Relationships, like finance, affect all aspects of an organisation from supply chain to boardroom. In uncertain times, when financial sustainability and resilience is a key concern, the role of the finance professional is more important than ever.
‘Knowing the numbers’ is, of course, a crucial element of any accountancy role. But without effective communication, interpretation and dissemination, these numbers are worthless. People skills — influence, negotiation, decision-making, communication, collaboration and partnering — are fundamental to the role of the management accountant.
Effective management accounting recognises the links between short-term non-financial indicators and longer-term financial impact. For example, the metrics used to assess the strength of an organisation’s people derive from staff engagement and satisfaction surveys. They are not financial indicators, but their deterioration will inevitably lead to financial issues such as increased costs as a result of lower efficiency and engagement, and lower funding as a result of poorer business relationships with clients. The term ‘pre-financial’ is often used to communicate the importance of these key factors.
Over the last 15 years, the rise of finance business partner roles has highlighted the value accountants working directly with their colleagues across business operations add. But in today’s remote-working world, we must work harder to maintain these relationships and networks. Collaboration, communication and negotiation across digital media require new skill sets.
'People skills and the ability to communicate effectively are used to influence the decisions, actions and behaviours of decision-makers and others throughout the organisation and its stakeholders. The ability to collaborate and work with partners is also a key skill.'
CGMA Competency Framework, 2019
Further resources
Video call tips: building connections Time-management tips for finance professionals working from home How to shine when you work remotely Essentials for first-time telecommuters