Utility players: as their role has got more complex, analytical and strategic, FDs have had to develop a range of softer skills. But they can't afford to forget the basics, either. Welcome to the world of the all-rounder--the made-to-measure, "designer" FD.
| Author | Young, Richard |
| Position | In association with Microsoft |
Is there any aspect of a modern business in which the FD isn't involved? Obviously, there are core aspects of the role--accounting, reporting, internal control and suchlike, writes Richard Young. But then there are also all the peripheral jobs that FDs get sucked into: investor relations; IT; HR; company secretarial; legal; property ... The list goes on.
These days, headhunters say that boards of directors are demanding even more from their finance chiefs. Yes, governance is a hot topic. But without commercial acumen, a dash of marketing experience and a dollop of strategic insight, the FD can't function.
This means that firms are looking for a superman or superwoman to fill the role. To use a footballing metaphor, you might say that, while at one time you could pick a great defender as your FD, these days you have to select utility players who can function anywhere on the park. Also like sports people, no matter what role they play, they can't forget the basics of the game. For the footballer, that's passing, tackling and shooting. With FDs, it's clear reporting, strong internal controls and sound decision-making.
Let's take it a stage further: what would an FDs' team-sheet look like? Is the variety of qualities they need to display reflected in the skills of the different football positions? We've answered those questions using interviews with FDs and feedback that Microsoft Dynamics[TM] received from two of its reports: Designer FD (a survey of managing directors and headhunters for their views on FDs); and FD Priorities, which looked at what finance directors themselves saw as their key attributes.
AT THE BACK
The stereotypical position for a finance director is some kind of defender. But the point of the Microsoft Dynamics studies--and our fantasy football team--is to dispel stereotypes. So in the same way that your typical top-flight defender is now a cultured ball-player, so it is with the finance director.
According to one headhunter: "They are growing in confidence. They are valued in their role, but feel that they have more to offer, having been privy to all business decisions."
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In goal, of course, we need a safe pair of hands able to marshal the team's defences. An accountant, yes, but one with quick reactions in a tight spot. Eighty per cent of headhunters say that boards still require great governance skills from FDs, and that these people still spend much of their time on finance duties. But they also need a...
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