Co-Managing an $800M Budget at Aventine

Situation

Aventine operated in a highly volatile marketplace where both the products sold and the inputs used were dependent on fluctuating commodities prices. The company’s financial health was directly impacted by these market dynamics, which required a strong focus on finance. This environment provided an exciting opportunity to apply the financial skills I gained as a small business consultant and during my MBA program.

Actions

In my role, I undertook several key actions to manage the financial health of the company:

1. Annual Financial Budgeting:
   • Co-managed the budgeting process for an $800M annual budget, ensuring alignment with strategic goals.
2. Operational Forecasts and Plans:
   • Worked closely with executives across multiple departments to prepare operational forecasts and plans.
   • Owned forecasts for various teams, including Logistics & Development, Marketing, Plant Operations, Procurement, and Information Technology.
3. Balanced Scorecards and Dashboards:
   • Developed balanced scorecards and dashboards to measure progress towards forecasted goals.
   • Identified issues proactively so that managers could take corrective action.
4. Financial Models and Analysis:
   • Created business and financial models to simulate different business scenarios, growth strategies, and capital budgeting decisions.
   • Conducted Net Present Value (NPV) analysis and built a linear operations model to support strategic decision-making.
5. Annual Financial Reports:
   • Prepared content for inclusion in annual financial reports for quarterly and annual SEC filings, ensuring transparency and compliance.
6. Board of Directors Presentations:
   • Prepared quarterly Board of Directors presentations that summarized and simplified financial results, facilitating strategic discussions.

Results

The experience at Aventine had a profound impact on my career and shaped my approach to financial analysis and decision-making:

1. Enhanced Financial Understanding:
   • Gained deep insights into the economic drivers and financial levers that influence company profitability.
   • Developed a holistic view of how financial decisions impact overall business performance.
2. Strategic Financial Management:
   • Utilized financial expertise to develop robust business cases and optimize campaigns.
   • Managed a portfolio of projects with varied ROIs, ensuring efficient allocation of resources.
3. Teaching and Mentoring:
   • Leveraged my experience to teach Managerial Finance courses, sharing practical insights with students and future finance professionals.