Leadership Q&A: Energy-Efficient Finance

Thomas A. Fanning, executive vice president, CFO and treasurer at electric utility Southern Co. in Atlanta, believes that depth of industry knowledge is crucial for high performance. Fanning spoke with Business Finance editor in chief Laurie Brannen about working abroad, risk-management challenges and the key differences between managers and leaders.

Laurie Brannen: You've worked in leadership positions at several of Southern Co.'s subsidiaries. How does that experience translate into your current role?

Thomas A. Fanning: I'm in my 13th job with seven [Southern] companies. Southern allows people to build a base of competence and moves them around the system; it puts them into different circumstances, different assignments, both domestic and international. Being able to test yourself in different situations builds your expertise and gives you a lot more self-confidence. So now, as CFO, it really has given me a foundation of capability and credibility among a diverse group of people.

LB: Would you elaborate on the international aspect of that experience?

TAF: The international aspect was threefold. For a period of time, I was the CEO of Gulf Power, a subsidiary of Southern Company. When international privatization really started coming to the fore, I was also head of project development. So I traveled extensively, trying to figure out ways to bring value in the power markets around the world. The second element involved a deal in Australia. In a period of about six months I only came home once, but the work itself was a great experience. The third element of my international experience deals with what I do now. Southern Company, among American electric utilities, is the most widely held inter-nationally. I do extensive international travel in this role, meeting with investor groups. We go to Europe three times a year and Asia at least once a year.