CFOs Offer Financial Solutions at June 4 TCB Event
Retaining employees, integrating company acquisitions and managing in an uncertain economy are among the topics that four financial leaders will address during a Twin Cities Business event on June 4.
The panelists are Catherine Lenagh, vice president and CFO of Park Nicollet Health Services; Dan Mayleben, CFO of HelpSystems; Rachel Rice, vice president of Padilla; and Amy Ronneberg, CFO and chief of staff for Be the Match.
These four financial veterans will share solutions to challenges they’ve faced and talk about how they plan for disruptions in the economy and changes in government policies.
Mayleben, a co-owner of the software firm HelpSystems, says virtually every business in the Twin Cities is grappling with a workforce shortage. The Eden Prairie-based company has about 750 employees, and its workforce has more than doubled over the past five years.
“It’s a fun place to be because we grow both organically and we have acquisitions, so there is an ever changing, evolving company,” he says. In February, HelpSystems acquired Core Security to expand its cybersecurity offerings.
“We provide equity to every employee,” Mayleben says. “As we talk about attracting and retaining talent, that makes us unique and different from most companies in the marketplace.”
Both HelpSystems and Padilla, a Minneapolis-based communications agency, have made multiple acquisitions in recent years. Their financial executives will discuss how they’ve handled integrations and worked with other leaders on creating unified cultures for veteran and new employees.
Padilla was acquired in 2018 by Avenir Global, which is headquartered in Canada. Rice, Padilla’s vice president of finance, has been working on integration financial issues, and she’s also adjusted to a new industry sector.
“I came from the software and technology industry, which is a double-digit [growth] industry,” Rice says. In the communications sector, she adds, revenue growth is “closer to 2 to 5 percent.”
During her tenure as a financial executive, she stresses that CFOs and vice presidents of finance have become more forward looking in their positions. “You have to use the past to see the patterns and the facts,” she says. “But that is not necessarily going to drive the future growth. You need to find new patterns and a new story to tell and set that up for the leadership team.”
Better financial forecasting is an improvement that Ronneberg made when she joined Be the Match. She also introduced more financial discipline to the nonprofit organization.
“We had too many staff,” she says, and some operations needed to become more efficient. Expenses were cut by $50 million, and the organization made strategic investments. “When I came in, I knew we were not as strong of a financial team as I knew we could be,” Ronneberg says. At the forum, she’ll talk about how she constructed that team, promoting from within and making strategic hires.
In her CFO role at Park Nicollet Health Services, Lenagh faces the challenge of adapting to a revenue model that can be ever changing. In contrast to a for-profit business that is pricing its products to ensure a healthy profit, the nonprofit health system operates with very thin margins.
About 52 percent of its revenue is generated by Medicare and Medicaid patients, while about 48 percent comes from patients with commercial insurance coverage, Lenagh says. Because the federal government reimbursements do not fully cover costs of care, Lenagh says that she and her colleagues are always looking for ways to be more efficient.
Park Nicollet also has adjusted to patient needs by offering more primary care hours on weekends and evenings, which Lenagh says has attracted a higher mix of patients with commercial insurance coverage.
Liz Fedor, TCB’s Trending editor, will moderate the panel discussion. Attendees will have the opportunity to pose questions directly to the panelists.