In APQC’s September financial management community call, retired finance talent development executive Amy P. Youngblood talked about the importance of developing a growth (versus fixed) mindset for finance professionals, a mindset that involves continuous learning for finance professionals who seek to thrive as the function continues to evolve into the coveted role of strategic partner and insight generator for the business.
The idea of a growth mindset is an appealing one to most of us, as the vast majority of finance professionals want to be valued contributors to their businesses and organizations. But specifically, what does developing a growth mindset from an individual development standpoint mean for the average finance practitioner in terms of knowledge, skills, and abilities? And where specifically should they focus in terms of honing their skills?
Below are what APQC’s recent research has to say are some of the most in-demand skills valued from today’s finance professionals (beyond the procedural body of knowledge specific to their finance roles, such as accounting, treasury, tax, or payroll).
Most In-demand Business/Leadership/Soft Skills
- Business partnering―As business partners, finance professionals leverage their knowledge of finance, operations, and the business to provide analysis, advice, and decision support to their key stakeholders. Business partnering was ranked as the number one (78%) interpersonal/soft skill needed by FP&A professionals in APQC/AFP’s “Next-level Financial Planning and Analysis” study.
- Communication―Finance professionals, while often very steeped in their profession’s body of knowledge (such as of accounting, payroll, auditing, etc.), also need to be effective communicators to their operational and business leader audience, both in a one-to-one fashion, as well as more of a group/presentation setting. Sixty-four percent of survey participants in APQC’s “Developing High-potential Talent in Finance” study reported that it was very important for finance high-potentials to be trained in communication skills. Similarly, 62% of survey participants in the “Next-level Financial Planning and Analysis” study said this is a top soft skill needed by FP&A professionals.
- Strategic planning―Strategic planning involves defining the longer-term (e.g., 5 years, 10 years, etc.) objectives for an organization and articulating plans to help the organization reach those objectives. More than half (55%) of survey participants in the “Developing High-potential Talent in Finance” study reported that it is very important for finance high-potentials to be trained in strategic planning skills.
- Process management―Process management is a management practice or approach that defines the governance of specific business processes, enabling improved business agility and operational performance. More than half (54%) of survey participants in the “Next-level Financial Planning and Analysis” study said this is a top skill needed by FP&A professionals. Similarly, 52% of survey participants in the “Developing High-potential Talent in Finance” study reported that it is very important for finance high-potentials to be trained in process management skills.
Most In-demand Technical skills
- Financial/Business modeling―Financial modeling involves leveraging technology to analyze different financial variables and business drivers and make forecasts, scenarios, or predictions about what will happen based on various assumptions. Almost all (91%) of survey participants in the “Next-level Financial Planning and Analysis” study said financial/business modeling is a top skill needed by FP&A professionals.
- Data management―Ensuring quality data, strong data governance, and data integration across disparate systems is a challenge for many organizations. More than three-fourths (79%) of survey participants in the “Next-level Financial Planning and Analysis” study said data management is a top technology/analytical skill needed by FP&A professionals.
- Predictive analytics―Predictive analytics (PA) is technology that learns from experience (data) to predict the future behavior of individuals in order to drive better decisions. The technology analyzes a set of training data to generate a predictive model, also known as a machine learning algorithm. Then, new data is fed into the model to generate a predictive score for specific individuals or entities. The predictive score predicts how likely it is that the individual or entity will take a specified action. Then, the organization can adjust its strategy or take action based on the results of the predictive score. More than two-thirds (68%) of survey participants in the “Next-level Financial Planning and Analysis” study said predictive analytics is a top technology/analytical skill needed by FP&A professionals. Similarly, half of survey participants in the “Developing High-potential Talent in Finance” study reported that their CFO/finance director gives essential priority to providing in-depth training in predictive analytics to high potentials.
- Risk assessment―Finally, half of survey participants in the “Developing High-potential Talent in Finance” study reported that it is very important at their organization that high potentials be trained to assess business risk.
Implications
The skill sets required for finance are changing, and organizations need to focus on recruiting, developing, and supporting their finance talent to fit those needs. A common theme in the top skills desired of finance is the desire for finance to understand the business—its data and operations—and to provide modeling and advisory. To prepare current finance staff, programs such as targeted training focused on data and analytics, finance capability, and leadership skills; coaching and mentoring; broad project assignments and rotational assignments throughout the business; and career pathing and internal promotion opportunities are essential. Because the finance function is seeking to contribute to strategic planning and execution, it is important that applicable finance employees become proficient with data-driven decision-making, by providing training in predictive analytics to finance staff, for example. But don’t forget the importance of soft skills for finance talent. Communication, strategic planning, and process management are increasingly important as finance leaders take on a more strategic role and communicate with senior leaders and other key stakeholders.