The role of the advancing FD

You probably haven’t met many people who dreamed of being a finance director when they were younger. Indeed, the number-crunching aspect has ensured there are long hours spent hunched over spreadsheets and the traditional concept of the beancounter has done little to enhance the job’s image. But now it is time for a change – for FDs to alter their image.

This is already well underway. Gone are the days when FDs were perceived as fusty maths geeks hidden in a dimly-lit corner, somewhere away from all the actual business being done. And amid the recession, we have heard much more about the work FDs do than usual: they have had more headlines than usual and headhunters have been busier placing them in ever-more prestigious finance roles. The past few years certainly changed things irrevocably. But has the recession been a blessing or a curse?

“CFOs must prepare their organisations to live in a world dominated by powerful forces of half-dead, half-alive zombies”, says Simon Tennant, finance specialist at PA Consulting. Banks, governments, consumers and companies are all entities that appear to be recovering but are only half-alive, he believes, and it will be at least two years before CFOs can hope for ‘business as usual’. Even then, it will not be the same business as usual, he adds.

The recession has put the spotlight on the FD and many have stepped up to that increased attention, performing a wider, deeper and more visible role.

The recession has made FDs better at their jobs, says Nick Jarman, partner in the finance effectiveness practice at PricewaterhouseCoopers. He attributes this to old disciplines being forced out and FDs being recognised as custodians of the cost-cutting effort. They have effectively been thrust into the ‘central area’ of the business.

The next couple of years will see companies go through a sustained period of belt-tightening and it will be FDs at the heart of this. This may make them inc reasingly unpopular, but in the long term, it will ensure there is a tighter rein on spending which will ultimately see more companies claw their way out of austerity measures and into sustainable profits. The organisations that take heed of any measures or cultural changes the FD is brave enough to implement will be the ones that emerge leaner and meaner.