Way Beyond the Balance Sheet

The Modern CFO is a Strategic Partner for Innovation and Growth

In today's fast-paced business world, the Chief Financial Officer (CFO) has more to think about than crunching numbers. For growth and innovation companies like 3Shape, the CFO has become a strategic partner in achieving the overall business goals. It's a whole new ball game for CFOs, says Kristian Krag Nielsen, CFO at 3Shape:

"As part of the leadership team, the CFO naturally gets an overview of what's going on in the business. And since you also have the power of the purse, you need to steer resource allocation and investments. This creates both an opportunity and responsibility for getting involved where the business needs attention or to be moved forward strategically. For me, this broader and more engaged CFO role is exciting and fun."

“If done right, finance can be a ticket to wider involvement and influence."

Krag confirms having a portfolio of classical CFO responsibilities, such as finance, IT, and business operations. However, in a growth and innovation company like 3Shape, the role has also evolved to include other perspectives. As Krag says, "If done right, finance can be a ticket to wider involvement and influence."

"My role touches on all aspects of the business strategy through, for example, decisions on resources and linking the use of our money to our goals. Today, we have analytical tools and skilled financial experts on my team that enable us to see ahead, and naturally, I need to stay on top of the numbers. But I also need to have an overview of other important things going on in the company."

According to Krag, his involvement can influence the company's forward-thinking strategies. By combining knowledge of the day-to-day business with his financial expertise, Krag is in a privileged position to ask the right questions before the company embarks on significant investments.

"I can influence in different scenarios. I have a responsibility to be a sounding board to our CEO and challenge him if needed. I am also active when discussing which topics, we should take to the board, and naturally, I try to contribute with financial insight during our executive management meetings."

Kristian Krag's career started a far cry from finance and business. He served two years in the Danish Armed Forces and became a platoon commander at twenty-one. Krag says that his military experience taught him many things that he applies in his role as CFO today.

"Leading 35 soldiers and activating them on muddy fields is in some ways similar to running a CFO’s department because, in both cases, you need to create followership. Followership comes when my team trusts me, and each member understands the why, what, and how of everything I ask them to do. As a military officer, I practiced basic leadership dynamics such as communicating, problem-solving, decision-making, and strategic planning. I saw the value of motivated teams and people. Today, nurturing my team’s engagement and their personal development is high on my list."

 “Scalability is a critical responsibility for the CFO in a growth company.”

Krag heads various teams covering finance, IT, and the company's wide range of operational functions. Operations include how the company handles orders, ships products, and maintains an efficient IT infrastructure. His responsibilities include ensuring that the operational tools and workflows continue to support growth. Here Krag sees "scalability" as a critical responsibility for the CFO in a growth company.

"The things that helped us grow until today may not be the things we need to continue to grow," he says. "You need to pay attention to the parts in the fundamental operational machine because otherwise, at some point, they can block your growth despite having great products on the market."

“Our purpose is to enable superior dental care for every patient every time. This ambition is to be understood literally.”

With its roots in Denmark, 3Shape has shown impressive growth within an industry that is projected to continue its upward trend. According to Krag, 3Shape's products are in high demand because they present a strong value proposition:

 "When you need a new crown or implant, your dentist takes a dental impression to get a replica model of your teeth. The traditional way, still used in most dental practices, involves inserting a lump of silicone or alginate in your mouth. It's unpleasant, can make you gag or even throw up, and is one of the reasons many patients fear the next visit.

Fortunately, today, dentists can instead use a modern intraoral 3D scanner, like 3Shape's TRIOS, to create a digital impression. Such scanners are in thousands of clinics worldwide, and the number is increasing rapidly. Taking impressions with intraoral scanners is easier, faster, more accurate, and more comfortable for the patient than the traditional way. This is only one of the ways 3Shape's digital technologies are opening new avenues for better dental care."

Krag classifies 3Shape as a med-tech innovation company that can redefine its industry and has a meaningful impact on people's health worldwide. At the same time, it is also a growth company. These two forces complement each other, according to Krag: 

"Our purpose is to enable superior dental care for every patient and every time. This ambition is to be understood literally. We believe dentists should apply our solutions as a standard routine with every patient visit. As more and more dentists become aware of the benefits of our technologies and use them, the more we grow as a company, the more we innovate, and the more we positively impact dental health on a large scale."

“The company’s vision and purpose become essential guidelines when making financial decisions.”

According to Krag, helping the company realize its vision and purpose is an obvious path for any CFO. However, especially for a CFO in a growth and innovation company, the vision and purpose become essential guidelines when making financial decisions about funding and resources for, e.g., R&D projects.

"At the end of the day, it matters where you spend your time and money as a company. As the CFO, I must constantly review the opportunities and proposals, accepting some and rejecting others. Having a clear, streamlined purpose helps here. At 3Shape, I know that the main things we should put our money behind are things that will improve dental care for patients. I feel privileged to work with a defined purpose that motivates me personally. It simply feels good to make choices that ultimately improve people's health and lives."

ABOUT Kristian Krag Nielsen

Kristian Krag Nielsen serves as 3Shape's Chief Financial Officer. He is responsible for Finance, IT, and Business Operations. His main ambitions at 3Shape are to help the company improve dental care for more patients and continue making 3Shape a superb workplace for current and future talents.  Before joining 3Shape, Kristian served as Vice President and divisional CFO of Novo Nordisk’s R&D division. Prior to that, he held various roles within finance and strategy at Novo Nordisk working in both Denmark and the US. He has also served with McKinsey & Company and is a former Reserve Officer in the Danish military. Kristian holds a master’s degree in political science from Harvard Kennedy School (US) and Aarhus University (Denmark), with additional studies at the Aarhus School of Business. Kristian is married with two children, and spends his leisure time enjoying outdoor life, including biking and skiing.