Run the Numbers
First Mover or Fast Follower? Thomas Ream of Workato on Timing Your Tech Strategy in the Age of AI
Episode guests
Podcast summary created with Snipd AI
Quick takeaways
- Timing is crucial in tech; first mover's advantage is challenged.
- AI enhances workflow efficiency; automates tasks like transcriptions and data entry.
- CFOs shift focus to leadership, emphasizing trust and relationships with stakeholders.
- Decision-making frameworks balance analysis and experience; learn from past mistakes.
- Managing external and internal priorities challenges CFOs; align interactions with growth goals.
- Utilize diverse finance software stack for streamlined operations and efficient decision-making.
Deep dives
Importance of Making Decisions Quickly
Making decisions quickly is emphasized as crucial, even if all information may not be available. The speaker highlights the significance of decision-making to prevent feeling overwhelmed by delays, emphasizing that taking action is more beneficial than indecision.
The Value of AI Integration with Workflow
The podcast delves into the importance of integrating AI as a component of workflow to enhance efficiency and productivity. Specific examples are provided, highlighting AI's role in automating tasks like conference transcriptions, follow-ups, and data entry in both sales and financial processes.
Striking the Balance in Leadership Skills
The discussion underlines the transition from technical expertise to leadership skills for CFOs, pointing out the necessity of gaining trust and maintaining relationships with internal and external stakeholders. The emphasis is on leadership qualities, indicating that successful CFOs prioritize fostering trust and effective communication in their roles.
Impactful Decision-Making Frameworks
The importance of decision-making frameworks for CFOs is explored, focusing on the balance between quantitative analysis and qualitative judgment. The speaker emphasizes the role of experience in shaping decision-making criteria and discusses the significance of learning from past mistakes to improve decision outcomes.
Balancing External Engagements and Internal Focus
Navigating the balance between engaging with external stakeholders and focusing on internal operations is highlighted, showcasing the challenge faced by CFOs in managing time effectively. The speaker discusses the need to prioritize interactions that align with the company's growth objectives while addressing the challenge of handling external requests efficiently.
Finance Software Stack Overview
A comprehensive overview of the finance software stack utilized, including Salesforce, NetSuite, Anaplan, and other tools for various functions like CRM, planning, billing, procurement, and more. The speaker provides insights into the diverse range of tools leveraged to streamline financial operations and facilitate efficient decision-making.
Avoiding Longevity in Unsuitable Environments
Reflecting on past experiences of holding onto roles longer than advisable, the speaker acknowledges the challenges of recognizing when to move on from environments that may not foster success. The importance of evaluating company trajectory and aligning personal career goals with organizational objectives is highlighted.
Effective Expense Management Practices
Anecdotes on expense management practices, including justifying extravagant expenses like Wimbledon or Olympics tickets, are shared as examples of potentially challenging reimbursement scenarios. The discussion touches on navigating the fine line between legitimate business expenses and personal indulgences within corporate cultures.
Reflection on Decision-Making
The speaker delves into personal reflections on decision-making processes, sharing experiences of learning from mistakes and aligning decision criteria with both quantitative analysis and qualitative judgment. The conversation highlights the evolution of decision-making skills and the value of employing a balanced approach to enhance leadership effectiveness.
Learning from Career Experiences and Mentorship
Insights are provided on the significance of learning from career experiences, mentorship, and personal growth, emphasizing the value of navigating different roles and environments to develop well-rounded decision-making skills and leadership capabilities. The discussion underscores the importance of seeking mentorship and leveraging diverse experiences to fuel professional growth.
Innovative Tools and Technology Integration
The integration of innovative tools and technology like Decarte for compliance checks and Credit Safe for credit assessment is highlighted, showcasing the utilization of digital solutions to enhance operational efficiency and mitigate risks. The speaker emphasizes the strategic adoption of technology to optimize financial processes and compliance measures.
Navigating External Interactions and Networking
Strategies for managing external engagements and networking opportunities are discussed, emphasizing the challenge of balancing external requests with internal responsibilities for CFOs. The speaker provides insights into prioritizing engagements that align with company goals while effectively handling outreach and relationship-building activities outside the organization.
Today CJ is joined by Thomas Ream, the CFO of Workato, an intelligent automation platform that is heavily involved in AI. Thomas opens up about what it was like working in AI in the early days of the 90s. They discuss AI as a component of workflow and what it means to train AI models. He talks about the differences between working in hardware and software, the growing trend of hardware and software combinations, and the vast potential of quantum computing. Having worked for a social network prior to the existence of Facebook and other tech companies doing interesting things too soon, Thomas explains the importance of timing in tech and challenges the assumption that there is a first mover’s advantage in this field. He shares wisdom from his experience as a CFO, what makes a great one, why he doesn’t necessarily hire based on experience, and the importance of quick decision-making as well as his “lead, follow, or get out of the way” framework.
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SPONSORS:
Leapfin is accounting automation software that automatically prepares and posts reliable journal entries. High-growth businesses like Reddit, Canva, and Seat Geek choose Leapfin to eliminate manual tasks, accelerate month-end close, and enable accounting leaders to provide faster insights to help their companies grow. To automatically standardize your revenue data with measurable business impact, check out leapfin.com today.
Mercury is the fintech ambitious companies use for banking and all their financial workflows. With a powerful bank account at the center of their operations, companies can make better financial decisions and ensure that every dollar spent aligns with company priorities. That's why over 100K startups choose Mercury to confidently run all their financial operations with the precision, control, and focus they need to operate at their best. Learn more at mercury.com.
Mercury is a financial technology company, not a bank. Banking services provided by Choice Financial Group and Evolve Bank & Trust®; Members FDIC.
NetSuite provides financial software for all your business needs. More than 37,000 thousand companies have already upgraded to NetSuite, gaining visibility and control over their financials, inventory, HR, eCommerce, and more. If you're looking for an ERP platform ✅ NetSuite: https://netsuite.com/metrics and get a customized KPI checklist.
Maxio is the only billing and financial operations platform that was purpose built for B2B SaaS. They're helping SaaS finance teams automate billing and revenue recognition, manage collections and payments, and put together investor grade reporting packages. 🚀 Request a demo at www.maxio.com/runthenumbers for 10% off your first year.
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FOLLOW US ON X:
@cjgustafson222 (CJ)
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TIMESTAMPS:
(00:00) Preview and Intro
(01:42) Sponsor - Leapfin | Mercury
(03:45) The Need for Humans in Training AI Models
(05:54) Thomas’s Early Work in AI in the 90s
(07:50) What It Means to Train an AI Model
(08:38) AI as a Component of Workflow
(13:04 ) Working in Hardware Vs Software
(16:02) Sponsor - Netsuite | Maxio
(18:30) Hardware-software Combinations and Quantum Computing
(22:28) The Importance of Timing in Tech
(26:33) Frameworks for Quick Decision-making
(34:28) Qualities Thomas Looks for When Hiring
(37:52) The Qualities of a Great CFO
(39:12) Balancing Time Between Internal and External Stakeholders
(43:01) Long-ass Lightning Round: Advice on When to Move on
(47:36) Workato’s Finance Software Stack
(50:35) Craziest Expense Story
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