CFOs are fighting an uphill battle to change the perception of finance as a department which is unpopular and difficult to deal with.
This is a familiar problem for CFO Melissa Howatson, whose company Vena Solutions helps teams simplify financial planning and analysis (FP&A). While soft skills may seem like the wrong priority, given her firm’s focus on automation, she believes they are essential for bridging the gap between finance and the rest of the organisation.
Finance roles are often heavily focused on data. While having a strong grasp of financial analytics is crucial, less thought is given to the importance of people skills in the profession. Indeed, many training programmes now place more emphasis on how to build AI skills than how to influence decision-makers.
This is worrying, says Howatson. Finance teams must focus on running a business, not an Excel spreadsheet. “To become strategic enablers of the organisation they need to be able to move fluently between the back office and the front office,” she stresses. “Finance folk love to sit and pore over the numbers, but how they derive real value for the business is in the marriage of the soft skills and the technical.”
Howatson believes there are three critical skills finance teams need to become better influencers in the business: storytelling, communication and trustworthiness.
Tell the right story to the right people
“Finance sits at a unique intersection of the business. We see so much that it becomes easy to point at other departments, accusingly, and say: why on earth are you doing that?” She says. “But the rest of the organisation does not always see the full story – it’s up to us to fill in those gaps.”
Creating a narrative of what is happening in the organisation is more than just regurgitating numbers. “What good is a 45-minute presentation, expertly delivered, but which no-one can follow?”
She continues: “If you try to take someone through the line-by-line detail of a huge spreadsheet, you will probably lose them. First, you need to understand who the audience is and what matters to them. Find out what they’re trying to achieve, then translate what you are seeing in a way that resonates for them.”
This skill is as much about listening as it is talking.
Communication should not be one-sided
Howatson likens the job of the finance function to that of a diplomat who may sometimes have to push back on requests. There is a right way and wrong way to do this, she explains. “It should never be a one-sided conversation and finance should pick their battles wisely.”
Finance teams need to know how to articulate clearly and concisely the ‘why’ behind their decisions. But they must also engage others in that conversation, encouraging input and contributions. For example, while rejecting a product funding request, schedule a meeting with the team to identify an approach that would generate the additional funds required.
“Learn to say things differently,” Howatson advises. “Sometimes it might be as simple as biting your tongue or hearing someone out and going along to see what that individual is thinking. This is not always easy in finance where we tend to think we have all the answers.”
Building trust takes time
The best insights and conversations take place when people feel safe to express them. But earning the trust and respect of colleagues means putting in the time and effort. If the finance team is invited to participate in a strategic planning session but remains distant and disengaged throughout, others will question why they are there.
Howatson believes in being proactive about engagement and participation. “Instead of waiting for people to come to you, seek out strategic conversations with other departments on a regular basis. The more you do so, the more willing colleagues will be to bring you into the conversation earlier and you won’t have to keep forcing your foot in the door.”
Showing an openness and willingness to change can help finance build stronger ties within the organisation. “They will stop fearing that you’re going to shut down their idea prematurely,” Howatson says. “It takes a bit of courage to lean into something new and different, but we’re going to need to do that to take advantage of opportunities like AI.”
Can soft skills be developed?
Some would argue that most soft skills are inherent and cannot be taught. Howatson is more optimistic. “For those that are open and willing, there are tools and strategies available.”
She continues: “I’ve sent people to speaker lab sessions and communication workshops, after which I’ve seen these light bulb moments where they realise that a situation went more smoothly because they were able to use those new skills.”
Ultimately, the onus is on senior finance leaders to identify and nurture these softer skills within their team.
“This is so important,” she stresses. “We need finance teams that are going to be better business partners to the business, who are able to engage with their colleagues and be brought into these important, strategic decisions. That’s the exciting stuff in finance that I think makes for better careers, not to mention, better businesses.”
