One of the questions that comes up most often when talking with prospective clients is, “What can a CFO do for me?” And that makes perfect sense, because when you’re unfamiliar with the role and someone explains it to you, it can seem very abstract. So, to illustrate the value of a CFO, we’re going to discuss four of the biggest financial innovations inspired by CFOs’ insights.
1
McDonald’s: The Real Estate Empire Hidden Behind the Burgers
This is the best-known innovation, largely because it was highlighted in the movie “The Founder,” starring Michael Keaton. While McDonald’s is first and foremost a global fast-food chain, it is also a real estate giant. This project began in the 1950s under the leadership of Harry Sonneborn, McDonald’s first CFO.
Innovation:
Rather than focusing solely on revenue from hamburger sales, Harry Sonneborn proposed a model in which McDonald’s would own the land and buildings on which franchisees would set up their restaurants. The franchisees would pay rent to McDonald’s, generating stable, recurring revenue for the company.
The impact:
- McDonald’s is now one of the world’s largest real estate owners.
- When a company is experiencing strong growth, it burns through cash much faster than it comes in; this strategy has made it possible to increase revenue significantly, while also making it recurring and predictable.
2
Amazon Prime: The Subscription That Builds Customer Loyalty and Generates Profit
In 2005, Amazon launched a major financial innovation: the Amazon Prime program. While most e-commerce companies were trying to attract customers with one-time promotions, the idea of offering an annual paid subscription for unlimited free shipping had never been conceived. This innovation came from the finance team, which noticed that cart abandonment rates increased dramatically when shipping costs became too high.
Innovation:
What if we charged customers a subscription fee while offering them exclusive benefits such as fast, “free” shipping—and additional perks like Prime Video, Amazon Music, etc.? This would encourage subscribers to buy more to get their money’s worth out of their subscription. Amazon has realized that a subscription can turn occasional customers into loyal, predictable buyers.
The impact:
- Prime now has more than 200 million subscribers worldwide.
- Prime customers spend, on average, more than twice as much as non-Prime customers.
- This model has been adopted in other industries (Walmart+, Fnac+, etc.).
Discover our part-time CFO services
3
Salesforce: The Invention of the SaaS Model
Before the 2000s, software was sold as expensive licenses installed on local servers, with complex updates. In 1999, Salesforce’s Chief Financial Officer and his team identified the biggest criticisms leveled at certain software products—notably Adobe—and decided to revolutionize the market by introducing the SaaS (Software as a Service) model.
Innovation:
Salesforce offers customer relationship management (CRM) software hosted in the cloud and accessible through a simple monthly subscription. Customers no longer need to purchase servers or pay for updates: everything is included in the subscription.
The impact:
- Salesforce has made software accessible and flexible for both small and large businesses.
- SaaS is now the norm in the technology sector: Microsoft (Office 365), Google (Workspace), Adobe, etc.
- Recurring subscriptions generate stable and predictable revenue for businesses.
4
Netflix and the Unlimited Subscription
While the subscription model existed before, Netflix revolutionized DVD rentals by introducing an unlimited monthly plan with no late fees in 1999. This innovation, designed to counter Blockbuster (its main competitor in the U.S., which went out of business in 2014), marked the beginning of the “all-in-one” fixed-price model.
Innovation:
Barry McCarthy, Netflix’s CFO, who helped them prepare for their initial public offering, realized that an unlimited subscription would offer simplicity and transparency for customers while ensuring recurring revenue. He knew that the vast majority of rentals were returned by the due dates. Eliminating late fees would represent a negligible cost and provide a powerful marketing selling point.
The impact:
- Netflix is now a global leader in streaming, with more than 200 million subscribers.
- The model has inspired other industries: music (Spotify), fitness (ClassPass), and even video games (Xbox Game Pass).
The key takeaway:
Netflix has successfully removed barriers for consumers while creating a stable and scalable business model.
Conclusion
These financial innovations demonstrate how CFOs and finance teams have reimagined traditional business models to deliver greater value to customers while ensuring sustainable growth. Whether by transforming a company into a real estate giant (McDonald’s), building customer loyalty through a subscription model (Amazon Prime), or generating recurring revenue (Salesforce and Netflix), these strategies continue to inspire entire industries.
All of these innovations have enabled these companies to achieve significant growth. Companies of this size account for 0.1% of the business community. For the remaining 99.9%, there are solutions that provide financial guidance to maximize growth. One of the best solutions is to hire a part-time CFO.