12 tools every impactful finance professional needs in their toolbox
Anders Liu-Lindberg
Leading advisor to senior Finance and FP&A leaders on creating impact through business partnering | Interim | VP Finance | Business Finance
Teaser: Finance professionals need the right tools for the job. Here are 12 of the best, from problem-solving toolkits to communication strategies, all designed to help you make an impact quickly.
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The modern Finance professional needs a broad range of tools, skills, and competencies.
We're in the business of creating impact through insights, and to do this we need to apply ourselves in a variety of different ways - many of which will be unfamiliar to the "traditional" or technical finance professional mindset.
At its core, the successful modern finance career relies on three things: technical skills; business skills; and interpersonal skills. You won't necessarily have all three when you begin - but that doesn't matter. These are all skills that can be learned.
You don't need to be an expert in all these fields. With the right tools, you can excel regardless of your background or your existing skills. Here are some of the most important of those tools.
Seven-step problem-solving
This is an effective framework for finding a solution to any given scenario. It's a step-based process:
- Define the problem
- Disaggregate, or 'unbundle' the problem into its constituent parts
- Prioritize the most pertinent aspects
- Devise a work plan
- Analyze the results of the actions
- Synthesize the learnings
- Communicate the conclusions and "close the loop"
Half Double methodology
Half Double is a project management methodology that takes into account the unpredictability of "real" human behavior. It focuses on Impact, Flow, and Leadership as its core principles - all of which are also key to successful business partnering. Look out for more on Half Double in a forthcoming series.
Analytics-mindset matrix
Analytics is about more than Looker. Instead, analytics-based thinking is a core competency in the Modern Finance Function, allowing finance professionals to create strategically-minded outcomes based on sound information.
The analytics-mindset matrix encourages the journey from reporting to strategizing - and this in itself mirrors the journey of the modern finance professional. For more on analytics, read the dedicated series previously published on LinkedIn.
Playing To Win strategy framework
Playing To Win (PTW) is a blockbuster strategy toolkit popularised by Procter & Gamble CEO A.G. Lafley. It's a fully-fledged starter pack enabling new and experienced leaders and strategists to facilitate better outcomes - and, crucially, to achieve this through collaborative thinking. I strongly recommend reading the book.
Business model canvas
Finance professionals need to understand business planning. You're not working in a siloed "reporting factory" anymore - instead, you're part of the brains of a growing organization. Familiarize yourself with the classic Business Model Canvas to help you understand how planning occurs and how to do it yourself.
Risk management matrix
Risk management is a fundamental skill. It's likely that you have some knowledge of risk management already, but it can be useful to explore the different frameworks that have been developed to facilitate the process. These can be as simple as the classic 5 x 5 risk management matrix. There are many further examples in my previous articles.
Customer Value Action Plan
The "impact mindset" that's so crucial to the modern Finance Function is all about generating value for stakeholders. At BPI we call these "customers", remembering that those customers are just as likely to be internal as they are external. A Customer Value Action Plan (CVAP) will help you maximize the value you are generating through better customer management and the principle of continuous delivery.
SCQA
Modern Finance is about communication as much as it is about hard numbers, and with this in mind, you need to be able to tell great stories. Communication is in great part about structuring information in a way that is tailored to your audience. One way to do this is to break your story down into four parts: Situation, Complication, Question, and Answer. This helps your narrative flow and enables you to emphasize your solution and insight by building to a crescendo point.
DISC
DISC is a personality trait matrix that is useful in leadership situations and in broader interpersonal interactions. Helpfully, it's also shaped like....a disc. Each of the four quadrants is dedicated to a personality type, which is then broken down into traits or behaviors and the ways in which they might manifest. It's a helpful tool to navigate scenarios where personalities are "getting in the way".
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Pyramid Principle
The Pyramid Principle is another framework for telling stories, or for setting the scene on a particular issue or problem. By structuring the information you are imparting according to the Pyramid Principle, you can achieve a "cascade" effect whereby understanding flows naturally from one point to the next.
Energy management
I've spoken at length about the importance of energy - where it comes from, what you dedicate it to, and how you can maximize it. I firmly believe in the power of identifying energy-providing and energy-sapping tasks and making allowances and mitigations within your working life to ensure that both kinds can be completed with the maximum impact and the minimum emotional cost. Read my articles on energy and mindset for more.
ADKAR
Finally, a tool to help us in our ultimate task: to drive change. The ADKAR framework outlines the steps and principles for which you must achieve buy-in if you are to persuade a stakeholder of the need to make a change. Remember - every step is as important as every other.
What tools do you have in your toolbox? Add them in the comments and let's expand the list!
This was the second article in our new series "Future-proofing the finance professional". You can the previous article below.
Also, check out our latest series "The Finance Function of the Future". You can read all the articles below.
Continue reading below for more articles about trends in finance and accounting.
Anders Liu-Lindberg?is the co-founder and a partner at?Business Partnering Institute?and the owner of the largest?group dedicated to Finance Business Partnering?on LinkedIn with more than 11,000 members. I have ten years of experience as a business partner at the global transport and logistics company?Maersk. I am the co-author of the book “Create Value as a Finance Business Partner” and a?long-time Finance Blogger?on LinkedIn with 135,000+ followers and more than 220,000 subscribers to my blog. I am also an advisory board member at?Born Capital?where I help identify and grow the next big thing in?#CFOTech. Finally, I'm a member of the board of directors at?PACE - Profitability Analytics Center of Excellence?where I support the development of new analytics frameworks that can improve profitability in companies around the world.
Specializing in your Business Process Improvement and Financial Analysis to achieve healthy bottom line by suggesting right path.
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Chief Financial Officer | Finance Digital Transformation | Financial Leadership and Strategy | Finance Analysis
1 年Great informative Anders Liu-Lindberg I like the "playing to win strategy framework" and "customer value action plan". Finance professional mostly deals with number and to create value must involve in improving customer service. Playing to win is a great strategy book which explains how to win a strategy with practical approach
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1 年Great compilation, Anders. I like the "trickle-down" effect of the pyramid method. Leading with the most important point appeals to any of us who value our time. Then digging into the underlying logic and supporting data means each slide goes one step deeper and gives us one more reason/way to take action.