Transforming Finance from a Cost Center to a Value-Added Proposition - in conversation with Joan Lu
In the world of business transformation, finance often occupies the critical yet challenging role of being perceived as a cost center. However, many leading CFOs, such as Joan Lu, are redefining this perspective by positioning finance as a key driver of value and strategic growth. With her vast experience across global operations, commercial management, M&A, and financial turnarounds, Joan brings a fresh approach to this transformation. We spoke with her about how she aligns financial systems, processes, and teams with broader business objectives while demonstrating measurable impact.
Joan, your expertise spans global finance leadership across industries like automotive, energy, and technology. How do you view your role as a turnaround CFO in shifting finance from being a mere cost center to a value-driven function?
“Through my experience with both GE and GM, I’ve learned that the most effective way to shift the perception of finance is by integrating it deeply into the broader business objectives. This starts with a deep understanding of the entire business process — what I refer to as the “cradle-to-grave” process. At GM, for instance, I focused on improving accounting efficiency and control effectiveness. This wasn’t just about numbers on a balance sheet; it was about creating a framework that helped drive the business forward in a meaningful way. We redesigned processes to focus on inputs, not just outputs, and established clear communication across the team. Over 700 employees were educated on the expense-report submission process to ensure timely and accurate reimbursement procedures, managing a significant $5M in authorized monthly payments.
“Building relationships within the company is key to making this shift. Finance must engage with other teams and establish itself as an enabler of business success. That means understanding each part of the business — whether it’s operations, branding, or risk management — and demonstrating how finance can provide actionable insights that ultimately lead to cost savings and improved performance. For instance, through my work with GE on deal structuring and risk mitigation strategies, I helped the company navigate complex market conditions while safeguarding cash collections and operations, ensuring profitability even in volatile environments.”
Could you share a specific example of how finance has driven tangible business value in one of your previous roles?
“One standout example is my work with Goldman Sachs, where I helped build a financial organization to support an $800M oil and gas investment portfolio. We were tasked with not only ensuring the robustness of the financial reporting but also optimizing operations for long-term viability. The goal was clear: to transform finance into a strategic partner, guiding the company through an intricate web of financial, operational, and regulatory challenges. The impact was far-reaching. By streamlining the financial systems and aligning them with the company’s strategic objectives, we ensured accurate financial forecasting, enabling more informed investment decisions and ultimately unlocking significant value for the firm.
“Another significant project involved Nabors International, where I led the effort to address the FX translation and transaction impacts on a $600M operation spread across 14 countries. Through careful analysis and process redesign, we identified and eliminated deficiencies that could have resulted in millions of dollars in GAAP reporting and non-compliance issues. This not only saved the company millions but also ensured alignment with international standards, positioning Nabors for future growth.”
It’s clear that your strategic approach to finance has had a lasting impact on the companies you’ve worked with. How do you ensure these transformations are sustainable and scalable, particularly in the context of global operations and diverse regulatory environments?
“Sustainability and scalability come down to the integration of a holistic strategy that is not only focused on immediate objectives but also on long-term alignment with business goals. For example, when I worked on the financial transformation at GM, we focused on process redesign and the standardization of operations. This involved streamlining systems to improve efficiency, but also emphasizing the importance of governance and control at every level. Establishing clear policies and providing ongoing training and education ensures that these transformations are not just short-term fixes but sustainable changes that continue to drive value.
“In terms of global operations, it’s essential to recognize that each market comes with its own set of regulatory and operational challenges. Understanding local tax structures, compliance requirements, and business practices is critical. I leverage my international experience — working in diverse markets like the U.S., China, Algeria, and the Netherlands — to ensure that financial strategies are tailored to meet both global standards and local needs.
“Ultimately, aligning finance with business objectives means viewing it as a partner in growth. By integrating financial processes with the company’s broader strategic vision, finance becomes an essential pillar that drives efficiency, reduces risks, and unlocks value across all markets.”
Thank you for sharing, Joan.
