By Thomas A. Parmalee
David Waltzer, the chief financial officer of Foundation Partners Group is a soul man.
What else can you call someone who has memorized the lyrics to every Blue Brothers song? The only question we have is which member of the duo he prefers … Elwood or Jake?
While his acumen revolving around one of the greatest blues acts of all time must have impressed the folks who vetted him for the job at FPG, their attention was also captured by his diverse skillset and breadth of experience as a CFO.
“David brings a wealth of experience and a proven track record in financial leadership that will be invaluable as we expand our footprint in end-of-life services,” said Chris Blackwell, Foundation Partners’ interim CEO, at the time of his hiring last month. “He is a results-driven, detail-oriented operator with a keen understanding of the balance between business partnership and operating performance. David will play a critical role as we integrate new partners to bring a comprehensive solution to end-of-life planning that will streamline and simplify the experience for families across the United States.”
So, just who is David Waltzer – and why is FPG so excited about what he brings to the table. We interviewed him to learn more.
Tell us a little bit about yourself .
My wife and I have known each other since we were teenagers and have been married for more than 34 years. We have two children — a son who’s an auditor and a daughter studying to be a physician’s assistant – and our favorite family activity is snorkeling. My hobbies include painting with watercolors, designing jewelry and, more recently, vegetable gardening. One interesting fact is that I know the lyrics to every Blues Brothers song, so I guess you could say I’m really into blues and soul.
Before joining FPG, you were the CFO for Wellpath, which sounds like a fascinating company. Tell us a little bit about what you did there.
Wellpath, based in Nashville, is the largest provider of health care to prisons and jails serving more than 300,000 patients a day. It delivers medical and mental health care through a family of local and state providers in correctional facilities, inpatient and residential treatment facilities, forensic treatment facilities, and civil commitment centers in 37 states and in Australia. Wellpath operates under a “capitated” business model involving fixed, predetermined monthly payments made for each enrolled patient. It’s unique to health care and not without its challenges for a CFO. I oversaw three division-level CFOs, led data analytics efforts to understand cost drivers and develop predictive models, and led business process outsourcing initiatives. I developed some great business partners and loved my team.
What do you like most about being a CFO?
Being a CFO is both fun and challenging. I get involved in a wide variety of things within the business — from operational initiatives and sales and marketing programs to human resource recruiting and retention. It involves everything from long-range planning to the day-to-day operations that get us from where we are today to where we want to be five or 10 years down the road. Getting it right isn’t easy, which is why CFO is one of the highest turnover jobs in any equity-backed company – second only to CEO.
How did you find out about the opportunity at Foundation Partners Group and what sparked your interest in the position? And secondly, did you have any prior experiences or interactions with funeral service before accepting this position – and what did you take away from those experiences?
I spent 14 years working in health care, and I really liked it, so when a recruiter approached me with the Foundation Partners opportunity, it piqued my interest. When I met with Access Holdings and the Foundation Partners leadership team, I was excited by their vision for the future of death care; It was clear that we would be very good partners.
I had a bad experience when my mother passed away some years back. It wasn’t easy. We had multiple family members involved, and the coordination between the funeral home and the cemetery was disappointing. I was left with the thought that there had to be a better way, and I love the fact that I’m now involved in making that happen. Our recent acquisition of Cake, with its extensive collection of end-of-life planning resources, and our new digital hub, Afterall, that integrates various services into a single platform, are just the start of helping families feel better prepared and move more easily through the end-of-life process.
I realize you are relatively new to the job, but what has been the most interesting thing you’ve learned about funeral service since taking on this new role?
Coming from a health care background, I’ve found many ways in which the death-care industry is similar. Sales and marketing are two examples. However, the funnel of activity involved in serving families is very different in death care, as is the terminology, which I find fascinating. For example, a “call” is a contract, an “arrangement” is an appointment and “service” has multiple meanings. Ninety percent of Foundation Partners Group’s business is cremation, so I’m also learning a lot about that. I’m impressed with the many options that are available to cremation families and the benefits of permanent memorialization.
FPG is funded by private equity … what are the challenges, or what is the most exciting aspect about working with a company structured in this way?
I started my career in publicly traded companies and have been working with private equity firms for the last 15 years. While private equity firms are known for having high expectations, I get excited about building teams, setting goals and rewarding team members for superior performance. Early in my career, I was part of a Lockheed Martin team that started XM radio; we created a team, devised a game plan and executed on that plan to create something unique. This process is the most rewarding part of my role as a CFO.
Are you very experienced with structuring and navigating acquisitions, which is something that FPG often does? How does your skill set in this area complement FPG’s business?
I have been responsible for all parts of M&A and done over 100 acquisitions over the course of my career. I’ve also been a chief operating officer twice and found that the key to a successful acquisition is allowing the M&A team to retain ownership of the operations for six months after the acquisition. This helps ensure that a new acquisition is not only integrated from a systems and process level, but that operational performance can be studied and optimized before it becomes part of the larger organization.
Are there any particular pain points at FPG that you are hoping to help solve or improve?
Like all companies, everyone has pain points. Foundation Partners has great field and headquarters teams, and we are getting things organized for the next chapter in our growth. We’re looking to make new capital investments in our funeral homes and cemeteries that will improve the customer experience. We’re also doubling down on digital to broaden our support for families throughout the end-of-life journey. Our Cake acquisition and the national roll-out of Afterall are two examples of these digital initiatives.
How has the CFO role changed since the onset of COVID 19?
Well, skill sets like project management and Lean Six Sigma are always valuable but especially in high demand after COVID. We’re always looking to improve the quality of our services while minimizing costs. The biggest change since COVID has been inflation, which has put even more pressure on streamlining our operations to control costs.
Are you seeing any impact on how you do your job as a result of the emergence of AI? If so, in what way?
In my opinion, AI’s place in funeral service is limited. When families call a funeral home, they want to talk to a human being. This is a very personal, high-touch business. I do think there’s a place for robotic process automation and bot technology in funeral services. A lot of back-office operations and daily repetitive tasks can be automated. However, no matter how much business we can drive through the internet, the value of our professional, compassionate and experienced funeral directors remains our biggest strength.
What do you like the most so far about working at FPG and in funeral service?
I am grateful to work in an organization that has such a positive impact on people’s lives. Our teams have the power to make the worst days of a person’s life just a little bit better. I’m also excited about Foundation Partners’ prospects for the future. We’re teaming up with some of the most innovative entrepreneurs in the industry, and developing new products, services and strategies that will change the face of death care in this country. I couldn’t think of a better time to be part of this organization.
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