Navigating the Path to CFO - with Mars Shah
In this exclusive interview, we sit down with Mars Shah, a seasoned finance leader with a diverse background ranging from investment banking to entrepreneurship. Mars shares his experiences and provides valuable insights for aspiring finance leaders aiming to secure their first CFO role, as someone who has donned various hats in the C-Suite, including CFO. His journey, starting from investment banking at JP Morgan to leading a growth-focused app to a successful sale, positions him as a guide for those aspiring to the CFO role. Let's delve into his thoughts on the evolving CFO landscape and his advice for those eyeing this challenging yet rewarding position.
What would be your number 1 tip for landing a CFO position?
The CFO role has evolved beyond the traditional finance and accounting focus. Transitioning into a CFO role demands a multifaceted skill set. Beyond traditional finance acumen, CFOs now need to excel in people management, digital transformation, and building strategic relationships, particularly in the fundraising arena for early-stage companies. Understanding the broader business landscape is crucial for success in this role, the modern CFO is a strategic partner to the CEO, contributing to the overall success of the organization.
What experience do you wish you had before taking your first operating CFO role?
The more senior your role the more you are managing people and it’s hard to gain that experience when you are younger and earlier on in your career, you just don’t have that much responsibility. So I would’ve liked more experience managing teams and working with different functions across the organisation to really gain a wider commercial perspective of the business.
Is commercial experience a key factor for a CFO?
Absolutely. In the contemporary business landscape, CFOs must possess not only financial acuity but also commercial, digital, and operational finance skills. The ability to integrate financial strategies with commercial objectives is pivotal for driving sustainable growth and success.
How can a controller transition to a more commercial role?
Embracing a growth mindset is the first step. Analyzing data not just for financial health but also for business growth is critical. Create your own initiatives from what you have found and try and get them in front of the leadership team, utilising the data you have analysed to support you. Controllers aspiring to more commercial roles should immerse themselves in the business, stepping into the shoes of customers to understand their perspective. This shift in perspective is key to becoming a strategic partner in driving the business forward.
If you are looking to get a promotion, go a bit beyond your role, look at things through the lens that a C-Suite person or leader would - what can I do to maximise profit or reduce spend or commercially grow? Show leaders around you that you can already do parts of that next leadership role and that you have the work ethic of a C-Suite leader. If you feel like you are lacking experience show initiative and research courses that are available to upskill you and show your leadership team you are dedicated to increasing your knowledge on vital areas.
What helped you in the first six months of your CFO role?
Putting myself in the customer's mindset was transformative. Experiencing our products or services first-hand and then the products or services of our competitors provided invaluable insights. It allowed me to align financial strategies with customer needs, fostering a more customer-centric approach to financial decision-making. Alongside this I would immerse myself in the operations leading the product or service. If you are a service based industry, learn about what the field technicians are doing. If you're in a sales company, go out there and see how the sales team are actually selling products, so you really immerse yourself in the heart of the business.
Coming from an M&A transactional route, how did that background prepare you for the CFO position?
The M&A background provided a foundational skill set for evaluating cash flow, understanding operational finance, and navigating deal processes. Consulting, M&A, and audit advisory backgrounds from larger organizations bring a valuable perspective on what an ideal state or good practices look like for startup struggles.
When it comes to fundraising, an M&A and corporate development background became more critical in the later stages (CDCD). However, in earlier stages, an audit and CPA background holds significance.
On the kind of people side and the team side, how have you approached building teams as a C-Suite or CFO?
In different company maturities, the approach to building teams varies. In the early stages, utility players with diverse skill sets are essential. As the company matures, hiring for specific skill sets becomes more focused, and considerations for functions like HR and marketing intensify. This is when you have the budget and resource behind you to hire specific, experienced individuals to fill the current skill gaps in the team.
When interviewing for C-Suite positions, what impresses you the most?
I often ask candidates about moments when things didn’t go their way. I'm particularly interested in how they navigated and leveraged those situations. Demonstrating resilience, strategic thinking, and effective decision-making during adverse times, speaks volumes about a candidate's leadership potential.
I also like to ask how many people that have worked as part of their team, have gone on to be successful. This highlights their previous success with coaching and mentorship. I want to identify C-Suite leaders who can inspire but also guide their team members to achieve individual and team goals.
What are your three pieces of advice to help aspiring business leaders fast track their careers?
First, don't shy away from opportunities even if they don't offer the CFO title initially, as it could be an amazing growth opportunity. Second, continue developing your network, whether that's investors or people you want to bring on as potential board members down the road. Surround yourself with the right network, as it can be such a valuable asset when you are applying for future roles. Third, find something you're exceptionally good at to differentiate yourself. You're not going to be the best at M&A, you're not going to be best at KPI's and reporting, but if you find something that differentiates you amongst your peers, you can then surround yourself with complementary people.
LinkedIn is definitely growing and you seem to have an amazing presence on it. In your opinion, how big is LinkedIn in building your finance career, considering your significant presence on the platform?
LinkedIn is crucial and it’s importance grew massively during the pandemic. However, now I highly recommend people take the time to meet with people in-person, these introductions hold so much more weight and now there are plenty of events to get involved in. Building relationships organically is key, and dedicating time to networking is essential for success. Take the time to get to know your fellow alumni from educational organisations, as it is always helpful to stay connected.
Essentially, networking is another job to add to your day job and if you spend the time to get good at it, it can be super beneficial.
How do you view mentoring and giving back in your career journey?
Having received help early on my career, I really value the importance of giving back. Mentoring and supporting the next generation are crucial responsibilities for successful leaders and connections like those can actually be found on LinkedIn! If you are in a position to mentor or give back to events like this, the folks that you surround yourself with and support, if they become successful that's a testament to you. It will only benefit you in reaching that next level of leadership.
From all the positions you've held, from owning your business to JP Morgan to CFO to CEO, what's been your most favorite and the most challenging?
Breaking it down, working in banking was most enjoyable when dealing with entrepreneurs in the middle market. Understanding their drive to grow or sell businesses was crucial. Having my own business, though challenging initially, became rewarding as we hired and impacted lives positively. As a CEO of a private equity-backed company currently, the dynamic relationship with the PE firm allows me to learn a ton from my colleagues. As a leader, you’re always dealing with many day-to-day administrative tasks, but the joy lies in working with people, coaching, development and constantly learning from one another.
Any book recommendations that have impacted your when it comes to personal development?
Adam Grant's "Give and Take" has been insightful. Exploring the psychology of people, understanding their motivations, and leveraging these insights during challenging times has been instrumental in shaping my approach to leadership and decision-making.
Any parting advice for aspiring leaders?
Best of luck to everyone on their leadership journey. Feel free to reach out if you have questions or need guidance. Cheers to the exciting and rewarding path ahead!
This article is taken from a Future CFO event in partnership with GrowCFO. You can learn more about the Future CFO programme here.
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Check out some of our other blogs:
How to retain your Senior Finance Talent in the Current Climate
Beyond Finance: The Strategic Approach to a CFO's First Weeks
As an expert in partnering with early-stage tech start-ups, feel free to get in touch if you require advice or are keen to hire that first or even second person for your finance function.