Regional Chief Financial Officer (R-CFO)

Job Profile:

The CFO will the ears and mind of the CEO wrt. the profitability and governance of the business. CFO is a core business partner to the CEO, not a bean counter. CEO will ensure that CFO is involved in all key business reviews/discussions and have full picture of the business to enable him/her to play their role effectively. For clarity, CEO is No. 1 in the business and CFO, COO and Market Head-Sales are all No. 2 with the 4 jointly forming the core leadership for the business.

RCFOs to take lead on optimizing (not necessarily minimizing) the costs of the company through 360° approach to sustainable change: using both qualitative as well as quantitative assessment of existing practices, and balancing achievement of our financial goals with delivering on target quality of our product and service + delivering on the reasonable financial success of our stakeholders (vendors, associates, customers).

• Tools: specification optimization, improved procurement using vendor development / strategic partnerships / negotiation/ payment terms etc., relationship strengthening (win-win), cultural change, communication, quality improvement, wastage reduction, TEP focus, process simplification / improvement, system strengthening, people capability building etc.
• Principles: Drive implementation of the same using the principles of One Lodha and Lodha First.

Key Responsibilities:

Profitability

a. Jointly responsible with CEO for delivering on the top-line and bottom-line (PBT and IRR) goals of the business / region wrt.

i. Development

ii. Hospitality & Property Management (HPM)/ Operations

iii. Any other relevant P/L which falls in the business / region

b. Identifying opportunities for improvement in profitability, basis analytical approach including external and internal benchmarking, as well as best practice study. Aligning with CEO on these opportunities and driving implementation. Key focus area for profitability improvement will include:

i. Pricing

ii. Construction Costs

iii. Sales & Marketing costs

iv. Other Overhead & People costs (including productivity and insourcing v. outsourcing)

v. HPM Costs

RCFO will develop functional budgets/ targets for the above with the functional / business leads and pro-actively work with these leaders to implement improvement using the 360° approach to sustainable change.

c. Cost Consciousness: Drive a robust cost-conscious culture through regular reviews, e.g., working closely with the DCO team to optimize construction

costs, identifying opportunities for pricing materials/work orders with procurement teams, managing selling and marketing overheads, and controlling corporate-level people costs, including HPM costs.

RCFOs should work to optimize product costs across the region/organization while maintaining relevant quality standards. Cost optimization entails more than just cutting costs; it involves ensuring we receive the right "value for money" for the desired quality. Cost optimization should follow the 360° approach to sustainable change.

d. Working closely with the core leadership of the region: CEO, COO and Market head-Sales to strategically align on the regions direction on growth and profitability.

Business Planning & Reporting: In consultation with “Core Leadership” and Group Finance

a. Set KPIs (Sales, Profitability, New business added, Reputation & ESG scores) and track / report against performance thereto

b. Prepare annual, short term & medium term business plans and track performance and improvement measures.

Governance

a. Ensuring that one picture on the business’s performance (topline and bottom-line) is available in system-based manner (and almost real time) for

business/region as well as Group. Gain confidence of the various leaders in the business as well as Group leadership on the quality and authenticity of

the information and ensure that they stop putting effort to create their own versions of the business’ performance.

b. Ensuring appreciation / understanding of the TEP & POSH policies amongst all associates & vendors / CPs in the business / region.

c. Coordinating with Internal Audit team on the auditing of the processes and functions in the business / region, highlighting / sharing of learnings, and

driving the process / policy updates to prevent recurrence of leakages from gaps which have already been identified.

d. Develop systemic changes and re-evaluate current processes to structurally eliminate or minimize potential issues identified by Internal

Audit/Intelligence teams that have financial impacts. This will involve understanding the root cause of the issues, collaborating with respective HoDs,

and designing robust processes to prevent recurrence in the future.

e. Work closely with the Intelligence team to identify transgressions and take actions in accordance with TEP/POSH policies. Additionally, RCFOs

should partner closely with HR teams to ensure that cultural changes are implemented to minimize TEP/POSH issues. This includes implementing

appropriate communication strategies, counseling, training, and enforcing disciplinary actions.

Accounts

a. Finalizing quarterly / annual accounts of the Business (working with Group Finance function) as per guidelines framed by Group CFO.

b. Working with Group’s Accounts Payable and Receivables team on process and/or implementation issues / gaps e.g.. bills are being booked to

right head in the P/L.

c. In case of businesses involving ongoing invoicing and collections (e.g.. HPM, Retail, Project Management), ensuring that:

I. Invoicing is done in timely manner

ii. Receivables are tracked and action taken (in discussion with Business) on ensuring that >90 day receivables are ~0

iii. Developing and implementing policies wrt interest (and waivers thereto) on delayed payments

iv. Review current systems and develop/reframe better systems and processes for timely collections (e.g., implementing a centralized/automated

billing system for CAM Rentals, levying interest on delayed payments, etc.).

d. In case of ‘cost+’ arrangements (eg. HPM, Project management), ensuring that relevant cost information is available in professional and

transparent manner at intervals as may be customary. Any disputes with the customer should be closed through discussion (by

CEO/CFO/concerned business leader) no later than 60 days from the date of the said accounts being made available to the business.

e. In case of overlapping business CFOs, clarifying which business CFO will play what role (eg. in Region v. HPM, HPM’s CFO may take care of

all responsibilities of the Business CFO wrt HPM in all regions).

f. In addition to their regional responsibilities, each RCFO can take on additional business partnering responsibilities for any centralized cost

centers that currently do not exist (e.g., Procurement Finance, Selling and Marketing Finance, CAM collection process, etc.). This can be done in

consultation with the MD/CFO, based on the allocation of tasks among different RCFOs, Deputy CFO, and other members of the finance team

Commercial

a. Setting up and controlling processes followed by region’s commercial teams (construction, HPM, Business Strategy etc.).

b. External and internal benchmarking on costs and sharing that information with the relevant teams and giving them appropriate commercial

improvement targets.

c. Serving on the relevant Commercial / Procurement committees

d. Governance of Debit (& debit waiver) policy.

Communication

a. Communicate actively with Group on the opportunities and challenges in the business.

b. Communicate actively within the business on the opportunities, challenges, improvement areas and competitive environment. Finance has to lead

by gaining confidence and inspiring ideas, not be a backroom ‘bean counter’.

c. Communicate on issues impacting Profitability / Governance / Commercial / Accounts with all concerned stakeholders (including external

and/or internal) to achieve desired business outcomes.

Reporting: Business CEO (day-to-day) & Group Controller (functional)

Background:

a. Strong fit with Lodha values – intelligence, hard work, ethics

b. Exposure to business finance role / mindset

c. Chartered Accountant (C.A.) / equivalent

Future growth Opportunities: The role will generally be for a period of 3-5 years, with a view that the candidate gains sufficient group and business knowledge to move into one of the following role and enable growth of the group:

a. As CEO of any business / region

b. As CFO of other businesses / regions

c. Senior role in Group Finance function