Published: February 02, 2008
The skills developed in treasury can equip ambitious treasury professionals to move towards a CFO position; there are also wider financial roles within the business which bring the same profile, responsibility and diversity, but in ways more closely linked to the business itself. In this feature, we talk to Ulf Egestrand, President and Managing Director of Scania Finance Korea Ltd and formerly Group Treasurer of Scania about his career.
I come from a banking background originally - I spent 15 years in the SEB family including ten years trading foreign exchange and interest rate products. I moved into industry in 1992, initially into an in-house banking role for Investor and Saab Scania and then I became Treasurer for Saab AB. I joined Scania in 1998 as Group Treasurer based in Södertälje, Sweden.
I left my Group Treasury position in 2000 and took on the role of Finance Director - essentially the position between CFO and Treasurer, with responsibility for Treasury, Insurance across the Group, and Trade Finance. I did this role for three years and then decided I wanted to develop broader experience and I had the opportunity to move to Germany to head up the customer finance function there.
I had always been interested in Asia and in 2005 the opportunity came up to run Scania Finance Korea - the first Scania finance company in Asia - which I have now done for two years. Now I’m changing again and will become Chairman of this company from 1 March 2008 and adviser in Asia on all issues relating to customer finance, vendor programmes etc. in regions where we don’t have a finance company.
The ability to know when to stop or when to change is vital in a strategic role.
I am ultimately responsible for everything to do with the running of this company. We are the only Asian financing company for Scania’s products. I look at the development of the business and ensure that as we grow and change, we continue to conduct our business in the proper Scania way. To do that we need to understand customers’ needs and how they create cash flow and, of course, build a good working relationship with the Scania distributor. Also Basel II will affect the way the banks work with their customers and financing decisions will become more mathematical and more rapid. On that basis, I develop the future vision of the company, one key element of which is the speed with which we approach new markets and credit decisions.
I still see myself as a bank trader to some extent, and my treasury and banking experience has been very valuable in my subsequent roles. In particular, I have learnt that you have to cut your losses early: you can have a great idea about which you’re very passionate, but if it’s not working, you have to change, without allowing emotions to affect your decision-making. The ability to know when to stop or when to change is vital in a strategic role.
Developing a deep understanding of cash flow is also an important skill which I developed in my treasury role.
To move from treasury, you need be interested in the business itself as well as develop an understanding of the company and how it functions. Money is only one part of a business: products and customers are key and you need to take an active interest in what the company produces, who its customers are and what differentiates your organisation in the way that you work with them.
Firstly, performance is key - you need to be able to demonstrate success and the value you have brought to the company. Secondly, show an interest in the business and explore its different functions. Learn from other people in the business with different backgrounds, different skills and find out how they contribute to the company. Thirdly, don’t be afraid to take on new challenges in any direction as long it gives you additional experience that fits in with your future goal.
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