One of the most exciting (and terrifying) career-defining moments is the step up to a finance leadership role. To get to this point in your career, you will have had to demonstrate great technical skills along the way.
Within your new role, you won’t be able to rely solely on your technical know-how, but also your people management skills, your ability to influence those who matter and how you drive organisational business goals will become increasingly important.
Have you been promoted recently to a finance leadership role? Are you wondering what this role will now demand of you, what changes to expect, and what adjustments you will need to make? Then this article is for you. Let’s look at typical requirements and what you can do to handle the changes positively when you are promoted as a finance leader.
How Moving From Finance Manager to Finance Leader Changes Your Focus
Let’s start with what happens to your focus as a finance leader, because that’s one of the major changes. As a finance manager, your job revolved around being meticulous – in terms of accuracy and deadlines. You knew your stuff, and others knew this too.
In a finance leader role, you are now faced with a significant change in your focus; you are no longer deeply involved in routine tasks; rather, your focus increasingly becomes bigger organisational goals. You will now be involved in asking questions such as “What does this data tell us about the future of the organisation, and where should we invest in the next quarter?” You will now be tasked with using the available numbers to direct the trajectory of your organisation in the future.
In the beginning, you may struggle with fitting these new demands into your role, leaving behind the comfort of the technical tasks you’ve been used to (and are great at), but for you to succeed, you need to become comfortable with allowing and trusting your team to handle the technical tasks while you maintain your focus on the strategy, work on building influence across teams and help lead the organisation as a whole.
The 5 Strategic Changes That Happen From Managing Processes to Leading People
There are a few major mindset adjustments to make on moving from a finance manager role to a finance leadership position.
The first of these adjustments is that you now own the narrative and not just the data you are presenting. It’s your responsibility to help your senior stakeholders understand key numbers, what they mean, and what actions and decisions need to be taken.
Secondly, it’s a great time to ask yourself, “Do I want to be known as an excellent finance technician or as a corporate leader with extensive financial knowledge?”
Thirdly, it’s a great opportunity to adjust the way you approach problem-solving. It’s now essential to get comfortable with delegation instead of being the one to solve every problem every time.
This leads us to the fourth mindset adjustment, and that is you getting to accept that the time you allocate to work has now expanded, so instead of using all your time to worry about technical tasks, you would rather spend it working on strategy.
Lastly, building a strong understanding and opinion of the business is more important than knowing the “right answers”. And what is the right answer, anyway?!
If you’re able to make these 5 strategic adjustments, then you’re on your way to becoming an influential finance leader.
Core Competencies Required for the Transition to Finance Director
I think it’s safe to assume that for you to be promoted to a finance leadership position, your technical skills must be solid (or at least “good enough”). That shifts our focus to what makes the difference now in a leadership role, and that is your soft skills. I prefer the term essential skills, and I’ve picked four of the most important for you right now.
At the top of the list is emotional intelligence, including your own self-awareness; these skills can help you read the room when it is essential because important business decisions are now often at stake. These skills can also help you manage politics and handle the stress that can come from leadership roles.
Next on the list is excellent communication; this is because you now have the task of explaining complex financial projects in a room where both finance and non-finance executives are present.
Knowing how to build relationships, collaborate and manage stakeholders is also key, as you find yourself working across different functions, and trying to influence rather than using authority.
Lastly, you need resilience and the willingness to delegate; this combination helps you stay away from firefighting and become the leader that empowers their team to take ownership.
Assessing Your Capacity for a Finance Leadership Role
By now you know more about finance leadership roles and the soft (essential) skills you need to be a successful leader. You may now be wondering how you measure up today, and this is a wise move. When contemplating the step up to finance leadership, take some time and ask yourself these questions:
- Do I know how to explain what the numbers represent, or am I only good at reporting numbers?
- Do active leaders seek my opinion on business matters?
- Have I had success developing people who can take ownership in the organisation?
- How many of the daily tasks I do are focused on the future of the team or organisation at large instead of just the day-to-day?
- Am I willing to delegate tasks, so I can focus on what’s really important in my role?
Taking time to reflect on these questions will help you to ascertain your leadership readiness, or understand better your gaps and opportunities.
Finance leadership roles can be both thrilling and rewarding, and if you are looking at stepping up to one, the steps in this article give a good starting point. But many who achieve significant success in leadership roles do not cultivate these mindset adjustments alone; they do better with support from a third party. This is why I coach finance leaders through such transitions, and you can learn more about my 1:1 coaching for finance leaders or book a Free Chemistry Session, so we can talk through your current challenges (and opportunities) and how I can support you.