How to succeed as a Financial Director
Paul Venables, Group FD at Hays, discusses the key qualities required by those who occupy finance director jobs and the importance that succession planning plays in every organisation.
Leadership and establishing priorities
Any leader worth his or her salt must ask the question, ‘What are my three biggest priorities at this moment in time?’ Focus on fixing them, or else you run the risk of getting bogged down in the hundreds of other issues you need to work on.
You need to give clear direction, think strategically, relate and communicate with people. To be an effective FD, make sure you surround yourself with high quality people. People that have the same energy and desire you have. Interpersonal skills are essential – you’re born with 70% of them. You can’t teach personality.
One of the key lessons I learned was that an FD must understand what drives profitability and know the ‘pinch points’ [minimum price you’re prepared to accept]. You must also be demanding of direct reports and prepared to take calculated risks.
Succession planning and the potential to progress
There must at least be one person capable of taking over from me two years down line and two people three years on. Why do so many FDs see this as a threat? It doesn’t make sense to me as having a high quality team can reduce your workload by 25% and enable you to focus on the key issues.
For the past 10 years, I’ve conducted annual reviews to assess the calibre of all my FDs. We score them according to two main criteria: the ability to do their current jobs and their future potential. You need a mix of people that are very good at their jobs with the potential to go that step further.
No short cuts to becoming a Financial Director
Ask yourself, ‘How far do I want to go?’ There’s no substitute for hard graft, drive and passion. It’s all about how badly you want it and this, with a little talent, is what will carry you to the top of your profession.
In your twenties, you’re building knowledge and honing your qualities. Attaining your qualification is paramount, as without it there is a limit to how far you can go. It’s a fundamental pre-requisite to becoming a successful FD. Try to move around a bit also to enhance your experience, especially to gain international experience.
Respect the organisation you’re working for and make sure that it’s going places. Most FDs want to add commercial value but you must get the basics right. I strongly urge all accountants, particularly in the early stages of their careers, to get into the habit of reading the FT daily, despite the total lack of sports coverage!
Benefits of a spell abroad and job satisfaction
I would urge all finance professionals to embrace any opportunity of doing a stint abroad. A move abroad is a real eye-opener. Cultural nuances need to be understood as well as the motivations behind decision-making. There are different ways of doing business and what works strategically in Asia won’t necessarily have the same impact in continental Europe. You also have to grasp the concept of regionalisation.
The most enjoyable aspect of my role is the high degree of autonomy it gives. To survive you have to be confident in your own ability, but at the same time be careful that this doesn’t slip into arrogance. That’s why surrounding yourself with a high quality team and encouraging them to express their views is so important.
I think most of us look back on our first FD role as the most enjoyable. You get a taste of true responsibility and it doesn’t matter how prepared you are or whether you think you’re good enough, you’ve just got to get on with things.
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