Navigating the CFO-CRO Relationship: A Look Inside Planet DDS
Chief Financial Officers (CFOs) and Chief Revenue Officers (CROs) often face conflicting priorities. At Planet DDS, a California-based dental services software firm, CFO Stephen Fong and CRO Mike Huffaker are forging a strong partnership by focusing on collaboration and shared goals.
Building a Partnership at Planet DDS
Stephen Fong joined Planet DDS as CFO in late 2022, bringing experience from Microsoft, EY, and KPMG. Mike Huffaker became CRO at the start of 2024, after serving in other sales leadership positions within the company. Both are first-timers in their respective roles, which they believe has been beneficial in establishing a strong working relationship. They view potential tension as an opportunity to refine ideas and avoid preconceived notions.
Financial Planning and Analysis: A Key Area for Collaboration
Fong believes financial planning and analysis are the most natural areas for CFO and CRO partnership. The pair meet at least monthly to discuss revenue targets, hiring, headcount, and Huffaker's growth strategies. Fong also appreciates Huffaker's analytical approach and the “business-owner mindset” within his team, citing a recent whitespace analysis that identified opportunities for new product sales and customer buying patterns.
Addressing Disagreements Through Data and Shared Understanding
Any disagreements between Fong and Huffaker typically revolve around timing, especially regarding sales initiatives with longer revenue recognition timelines. To overcome this, they prioritize clear data and reporting. A recent example of their successful collaboration is the plan to increase headcount on the account management team. Fong emphasizes that they have a "shared taxonomy" for defining and interpreting information.
Planet DDS: Growth and Future Outlook
Planet DDS's primary customer base consists of multi-location dental groups and dental service organizations (DSOs). With private equity investment driving roll-ups in the dental space, Huffaker noted significant growth since he joined in 2019, with the company expanding from approximately 60 to 370 employees and experiencing a tenfold increase in revenue. Founded in 2003, the company crossed $100 million in annual recurring revenue this year, with Fong expecting continued growth.
Moving Forward in Lockstep
Both Fong and Huffaker emphasize their commitment to collaborative progress. As Fong stated, "We have very frank conversations about how things are going and where to invest. I think it tends to make some of the decision-making and progress really smooth." Huffaker summarizes their approach as "alignment, accountability, and autonomy in how we work together, leading the financial side of things."
