Between economic headwinds, technological advancements and keeping pace with regulatory and competitive changes, business leaders have plenty to keep them busy. CFOs are increasingly being called upon to deliver a level of strategic leadership that sits well beyond their traditional role as number crunchers. Against this backdrop, a strong, well-functioning finance team has never been so important.
That is not to say that finance teams are renouncing their core financial management skills: budgeting, financial acumen and risk management remain critical. But the foresight to spot opportunities and steer the business through volatility and change means CFOs and their teams need to balance these with new skills, including strategic thinking, adaptability, strong communication and technological prowess.
Getting the balance right, however, is not without its challenges. According to the EY 2024 Tax and Finance Operations survey, nearly half (47%) of CFOs and tax leaders struggle with training talent. To overcome this hurdle, finance leaders need to rethink their approach to upskilling staff and foster a culture of continuous learning and development.
Finance leaders need to rethink their approach to upskilling staff and foster a culture of continuous learning and development
One of the first steps CFOs must take in plugging the skills gap is to drill down into the needs of the business, says Christoph Martin, CFO of PensionBee.
“Finance leaders need to ask themselves what the strategic goals of the business are. For example, are they looking for private funding or is the company preparing for an IPO? Understanding exactly what the business is seeking to achieve in the future will inform what skills the team needs going forward,” he explains.
Once the strategic vision of the business is clear, there are a few training methods businesses can use to build skills. Almost half (49%) of CFOs and tax leaders surveyed by EY said training sessions from external accounting or law firms had the biggest impact on developing their people, while 38% believe participating in tax policy groups has the greatest effect.
As finance leaders look to future-proof their teams, they will increasingly need to employ and nurture skills beyond those traditionally associated with finance. According to EY, 39% of respondents cited data management as the most important skill they are seeking to develop over the next three years, while 31% cited tech skills.
Scott Hofmann, chief revenue officer at GFT USA, says: “Financial leaders intimately understand that solid data foundations are not only necessary for evolving beyond the legacy technologies that have held them down all these years but also for futureproofing their organisations. Solid data foundations set them up to introduce even more advanced technologies going forward.”
Similarly, the importance of strong communication skills is gathering pace. Finance professionals need to be able to relay complex information to non-financial peers and be compelling storytellers, capable of inspiring confidence and trust among stakeholders, senior leadership and customers. Fortunately, people don’t need to be born with soft skills. Executive leadership courses, networking and mentoring opportunities can all be a great way to build these abilities.
Bringing together a diverse team can also support development. Catherine Birkett, CFO at GoCardless, agrees that hiring a pipeline of diverse candidates is integral to building a modern finance team. “This includes gender and ethnicity but also diversity of experience,” says Birkett. “By having a mix of people, we bring different viewpoints to our team and the wider business, helping us to make better and more informed decisions overall.”
However, a truly successful training programme should not be solely dictated by leaders but guided by employees themselves, say experts.
Martin explains: “Listening to your team is so important. Honest, open and transparent communication around what the individual wants to achieve is paramount to creating a successful team. It may be that they want to develop their leadership skills, have greater autonomy or develop more insight into other areas of the business.
“Having that clarity allows leaders to help align talent expectations with business objectives,” he adds.
For Martin, on-the-job learning is one of the best ways to equip team members with the skills needed to succeed.
“Where we can, we hire internally as it means the person is familiar with the culture and how we do things. We choose to mentor team members ourselves, sitting alongside them and guiding them through real-life situations,” explains Martin.
The ability to share experience and knowledge first-hand creates a feedback loop which can be “really insightful and helpful in making the most of their training”, says Martin.
Another approach is cross-business collaboration, rotating staff into different parts of the business and inviting them to join in meetings with other departments.
Birkett says that providing exposure to wider elements of the business creates a solid training ground.
“The team must have the right context to support the business. That’s why we give everyone, especially those early in their careers, plenty of opportunities to attend commercial discussions in the areas they look after. This helps them to learn what the business truly needs and how any data or analysis they’re producing impacts decisions,” she explains.
There is a growing expectation that finance teams should possess the skills to capitalise on new technologies. A combination of digital education and an element of ‘jumping in headfirst’ can help train teams for the changing landscape.
Xavier Rebeuf, chief product and technology officer at SBS, says that to overcome scepticism or change fatigue around new tech, providing hands-on training is crucial to demonstrate benefits.
“To address concerns – which hinder employees’ career evolution and their organisations’ transformation – finance leaders are turning to exercises that build trust between teams and technology. One exercise involves asking an individual to complete a task manually while a digital tool completes the same task and then comparing the results. This ultimately builds confidence in new technologies.”
It is abundantly clear that skills gaps, if left unaddressed, can hinder a finance team’s ability to rise and adapt to new challenges. In a fast-paced world, creating a culture of continuous learning will ensure businesses stay one step ahead.
