“Human Beings are Social Creatures” — Atul Gawande
For years, organisations have been attempting to study top performers and establish criteria on which to base future selection and retention decisions. In a journal article titled The Blame Game: Accounting Education Is Not Alone, published in the Journal of Education for Business, the authors highlight that since the 1950’s, there has been considerable discussion pertaining to the appropriateness of accounting education in terms of its ability to produce ethically sound leaders.
This week we focus on further understanding the key non-technical skills which are important in a modern finance function. Qualities, such as attention to detail, accuracy, a highly-developed sense of discretion and confidentiality, have traditionally been deemed indispensible within the finance function.
As a result, performance within the finance and accounting discipline has, in part, relied on soft skills.
In his 2018 Commencement Speech for Macalester College, Fred Swaniker made a bold statement:
“In the era of artificial intelligence, I believe that those who will be intelligent in the future are those who have traits computers cannot easily copy. Traits like curiosity, humility, passion, a sense of fairness, a mission for a higher purpose and global awareness.”
These skills are not highly technical but depend more on a candidate’s character.
For years, organisations have been attempting to study top performers and establish criteria on which to base future selection and retention decisions. In a journal article titled The Blame Game: Accounting Education Is Not Alone, published in the Journal of Education for Business, the authors highlight that since the 1950’s, there has been considerable discussion pertaining to the appropriateness of accounting education in terms of its ability to produce ethically sound leaders. While hard skills have helped many candidates to shatter the glass ceiling into the work environment, it is a person’s soft skills — their work ethic, attitude, communication skills and emotional intelligence — that are crucial for sustainable career growth.
In a previous instalment of this series, we quoted the 2018 LinkedIn Learning Report which highlighted the significance of soft skills within the finance function. The AICPA Vision 2011 Project added soft skills to the list of core competencies that successful accountants should possess. Therefore, a case can be made that accounting educators, learning and development experts have a responsibility to help prepare students to make the transition from unfocused high school seniors to contributing members of a professional service team.
Going through PwC Malta’s training catalogue for a series titled Soft Skills Toolkit for Finance and Accounting, one thing becomes apparent: the top skills are centred on communication. The three course catalogue summarises the courses into communication-based modules which are specially designed for the finance professional. Henceforth, it cannot be ignored that the finance executive is in dire need of a team and a force behind them that can be able to relay adequate, reliable and sufficient information for them to make recommendations to other areas of the business that increasingly see finance as a partner for business support service throughout the whole organisation.
KPMG compares this role to that of a team of navigators expected to guide the decisions of those captaining the ship. EY narrows the roles of finance into four main roles, one of these stands out, the Commentator Role, The arch-communicator in the organisation. To be able to fully support this role of the CFO, their support staff should be able to
- Articulate the numbers clearly,
- Appreciate firmly the connected dots behind the numbers,
- Create detailed and clear reports,
- Understand how non-financial indicators integrate into the numbers story.
These skills are at the core of a finance business partner professional as related in a joint report between KPMG and CIMA on the evolving role of finance.
The report also notes that one of the key functions of individuals who look to succeed in finance need is the ability to narrate and interpret business performance in key decision areas.
This range of requirements requires not only someone who is sharp when it comes to oral communication, it also calls on members of the support staff to be able to flex their oral and written skills with ease.
In its conclusion of that research, communication skills top the list as the most important skill compared to leadership skills and technical skills.
In addition to preparing and relaying information to others, great communicators are also good at receiving information from other parties. This is the ability to listen effectively with a view to both gaining information and understanding opposing points of view, to listen and respond directly to questions asked as well as to read, understand and critically evaluate written information.
Through great communication skills that drive and stir constructive debate, one can then be able to “provide rounded opinions and clear recommendations.” The range of communication skills that are critical for success within finance include
- Presentation skills
- Relationship building
- Negotiation
- Facilitation
- Conflict resolution
This range of skills hangs on an individual’s emotional intelligence which enables them to build trust and confidence vital for strong relationships in the organisation.
The communication bracket also encompasses aspects to do with how well one relates with other members of a team. John Donne coined the poem “No man is an island” many centuries ago and its contents still ring true today. The ability to relate within a team and collaborate is of core importance if one is to be a critical element of the finance function. Diane Bunney and Len Therry of the School of Accounting, Finance and Economics at Edith Cowan University, observed that this ability ranked top of the employability skills that candidates need coming out of a post graduate programme.
Professional accounting bodies, research studies and employers have been reiterating the fact that it is important for candidates to also be more aware of the dynamics of the modern workplace. It is a soft skill that makes one candidate stand out from another. Globalisation has opened up markets which have invariably different cultures and amazing diversity in culture, religion and opinions. Culture is dynamic. The world now holds more liberal views on a number of factors from gender to religion to many other sensitive issues than ever before.
For accounting and finance professionals aiming to be successful for the benefit of their team and the organisation at large, they need to develop the ability to:
- Recognise and respect similarities and differences in a team,
- Engage productively and harmoniously with diverse cultures,
- Motivate team members to engage and contribute to the team,
- Negotiate acceptable solutions and agreements in a professional manner despite differences beneath the surface,
- Assume a leadership role where appropriate,
- Understand group dynamics and respond appropriately,
In other words the modern finance function should be able to produce global citizens, as these skills are transferrable across industries and in different jurisdictions.
We will leave you considering the following questions, until next time:
- On a scale of 1 to 10, how effective is your finance department in achieving its objectives consistently?
- Do you believe you have the best staff in every position?
- What could be your department’s weakest link?
- What soft skill could your finance team members when assessed individually aim to improve on?
- What are the common errors which team members make consistently?
