The approach of a finance director has changed. Have you?
In the past we’ve talked a lot about the characteristics of a finance director and what it takes to be successful in this role.
From being a strong communicator to focused on cash flow, there are a number of ‘must-have’ skills and qualities that can make a finance director successful in their role.
However, recent years have brought new challenges to overcome and will have altered what the role may look like within many businesses.
With that in mind, we look at some of the ways the approach of a finance director has changed. Do you agree?
A different approach
Traditionally, finance directors were focused on reviewing financial performance based on retrospective data. But, with the help of digitalisation, there has been a shift to a proactive rather than a reactive approach.
In today’s challenging climate it’s vital to make quick decisions based on real-time data. The best finance directors use the information provided from analytics and reporting tools to predict the future, develop scenarios and evaluate their potential impacts. This enables the senior team to take the business forward in the most financially productive manner.
More focus on technology
Finance professionals have always needed to be adaptable to overcome challenges and succeed. But in an ever-changing technological landscape, this is arguably more important than ever.
Great finance directors are digitally savvy and utilise technology to identify and overcome any challenges they face. They appreciate the value of technology and see it as a good investment for business success rather than an added expense.
A strong commercial understanding has always been a top trait of successful finance directors. But modern finance directors are increasingly playing a greater role in driving change, strategy and performance within businesses.
The digitalisation of manual processes has given FDs more time to provide added value to the business. They can now provide valuable advice and solutions, allowing the business to build informed and accurate strategies and financial plans.
What do you think? Are these three traits important for modern finance leaders? Let us know in the comments below.