Monkeys,
I have been using this forum for 10+ years now and am grateful for all of the contributions others have made throughout the years and all that I have been able to learn. That said, thought it would be helpful to provide insight into Corporate Finance outside of the traditional IB/PE/HF paths that most come to this site for.
Background:
Non-target undergrad, but top state school that sends double digit grads to the street each year and no MBA. Worked in consulting post undergrad in NYC for a few years before calling it quits and moving to the midwest for a girl I had been dating long distance (it didn't work out, but no regrets).
I transitioned into Corporate Strategy at a F500 company in the retail space and was able to work on many interesting projects and initiatives. These ran the gamut from rolling out of in-app eCommerce to providing guidance on driving traditional brick and mortar customers to the digital channel. At this company I spent time in 3 roles going from Senior Strategy Analyst --> Senior Strategy Analyst --> Strategy Manager. Each role had a different initiative/project to tackle. I was very fortunate to get exposure at such a large scale so quickly.
About 2.5 years ago (age 26) I was recruited into my current role as Director of Corporate Strategy and Head of FP&A. I moved across the country yet again and joined a Retail PortCo that was/is in rapid growth mode. During my tenure we have grown Revenue 4X without acquisitions and have successfully taken follow on investments from a premiere GE firm. I have managed all aspects of the finance department and built out our current team. I have had the privilege of working for some extremely well educated people as well as some top-notch PE/GE professionals.
That said, happy to provide any insight or answer any questions about my journey. Hope this helps at least a handful of people.
Thanks for doing this.
I'm having a hard time phrasing the questions, so bear with me. Are there components of your projects / work where you have no background or have to "figure it out"? How much of it is say pushing yourself beyond your prior experience and learning?
I've often thought about industry route, CFO seems a natural progression but hesitate around having to deal with things like tax issues for example.
My time spent currently is a blend of traditional FP&A and a wide range of strategy initiatives/project. Given my lack of a strong background in the former, there are many times where I have had to figure that portion of the job out. Additionally, the business is structured with multiple unrelated business units, so that adds a complexity to the operational model that I hadn't previously experienced.
As far as strategy, it's a blend of leaning on prior experiences and having to complete a research deep dive. My former CEO is ex-Mck and my current CFO is ex-BCG so they definitely have an expectation for me to be able to churn out consulting style decks/analysis with little background. I enjoy the challenge and have had the privilege of working with really smart people so that definitely makes it easier to plug away when I am thrown difficult tasks. I also am naturally am inclined to have an opinion and think it's ok to be 'wrong' so long as you have an educated approach to your thesis, so that makes life a little easier given the uncertainty of things coming my way.
I truly have little to no desire to be a CFO. That said, I see myself ultimately maintaining a focus on strategy (even if that is limiting my upward mobility in the short run) or pivoting to a more operational role. Dream job would to one day be a CEO of a MM company given I don't think I have the pedigree (just being honest with my expectations) to have a seat in a F500 c-suite role.
Thanks for the color, much appreciated. Think I would enjoy the challenge too, so all cards on the table.
What type of pedigree would an individual need to have a seat in a F500 c-suite?
Have you seen many people move from FP&A into Strategy during your time in the space (post-Consulting)? If so, was there anything in particular that stood out to you about them? And how would you approach that transition if you were an FP&A Analyst/Sr. Analyst and opted to transition to a counterpart role in Corporate Strategy?
I have seen a handful. What makes that transition difficult is there isn't necessarily a streamlined recruiting process and roles pop up randomly. Additionally, unless you have a good relationship (or recommendations) with the hiring manager, it may be difficult to convince someone to take a "chance" as you become more senior when they could opt for someone with 2 years of MBB consulting experience that has the pedigree and (hopefully) skillset they are looking for.
Any good resources on corp strategy you would recommend?
Not off the top of my head. I often tend to find myself watching videos of ex MBB on youtube in my downtime to try and learn more about the way consultants think.
Got any channel recommendations?
Comp? I’ve seen finance directors at my portcos all in low 200’s. $175k-ish base and then around 30% bonus
Spot on in terms of cash range I typically have seen but I am in the mid 200s now. I have equity as well but until a transaction occurs I am just pretending that it's worthless.
Thank you so much for doing this, so glad to see another from corporate strategy in this forum. (Not many/enough posts tbh)
I have been working in a corporate strategy role in a Japanese corporation. I joined their rotational leadership program, I have been doing excellently well so far. Excellent reviews, all the most important projects, presentations, CEO's go to guy (CEO is foreign, I am foreign too but I speak both english and Japanese fluently, I am fully in the in of the org).
There was a talk on making me Chief of staff to the CEO, there were interviews, I was picked, but I heard, they decided not to have someone full-time, but rather to get me involved in key matters on a more project basis (So no title, no step-up). Whilst I like my job and the people, I dont know what the next step could be.
Felt like Chief of Staff was definitely a step up, it takes years to make the equivalent of manager in Japanese corporations. And thought this was a quick way up.
CEO says I dont have to be 40 to make manager, but that sounds insane. Salary levels are not high enough currently to warrant that much patience. I know I would make Top C-suite if I do decide to stick it out (high chances, so as not to be cocky). But not sure what the next step could be.
Any capabilities I should strive to achieve? what positions can I pitch to the management? or what options from here.
Anonymous because, given my post history, should be easy to trace me.
Thank you!
I am not familiar with Japanese culture and it sounds like that is playing a huge part.
If you are already working on the most important projects, working directly with the CEO, etc. I'd recommend continuing to focus on one thing. Providing flawless work. That means even when you're staffed on a less than interesting project, finding a way to make sure that the decks you prepare make sense and all numbers tick and tie. It's important to be able to produce quality work and THEN take a step back and review it as if it was created by someone else. Being able to put your own work through that type of scrutiny will help to provide differentiation and further your reputation as a sharp, go-to person.
In terms of the Chief of Staff role, I understand your frustration but have seen these roles go one of two ways. In the most likely scenario, you serve as an over-qualified admin to the CEO and are handling meeting minutes, scheduling things, keeping projects moving, and making sure that they don't miss a beat. In the unlikely scenario, you become their mercenary and are sent to handle any and all projects. While there is possibility of the latter, I'd be thankful not to land in the former because while it's great to get facetime, you really want to be developing your skillset and sharpening your way of thinking.
Thank you so much for the advice!!!! I was frustrated because a title up meant everything I have been told, feel day to day and experience is materially validated by a title and maybe even a pay bump.
But now in hindsight, I could have just been a mere glorified Admin person. Scrutinizing the output from a 3rd party lens, and providing flaw-less work is the way to go.
Thank you, if you do not mind, will pm you to get more insights! God speed!
What do you like about strategy work compared with finance? I started in FP&A and kind of hated it. Realized immediately that I didn’t want to be a CFO, similar to you. Moved to corp dev and I like it a lot more, but I’m not sure that I want to only be a deals guy long term. And it seems like having a strategy skillset (driving organic growth, choosing what markets to compete in, etc) is more conducive to a C-level role if you don’t want to be a CFO. That said, I have no experience in this area so just curious about the type of projects you work on and what you like about it.
I think of it in terms of both a push and a pull. For FP&A (not Corp. Dev, because I do find the dealmaking process interesting), the mundanity of the month in and month out reporting/variance analysis is absolutely soul sucking. The politics of managing a forecast to appease stakeholders (instead of being intellectually honest) and having to watch things pan out as you thought with egg on your face is absolutely horrible. But, c'est la vie, life of catering to a board and PE in general where it's all about growth, growth, and more growth.
So that's the push away from traditional corporate finance. The pull for me is the interaction with other departments and personality types. Learning from R&D, product, marketing, sales, etc. and finding what makes them tick and what they are passionate about. I am a big relationship person so being able to "partner" with multiple cross-functional partners is really appealing to me. That said, in general with strategy, you are solving a problem (or trying to) with a means to an end, there is always another project (this is probably similar to why I like the deal process). Being able to chalk something up as a success or failure and move to the next thing with the opportunity to learn more gets me out of bed each day.
Hope that helps!
How do you explain your job when asked by interviewers from different fields (if you have looked recently)
I haven't unfortunately, but I would pitch myself as a utility player with a knack for finance. Said differently, I would let them know that my strengths are a passion for problem solving, being uncomfortable with little information, and being someone who is able to coordinate/facilitate cross functionally. It's one thing to be able to lead a team that reports directly to you, but a completely different skill to be able to do that other teams where the inputs come from people both lower and higher in "rank" as you.
Aside from that I'd obviously highlight major accomplishments, milestones, cost saving, etc. that I have achieved.
Do you have any advice for those looking to break into corporate strategy at the senior analyst or associate level?
I have a few years of experience at a credit hedge fund covering an industry I’m interested in working in. I feel like this has given me a solid understanding of the companies and their respective competitive positions within this industry. Therefore, although I don’t have a consulting background I’d think I’d be a good fit for a job as a senior strategy analyst/associate or strategy manager job given my industry knowledge, technical abilities (able to build extensive models and credit memos for IC), and ability to think strategically (started successful consulting nonprofit and use strategy heavily in my current seat when choosing which credits to invest in).
In my situation would you recommend getting an MBA to transition into one of these roles? Is consulting experience necessary?
Our end games seem fairly similar in that 10-15 years down the line in that I’d love to be the CEO of a MM company rather than 1 of 700 directors at a F-500 company.
Appreciate the comment. I think to provide the best answer it would be helpful in understanding your motive for wanting to transition?
Really appreciate you getting back to me and for being willing to offer your perspective. I’m looking to make a move for a few reasons.
While, I’m appreciative for my time in finance and all I’ve learned I haven’t really enjoyed my time in the industry. There are aspects of the job that I enjoy like it’s analytical nature, the need to continuously learn, taking calculated risks, and the ability to be somewhat intellectually creative. The aspects I don’t enjoy include being an excel jockey, the pretentiousness, unrealistic expectations, and showing up most days feeling like I’m about to take a beating from my seniors. I understand that being a junior person that I need to pay my dues, however my experience has been untenable for a while now and is atypical in terms of the severity of how poorly I’ve been treated. Moving forward I’m looking to position myself in a role that would combine my analytical and intrapersonal skillsets to drive value for an organization. I should also add that I’m perfectly fine doing analysis in excel and enjoy it to an extent, but don’t want to be in a role where 75% or more of my time is spent building models.
Outside of work, I’ve leveraged my skill set to found a mildly successful nonprofit consulting impoverished people. Through my work with them I helped improve their operations and foster partnerships regionally, which helped inject capital into the struggling local economy and created jobs. While, this was a great experience and I enjoyed the project based nature of the work I know that I don’t want to live permanently in a developing country. I believe that fundamentally the skill set needed to be successful in corporate strategy aligns well with my nonprofit and professional experiences despite the settings and scope of the projects being radically different.
1) I’m curious on your perspective of Corp Dev rounding off an FP&A career to position you for SVP/EVP/C suite level finance management roles?
2) Having no previous corp finance/fp&a experience, how did you find the transition to heading FP&A and what do you find the biggest challenges are? (My guess is a gap in accounting knowledge/experience but curious for your candid thoughts)
3) How do you find age plays into your position? Is it difficult to be a ~28 year old director? Do you get pushback and skepticism from senior people and or your directs who are younger than you?
Re:3, not OP but in a similar position as a young director (and I have a baby face, to boot)
First, I try to keep an open mind about working with people - separate what they actually say and do (and weigh if it's valuable, worth taking away) from how they treat you as a person. A bit of managing "old" in addition to managing "up". I know my worth, and I'll figure out theirs and they should figure out mine. It gets easier as time goes on, not only because I get older but because I've build relationships/reputation with more of the org which can vouch for me.
Second, in the back of head I know I and my team work closer to the CEO than most, and we have him in our corner if someone is going to be an ass. It's kind of the ultimate trump card, and even knowing this is a dynamic helps even if we don't have to use it.
cap182375 you hit the nail on the head.
I just typed a long response and there was an error while posting... bummer. But let's try that again.
1) I think it depends on the industry/sector - naturally if you're in one that values acquisitions as a means to drive EBITDA then yes it makes sense, if you're in one that doesn't it definitely can't hurt but I don't know how much value it would add.
2) Fortunately I've always been interested in modeling and have been building full 3-statements since college. I have a natural curiosity about things and have been able to leverage youtube videos/online articles to help bridge the gap where needed. That said, FP&A isn't all that difficult when you boil it down to it's key components: budgeting, variance analysis, and ad-hoc analysis. For budgeting I found that being extremely detailed and organized is key. As far as accounting goes, I definitely was green when I stepped into the role but was fortunate enough to have an awesome head of accounting that became one of my best friends (sadly, she left the company) and learned so much from her. I'd venture to say that I now know more than the average bear when it comes to GAAP, revenue/lease accounting, etc.
3) I found it difficult in the beginning to not be perceived as the young/arrogant hot shot. I am fairly confident and not afraid to offer my opinion so learning when and where was a big accomplishment. There definitely have been times where folks 10+ years my senior are upset that I am at the "adult" table. Fortunately, I am one of the longest tenured people at my company (there are maybe 3 that have been longer off the top of my head)... some of that due to attrition, some due to our restructuring, and some due to the fact that certain people are right for a company at one stage but not at another. The length of time in the role and my knowledge of our company's history and many changes has made it easier to be confident and not really care if other people view me as "young". Also, having a good relationship with our PE backers helps to drive credibility. Lastly, after the CEO/CFO give you the nod to speak and tell people to listen a handful of times it becomes clear to everyone in the room that if they trust you then everyone else should too.
Thanks for doing this! For context, I'm currently in B4 Valuation (~ 2 YOE) looking to make the move into Corp Strat in the consumer and/or TMT space.
2 Questions:
Ok the comment error just happened again, might hold off on further replies until that gets resolved. Happy to do this though, and I am glad that there has been so much engagement with the post.
1) I found that in consulting that everything was a means to an end (i.e., we fixed problem a but found problem b along the way, luckily we have a team that can help with that). That said, when I juxtapose my time in my current role vs. my previous at a F500 they are very different. In the latter, I often found myself trying to appease execs and finding a way to prove out/reverse engineer a hypothesis. It sucks, but at large companies even if you're right, it can be tough trying to swim against the tide if you want to continue moving up. In my current role I definitely have more value-add and investment into the output. I have more autonomy and the ability to make decisions that truly impact the company. I have had some big wins but also a few failures, but it's one of the most rewarding parts of my job that I am really thankful for.
2) I will humbly say that I have been very blessed with my career and gotten extremely lucky. One of my strengths is the ability to find information on the people I am interviewing with and to walk in with knowledge of their career, interests, etc. I use that to steer the conversation towards those topics to "lever" up my rapport. We are all human, and we love talking about the things that we like. If you can do that and nail the technical questions, chances are the person will leave the conversation with a positive recollection of the interaction. In terms of my current role... after passing the initial phone screening I was sent a case study that had 4 years of monthly trial balances, a traffic pattern, and some other random csv files and asked to create a board level presentation and turn it within 48 hours. I am sure they didn't have high hopes but I nailed it and they flew me down to meet the PE firm and the exec team within a week or so. Funny enough when I took the role, the operating model for the company was built by the VP I sent my case study too and they looked oddly familiar. Probably coincidence... but there is a chance he really liked my formatting in the model. Went on a bit of a tangent there, but I think more than anything being open to opportunities is really key to finding something great. I was really happy at the F500 and had I not taken the call from a random recruiter I wouldn't be in this role today. It's likely that 99% of those types of calls won't lead to anything but it can't hurt to network.
Thanks for the response! Just a short follow up from Q1, how did you determine that the Strategy side (even with all of the admin/politics) was more interesting to you than the deal side (Corp Dev)?
I love finance but find myself not super into the deals (kind of sick of being in excel for 12 hrs a day tbh) and moreso into how to grow the business and/or make it more efficient which is why I’m more interested in the Strategy side.
To be honest, I never had the opportunity to work in CD, so really can't say. I have just participated in a few CD type of projects throughout the years.
I think that my day to day now is about 50% meetings/email correspondence (blessing and a curse, love the facetime but hate having little time to do the work), 15% in ppt, and 35% in excel. Some days I do miss jamming on a model and the weird feeling of accomplishment of finishing it (much more than finishing a deck that will always have wordsmithing/iteration).
Gotcha! Ideally, would love to find a position that is both CD/Strat but know thats a tough ask. Appreciate your time again!
I’m currently an analyst in corporate strategy at a F500. First year out of non-target. What kinds of exit opportunities do you see for someone in my shoes? I love finance, but FP&A seems bleh to me.
Why don't you want to continue in strategy?
You could try to push for IR, Strategic finance (more impactful and interesting than FP&A), or move to the operations side. I think strategy is likely the most "interesting" role you will find at most corporates, so it might be more about finding the right company.
thanks a lot for the insight! how would you rate the three exit options (ir, strategic finance, ops) in terms of career upside etc?
Background: audit at a regional Acct Firm (non-B4) -> TAS at a large national (non-B4) Acct firm -> FP&A at a pharma company
What advice do you have for trying to break into Corp Dev/Corp Strat from FP&A without a fancy MBA, IB experience, or PE experience?
I prefer not to relocate and live in a town in the SE of approx. 200K population.
Honestly, given the location preference, I am not sure how many opportunities there will be. Are you at a satellite office of your company or HQ? I think the easiest path would be internal networking (if your company has those functions). Otherwise, right place right time, patience is key. Just be friendly to recruiters, take the call and pick their brain on things even if it's not a fit. The more of a rapport you develop with them, the more likely they are going to feel comfortable tossing you a bone on a gig you may be underqualified for.
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