In today's interconnected global economy, the ability for financial leaders to adapt across different sectors is a critical skill. Professionals who can translate insights from manufacturing to finance or from technology to retail are positioned to drive innovation and efficiency. This cross-pollination of ideas is important for navigating complex regulatory landscapes and dynamic market conditions. Parvinder Panjeta, a Chartered Accountant with over two decades of experience, has a background that reflects this approach to financial leadership. His career spans industries such as chemical distribution, banking, technology, and manufacturing, offering a perspective on process optimization and profitability. Panjeta’s work in international process migrations and cost-saving measures illustrates how financial principles can be applied to solve industry-specific challenges. A Strategy for Diverse Industries Successfully navigating roles across varied industries requires a strategy grounded in adaptability and foundational knowledge. The core tenets of finance remain consistent, but their application shifts with each business model. According to Panjeta, the initial focus must be on understanding the specific operational context before seeking improvements. He describes a two-step approach to acclimation and value creation. “Accounting principles are 95% same across all industries, but the way business is done is completely different,” Panjeta states. This recognition is the foundation for his method. “First, acquire the business knowledge and learn how the transactions are recorded or the processes are performed. After gaining that knowledge, look out for improvement opportunities where the cost can be saved.” Transferring Experience to Overcome Challenges Experience from one sector can often provide a solution to a problem in another. The key is recognizing patterns and understanding how established practices can be modified for new environments. This was evident when Panjeta identified a process gap in the banking sector based on his work in other fields. “When I was working in the pharma sector and even the Oil and Gas sector, all the journal entries were routed through a workflow tool for approvals and posting. This was not the case at Citibank,” he recalls. By diagnosing the inefficiency associated with a manual, email-based system, he was able to advocate for a different solution. “I suggested that we implement a workflow tool for approval and posting of journal entries, which was taken up as a global project, resulting in considerable cost savings and bringing in additional controls,” he adds. This kind of initiative shows how applying principles from other industries can lead to performance improvements and strengthen internal governance. Such projects can also help institutions address data quality issues and enhance regulatory compliance. performance improvements enhance regulatory compliance Executing Complex International Migrations Managing the migration of financial operations across borders presents a unique set of logistical and cultural challenges. A successful transition hinges on planning, communication, and an understanding of process dependencies. Drawing from his experience managing migrations from Manila to Mumbai, Panjeta points to several factors for ensuring a smooth handover. A foundational element is collaborative preparation. Panjeta highlights, “The importance of a well-planned transition plan that has been agreed with both the teams who are presently doing the activities and who will learn and transition the activities to the receiving location.” Equally important is the quality of knowledge transfer for business continuity. He stresses, “The need to ensure that the team documents the end-to-end process, including any exceptions and how the exceptions will be handled after transition.” In an era of increasing FinTech adoption, these migrations often involve new technologies. Studies show that in some markets, fintech development significantly increases bank liquidity creation, adding another layer of complexity to manage. FinTech adoption fintech development significantly increases bank liquidity creation Forging an Adaptive Leadership Style Exposure to different operational philosophies can shape a leader's approach to problem-solving and strategic planning. The contrast between the cost-focused world of manufacturing and the data-centric technology sector provides a varied experience in financial management. This background has influenced Panjeta's adaptive and forward-looking leadership style. He credits his time in manufacturing with building a foundation in fiscal discipline. “In the manufacturing sector, I understood Cost accounting and cost controls in detail, emphasizing working capital efficiency,” Panjeta notes. This focus on efficiency contrasts with the technology sector's emphasis on data. He explains that, “The technology sector introduced me to the power of data-driven decision-making, forecasting, and automation.” This blended perspective is critical in a financial world where improved collaboration between risk and technology teams is necessary and where decisions can have a 'double-edged effect' on systemic risk. 'double-edged effect' on systemic risk The Technology Sector Learning Curve Among various industries, the technology sector often presents a steep learning curve for finance professionals, primarily due to its unique revenue recognition standards. Unlike traditional industries where revenue is typically recognized at the point of sale, the software-as-a-service (SaaS) model requires a nuanced approach governed by complex accounting rules. Panjeta identifies this as his most significant professional challenge, which required relying on core skills. “The steepest learning curve was in the technology industry. My strong financial and accounting fundamentals helped me overcome it,” he states. He illustrates the core issue: “If the license to use software is sold for one year, the funds are collected upfront. But the revenue is recognised over a period of time. So the revenue is parked in the deferred Revenue account.” This practice is guided by standards like ASC 606, where revenue can only be accounted for over the noncancelable portion of a contract. A failure to manage this can lead to pitfalls like the improper handling of bundled services or incorrect estimation of variable consideration. accounted for improper handling of bundled services Additionally, related costs like sales commissions must be capitalized as assets and amortized. This adds complexity that requires finance teams to properly estimate variable consideration. capitalized as assets estimate variable consideration Optimizing Processes with Cross-industry Insights The ability to optimize processes and enhance profitability is evident when insights from one industry are applied to another. Panjeta has utilized this approach, often applying cross-industry frameworks for business process reengineering, by developing and adapting tools across different sectors. This demonstrates how solutions can be transferable with the right adjustments, especially when supported by frameworks that incorporate risk management. cross-industry frameworks for business process reengineering incorporate risk management One such tool was for tracking financial activities. “This was an Excel-based tool developed to track the timing and accuracy of Balance Sheet reconciliations, journal entries posted, and other reporting activities,” he says. “I had developed that tool in the Oil and Gas Industry, and it was replicated by me in the Pharma industry a few years later.” He applied a similar concept to cash flow management. “I had developed a Cash forecasting tool while working in the retail industry, which was customized and utilized in the Chemical distribution industry,” he adds. This tool enabled better management of working capital, a critical factor in industries with high transaction volumes. Advantages of Versatile Leadership In today's business environment, a finance leader with cross-industry experience can offer strategic versatility and adaptability. This breadth of knowledge enables them to bridge the gap between financial planning and operational execution, a crucial link for sustainable growth. Panjeta believes this background provides a strategic advantage. “I believe cross-industry experience gives a finance leader a broader strategic lens and greater adaptability,” he explains. This perspective allows for a more holistic approach to risk management and stakeholder communication. “This versatility allows me to connect financial strategy with operational reality, manage risk more effectively, and communicate insights in a way that resonates across diverse stakeholders,” he adds. Such an approach is essential when dealing with complex financial instruments or determining the Standalone Selling Price (SSP) for bundled services. It also informs decisions on whether renewal commissions are commensurate with the initial commission, impacting long-term financial modeling. Standalone Selling Price (SSP) commensurate with the initial commission Driving Future Growth and Resilience Looking forward, challenges facing global businesses require leaders who can synthesize lessons from diverse environments. Leveraging a broad industry background becomes essential for building resilient organizations that can innovate while maintaining financial discipline. Panjeta plans to continue this integrated approach, enhanced by new skills in data analytics. “Looking ahead, I plan to leverage my cross-industry experience by integrating the best practices I've learned into solutions that address global complexity,” he says. “I see my role as not just managing numbers, but helping organizations translate financial insights into strategies that ensure sustainable growth in a rapidly evolving global economy.” This perspective is useful for making strategic decisions, such as determining the correct amortization period for capitalized costs or deciding when to use a practical expedient for expensing contract costs. amortization period practical expedient The role of a cross-industry financial leader often involves seeing the bigger picture. By drawing on varied experiences, they can identify opportunities, mitigate complex risks, and guide their organizations toward a stable future in an ever-changing world.

This story contains new, firsthand information uncovered by the writer.

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