Meet the Masters - Luisa Barile, Bought By Many
LUISA BARILE
Luisa Barile has had a busy start to the year. Bought By Many, of which Luisa is Chief Financial Officer, have recently announced their Series D $350m funding round, which values the business at over $2bn. Danielle Ward, Director at The Up Group, catches up with Luisa on the journey thus far and her advice for first-time CFOs considering the role.
Luisa was winner of the 2020 Digital Masters Award for Excellence in Finance.
In your opinion, what are the top three attributes of a great finance leader?
To me, people skills are the most important attribute for any leader, regardless of the function. In the end you are only as good as your team, and you need to be able to enable them to be their best. In finance, it is also vital that we build relationships with all the other functions in the organisation so we can work alongside them to support decision making. This starts at the top; the CFO should partner with all of the leaders in the business, not just the CEO.
“A lot of people think of finance as just numbers, but I like to think about it as the stories that we need to unveil using data and analysis.”
The second attribute is the ability to tell a story from the numbers. A lot of people think of finance as just numbers, but I like to think about it as the stories that we need to unveil using data and analysis. I like the analogy of Michelangelo who believed that every block of stone had a statue inside it, and the task of the sculptor was to remove the excess stone to reveal the statue. If you have the right story, clearly supported by the numbers, then you enable great discussions with the rest of the business which leads to great decision making.
The third one is problem solving. By approaching topics as a problem to be solved, and applying a bit of creativity, there are always different ways to look at and consider an issue, and different ways we can involve other people to help find the solution. Ideally, we don’t follow the same path twice. If there are aspects that are working then they should stay consistent, but in a business that is changing and growing fast we always need to reconsider what we are doing.
When hiring for your team, what do you look for in a great finance leader?
I always like to ask people about how they use their time. A great finance leader should spend time thinking about the future, challenging assumptions, planning, and talking about the team.
When allocating my time, I make sure I spend time with people, thinking about their development and finding out what type of support they need. I also force myself to find time to detach from the day-to-day running of the business to think about broader, longer term issues. I achieve this by teaching a business school course on growth. It helps me to reflect on other companies and sectors that have nothing to do with pet insurance. I look at the choices they have made, how they have scaled their businesses, and the challenges they encounter and then I can see how relevant those aspects are for our case. It is refreshing to take a step back and think about the bigger picture.
In your opinion why does diversity matter?
There are plenty of studies that demonstrate the very tangible impact of having a diverse workforce in terms of business results and shareholder returns. At Bought By Many our customer base is diverse and, by having a team from different backgrounds that reflect those of our customers, we can appeal to a wider range of people and make sure we talk to them in their own language.
It is also about thinking through the type of people we hire and making sure diversity is considered, so we give everybody a chance for success. People have inbuilt bias but the more diversity you have in a business, the fewer blind spots you have and the more conscious you become of those that you do have. Then you can work on improving them.
How have you found connecting the diversity of your employees and your customer base has affected the relationship Bought By Many has with its customers?
It has been really important, and I find that I spend a lot of time talking to investors and people in the industry about the diversity element. We have a lot of engagement events with our customers, and they want to see diversity within the business; our customers and pets are all different, so the same should be reflected in our business. We try to have an inclusive approach to the pets too – we say that ‘friends come in all shapes and forms’, and make sure we cover pets with pre-existing conditions for example. There are a lot of commonalities between an inclusive culture in the business, and being able to pass that culture and values on to our customers.
From your consulting and commercial background, what drew you to Bought By Many and your role as CFO?
“I cannot speak for diversity in all its dimensions, but when you are in a minority group, you want to make sure you are joining a company where you can be yourself.”
I met Steven [Mendel] the CEO & Co-founder of Bought By Many at an event, and he approached myself and a group of women saying that he was looking for a new CFO. He only had two conditions; he needed someone that knew insurance and the placement had to be a woman. I found this such an interesting approach, as usually a hiring process involves a long list of requirements and then if the hire is a woman, that is a plus. But Steven put diversity at the forefront having looked at his leadership team at that time and realising he needed balance.
I was not considering moving jobs when I met Steven, but I was so impressed by his approach that it caught my attention. As I got to know him and the company more, I realised that the role could be for me. I cannot speak for diversity in all its dimensions, but when you are in a minority group, you want to make sure you are joining a company where you can be yourself. Interacting with someone who puts diversity at the centre reassured me, and I knew I would not have any additional hurdles in my day-to-day job.
How do you create a high-performance culture and are there any examples you have put into place that have been effective?
I have very high standards for myself, and I apply these same standards to my team. I am lucky in that I do have a high-performing team, but for me it is about understanding what people are struggling with and spending the time with them to improve those situations. I see myself as the person who is there to help the team to do their jobs correctly; if someone is struggling, it is not a question of them not performing well, but rather me not spending enough time with them or finding the correct support for them. Leaders need to find the right balance of giving their team freedom and being there to support and guide them.
What is your career highlight to date?
I would probably say the latest fundraise that we have just secured [Series D $350m, which values Bought By Many at $2bn]. When I joined, we started talking about becoming a unicorn business one day and, at that point, it seemed like a pipedream. Since then, we have had impressive growth and being able to reach that point in three years has just been phenomenal.
Whilst that is the outcome, I usually like to think about my career highlight as the journey. For that, the best choice I made was to join Bought By Many; to have the courage to take on a role where I had no prior experience of a tech start-up or being in a CFO role, was not the natural choice but it was the right one.
What would be your advice for first-time CFOs considering making the jump into that role, especially those with non-traditional CFO backgrounds?
I would encourage people who come from non-traditional finance backgrounds to become CFOs. There is an assumption that the CFO role is all about accounting and numbers and, although I am responsible for that, I have a fantastic team of accountants and financial controllers who help manage that aspect. Whilst I understand enough to be able to challenge their decisions and make sure that what we do is correct, I spend most of my time on the strategy of the entire business. It is a wonderful role and, whilst I thought it would be too internally focused as a function - especially following my consulting and commercial background - that has not been the case. I would say take the risk and enjoy the journey; even if you realise you do not like the role, it is still a learning and an interesting step in your career.
You mentioned the success of Bought By Many’s Series D fundraise; do you have any key lessons from that experience?
We were lucky in that we had a good journey, but at times it can get intense, so my advice is to be prepared. Being able to have your story ready and with that, if you can, having the ability to influence the investors to focus on what is relevant and what is not, was helpful for us.
“Check that the culture fit matches and get to know the investors, the relationship becomes like a marriage!”
There are of course external factors that you cannot control but choosing the right investors has been crucial for us. You work with the investors for a long time after the money has been invested, so we prioritised the relationship rather than a higher valuation. Check that the culture fit matches and get to know the investors, the relationship becomes like a marriage!
And lastly, are there any books that have influenced your career or leadership style that you would recommend?
I love the classics – I feel there is so much to learn from great leaders of the past. I encourage my children to read about Roman history, and we recently covered the life of Julius Caesar; his story is a fantastic example of leadership whereby he had the ability to communicate and relate with people from all walks of life. He looked after his soldiers and motivated people even in the most challenging situations. I think there are so many examples of great leaders in the classics, both male and female, that we can learn from.
I would also recommend The Art of Possibility by Rosamund Stone Zander and Benjamin Zander. As a conductor of an orchestra and a psychotherapist, they talk about leadership lessons and particularly on how to lead from the back which I found really interesting, and it helped influence the early phases of my career.