Penneo: From Google Sheets to a robust and system-supported control environment

Being publicly listed is like playing in the Champions League of compliance – the requirements are high and ever-changing, and you must constantly stay on your toes to keep ahead. This is something Casper Nielsen Christiansen, who as CFO of Penneo has led the company from startup to IPO – a process that, among other things, created the need for a new system that could support a more robust control environment and thereby secure their 'license to operate' – knows well.

Let us begin by turning back time to 2018.

This is when Casper Nielsen Christiansen joined as CFO at Penneo, which he describes as "a classic digital startup with 20 employees and a part-time bookkeeper." And from there, things moved quickly: Two years later, Penneo went public. However, the finance function had not yet been scaled to meet the future requirements that came with this step.

"At that time, we actually just used Google Sheets, which also had Audit Logs, so the auditors could see that our employees had performed their tasks, checked them off and saved the documentation," he explains.

But as compliance requirements increased, Google Sheets was no longer sufficient.

"At an annual committee meeting, I was asked to not only use Google Sheets to keep records," he says with a smile. "Because even though you can see in Google Sheets when things are uploaded and whether they have been edited, etc., it is quite well hidden. You cannot in a simple way demonstrate that you have your affairs in order." 

To create some clarity in all the complexity, it became clear that the finance function needed a more system-supported approach.

"When you go public, it is not enough to just know the numbers – you need to be able to document everything you do and show that you have control of your processes, key tasks and controls," he explains, while performing stacking movements with his arms to demonstrate the new requirements.

The solution became Impero – a compliance management platform that would help support Penneo's internal controls and the documentation thereof.

"It has given us a much better and more transparent overview," says Casper Nielsen Christiansen and continues: "The system gathers everything in an intuitive dashboard that shows our controls. It makes it easy to document that the task has been performed on time and with high quality."

At the same time, Impero functions as a kind of work manual; work descriptions can be entered as step-by-step guides, so everyone knows what it takes to perform a control correctly. This eliminates risks if a key employee falls ill or goes on parental leave and creates a clear picture of who does what and when.

"It is both really effective and reassuring – regardless of who is at the helm," he emphasises.

"Once you have done the groundwork, it is great to have a tool that works both in everyday situations and in new situations. You do not need to have everything in your head – you can plot it into the system, and then Impero helps prioritise and keep track of deadlines, so the controls are implemented without slowing down other processes."

The implementation of Impero was also about ensuring that the solution became an integrated and value-creating part of the organisation. Because there is a crucial difference between installing a system and implementing it.

"Basico conducted workshops and helped implement Impero for our setup. This created a process where our team could work their way well into the new system without being overwhelmed by a large, heavy implementation from scratch. We got an effective implementation, so after 30 days we had a strong system and an understanding of what a strong control environment actually is," says Casper Nielsen Christiansen.

He elaborates: "Before we got Impero, it felt like every time we reached a goal, our auditors added a new goal and layer on top. So it was worth gold to get someone from outside who are experts in exactly that, and who could help create a control environment that was strong enough for the constantly increasing requirements."

And here he also reflects on an important point:

Penneo has since experienced a great maturity in their control environment, which now both satisfies the regulatory requirements and functions as an effective working tool in everyday life. The system is scalable and can grow with the company's needs, while keeping compliance costs down.

"Much of what has ended up in Impero is something we were already doing. But now we can easily prove it to the external audit. They are happy, and I have a tool that works in everyday life, while minimising a lot of risks. Because when you have all the tasks in a system, you are less vulnerable to unpredictable things," explains Casper Nielsen Christiansen.

For him, it is about finding the balance between bulletproof compliance and an operational everyday life that makes sense. And it is a balance that all companies – regardless of size and ownership structure – can be inspired by.