Foundational role of the finance professional
‘What is clear to me is the importance of the role of the management accountant in so much that goes on in business. It really is a critical role, and I don’t think that will change. The skills will change, the challenges are changing a bit, but the importance of having someone with that ability to link the finance to the business and look forward is absolutely critical’.Regional Finance Director Northern Europe, Veterinary Services, UK
The role of the finance professional is enacted by applying the technical skills and competencies in the areas illustrated in the following diagram. This includes the finance professional creating and preserving value and providing insights into its underlying drivers. Combined with commercial acumen or understanding of how the business activities are run and what makes the organisation perform, as well as leadership and people skills, these skills and competencies form a solid foundation for exercising finance expertise. According to CIMA’s CGMA® Competency Framework, this means having the knowledge and experience to develop strategic vision and provide unique insight to the overall direction and success of the organisation. It includes formal responsibility for the finance business area and ensures that the actions and decisions of finance have a high-level strategic impact on the organisation.
Our conversations with finance leaders clearly indicate that understanding numbers and seeing organisational activities holistically continue to be the finance function’s superpowers. However, it also became clear that finance activities are no longer linear. Finance is instead evolving into a more fluid and dynamic model. Even with this change, we continue to be relied upon to provide the following:
Information. Financial and nonfinancial, analytical, scenario-based reports
Insight. What the data is telling us, where the data is guiding us to
Influence. Presenting to and discussing with desired audiences to enable understanding and joint decision-making
Impact. How does the understanding of data impact the finance function? What does it mean for decision-making in my organisation? How does it impact the business model?
In short, the dynamism of work and life means a reality of routinely and promptly collaborating with business units. This has changed the breadth and depth of finance activities and the speed at which they operate. This also means that accounting and finance professionals must raise awareness of the new role they play in organisations and society.
