team, supported by a fantastic and flexible Nanny to our three children, who are by and large (!!!), a positive joy. The balance I get from all three roles is very important, they keep me grounded and energised to do my best.
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Are you interested in being featured in our CFO Spotlight series? Contact our Business Manager Jess on jessica.gardiner@hedgerway.com