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Evolving Roles of Next-Gen Finance Leaders:
The role of finance leadership is constantly evolving. Finance leaders today need more than just traditional financial reporting skills; they must drive business value with predictive and prescriptive roles. This insightful webinar features Josh Rappoport, VP of Finance at Acumatica, and Apurv Bansal, Cofounder at Zenskar, discussing the future of finance leadership and how to thrive in it.
Key Takeaways:
- Evolving Finance Role: Finance has transformed from merely reporting past performance to driving business value with predictive and prescriptive insights, shaping future outcomes.
- Essential Skills: Beyond financial analysis, finance leaders must excel in business partnering, storytelling, and understanding various business functions to collaborate and add value effectively.
- Building Trust: Strong, trust-based relationships are built by showing genuine curiosity, understanding business challenges, and consistently providing valuable solutions.
- Leadership Principles: Effective leaders align on guiding principles rather than specific outcomes, ensuring consistent, fair, and objective decision-making, especially in challenging times.
- Continuous Learning: Successful finance professionals continuously learn, embrace different perspectives, and simplify complex issues, enabling them to adapt and lead in a dynamic business environment.
Speaker:
Josh Rappoport, VP of Finance at Acumatica
- Founder, Liondove Finance
- Ex-CFO, Airtm
- Over 30 years of experience in finance, including roles at Yahoo and Microsoft
Hosted By:
Apurv Bansal, Cofounder at Zenskar
Webinar Summary
Q. What has been the traditional role of the finance function in businesses?
Traditionally, the finance function has been focused on reporting and diagnostics, answering questions like "What happened?" and "Why did it happen?". It primarily provided data and insights about past financial performance, helping businesses understand their financial health.
Q. How has the role of finance evolved over the last decade?
Over the last decade, finance has transitioned from being a descriptive and diagnostic function to becoming more predictive and prescriptive. Modern finance is now focused on forecasting future outcomes and defining actionable steps to achieve business goals, helping companies navigate fast-paced changes in the business environment.
Q. Why is this shift in the finance function happening now, and not earlier in history?
This shift is largely driven by technological advancements and the faster pace of business. As companies and industries become more agile, finance’s role has expanded to include strategic decision-making. Finance now has a unique vantage point to oversee all business activities and guide critical decisions using financial insights.
Q. What are the essential skills finance professionals need to stay relevant?
Finance leaders need a blend of traditional financial skills and modern business acumen. In addition to being detail-oriented and technically proficient, they must excel in business partnering, storytelling with data, and understanding other departments’ challenges. The ability to predict and prescribe future business outcomes is also crucial.
Q. How do finance leaders upskill themselves to stay relevant?
Upskilling comes from a mix of formal education and practical learning. Finance professionals should embrace curiosity, seek knowledge outside of traditional financial boundaries, and engage with colleagues from other departments like marketing or engineering. Gaining experience in cross-functional roles, such as product management, is also valuable.
Q. How can finance leaders transition from an inward-focused to a value-added role?
The shift from inward-focused to value-added requires building strong relationships with business partners and understanding their challenges. By positioning finance as a problem-solving partner, finance teams can help business units make more informed decisions, drive operational improvements, and ultimately increase profitability.
Q. What is the importance of storytelling in finance?
Storytelling in finance is about communicating financial data in a way that connects with other departments and executives. It’s no longer just about numbers; it’s about using those numbers to tell a compelling story about where the company has been, where it is, and where it’s headed.
Q. What role does business acumen play in a finance leader’s success?
Business acumen is crucial for finance leaders because they must understand not only the financial side of the business but also how other functions like marketing, sales, and product development operate. The better a finance leader understands these areas, the better they can collaborate with other departments to drive business success.
Q. How can finance leaders build trust and foster relationships with business teams?
Building trust starts with showing genuine interest in other teams' goals and challenges. Finance leaders should engage in open, collaborative conversations and translate financial insights into actionable recommendations that help business units achieve their objectives. It’s essential to speak the same language as other departments to build rapport.
Q. Can you share an example of how finance has helped solve a business challenge?
A recent example involved helping the CIO navigate a fast-paced growth scenario. The CIO needed to decide whether to continue with an outsourced infrastructure provider or build an in-house solution. Finance provided insights on cash flow, capital expenses, and P&L impacts, enabling the CIO to make an informed decision.
Q. How do you help business leaders see challenges as opportunities?
As a finance leader, you can reframe problems into opportunities by focusing on the positive aspects. For example, when a department faces growth-related challenges, it’s important to remind them that these challenges are the result of success and can be addressed strategically.
Q. How do finance leaders handle tough decisions, like layoffs?
Finance leaders often face difficult decisions that affect people’s livelihoods. One approach is to align on principles with the leadership team before making decisions. For example, when making layoffs, the decision should focus on what roles are crucial for future growth, rather than individual performance, ensuring fairness and clarity.
Q. What leadership philosophy do you follow in finance?
My leadership philosophy is rooted in humility and transparency. A key principle I follow is acknowledging when I don’t know something and using that as an opportunity to learn. It’s essential to build trust with teams by showing vulnerability and continuously seeking to understand and improve.
Q. How can you break into senior finance roles?
Aspiring finance professionals should focus on gaining deep technical proficiency while also developing broader business acumen. Experience in different business functions, such as marketing, operations, or product management, is critical for moving into senior roles. It’s about synthesizing information across the business to make strategic decisions.
Q. What software skills or tools are important for senior finance professionals?
In addition to traditional tools like Excel, finance leaders should be comfortable with data visualization tools (e.g., Power BI, Tableau) and ERP systems. As businesses scale, finance professionals need to leverage advanced software to automate routine tasks and focus more on strategic decision-making.
Q. How do you handle the complexity of managing a growing business?
Managing a growing business requires balancing short-term execution with long-term strategy. As the business scales, you need to focus on simplifying processes and ensuring that everyone across the organization understands their role in achieving the company’s financial goals. It’s about having the right systems and frameworks in place to handle complexity.
Q. What’s your approach to making tough decisions as a finance leader?
Tough decisions should always be guided by clear principles. For example, when facing financial cuts, align on what roles are necessary for long-term growth, rather than focusing on individuals. Having clear decision-making principles helps ensure consistency and fairness when making challenging decisions.
Q. How do you balance technical depth with strategic vision in finance?
As you progress in your finance career, it’s essential to balance technical skills with the ability to see the big picture. While deep technical expertise is important early in your career, senior leaders must be able to synthesize information from multiple departments and make decisions that align with broader business objectives.
Q. How can finance teams use data to make strategic business decisions?
Finance teams should use data to not only track past performance but also forecast future outcomes. By analyzing data trends, companies can predict future challenges, identify growth opportunities, and make proactive adjustments to strategy. Data-driven decision-making ensures that financial goals align with business objectives.
Q. What role does curiosity play in a finance career?
Curiosity is crucial for finance professionals, especially as businesses evolve. By staying curious and continuously learning, finance leaders can better understand other departments, ask the right questions, and offer strategic insights that help drive business success. Curiosity ensures that finance teams remain adaptable and insightful.
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