Changing Dynamics of a Finance Team: Who to Join the Force?

I was listening to a podcast a few weeks back where the speaker said an exciting quote on building a finance team in the new age world of technology, and that was "It's not just about crunching numbers anymore, it's also about understanding the principles behind them and finding new ways to leverage technology."

This statement stood out to me because it demonstrated how the dynamics of a finance team are changing in today's world. How? We will know. 

Also lately, I have been noticing a lot of finance leaders with even more than two decades of experience in leadership have often shared their disappointment over how the new-age finance teams are not able to understand and capitalise on the opportunities present in technology.

Another important incident that I must share is during a recent team meeting, a group of CFO expressed concern over their finance team size being four times larger than other companies in our field. 

It was clear that their current approach needed to produce satisfactory outcomes. 

In response, I proposed that their size was actually a hindrance to innovation and embracing technological advancements. Their team had become complacent and developed a hierarchical structure, leading to stagnation. 

By implementing new tools and streamlining our processes, there would be no choice but to transform and adapt. 

Because sometimes, shaking things up is necessary to push teams to their full potential.

With the above examples, it is now more than ever essential for a finance team to be composed of individuals who understand both numbers and current trends in technology and can look at the problem from a different point of view and offer unique solutions. 

Huge teams with a low skill set will not be able to compete with smaller teams of highly skilled professionals.

Quality over Numbers 

Let's understand that, at the core, a finance team consists of both qualitative and quantitative skills.

Qualitative skills involve analysing, interpreting, and developing strategies from business data. In comparison, quantitative skills are more focused on the mathematical aspects of processing that same data.

And with the kind of complex and advanced technology we work with, it is pretty visible that we need a workforce that bridges the gap between these two skills.

So, what kind of people should you be looking for to join the finance team?

• Well, first and foremost, it's important to look for individuals who understand the basics of Finance, accounting, and economics. People with clarity over fundamentals are definitely a classic addition to finance forces.
• Additionally, those with programming skills are a huge asset when it comes to leveraging the power of technology. We know how fast programming languages are evolving, and keeping up with them all is impossible. So having a team member who can quickly develop codes for specific applications makes the job easier.
• Another essential aspect to consider is that a finance team should consist of individuals who know how to collaborate and understand each other's roles. For instance: the developers should understand what the finance team needs and vice-versa. 

The bottom line is that to build an effective finance team in this digital age, you need the right mix of skills and people who are comfortable working together. With a little research and effort, you can find individuals with the perfect blend of financial knowledge and tech-savvy skills to help you create a team of all-stars.

• It's not just about individual performance; it's also about collaboration and problem-solving as a team. To achieve this, you need people willing to take the initiative, think creatively, and handle pressure. From managing risk, reducing friction, getting more visibility over spend structure to automation accuracy, a team should be able to navigate the complexities of modern-day Finance and technology.

The myth of bigger teams with higher efficiency in Finance

Is it true that leaders need a bigger team to reach the desired efficiency level? This is a myth! It's not the size of the team that matters; it's the ability of the team to work together and collaborate. A smaller, well-knit team can be much more effective than a large one if they are all on the same page and working towards the same goal. 

Moreover, with technological advancement, getting more efficient and accurate results using fewer people is now possible. Automation tools like AI can help you get the best out of your processes without increasing headcount. To sum it up, teams need to be well-versed with numbers but also have an understanding of current trends in technology.

Leaders should know

If as a finance leader, you are still filling positions according to the previous hiring pattern, it can be difficult to find the best talent. 

Instead, you should focus on hiring those people who are competitive, smart at handling automation, and understand the complexities of the finance industry. Ultimately, it is important to remember that building a successful finance team requires effort, research, and an understanding of current trends.

With careful selection and training, you can create a team of all-stars to help your organisation reach its financial goals effectively.

Seek diversity in a team  and ensure that you have the right combination of skills to get the work done. Number of persons will no longer make a stronger finance team but the right skill set that diversifies the team.