The Changing Role Of Leadership In Finance

To maximize value and business growth, next-generation finance leaders must foster creativity, manage employee expectations, and integrate technology

Before I entered the financial industry, I was told that finance is perceived as a back-office function,?it’s a number churring industry that lacks creativity and excitement, and so on.

After more than two decades in the industry, I can confidently say they were wrong, and thankfully, I didn't listen to their advice, and you shouldn't either!

In my opinion, finance is best understood as a game. Working in finance is similar to playing a game, with a constant adrenaline rush to win/reach your goal, strategy development, analysis, and calculating your every move, all while keeping an eye on your competitors and measuring gains and losses. However, in order to win any game, it is important that you understand the rules. And it is our responsibility as finance leaders to ensure that we explain the rules of this numbers game to our team and create enough excitement and creativity around it.

Encourage Creativity and Manage Changing Employee Expectations

As automation replaces many day-to-day accounting tasks, finance and accounting professionals are increasingly being asked to lead and support innovation initiatives as well as to take on a more strategic role within organizations. However, any form of meaningful innovation necessitates a high and sustained level of creativity — a skill that has traditionally gone undeveloped and largely untapped within the finance team.

As a result, we must redefine creativity. Understanding a team member's goal orientation enables finance leaders and managers to develop a tailored strategy. You can lay a solid foundation for embedding a more distinct culture of innovation within your finance team by fostering a culture in which professionals are encouraged to speak up, share ideas, and gain knowledge and expertise within and outside of their own field. A structured system or platform should be created where team members can submit innovative ideas and suggestions, along with a feedback mechanism. Regular training & upskilling and active participation in key meetings and forums inspire and foster creativity amongst team members.

Connecting to the Big Picture

Another important point to remember is that we do more than just produce annual reports; we also collect data and gather insights. We have a unique perspective on where the money goes, and we know what happens when it is added or removed. It allows us to see where our businesses can be improved. As a result, reporting should not be viewed and taught as a routine task, but rather as a critical and valuable business tool that the boardroom relies on to determine the company's strategy.

Technology Integration

Lastly, you cannot expect to excel in any game unless you have access to the latest digital tools. Consider utilizing the flexibility and accessibility of cloud applications to eliminate the need for costly physical infrastructure. This will assist finance in becoming a true business partner to the company, assisting in the creation of corporate value through accelerated financial reporting, making the company more agile, and enabling rapid decision-making at all levels of the organization.

Finally, keep in mind that finance is a numbers game, it always has been and always will be.

Just make sure you have fun and make the numbers work for you. Not the other way around.

Author

Jayanta Ghosal is the Director of Finance at Advance Auto Parts India, GCC.??You can reach him?here.