Stephen Fitzgerald: Transformation and finance’s contribution
0Transformation is everywhere in local government. As local authorities have managed reduced budgets so too have they rethought the delivery of local services.
This year’s ACCA Local Government summit saw the organisation’s chief executive, Helen Brand, address the issue head-on in her keynote address, pointing out that despite the continuation of government cuts the response from local government had been impressive.
She offered Manchester as an example of the innovation demonstrated in devolution arrangements and highlighted the potential deal in Sheffield as part of the Chancellors Northern powerhouse.
It comes as no surprise then that at the heart of her speech was the role of local government’s finance leaders. In context of transformation finance professionals are critical in providing the financial information and analysis to allow decision makers to determine long-term strategic plans.
She concluded by saying that change is demanding and while it can seem overwhelming, and unpopular, getting spending under control, pre-empting the risks can tame the storm – and this is where finance professionals can deliver excellence.
Of course, while transformation is the headline issue, addressing some of the strategic detail is inevitable. Delegates at the summit debated the key elements with attention focused three key issues:
- Joining up planning and strategy
- Structuring partnership working
- Implementing technological transformation
Throughout the day confidence in addressing these issues was canvassed and encouragingly, as the summit progressed, overall scores improved. Additionally, delegates were particularly eager that organisations should be investing in people to so that they could become leaders in addressing transformational change. This question was addressed in the case study presentation by London Underground.
Andrew Pollins , finance director of London Underground, offered seven pieces of advice for finance teams facing the transformational challenge:
- Always simplify
- Align and embed your resources
- Step back and think
- Right size you team but raise the capability
- Challenge continually
- Be inquisitive
- Stay positive
A key question for discussion was about how people really change and, in driving change, how logical behaviour and emotion are utilised at different times, depending on the circumstances.
These behavioural aspects were dealt with in a stimulating session on zero based budgeting. Talk focused on the behaviours that the finance professional needs to adopt in applying transformational change in the budgeted function which include:
- The art of negotiation
- Empathy
- The ability to collaborate effectively
- Being at the centre of the network
- Demonstration of considerable personal resilience
Ultimately, what was impressive was the level of drive, innovation and creative thought that was demonstrated both from the speakers and delegates.
It is clear that a major reason why local government has been so successful in this period of reduction in resources is the quality of contribution from finance professionals working in the sector.
However, the challenges are escalating and it is only by developing the profession and building on the traditional skill sets to move a position where finance professionals are providing genuine financial leadership that the transformational challenge can truly be tamed.
Stephen Fitzgerald is a management and financial consultant.
@SHJFitzgerald
