Coming from a standpoint of the 2022 macroeconomic backdrop, where finance leaders were required to go beyond numbers and drive on-ground executions, one can’t help but ask: what does it take to bring success to an organisation amid all the challenges?
“2022 was a year where businesses toed the line between profitability and growth,” said Rizza Maniego-Eala, chief finance officer, treasurer and chief risk officer at Globe Telecom, Inc. The year necessitated a “very disciplined approach to spending”, that’s why governance was at the forefront of priorities at that time.
Maniego-Eala recounts that strategic implementation has been the key to keeping businesses sustainable in 2022, as finance leaders had to challenge long-defined ways of working for operational efficiency. On top of this, succession remained a key risk in the organisation, leaving talent development and culture as a core responsibility for finance leaders.
Meanwhile, for the year 2022, Andriano Hosny Panangian, director of finance and risk management at cement manufacturer PT Semen Indonesia (Persero) Tbk, said managing cost has been the biggest challenge, considering the era of high inflation and volatility in the commodity sector.
“At the end of the day, as a finance leader, you have to make sure that the company is able to deliver value continuously,” Panangian said. “In the end, you have to make sure your return on invested capital is above your cost of capital.”
For Panangian, the role of a finance leader is to make sure that the sales and marketing team, along with the production, supply chain, and procurement teams, are all aligned with rapid adjustments that need to be taken to manage the top line and cost.
“For example, if there is a sudden spike in uncontrollable costs like commodity, you need to be able to manage other types of costs to maintain the profitability. To do that, you have to make sure that the whole system is in sync with situations as they occur.”
Andriano Hosny Panangian
Qualities for success
Maniego-Eala highlighted the importance of strength in being a finance leader, saying one needs to have the conviction to stand behind their beliefs given finance effectively controls how an organisation moves forward and grows. Without strength and conviction, growth can never be sustainable.
She also pointed out how “malasakit” or compassion and concern for others is very important in being a finance leader. “It is still very important for a leader to have empathy. This allows one to understand the motivations, insecurities and fears of other people, which enables him/her to effectively guide and lead them.”
On top of these, Maniego-Eala thinks having integrity is necessary as scandals are nothing new to finance. “Without integrity, one’s ability to inspire and motivate others will be significantly diminished,” she said.
Panangian, on the other hand, thinks a finance leader must be market savvy, given that the world is rapidly changing amid the digitization brought about by the COVID-19 pandemic. “You have to have a very good network in the banking market, in the capital market, in the stakeholders’ market, political market—everything.”
The cement manufacturer executive also pointed out that finance leaders must proactively keep all the systems in the organisation up and running as they are the ones who hold the numbers and help the CEO maintain good stakeholder management.
Experiences pave the way for success
Maniego-Eala said a leader must have the ability to know when to walk away—and the strength to do it. “A few years ago, I was faced with a situation where there was significant pressure to execute a deal that I believed was not optimal for the company.”
She recalled the experience which paved the way for her success in the financial leadership role, saying she stood her ground and decided not to pursue the deal despite pressure (and even threats) from multiple stakeholders to proceed.
“In 2022, this decision was vindicated as we were able to execute a much more favourable deal for Globe. This reinforced my belief and gave me tangible proof that strength and conviction are keys to ensuring success in a finance leadership role.”
Rizza Maniego-Eala
On the other hand, Panangian’s various experiences in all sectors helped him out in being the finance leader he is today, considering that he also handled advisory roles for distress in the past, which made him knowledgeable in the business.
Challenges for finance leaders
“In my opinion, the biggest challenge is that on paper, things may appear easy to manage,” Panangian said. “But in reality, when you have to implement, it's difficult because there will always be a time lag – from the time the situation happens to the time you are able to respond with appropriate changes.”
Panangian also recounted how managing liquidity and the balance sheet poses a challenge amongst finance leaders, considering the situation today—with the disruptions in the economy and supply. He said that they should be able to find a solution and utilise instruments that are available in the market.
Success today
As for what contributed to her success today, Maniego-Eala noted that it is having the benefit of working under a visionary CEO—someone who has a clear view of where he wants to bring the company and what he wants it to become. “He can communicate this properly and inspire people to follow his lead,” she said, about Globe CEO Ernest Cu.
“This not only allows me to have a precise path to follow but also gives me a first-hand view of how to effectively lead a motivated, aligned and collaborative organisation,” Maniego-Eala said.
A key focus in 2023 and beyond
Maintaining financial sustainability amid an erratic environment will be the main focus of 2023 for Maniego-Eala. “This is particularly true in the Philippines, where we are faced with a challenged economy that is still adjusting to a new government (with different priorities) and facing global headwinds that threaten domestic growth.”
Innovation to keep their relevance with their customers is also on the list of Globe Telecom’s focus to avoid the risk of being commoditised. The company CFO also pointed out that building and maintaining a future-ready Finance Organisation will have to continue, especially one that is focused and embraces ESG, a key theme in the Philippines in 2023.
In Maniego-Eala’s case, Globe has made great strides over the last few years on this front, with the finance organisation supporting and even driving some of these initiatives.
With this full support, the company has made significant progress on financial inclusion (through their Fintech: GCash), healthcare for all (through their Healthtech: KonsultaMD), and democratisation of education (through their Edutech: Kodego), with many more ventures in the pipeline.
“In 2023, aside from further growing these existing ventures, our challenge will be to make a big impact on environmental sustainability, as we launch our first foray into climatech,” she said. This will be through Globe’s two-wheel electronic vehicle venture, Gogoro Philippines. “This aims to bring us closer to our commitment to reduce greenhouse gas emissions by 50% in 2030 and achieve Net Zero emissions by 2050 (Global Race to Zero campaign).”
Maniego-Eala said their goal in 2023 is to ensure these initiatives are given sufficient attention, especially given the importance and urgency of these ESG matters. “It will be up to the finance organisation and its leaders to set the tone and prioritise these efforts to be able to align the wider organisation towards this goal.”
Meanwhile, Panangian’s team designed a group in 2022 right under the CEO which coordinates and oversees all the ESG and sustainability programs they have. As a finance leader for a cement manufacturing company, they put forth ESG as a focus strategy, considering how the nature of their business produces a very high carbon emission.
The group focuses on ensuring that they have the framework in line with global standards, ensuring that transition risks are properly handled.
Advice for finance professionals
Maniego-Eala is advising finance professionals to make sure they have their purpose in place if they want to become financial leaders. “Having this north star helps you with your day-to-day decisions and will help give you strength to stand behind your convictions and beliefs.”
As a finance leader, one has to remember that they are no longer just in charge of lodging and reporting numbers as they now play a significant role in shaping and leading people (not just companies). “Purpose allows you to amplify your impact and increase your efficacy as a leader,” she said.
Meanwhile, Panangian emphasised the importance of expanding one’s network, pointing out that finance professionals must know the theory and technicality of their business. They also must be updated on what’s going on in the market, along with being agile in terms of understanding the volatility of the economy and the situation.
