{"id":1338,"date":"2020-08-17T14:31:11","date_gmt":"2020-08-17T13:31:11","guid":{"rendered":"https:\/\/fdexec.co.uk\/?p=1338"},"modified":"2020-09-14T17:27:09","modified_gmt":"2020-09-14T16:27:09","slug":"what-should-a-good-finance-director-be-doing","status":"publish","type":"post","link":"https:\/\/fdexec.co.uk\/blog\/what-should-a-good-finance-director-be-doing\/","title":{"rendered":"What Should a Good Finance Director be Doing?"},"content":{"rendered":"\n\n[et_pb_section fb_built=”1″ _builder_version=”4.5.7″ _module_preset=”default”][et_pb_row _builder_version=”4.5.7″ _module_preset=”default”][et_pb_column _builder_version=”4.5.7″ _module_preset=”default” type=”4_4″][et_pb_text _builder_version=”4.5.7″ _module_preset=”default” hover_enabled=”0″]

Today\u2019s finance directors are striving to contribute more to organisational performance, and FDs have emerged as much more rounded, commercial and strategic business leaders than the traditional role of \u2018scorekeeper\u2019 of yesteryear.<\/p>\n

The finance director wears three primary hats \u2013 first as a finance expert, second as an active member of the management team, and third as leader of the finance function and team. The key point is that the FD has multiple roles and they are working both \u2018in\u2019 the business, and \u2018on\u2019 the business. The need to get into the business and out of the back room has been a long-standing requirement if they are to add value.<\/p>\n

Today\u2019s FD has to be forward-looking, a driver of strategic thinking and finding growth opportunities. They must present the business case on growth opportunities, after consideration of the facts and assessment of the risks, to guide the board that now is the time to make brave decisions and to place some well-calculated bets.<\/p>\n

The finance director still has the role of cautious guardian of the company\u2019s assets, keeping an eye on costs and ensuring cash flow is in good shape, but they are advising the CEO and board to exploit competitive opportunities in the marketplace and to invest for the future. Whilst having to understand where the money is made, they are also planning ahead more than looking back.<\/p>\n

It seems it may finally be time to forget the old stereotype of the dull accountant. At the same time, it isn\u2019t a popularity contest and the tough decisions need to be taken. Whilst technical competence was previously regarded as a given, today\u2019s outstanding FDs place more importance on strategic awareness, commerciality, communication skills and leadership.<\/p>\n

Working closely alongside the CEO, almost \u2018joined at the hip\u2019, an FD is expected to be the one who will stand up to and challenge the CEO, having an independent mind and an ability to stand back, while at the same time supporting them and the board. In this key relationship, it is important that disagreements and challenges are discussed in private and that publicly, the CEO and FD present a united front. This skill is an ability to build loyalty yet at the same time an ability to challenge.<\/p>\n

They have to grasp opportunities, and significantly, they must have the courage to plan for growth whilst ensuring the accounting fundamentals are delivered.<\/p>\n

FDs will, of course, make mistakes and in many respects, when an FD drops the ball, the consequences can be more serious. That said, a financial director needs to experience some scars as part of their development \u2013 anyone can manage when the numbers are heading in the right direction. Evidence of experiencing \u2018weathered storms\u2019 must be regarded as a positive attribute.<\/p>\n

The role of an FD can be lonely, as they are expected to know all the answers. One who will not sit on the fence but who will make decisions quickly. A good FD can combine good analytical skills and intuition, sensing the right thing to do. Above all, honesty and integrity are vital, no matter how unpalatable the answer may be.<\/p>\n

Despite becoming more strategic, forward-looking and commercial, the aim remains the same. A clear sense of what drives profit and cash in the business is a pre-requisite for the role. An ability to have a sharp mind that can quickly find the right number to interrogate and interpret from today\u2019s sea of data is essential. An affinity with numbers and the ability to interpret them for others, set against a backdrop of effective risk management and an intrinsic ability to sense and manage cash flow requirements, will always be the core responsibility and skillset.<\/p>\n

The importance of character and personality are as important as technical skills, and these can only be developed by exposure to the business. The importance of soft skills such as influencing and listening skills, and the ability to get on with people, are increasingly important.<\/p>\n

Owning and architecting the business dashboard of metrics is key \u2013 backwards-looking numbers such as management and statutory accounts, trends, forward-looking projections and maintenance of \u2018fit for purpose\u2019 reporting systems that capture and process the organisations’ data are often a hidden, but a vital contribution.<\/p>\n

So, looking at the dimensions of roles enacted, what are the key attributes of today\u2019s outstanding finance directors?<\/p>\n