682: Achieving a Flywheel to Create Long Term Value | John Collins, CFO, LivePerson

When CFO John Collins is asked how his background in data modeling and strategy is influencing the role that finance plays inside LivePerson, the artificial intelligence (AI) software firm that he first joined 2 years ago, he draws our attention to the mountains of data accumulating alongside most businesses today.

“Given the volume of data that exists and that the tools to transform it into information have not evolved very much, my taking over the CFO seat and building out this team under me is putting us on a path to better achieve more data efficiency,” explains Collins, while referring to the team that he’s dubbed “DMD,” or Data Models and Decisions.

“Data is essentially an input into a model. The model may be rather simple and rules-based or it may involve more sophisticated machine learning, but the models manipulate and organize that data to produce useful information,” continues Collins.

Still, what sets Collins’s data aspirations apart from those of his more traditional CFO peers is not the act of transforming additional data into information, but what he refers to as the Flywheel Effect, through which the system for digesting the information over time “gets smarter” and begins to create “automations” for different transactional activities while reducing uncertainty and maximizing the returns around decision-making.

“That’s the essence of the flywheel that gets generated, through the vision that we have for the CFO and the modern tool set underneath him or her,” says Collins, who characterizes the proper operation of the accounting and reporting processes as “tables stakes” inside a broadening finance function.

“For me, the past should be accounted for perfectly, but where I would like to focus is on being a strategic partner and the creation of long-term value,” comments Collins, who considers the Flywheel Effect as a primary contributor to long-term value creation.

Says Collins: “From my perspective, it’s pretty clear that we’re digitizing the world at an accelerated pace, which has had implications not just for traditional products and services but also for traditional jobs and corporate functions.” –Jack Sweeney

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