Finance professionals need to be on top of the detail but senior people must also address strategy

While finance professional are expected to have a solid grasp of detail and process, Stephen Fitzgerald argues that for senior officers, it’s strategic thinking that makes the difference.

A principal skill for finance professionals is that they have strong attention to detail.

Additionally, customers expect a grasp of process issues and the ability to understand and manage systems.

These qualities are taken as read as part of the skill-set of the finance professional, and rightly, stakeholders expect proficiency in these areas.

However, for senior people, purely driving process and detail is not sufficient; there is a reason why process and detail is needed, and it relates to the management and strategy of the organisation.

But there is a temptation for finance professionals to delve into the process before they have answered the question of why they are initiating that detailed level of work, and the value it adds to the organisation.

Experience has taught me that effective strategic management is not about detailed processes, and it can be rather more difficult than it appears.

There are occasions when one goes into organisations and hears statements like;

• “We all understand what we are doing”
• “Lets set up some linked spreadsheets to deliver the project”
• “There is no need for staff development, they are all qualified accountants “
• “We don’t waste our time discussing strategy”
• “We are too busy to have management team meetings”

Often, staff will be working hard producing process and detail, but will sometimes have little understanding of how their work is contributing to wider organisational objectives.

Essentially, in organisational delivery there is a hierarchy of activity in delivering successful strategic outcomes for stakeholders.

The list below demonstrates how this can work:

1. Having a clear vision
2. A strategic approach for the whole of the organisation
3. Management by clear, universally understood objectives
4. Operations that are linked to achieving managerial outcomes
5. Processes that support the delivery of operations and are not ends in themselves
   
   

I believe all these areas need to be effectively addressed to guarantee success.

The finance professional has something to contribute in all of these areas.

If we want to have a strong offering as a senior professional and leader, we will own number 5 but we must make a leading contribution in areas 1 to 4.

That will enable the finance professional to have a long term and positive impact on organisation’s strategy and outcomes.