Finance leadership in practice – observations and lessons learned

Finance leadership is about seeing the bigger picture

The role of finance leadership is broad and evolves as the company, its goals and its circumstances change. Finance brings financial information and insight to decision-making and plays an active role in planning and assessing future options.

In practice, finance leadership means continuously building the overall picture. What does the company need now, what comes next, and how do we turn what matters into action?

Seeing the bigger picture requires not only financial expertise, but also an understanding of the business, its operating environment and the organisation, as well as the ability to work with people.

Over the years, different companies, industries, people and situations have shaped the way I think about finance leadership. I have selected some of my own observations and lessons learned along the way. Perhaps readers will find something familiar, a new perspective, or a point on which they see things differently.

Rather than focusing on the core responsibilities of finance leadership, I have chosen three themes that have repeatedly come up in my work: clarity and focus, people and organisation, and change and development.

Keep it simple

clarity and focus

Plain language works. Finance has its own, sometimes rather cryptic language. Yet outside finance, the message often comes across best in plain language, with familiar examples and analogies. Sometimes a picture can say more than a thousand words.

The overall picture matters. Finance leadership can sometimes feel like putting together a jigsaw puzzle. Once the overall picture becomes clear, it is easier to identify what matters, see what is needed and decide what to do next.

Perfect information cannot always wait. Finance also requires the judgement and courage to close the books and report on time based on the information available. What matters is recognising uncertainty, making it visible to management and knowing what is needed to form a more precise view.

An observation alone is not enough. Identifying areas for development and potential challenges is not enough. An observation also needs an assessment of the impact and alternatives, a proposed solution and a clear plan for moving forward.

Ownership moves things forward. When there is a clear owner, an issue moves forward and gets dealt with. Without an owner, even an important matter can easily become everyone’s responsibility and, at the same time, no one’s.

Less is more. A large number of reports and analyses does not guarantee better information. The essential observations and concise comments say more and direct attention to the right things.

Every encounter teaches us something

people and organisation

Difference is a strength. In a strong team, different expertise, ways of thinking and ways of working complement one another. If everyone knows the same things and thinks in the same way, perspectives and ideas can easily become narrow. Differences need to be encouraged and given room.

Everyone should have the opportunity to be heard. A leader’s role is to make sure every voice can be heard and that ideas, questions and views that differ from others can also be voiced. Listening alone is not enough, however. Acting on the issues raised and keeping promises build trust.

Difficult matters must also be open for discussion. Mistakes and problems need to be discussed without hiding or glossing over them. There also needs to be room for differing views. If difficult matters are not brought forward, management may end up with an inaccurate picture of the situation.

The organisation is a source of insight. Working with the wider organisation helps us understand the story behind the numbers and where it may be heading. Conversations also bring operational knowledge alongside the numbers that finance would not otherwise have.

Cultural differences show up in everyday work. In an international organisation, working cultures can differ surprisingly widely. A way of working that is normal in one culture may be misinterpreted in another. It is therefore important to understand ways of working that stem from culture and local norms.

Change is the only constant

change and development

Not everything needs to change at once. The ability to change is not only about making changes, but also about judging what to change and when. Too many changes at the same time, or a constant stream of change, can easily put pressure on both day-to-day work and people.

Information reduces uncertainty. Change challenges familiar ways of working, our sense of competence and our personal space. When people know what is happening, why something is changing and what the change is meant to achieve, it is easier to get on board.

Do not become locked into the uniqueness of your own industry. Seeing our own industry as unique can easily lead us to look at things too narrowly. Expertise and thinking developed elsewhere may then go unused. Experience across different industries brings new perspectives and proven practices that can be adapted to a new environment.

Need before technology. New systems and AI offer many opportunities. First, however, we need to understand what is actually needed and where technology can help. A poorly framed question rarely leads to the right answer.

Apaja’s perspective

Companies, situations and needs change, and finance leadership needs to evolve with them. Experience brings perspective, but just as important is the ability to apply what has been learned, challenge one’s own thinking and continue learning.

The value of finance leadership does not come from how much gets done. Value is created for the company when we understand what is needed, bring people and expertise with us, and turn what matters into action.