Fossil’s forward finance
Hamish McNicol finds finance should be engaged with a business, not just reporting on it.
Financial roles have often been about being the person who says no or the one who beats other people in a company over the head with numbers.
But Dennis Secor, the chief financial officer of American fashion designer and manufacturer Fossil Group since 2012, wanted to offer more than that.
He wanted his finance team to live and breathe the business, not throw rocks from the sideline.
‘‘We’ve transitioned from finance standing on the sidelines to being in their slugging away.’’
Secor was one of four keynote speakers at this year’s CFO Summit, organised by Fairfax Media (publisher of Stuff) and Conferenz, on March 15.
He has more than 30 years of accounting experience, but described his background as being a little bit eclectic when compared to the typical American financial worker.
Secor has worked across a lot of different industries, from software to sporting goods and fashion.
His previous firms included Polaroid, Callaway Golf, gaming company Electronic Arts, and Guess.
Secor said he had spent eight years working outside of the United States, which had taught him Americans typically thought the world ended at its shoreline.
‘‘I think I understand not all business is done the same way.
‘‘Americans, we can be rather pushy and our style doesn’t work everywhere.’’
While all the organisations he had worked for had been different, Secor said there was a common thread to his work: upgrading the finance arm of an organisation.
Finance teams were often focused on the outside relations, he said, particularly for listed companies, which could come at the expense of the company.
‘‘We want finance engaged with the business, rather than just reporting on it.
‘‘It’s about pushing the organisation.’’
Fossil was finding itself in an environment where its market was changing, he said, and the finance team was transitioning to be more forward-thinking, thinking about forecasts rather than just analysing historic results.
The company had broadened its recruitment from technical accountants to people with more ‘‘techy’’ skills, and was now plugged into its goals and helping to drive the company to achieve them.
Members of the finance team were integrated into other parts of the business, he said.
‘‘We’re living and breathing it every day.
‘‘The financial framework, I build that, but then I send out my team to put meat on those bones.’’
Last month, Fossil reported its worldwide sales dropped 3 per cent, or US$33.3 million (NZ$46.7m).
Its Skagen and Fossil brands had grown, but this was offset by a decline in its multi-brand licensed watch portfolio, which included brands such as Michael Kors and DKNY.
Traditional watch sales were falling, as were leather and jewellery, but connected, or wearable, watches were growing.
Secor said the company had historically grown by opening a bunch of retail stores, but those days were gone.
As such, it was pivoting its structure, stopping investment in the legacy business and opening fewer stores.
‘‘But I like to think that we, as a company, have been recognising this and moving quickly.’’
To do so, however, the finance team needed to be better aligned with the overall strategy.
Secor, who stressed he was not the ‘‘repository of all things that are brilliant’’, said the role of finance used to be about being the guy who said no.
Where finance used to beat other staff over the head with numbers, Secor wanted to listen to the demands placed on him by colleagues asking for help.
‘‘To succeed we’ve got to be in the business, we’ve got to live it and breathe it.
‘‘There’s been a big transition here.’’
The CFO Summit & Awards take place at SkyCity, Auckland on March 15. To register online visit