1. 32 I AFP Exchange July/August 2013
FP&A
Numbers
NotJust
Soft skills can elevate the
finance function to strategic partner
Jim Boswell

2. www.AFPonline.org AFP Exchange I 33
Finance professionals are typically known as the
“number guys.” Yet in recent years, the demands
chief executives place on finance professionals include
more than just the numbers. In addition to routine job duties
revolving around the hard science of numbers, expectations
now include a mastery of soft skills.
Finance professionals are increasingly aware of these new,
higher expectations being thrust upon them, not only from
the c-suite, but from all corners of the company. And these
new expectations—in addition to the constant emphasis
on increased efficiency—require finance professionals to
become strategic business partners within the firm. Acting
as a partner necessarily means working as a team player and
undertaking the responsibility of guiding the firm within
cross-functional groups.
To develop strategic partners of that caliber, a finance
function must make that development the goal of every finance
task. As a consequence of this aspiration, finance leaders
must broaden their focus and knowledge base to include
soft skills not generally associated with finance. For example,
traditional strengths of the finance function do not include
communication skills, leadership or team building. Yet, each of
these is a prerequisite to operating at the highest level in finance
given the new environment created by corporate pressures.
Under the circumstances, a finance department should adapt
and enhance its reputation in the “softer” side of business.
The first step is understanding the finance function’s unique
contribution to communication within the firm. Educating,
learning and mediating in only the way finance professionals
can, is key to elevating the finance function to strategic partner.
Educating staff
Each employee at the firm probably will not share every
finance professional’s love of forecasting and variance
analysis. But that does not mean finance professionals should
avoid discussing finance matters when working with other
departments. Instead, they should adopt the role of educator
during these interactions.
Finance can feel like a “black box” to nonfinancial
professionals. Yet, it is important to the success of the
business for all leaders to know and understand the
numbers. This goes beyond creating dashboards and
reports to simplify financial data. Truly educating other
departmental heads and employees also means taking time
to explain how their decisions affect the financial health of
the business. For instance, if the marketing department is
launching a new product or service, the decision-makers
may not understand how that product or service affects the
income statement and balance sheet. If this is the case, a
finance professional should seize this opportunity to act as
educator. Take time to thoroughly explain to the marketing
department the financial impact, potential adverse effects,
strategies for budgeting, etc. This information may dictate
when a marketing campaign rolls out, how funds are
allocated in a fiscal year, or even whether a project should
be abandoned. All of which the marketing department may
not have considered had a finance professional not acted as
an educator.
It is important, though, that before this explanation occurs,
the finance professional inquire about underlying facts, the
goal of the project, and other departmental concerns, to
gain a greater understanding of the situation. This should
prevent providing inaccurate guidance and undermining
cross-functional aspirations. At this stage, it is vital to the
relationship and the finance function’s reputation within the
firm to avoid condescension at all costs. Teachers understand
that students do not know the answers and, thus, they aim
to increase the students’ knowledge. Adopting this same
attitude and increasing the knowledge of co-workers will be
appreciated by those learning as well as firm leadership.
As finance professionals proactively seek opportunities
to educate in this manner, at least three things should
happen. First, the firm’s overall knowledge of finance will
increase—likely drastically. Second, the communication lines
between the finance function and other departments will be
open. Therefore, it is probable that as new projects emerge,
“Traditional strengths of the finance function do not include communication skills,
leadership or team building. Yet, each is a prerequisite to operating at the highest level
in finance given the new environment created by corporate pressures.”

3. 34 I AFP Exchange July/August 2013
nonfinancial employees will contact
finance professionals with questions
and concerns that never before
occurred to them. Finally, the business
model should become more successful
and efficient.
Learning from others
When the tables turn and the finance
professionals are no longer the subject
matter experts, it is important that they
adopt the role of student just as easily
as they did the role of teacher. Finance
professionals ought to vigilantly seek
new data sources which come from
other departments’ reports, casual
conversations and formal meetings. As
new ideas arise and finance professionals
identify new data sources, an open mind
is essential. Just as other functions should
be receptive to learning more about
the financial impact of firm decisions,
the finance function should be aware
that the financial impact is not the only
consideration in decision-making.
Adopting a genuine “I don’t know
that” attitude empowers other people
to teach.The knowledge gleaned from
seeking new, unknown information will
benefit future analyses. Additionally,
finance professionals will gain a deeper
understanding, making them more
valuable strategic team members.
Mediating matters
The finance function’s particular
skillset and knowledge base offers a
unique vantage point within a firm.
A thorough understanding of the
facts, data and key strategies across
multiple departments can be the single
greatest strength a finance function
possesses. Leveraging this strength
during difficult budget discussions,
competing operational decisions and
a variety of other firm discussions
and situations enhances the quality of
decision-making and the likelihood of
firm success. The key to utilizing these
various departmental perspectives is
not taking sides. Finance professionals
should seek to explain and clarify
perspectives from all sides of an issue.
Note that this is not meant to imply
that finance professionals or a finance
department should not have an
opinion of their own. The intention
here is to convey that finance
professionals have the ability to bring
a deeper understanding of the issues to
a discussion.
Action steps
Understanding senior business
leaders are searching for finance
professionals that possess effective
communication skills provides a goal
to strive for, but acquiring the skills to
fulfill these roles can seem daunting.
Fortunately, there are several options
for soft-skill development. So many
exist, in fact, that this topic could easily
fill a separate article. Two practical tips
to jump-start the development process
are outlined below.
Initiate relationships
The greatest opportunity to learn
is through interactions with experts,
and the key is actively pursuing those
relationships. Allowing relationships
to develop organically, through chance
encounters, limits your potential
growth. Active networking rewards
finance professionals with an increased
knowledge base and has the added
benefit of developing communication
skills. Writing a personal e-mail or
hand-written note commenting on a
project a particular expert completed
is an excellent method to initiate a
relationship. This simple approach
is efficient and effective way to start
building your network today.
Continuing education
A portion of budgeted training
time is best spent honing soft skills.
How much time that is set aside for
soft-skill training is dependent on
several factors, not the least of which is
current skill level. Conduct an honest
assessment by asking one or more
colleagues for constructive, specific
feedback. This feedback can take the
form of a 360-degree survey or a series
of informal conversations. The results
of this assessment should then be
used to create a personal development
plan. For example, if feedback results
reveal an opportunity to become more
assertive during meetings, look for
ways to improve confidence. Joining a
group like Toastmaster’s is a tried and
true method for improvement in this
area, but certainly not the only course
of action. Be creative when searching
for training because one-size does not
fit all—with so many choices available,
you will always have another option.
Each of these three roles—educator,
student and mediator—when executed
effectively help to elevate the finance
function to strategic partner within the
firm. Therefore, finance professionals
should place greater emphasis on
development of the soft skills necessary
to excel in each of these roles. Doing
so will benefit the firm as a whole
by facilitating communication and
enhanced decision-making, which
eventually affects the bottom line.
Jim Boswell is director of financial
planning and analysis with Marco’s
Franchising, LLC (franchisor of
Marco’s Pizza). He can be reached at
jboswell@marcos.com.
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