The expanded role of finance
As the profession evolves, the scope of finance work is expanding rapidly into new areas where we add value. Our extensive enquiries reveal that finance professionals are no longer just ‘numbers only’ experts. We now play a role in digital transformation; diversity, equity, and inclusion (DEI); sustainability and environmental, social, and governance (ESG) initiatives; strategy; and value partnerships. Technical knowledge, practical experience, and a holistic skill set prepare a finance person to do a variety of value-adding activities. Some of our members have branched out into roles in human resources (HR), risk, governance, intrapreneurship, and marketing, among other functions. This is because they can leverage their commercial acumen, understanding of the business, analytical skills, and people skills. Of course, most of us continue to engage in the finance function and hence are involved in the evolution of our role. Thus, we set the stage to explore business opportunities and expand into areas that, just a short 10 years ago, were often not a consideration. This expansion creates the next impression on this profession, forming our new mandate, as illustrated in figure 2:
The preceding model illustrates the evolution of the finance profession — from producers of numbers and reports to business partners and co-curators of valuable business options.
At the core of the model are traditional finance activities — accounting, reporting, planning, forecasting budgeting, performance management, corporate finance and treasury, investment and business evaluation, risk management, tax planning, and so on. These lay the foundation for everything finance does. Technical proficiency and upskilling in these areas are of critical importance.
With organisations adopting information technology (IT) and enterprise resource planning (ERP) tools to better integrate data, there are opportunities for wider access, transparency, and synergies between financial and nonfinancial data. It also, however, increases the need for coordination and collaboration between finance and other functions to harness the power of information, as well as to overcome performance suboptimisation and information overload. Digital transformations are ongoing. In that context, the development of artificial intelligence tools is expected to change the workflow in finance teams by outsourcing routine and transactional work to automated systems and demanding human-led discretion and leadership.
Expanding beyond data and technology, people management and leadership skills underpin organisational transformations to achieve not only smarter work but also a better social and human equilibrium. For finance, this translates to avoiding isolation and using skilful communication, emotional intelligence, collaboration, and leadership skills. This layer marks the process of spreading out and participating in organisational decision-making, working with agility while also seeking work-life balance.
The next expansion of our mandate covers sustainability and ESG initiatives. Here finance professionals ensure that the interests of all stakeholders are safeguarded and that organisations view their operations holistically, seeking positive impact on people, planet, and profit.
Finally, the model illustrates the role of a finance business partner, co-creating value and engaging in collaborations both within the organisation and outside it.
The preceding model encapsulates the expanded role of finance the participants in our research perceived and discussed. It also aims to indicate the ripple effects of what finance achieves in organisations and society. Additional details are included in the sections that follow.
