Are you a finance leader looking to boost your team’s impact on company strategy? Do you want to build more meaningful relationships with each department and be seen as a trusted strategic business partner by other teams within your organization? It starts with developing an understanding of how you and your finance team should contribute towards strategy.
Research suggests that most first-time CFOs have never previously been involved in strategy, or trained on how to design, build and implement a company strategy as the co-pilot to the CEO. Therefore, most CFOs struggle to make a significant strategic impact during their first few roles and 29% of the community identified this as one of their top three challenges.
Well-respected CFOs are involved in their company’s strategic planning process from start to finish. Their opinions command authority and respect during the strategy formation, they document the required actions across each milestone, and they ensure the successful delivery of the business plan. Conversely, less experienced CFOs are often excluded from the strategic planning process, feeling left out of key discussions and struggling to influence outcomes. This can easily devalue your role, weaken your board-level impact and stagnate your future career trajectory.
Before we look at the advice and techniques which finance leaders can use to contribute more towards strategy, let’s take a look at some of the common signs that your strategic contribution requires improvement.
Do you relate to any of these thoughts?
“My team and I are rarely consulted on strategic decisions”
“I struggle to make a meaningful impact in the boardroom”
“I never have any influence on the direction of the company”
“I’m unsure about how I should be contributing to strategy and lack the tools to do so”
“I’ve never been trained on how to develop a strategy”
“I seem to spend most of my time delivering routine tasks and other low value activities”
“I’m mainly seen as just the numbers person rather than a strategic business partner”
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If you can relate to any of these issues, it’s likely that you need to take steps to create a stronger connection between your team and the strategy of the organization. By mastering the art of strategic contribution, you can ensure that all of your activities have real value and help move your company towards its desired goals by playing a key role in the design, build and implementation of your company’s strategy.
There are many reasons why finance leaders struggle to make an impactful strategic contribution. This is particularly common amongst first-time CFOs, who may have never previously been invited to contribute to strategy.
Lack of understanding: Many CFOs are unsure about what their role in the strategic planning process should be and/or lack a clear understanding of how to make a meaningful contribution. This can lead to confusion and a sense of being excluded from important decisions.
Overloaded with tasks: The heavy workload associated with the role may lead to a lack of time for strategic thinking. This, in turn, can lead to finance leaders being too focused on the detail rather than the big picture and not having enough time or energy to focus on longer-term objectives.
Limited training: Many CFOs do not receive adequate training in how to contribute to strategy. This can mean that they are unable to provide meaningful input into strategic discussions and decisions, which can lead to their exclusion from the process.
Fear of rejection: CFOs may hesitate to speak up in non-finance meetings out of fear that their opinions or ideas will not be accepted. This can limit their ability to make a meaningful impact on strategic decisions.
Unfamiliarity with the process: CFOs may not be familiar with the strategic planning process and lack the confidence to contribute meaningfully to it. This can lead to hesitance and a sense of being excluded from important discussions.
Intimidation by others: CFOs may find themselves intimidated by other senior members of the team who have more experience in strategic planning. This can cause them to feel like their ideas are not worthy or valuable enough to contribute meaningfully to the process.
Difficulty connecting: CFOs may struggle to form meaningful relationships with other teams, leading to a lack of trust and collaboration in the strategic planning process. This can lead to a feeling of being excluded and not valued as a member of the organization.
Lack of communication: CFOs may lack clear communication channels to other teams, making it difficult to coordinate and collaborate on strategic initiatives. This can lead to a feeling of being disconnected from the overall strategy and goals of the company.
Unclear expectations: CFOs may not know what is expected of them in terms of strategic contribution. This can lead to confusion and a lack of direction when attempting to contribute meaningfully to the strategy process.
Financial constraints: CFOs may not have the resources needed to make meaningful contributions to strategy. This can lead to a feeling of being unable to add value or make an impact on strategic decisions.
Time restrictions: CFOs may be constrained by deadlines and other time-sensitive tasks, making it difficult to find the time or energy needed to contribute meaningfully to the strategy process.
Lack of tools: CFOs may not have access to the proper tools for strategic planning, such as analytics software or forecasting models. This can lead to a feeling of being at a disadvantage when attempting to participate in the strategy process.
Lack of knowledge: CFOs may lack commercial awareness, a fundamental understanding of the strategic planning process and how their role fits into it. This can lead to confusion and hesitance when attempting to contribute meaningfully to the strategy process.
Overwhelmed by complexity: CFOs may feel overwhelmed by the complexity of the strategy process and lack the confidence to contribute meaningfully. This can lead to a feeling of exclusion from important strategic decisions.
Misaligned role: CFOs may have objectives which do not align with those of the rest of the team, leading to a feeling of being out-of-sync with the overall company strategy. This can lead to confusion and a lack of contribution from CFOs in strategic discussions.
Here are some of the many ways in which finance leaders can contribute more towards strategy to ensure that they play a key role in the design, build and implementation of the business plan:
Finance leaders should undertake specific training in strategic planning to become familiar with the process and gain the confidence to contribute meaningfully. This could include taking courses, attending seminars or engaging with a mentor or coach who has expertise in this area.
Training can also help finance leaders understand how their role fits into the overall strategy and how they can leverage their skills and abilities to help the team reach its objectives. This can give finance leaders a more holistic view of the business and make it easier for them to contribute meaningfully in strategic planning sessions.
Finally, finance leaders should use training as an opportunity to build relationships with other teams and create trust between departments. This type of collaboration is essential for effective strategic planning and can help ensure that everyone is working together towards a common goal.
What type of strategy training do I need to become familiar with the process? How can I use my skills and abilities to contribute meaningfully to the strategy process? How can I build relationships with other teams and create trust between departments?
Finance leaders should actively participate in all meetings related to strategy, even if they are not directly involved in the process. This will make it easier for finance leaders to stay up-to-date with the latest developments and to provide their insights.
Attending meetings also allows finance leaders to network and build relationships with other team members. This is essential for effective collaboration and can help ensure that everyone is working towards a common goal.
Finally, it is important for finance leaders to speak up in meetings and share their ideas and insights. This will help to ensure that their contribution is valued and can make it easier to contribute meaningfully in the future.
Finance leaders should collect data which can be used for strategic planning, such as customer surveys, competitor analysis or financial projections. This type of information can be invaluable for decision-making and will help to ensure that the strategy is based on accurate data.
Finance leaders should also use their knowledge of financial information to identify trends or opportunities which could benefit the business. This type of analysis can help to inform strategic decisions and provide valuable insights into different aspects of the business.
Finally, finance leaders should use data to identify potential risks or issues which could negatively impact the strategy. This can help to ensure that all risks are accounted for, making it easier to implement a successful strategy.
As data becomes increasingly complex and voluminous, data scientists are becoming increasingly essential for finance functions. In fact, many experts believe that data scientists will be the key to success for finance functions in the years to come.
Finance leaders should be actively involved in brainstorming sessions and contribute ideas which could help improve the strategy. This can be a great way to find new ways of tackling problems and finding innovative solutions.
Brainstorming sessions are also a chance for finance leaders to share their insights into different parts of the business, such as customer behaviour or financial performance. This type of information can be invaluable for strategic planning and will help to ensure that the strategy is based on sound knowledge and data.
Finally, finance leaders should use these sessions to create a shared vision of the company’s future which everyone can get behind. This will help to ensure that all team members are working towards a common goal and make it easier to implement the strategy.
Finance leaders should utilize technology to improve the efficiency of strategic planning and execution. Technology can be invaluable for providing access to data and insights which could benefit the strategy, as well as identifying potential opportunities or risks which could arise in the future.
Finance leaders should also use technology to monitor progress on the strategy and assess whether it is delivering the expected results. This type of analysis can help finance leaders to identify areas of improvement and make it easier to adjust the strategy accordingly.
Finally, finance leaders should use technology to create a unified vision of the company’s future. This will help to ensure that all team members are working towards the same goal and make it easier to implement the strategy.
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Finance leaders should free up time to think ahead and anticipate potential obstacles or challenges which may arise in the future. This type of forward thinking can be essential for successful strategic planning, as it will help to ensure that all risks are accounted for and the strategy is based on sound data and insights.
Anticipating future trends can also help finance leaders to identify potential opportunities which could benefit the business. This type of knowledge can be invaluable for strategic planning, as it will provide valuable information about different aspects of the market.
Finally, finance leaders should use their forward-thinking skills to create a shared vision of the company’s future which everyone can get behind. This will help to ensure that all team members are working towards a common goal and make it easier to implement the strategy.
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It is essential for finance leaders to monitor progress on the strategy, as it will help to ensure that all risks are being managed and any potential issues or obstacles are addressed. Monitoring progress also allows finance leaders to identify areas of improvement and adjust the strategy accordingly.
Finance leaders should also use their knowledge of financial information to assess whether the strategy is delivering the expected results. This type of analysis can help to identify areas of the strategy which could be improved, making it easier to implement a successful strategy.
Finally, finance leaders should regularly review progress on the strategy and ensure that all team members are working towards the common goal. This will help to make sure everyone is on the same page and ensure that the strategy is implemented effectively.
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Creating a culture of feedback is essential for finance leaders, as it will help to ensure that any issues or risks can be identified and addressed quickly. This type of open communication will also allow team members to provide valuable insights into different aspects of the business, such as customer trends or operational issues.
Finance leaders should also use feedback to assess whether the strategy is delivering the expected results. This will help to identify areas of improvement and make it easier to adjust the strategy accordingly.
Finally, finance leaders should create a culture of feedback which encourages team members to provide honest and constructive criticism. This will help to ensure that all ideas and opinions are heard and make it easier to implement a successful strategy.
When receiving feedback you should put all your shortfalls on the table. This will lead you to asking for specific help on these tasks. Leaders can provide you with guidance, support and even possibly finding additional resources. If someone gives you feedback in a broad way, ask for the specifics of what you are being told. This means you can be more focused on the things that really need additional attention. Take note of what they are telling you. Also, take time to digest what you’re being told so you don’t automatically go into defense mode. Lastly, you should always accept the feedback. Even if it is harsh, you have to look for the gem in the feedback that you need to improve from, and possibly didn’t previously see.
Finance leaders should make sure they have a good understanding of the current market, including competitive forces, customer trends and economic conditions. This type of knowledge can help to inform strategic decisions and provide valuable insights into different aspects of the business.
Developing commercial awareness also allows finance leaders to spot opportunities which could benefit the business. This can be invaluable for strategic planning and will help to ensure that decisions are based on data and insights from the wider market.
Finally, finance leaders should use their knowledge of commercial awareness to identify potential risks or issues which could negatively impact the strategy. This will help to make sure that all risks are accounted for and make it easier to implement a successful strategy.
Many finance leaders struggle to contribute sufficient time towards strategy. People typically spend too long on low value recurring tasks, which makes it hard to free up time for other things. It is essential that you contribute more towards strategy within your finance leader role to justify your job title and remuneration package.
Contributing towards strategy is a challenge that finance leaders face throughout their career. However, with the right knowledge and tools, finance leaders can make a substantial contribution to the success of their company’s strategy.
By understanding the importance of forward-thinking, monitoring progress, creating a culture of feedback and utilizing technology, finance leaders can develop strategies which help their organization to achieve its objectives.
Ultimately, finance leaders can make a huge impact on the success of their organization’s strategy by utilizing their knowledge and expertise. With the right resources and guidance, finance leaders can become invaluable contributors towards creating successful strategies. Get in touch.
Mentoring and coaching can help finance leaders plan ahead confidently with the expert guidance of someone who’s been there before and is committed to seeing you succeed. We offer complimentary chemistry calls so that you can get to know us better and see if our mentoring style is a good fit for your needs. During this call, we will discuss your challenges and goals, and help you determine the best course of action moving forward.
Our CFO Programme is designed for passionate finance leaders who are keen to develop a well-respected finance function that provides vital support, influence and value creation across your business. This six-month virtual programme is led by professional mentors who have strong CFO experience and is delivered within cohorts comprising 5-6 finance leaders, alongside individual mentoring.
Use The GrowCFO Competency Framework to assess your and your team’s hard and soft skills. This first of its kind assessment tool will help individuals benchmark themselves against your finance leader peer group across nine CFO competencies and 45 skill sets.
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2023 GrowCFO Ltd. All Rights Reserved.
2023 GrowCFO Ltd. All Rights Reserved.
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