Strategy of Finance (SoF) Summaries - EP 003

Strategy of Finance (SoF) Summaries

Learn. Grow. Inspire.

Summary of Episode 3 - Focus on what you can control with KJ Tjon

Guest Intro

This episode of the SoF podcast features a discussion with the very dynamic, energetic, and always-smiling KJ Tjon - a seasoned senior finance executive with more than 25 years of experience in the technology and telecommunications sectors.

She currently serves as a Board of Director for Kaleyra, a Communications Platform as a Service provider; Nubia Brand International, a blank check company focused on the wireless telecom sector; and Volcon, a developer and manufacturer of electric off-road powersport vehicles.

Previously, KJ served as CFO of Alorica, Epiq Systems, and Hawker Beechcraft, and President & COO of Scientific Games. She also spent almost a decade at Alvarez & Marsal, as a business transformation and performance improvement specialist.

Episode Intro

In this episode, we unpack KJ's professional journey from Europe to Asia to the USA as well as from an Assistant to Corporate Finance executive to a senior Consultant to CFO and now a Board member. Further, we deep dive into how to think about building diverse teams, understand the CEO <> CFO relationship dynamics, and get her advice on the first 100 days plan for CFOs joining a new company.

Listen to the full episode here:

Guest Quotes

"Focus on what you can control."

"The first thing you got to do is understand from the CEO, what do they think are really the true business drivers and what is really the key for the company in the next six months for it to get done because finance needs to support that. Your goals have to align with whatever direction the CEO is going."

"You really got to know what to do and trust your instruments and have the experience. So I really felt like, I can spend the time to get certified, but I'll never be good enough to really do this without somebody sitting next to me who really knows what he's doing. So yeah, a little bit of knowledge is very dangerous when it comes to piloting planes. There's a lot more that can go wrong..."

"I always loved ops. Especially if you're at a company that actually makes stuff like airplanes or things like that, it's just really cool to just like see how things get made. So I've always kind of attracted to being in the kitchen and seeing what's going on."

"I think the one thing that is lacking in my background is I don't have any depth in any real industry because I've moved around so much. And, I love to learn. So when I went, for instance, to Wichita for Hawker Beechcraft, it was super cool to learn about aircraft, how the planes are made, the walks within the factory. I loved it."

Episode Summary

According to KJ Tjon, having a finance team with the proper set of complementary skills is critical to a CFOs success. A CFO should have a comprehensive understanding of all aspects of their company but need not be an expert in every field of finance, e.g., for tax laws, one can seek help from outside advisors when necessary. Having a team with diverse skills would fill the "expertise" gaps and make for an impactful function. In addition, excellent individuals at the VP and Director levels would take the function to another level.

CFOs should consistently assess the strengths and weaknesses of their team to identify areas for improvement and provide learning support. KJ suggests keeping the existing team in place and working around their weaknesses rather than bringing in new people initially.

KJ emphasizes the significance of promoting diversity and inclusion in the finance industry. She notes that while women are well-represented in accounting and tax roles now, achieving racial or other forms of diversity and that too across the geographies can be more challenging. She recommends actively pushing back on Human Resources (HR) function when repeatedly presented with the same type of candidates and proactively seeking out a diverse pipeline of candidates. Building such a pipeline takes time and effort but can be highly beneficial in finding the right candidate for the job while promoting diversity. KJ also highlights that fostering diversity and inclusion is not just about hiring diverse candidates, but also about creating a supportive workplace culture where everyone feels included and valued.

Speaking about the first 100 days plan for a CFO, KJ stresses the importance of building relationships with people both within and outside the company and understanding the business drivers. One should invest time in getting to know the CEO, executive team, finance team, and other departments such as marketing, sales, and operations. One should also understand the expectations of these departments from the finance team to serve their needs effectively. Aligning these expectations upfront goes a long way in long-term relationship building and making the overall company operations more productive. KJ highlights the importance of spending time with outside stakeholders such as customers, lenders, and investors, enabling the CFO to receive outside perspectives and effectively communicate the latest developments with the company.

KJ emphasizes that the relationship between CEO-CFO is critical for the CFO to do their job effectively. It's essential to have a CEO who trusts and lets the CFO do their job. Before accepting a new job, CFO should try to understand the management style of the CEO and what background she comes from. For example, if the CEO comes from sales, there may be less interference with the CFO's job. KJ also stresses the importance of a personal relationship between the CEO and CFO, where they can speak candidly and disagree in private. Overall, the CEO-CFO relationship should be built on trust, communication, and a shared understanding of the company's goals.

KJ talks about the importance of building a strong relationship with the CEO before accepting a job as a CFO. She suggests getting as much exposure to the CEO as possible before taking on the role to understand their management style, priorities, and approach to working with their team. KJ mentions that she was fortunate to have worked for some great CEOs, including Tom Olson, who trusted his team and had a good relationship with her.

KJ emphasizes the importance of being transparent and honest with stakeholders, even if the news is not good. She believes that by being upfront about challenges and potential risks, the company can work towards finding solutions and mitigating the impact. People are generally averse to surprises.

KJ notes that it's essential to be adaptable and flexible in high-pressure situations, as sometimes unexpected solutions can arise. She suggests keeping an open mind and considering all possible options, even if they seem unconventional. There are always things outside of an individual's control, so one should focus on what is within control and optimize that. By staying focused on what can be controlled, being transparent and honest, and staying adaptable, KJ believes that companies can successfully navigate difficult situations and come out stronger on the other side.

KJ recommends that emerging professionals continuously learn and expand their knowledge base. She suggests taking on challenging assignments and projects outside your comfort zone to gain new experiences and skills. Additionally, KJ emphasizes the importance of networking and building relationships with other professionals in the industry, as it can lead to new opportunities and valuable insights. She suggests attending industry events, conferences, and seminars and connecting with people on LinkedIn. Finally, KJ emphasizes that being resilient and able to bounce back from setbacks is crucial for success in any career, including finance. She advises emerging professionals to stay positive and focused and to keep pushing themselves toward their goals.

About Strategy of Finance Podcast

A podcast on Finance People, for Finance People, by Finance People

We celebrate the Profession and the Professionals in the world of Finance with Rohit Agarwal, Founder of Krayo. These unsung heroes mostly remain under the limelight but contribute tremendously towards company building. This is our endeavor to unpack their journeys to understand what moves them, get inspired by their triumphs, learn from their experiences, and, most of all, connect with them at a personal level. Visit us at https://www.strategyoffinance.com/.

About Krayo

Krayo is the Unified OS for Corp Spend.

An all-in-one SaaS platform, Krayo brings together the whole journey of Spend: Buy (Procurement) >> Pay (AP) >> Manage (Asset Mgmt), with an intelligence-first and automated approach. It optimizes cash flows, enables real-time budget mgmt., provides complete spend visibility, scales operational processes, ensures policy adherence & compliance, and increases margins. Visit us at https://www.krayo.io/.