Shifting Finance From a Function to a Strategic Driver
May 29, 2024
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7 minute read – Today’s high-performing finance teams are seeing a need to shift their mindsets and their internal reputations in order to enhance the integral role they play in the strategic progress of their organization. They are being intentional in their efforts and actions to change the way they are viewed in the organization. Specifically, their focus is to shift from being viewed as the gatekeeper of the financials to being seen as a strategic partner across the organization.
One of the ways finance teams are being successful in shifting the view is by moving beyond the numbers in their communication. Naturally, finance leaders will usually take a “numbers first” approach in their presentations and conversations. While the numbers are important, “finance speak” can form barriers to creating more engagement with the non-financial areas of the business.
Finance leaders are shifting to use more stories and analogies. In doing so, they are finding that others are able to better understand the concepts and intent, which is leading to improved engagement. These finance leaders are also really focusing on using the common language of the organization.
- For example, one CFO we work with found success using the common language around efficiency. In their organization, they talk about the number of clicks for employees and customers. When discussing a recent idea, the CFO asked how the idea would help improve the number of clicks rather than stating the idea would increase expense. The shift of using the common language, as well as asking a question vs. making a statement, resonated with the team, and led to a deeper and more productive conversation.
Another way finance teams are finding success is by increasing their genuine understanding of the other areas of the organization. Finance teams have the ability to see the whole organization through the financials. This gives them the benefit of already having a broader understanding than many. They are engaging with non-financial leaders to understand the opportunities and struggles they are facing.
One CFO we work with said they are being more intentional about asking questions and trying to understand the “so what”. Asking more questions has helped this CFO create more connections and openness with the other areas of the organization. They are learning more about how to partner with the other areas that helps drive strategy, progress, and understanding. An additional benefit the CFO noted is that by being more collaborative, other areas are also more receptive to the alternative viewpoints they bring up.
Another approach that some finance teams have taken is to develop their brand as an educational resource. One CFO found that their team was brought into more conversations when they moved from a “training” focus to a more collaborative, frequent, and interactive learning approach. This has helped elevate financial acumen across the organization.
Many finance teams are bringing more focus on being adaptable. They are finding that the speed of change in the environment is requiring them to be more open to doing things in a new way. In a recent call with finance team leaders, several of them identified adaptability as a key trait to consider in their succession plans. They noted that while there are processes that are durable, their teams need to be flexible in their approach in order to help position their organizations to grow and evolve.
The need to shift the way finance teams are being viewed and participating is clear. As one non-financial leader put it, “I understand the need to know the numbers, but I don’t see the same effort from finance leaders to understand my areas.” By moving beyond the numbers and increasing their genuine understanding of the other areas, finance teams can enhance the role they play in making their organizations strategically successful.
