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MANAGEMENT ACCOUNTING

‘For us, cash is king. what we can’t see, and help them understand how
our risk appetite may need to be modulated based
During downturns upon that,” she said.
Kite also said finance leaders can use finan-
cial strategies tailored to today’s economy. With
and during periods remote work accelerating, companies must reassess
their real estate strategy. Companies may save
costs by rearranging offices, as Goldman did
where other people are during the Great Recession, but they also must
consider how they’ll maintain their presence in
different communities, Kite said.
struggling, we’ve been and your real estate footprint, but your entire loca-
“How will you look at not just your workforce
tion strategy?” she asked.
able to really capitalize.’ a year of opportunity, especially for cash-rich
And, like Heacock, Kite pointed to 2023 as

companies.
“When everyone faces a downturn, especially if
Natalie Heacock, CPA, the CFO of Patrick Lumber Co.
an organization’s cash rich, it could be a breakaway
time,” she said. “They may take this time to hire
when other organizations are reducing.”

LEADING THROUGH HARD TIMES
continually moving investments,” she said. “It’s Inevitably, a recession brings pain for companies
that agility, that flexibility, continuously rebalanc- and their employees — and that requires a special
ing, continuously reforecasting — having the tools set of leadership skills, said Lewis Williams, CPA,
in place to quickly do that.” the interim CFO for the Property Insurance
Ultimately, Kite’s team was able to complete Company of America.
the new headquarters project, running $200 mil- Williams was senior director of global finance
lion under budget, and return $1 billion to the for Ally Financial from 2009 to 2012 — put-
organization by renegotiating real estate leases. ting him at the center of the Great Recession’s
They also helped Goldman to move back-office economic fallout.
functions from high-cost areas like New York City, The company had only recently rebranded
Hong Kong, and Tokyo to areas with lower costs from its previous identity as GMAC, or General
for the company, such as Salt Lake City, Singa- Motors Acceptance Corp., and it had just been
pore, and Bangalore. licensed as a bank holding company. Meanwhile,
She believes a similar approach can help with GMAC had taken billions of dollars in federal
the uncertainty of the year ahead, especially bailout money, and federal regulators wanted Ally
because her Amazon organization spans multiple to pare down its assets to get rid of “everything
geographic markets in a fast-growing, complex that’s not related to auto financing or banking
sector. She’s urging her employees to run more directly,” Williams said.
scenarios, ranging from best case to worst case, so For Williams, that meant overseeing the sale of
that her organization is ready to respond. several insurance companies. “I had 120 people in
She also wants them to spend more time in the five countries,” he recalled. “You’re trying to stay
field, “getting much closer, observing and listen- organized. You’re trying to listen to what people
ing” for the newest trends and signals. At the are telling you. I was trying to give them what they
same time, she’s working as an executive to get needed to perform.”
a “horizontal” view of the organization via close That required constant communication with
communication with other leaders in legal, HR, different markets, attempting to understand the
finance, and beyond. nuances of various corporate and regional cultures
“During times of change, the finance leader can — all while keeping employees focused on the
be the ‘chief future officer’ for the organization, to bigger goal. That was difficult in some cases. For
really help them to solidify what we can see and example, one group had been through multiple

16 | Journal of Accountancy March 2023