Becoming a Strategic Finance Leader: Practical Advice from Jake Keator

The FP&A (Financial Planning and Analysis) function has evolved and so have the expectations of FP&A teams. To be successful, FP&A leaders can no longer be just number crunchers. Instead, they're expected to be strategic business partners to a company’s executive stakeholders and help the organization achieve predictable growth and strategic goals. 

We had the pleasure of meeting with Jake Keator, Director of Strategic Finance at Lucid Software. He shared his journey, insights, and practical advice on how to become more strategic in FP&A, the importance of being a finance business partner, and the skills FP&A leaders should cultivate.

From Investment Banking to Strategic FP&A

Jake's career path is a testament to aligning career moves with career goals. Starting as an investor at FIDUS, a multi-strategy investment fund in Charlotte, Jake honed his skills in financial forecasting and strategic analysis. "I came to the realization that I wanted to be a CFO because I got to work with so many CFOs from our portfolio companies," he says. "When I moved to Salt Lake, I wanted to find a really good group of people and then put myself on the path to ultimately become a CFO at a private tech company."

His move to Lucid Software marked that shift, allowing him to leverage his investment background to drive ROI and focus on strategic initiatives in a growing tech company.

At Lucid, Jake oversees revenue forecasting and expenses for go-to-market teams, including sales, customer success, and marketing. His approach to FP&A is rooted in the belief that every company's balance sheet and expenses represent opportunities for investment.

 "Our job in FP&A is to invest the business’s capital in the best way possible to maximize returns for shareholders," he explains. This investment mindset is central to Jake's strategy, emphasizing the importance of using data and financial insights to improve business predictability.

Building trust and strategic partnerships

A recurring theme in Jake's approach to FP&A is the importance of building trust with stakeholders. When he joined Lucid, his first priority was to establish trust by solving specific problems for executives. This not only built credibility, but also allowed him to take on a more strategic role. 

"What I tried to do when I joined Lucid was simple - for every executive that I worked with, I tried to solve one problem for them to build trust.

And in many cases, it meant sitting down with them and figuring out aspects of their business that they were trying to predict, and then building models and forecasts that would help them not only understand the outlook but also make decisions," Jake explains. "By building that trust, you earn the opportunity to take a higher level of ownership with them."

Trust is the foundation of becoming an effective finance business partner. Jake emphasizes that FP&A leaders should partner with stakeholders to drive alignment and strategic initiatives. This involves understanding the unique needs of each department and providing tailored insights.

For example, Jake's deep dive into customer activity at Lucid not only enhanced revenue forecasts but also informed areas of investment and strategic prioritization. He not only delved into the data but went the extra mile to make the information approachable and easy to use, so it had a direct impact on stakeholders’ decisions. 

Essential skills for FP&A leaders - It’s a balance of IQ and EQ 

Jake highlights the need for a balance of technical skills (IQ) and emotional intelligence (EQ). He points out that while getting the numbers right is crucial, presenting them in a way that’s easy to understand is equally important.

 "A lot of FP&A folks put appropriate emphasis on getting the numbers right, but not enough on presenting them in a way that someone can immediately understand the why behind the numbers," he notes.

Building trust with stakeholders and knowing them as partners also requires strong EQ. Jake advises FP&A professionals to spend time in live conversations rather than relying solely on emails or messages.

 "If you're two to three Slack messages or emails in with an executive, without reaching alignment, get on the phone or meet in person," he recommends. This approach fosters better relationships and speeds up decision-making.

Jake’s practical advice includes making sure essential data points are always accessible. He also stresses the importance of providing context in analyses to drive clear communication and better alignment. In fact, the majority of 150+ FP&A leaders in a recent survey, agree that data is critical to foster collaboration and build accurate financial plans. 

Strategic Impact of FP&A

The strategic efforts of FP&A leaders can significantly impact a company's performance. “At Lucid, I did a deep dive into our customer behavior in order to figure out how to predict retention. And not only did we improve our forecasts, that work also informed a lot of the company's strategic initiatives,” Jake notes.  This work has led to tight forecast variances, improved retention rates, and enhanced collaboration across departments at Lucid.

“When I think about the focus areas for FP&A, you've got to know what's happening in the business so that you can predict it accurately and deploy resources accordingly. And ideally, you're deploying resources in such a way that you're positively impacting the company's strategy,” Jake explains.  These achievements are not only beneficial for customers and investors but also for internal teams who rely on accurate financial insights. 

Jake believes that FP&A can drive shareholder value and align various stakeholders, including customers, vendors, employees, and investors. "Finance is a high leverage function, given all the areas it can impact," he asserts.

Advice for Aspiring FP&A Leaders

Jake’s journey underscores the importance of hard work, strategic thinking, and strong business partnerships in FP&A. His advice for future FP&A leaders is to build trust with stakeholders and develop both technical and interpersonal skills. Developing IQ and EQ is equally important. By doing so, you can not only succeed in your role in finance but also have significant and strategic impact within your organization.

Being strategic in FP&A involves more than just accurate financial forecasting. It requires a deep understanding of the business, the ability to build trust with stakeholders, and the skills to present data in a way that drives informed decision-making. As Jake Keator’s experience demonstrates, these elements are key to unlocking the full potential of FP&A.

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