How to develop different career paths in Finance

As you might have noticed in my last article, I strongly care about people development. Thus, I would now like to discuss the different types of career paths that should be possible within a state-of-the-art Finance organization and which skills I expect from future leaders in this field.

In my view, you can differentiate between two major career paths, whereas I tend to look closer at personality and skillsets rather than scholar qualifications.

1. The first path is the one of a Generalist. This type distinguishes itself by managing various functions and projects at a time while having a broad view on different business topics. Generalists usually start with one specialty, but then dive into various projects quickly spinning their network, always focusing on the holistic view. Successful generalists – traditionally seen as High Potentials – are not only keen to lead teams and interested in developing people but are also strong strategic thinkers aiming at creating long-term visions. Generalists usually undergo several stops within all critical Finance functions supporting with their good sense of the overall business strategy. 
2.  The second path is the one of a Specialist: Employees who create value for one specific expertise which makes them irreplaceable. Even if these individuals have the tendency of not being too interested in the classical personal development dimensions – taking over managerial responsibilities for teams and cross-organizational topics – they need to be attracted and supported by highly specialized career offerings and an appropriate salary level during their career development. Especially as traditional career paths will soften more and more, it becomes increasingly important to transfer important project responsibilities to Specialists – even if they do not manage teams while developing into important senior roles.

Now, which personal requirements and qualities should a potential future leader bring to the table?

The most difficult and perhaps currently the most important group of people to identify are managers who can become great leaders. Today’s business world with strong pressure on retaining and adding new talent demands strong Finance leaders who can do exactly that. It’s not about delivering on numbers and hiding in your office (anymore). We need to get out and become parts of the team – every one of today’s leaders needs more social skills than ever before. 

In terms of general skillset, I see the following as essential:

1. Understand the big picture - a solid financial education is only the basis, but not sufficient! Every potential future leader in Finance must develop a sound understanding of the underlying business dynamics and fundamentals in order to become a true counterpart and advisor to the respective business owner. Also, it is necessary to strengthen the business network and move into cross-divisional collaboration circles – nobody can restrict his or her work to the own team/ business function. This is even more relevant for Finance: only a well connected leader with “make things happen” mentality will become the often cited “co-pilot” of the respective business owner.
2. Master your Business Intelligence - as more and more strategic corporate decisions are data-driven, a good basic knowledge with regards to statistics and math is indispensable. Key is and will be especially the competence to translate between both worlds of business requirements (“Why do we need to tackle this question?”) and methods (“How do we analyze this question?”). Managers who cannot challenge presented outcome also from a technical point of view will eventually fail.
3. Think one step ahead - dor me, it is absolutely crucial if someone can think outside the box. Someone who understands how to reduce expenditure for larger chunks of the finance tasks in a smart way (“eliminate – automate – outsource”) will be able to free up and or reallocate crucial resources. As such, he or she will serve the business best by maximizing value for the company.

In a nutshell: By smartly using business intelligence data to run a lean and efficient Finance organization that facilitates the company’s long-term strategy, brings you right in the center of the action. In my eyes, it should be normal that finance leaders are closely involved into strategic discussions and serve as relevant sparring partners on c-level. Thus, it comes as no surprise that I always welcome employees with a strategy or operational background who want to develop into Finance functions. Knowledge exchange is meant to be a two-way street and is of course highly beneficial for the entire organization.   

But now, I would love to hear your stories! Please share your experiences on how to develop and retain talent in your organization!