‘The idea of being disruptive and reinventing is going to be absolutely critical, especially the role of finance in challenging the business to be disruptive and to reinvent itself’. Andrew Harding, Chief Executive, Management Accounting (U.K.) — AICPA & CIMA
The Authentic Disruptor displays a growth mindset, constantly challenging existing ways of working to inform changes to strategic direction. They do this all in an authentic, purposeful way to become a highly trusted partner to the business.
According to the 2020 PWC CFO Pulse Survey,5 63% of CFOs are planning changes to their revenue stream as a result of COVID. This, overlaid onto the backdrop of an already transforming profession, puts a disruptive innovative mindset right at the heart of the finance leadership role. Take the well-publicised example of Kodak — similarly, finance leaders often have the tools at their disposal to transform their business model but lack the mindset to put it into action. Those in the asset and wealth management sectors have been looking at how they build customer relationships using more virtual channels, those in banking and insurance are well on the journey to a digital-first service model, but are more revolutionary changes needed to stay ahead of the competition?
... To achieve a growth mindset, leaders need to develop three components: a resilience mindset, a learning mindset and an innovation mindset.6
Crucially, they must see failure as a learning opportunity and not something to fear. The CFO must leverage the technical skills of modelling, scenario planning, business acumen and automation to disrupt current thinking and inform changes in strategic direction. The role of finance has shifted away from reporting the past, towards influencing the future —
... finance needs to be the objective, challenging friend to the business.
But for disruption and challenge to be truly effective, finance leaders must be authentic and purposeful in the way they do it. As Katie Murray, Group CFO of Natwest, notes, ‘The business needs to be in a position to trust finance to bring the appropriate insights to deliver the strategic outcomes of the organisation’. Finance leaders need to create an environment in which people tell the truth. To do this, they need to be more visible, vulnerable and open, sharing their vulnerabilities in an empathetic way and reacting appropriately when issues are raised. As Gary Bischoping notes, ‘I need people who tell me what is really going on, not what I want to hear, and that is an even harder thing to achieve in a remote environment’. Similarly, Kimberly DeTrask, International CFO of State Street, recognises the role of the finance leader in creating a workplace where people are proud to come to work. Only by being truly authentic and purposeful can this be achieved. Recent research into the effects of COVID on organisations also highlights that the pressure to become leaner may actually provide the opportunity for finance professionals to reassess and re-engage with the core of an organisation's mission.7
... One tool used to motivate people in the pursuit of positive disruption is purpose.
Alan Trotter, EMEA CFO for Invesco, stated that he has used the organisation’s purpose more extensively in the past year to connect the job people are doing today with the changes in the finance function, and ultimately how they will contribute to a much greater company. The well-being of their people was referenced as one of the top priorities during the crisis by almost all our CFOs, with forward-thinking leaders appreciating the need for a mix of explicit empathy and manufactured confidence to achieve cohesion. Finance leaders at Legal & General recognised the need to give their teams time to recharge following the release of the financial reports and encouraged all employees to take a recovery planning day focused on introspection, taking advantage of the organisation’s wellness and resilience offerings, and absolutely no email.
5 PwC US CFO Pulse Survey. PWC. June 2020 6 Matthew Syed Consulting Ltd. Mindset Advantage Assessment. 2020
7 Renewing purpose to drive value. Jessica Hubbard. FM Magazine. March 2021
Practical tips for the Authentic Disruptor:
Consider widening your source of ideas and influence. Research shows that leaders typically go to the same few individuals when sourcing ideas. Instead, reach out to a wider pool of people and consult a wider range of literature to challenge your assumptions and drive disruption.
Create a safe environment in which your team can make mistakes. Follow in the footsteps of Tata and create a prize for the ‘Best Failed Idea’, celebrating where something was tried but didn’t work, yet something new was learned as a result.
Allocate a time for generating ideas and challenging the status quo. Have a space to collect the team's ideas for change or things that need improvement. Action the best ideas.
To be authentic and create vulnerable trust, be honest about mistakes you have made and what you learnt from them. Recognise what you are not good at and where you need help from others.