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Action Matters

Fast-Tracking Finance: The People Side of Finance

As Corporate America recovers from the worst recession in almost a century, company executives continue to look for ways to revitalize their organizations. CFOs are making adjustments that will help sustain the patchwork of cost reductions and working capital improvements that allowed them to weather the crisis. Sales and marketing professionals are concocting creative solutions to lure back customers, increase orders and generate revenue. And operations personnel continue to look for new methods to bring efficiencies into production, distribution and service delivery. However, as executives evaluate process improvements and explore capital investments, they should not overlook opportunities to enhance one of the organization’s most important assets — people.

Even as we trudge forward into a better economy, the corporate hangover lingers. Many employees know of co-workers and friends who have been laid off. Worries about job security, a freeze on salary increases or bonuses, and even the possibility of another pay cut persist.

Finance is not immune to the malaise. Even with cuts made during the recession, many companies continue to explore the potential of outsourcing finance jobs, while others are evaluating new technologies that will provide more automation and a need for fewer employees. With aggressive growth plans for many companies, these strategies may not translate into job cuts, but rather, maintenance of the status quo. In short, concern abounds.

For now, with most staff reductions out of the way, what can finance executives do to recapture the hearts and minds of the people who remain? Here are some suggestions for creating a positive and productive culture that not only serves to motivate finance employees, but also sets an example for the rest of the organization.

Create a Positive Environment

Many self-help books claim that the beliefs and attitudes of each person constitute an average of the beliefs and attitudes of five people with whom they spend the most time. People spend most of their waking hours at work, so it stands to reason that bosses, peers and employees have a profound impact on how we see the world, how we see ourselves and how we see our jobs — all of which impact our general sense of satisfaction. If we are surrounded by negativity, there is a good chance that we ourselves will become negative. If we work with a more positive and optimistic outlook, it is likely we will find ourselves in a better state of mind.

Unfortunately, we all know people who, regardless of what is happening in their world, find a reason to complain. They are not being paid enough, they are not appreciated, the company’s strategy is wrong, and so on. Ironically, most of their time is spent complaining to people who cannot change the situation. Rather than initiating a constructive discussion with those they report to, they complain to co-workers — or worse, in the case of managers and supervisors — to their direct reports. This type of negativity can become cancerous and spread quickly through a department or an entire company, leading to bad morale and low productivity.

The last thing companies need is a platoon of "Yes Men" who simply go with the flow. It is a necessity to employ people who constantly challenge themselves and the department to become better, introduce new ideas and push back on changes to policies or processes that may not provide the intended benefits. All of these actions should be encouraged because they only make the corporation and the individual stronger. However, these discussions need to take place constructively and with people who have the authority to make things happen. Any other approach will be counterproductive and disruptive.

When evaluating an employee’s performance, finance executives should not only consider technical skills and contributions, but also the impact employees may have on the morale of the department. Are they generally good-natured and constructive when making points? Or are they disruptive and negative? You will often find top performers are also extremely positive and enthusiastic. For those who hinder morale, point out their positive contributions, but clearly explain that your expectations related to "soft skills" are not being met. These employees need to show marked improvement or move on — either way you will see a substantial increase in morale.

Finally, consider introducing bonding activities such as team lunches or local charitable or civic events. Take a day out of the office for community service. Studies have shown that people gain a sense of satisfaction or accomplishment from helping others — and this is a great way to build camaraderie among the team, while giving back to the community.

Develop and Utilize Employee Strengths

Companies spend a great deal of time trying to develop the perceived "weaknesses" of employees instead of taking the time to evaluate and develop strengths. While there are certainly cases in which you cannot overlook a core-skills development point, it is a mistake to disregard an employee’s strengths. Focusing on weaknesses, in essence, forces an employee to do things they may not be naturally inclined to do, and this takes time and energy away from areas in which they can excel.

Finance organizations should consider the following approach: First, evaluate the complement of skills and talents required — and how those skills will enable the finance team to best support the business. Then, evaluate the talents and strengths of your team members. After completing your gap analysis, develop an action plan to address specific needs. Employees may need to be re-assigned or rotated into finance from other departments or new employees may need to be hired. In cases in which you find an employee is no longer a fit, help them find other opportunities within the company to elevate their strengths. However, if you consistently find you need to "develop people’s weaknesses" or move them out of finance, you may also need to re-evaluate your recruiting and hiring practices.

Skills assessments should be ongoing. Over time, business needs change, as do the skills and strengths of your employees. Do not get complacent, as your team can easily get out of synch in applying their talents as needed in certain positions.

It is critical to not take a cookie-cutter approach. Your entire team should not possess the exact same mix of skills. Doing so will lead to inefficiencies, and morale may suffer if people are being pushed away from their true strengths. If people are doing what they are good at, they will be happier, more productive and successful. Reinforce the alignment of employee strengths with the skills you need, and make sure that performance measurement is tailored to each specific individual.

Promote Continuous Learning

People must continue to learn new things in order to grow personally and professionally. Even if an employee does not aspire to a new position or to obtain a promotion, he or she will still most likely possess an innate desire and curiosity to build knowledge in their areas of interest.

Find ways to challenge your employees to develop new skills and take the opportunity to consider your employees’ interests in new skills. For example, ask yourself: Who has expressed an interest in learning more about IFRS and could become the company’s IFRS guru? Who would like to work more closely with the external auditors to try to make the audit process more efficient and less burdensome? Who may want to develop deeper skills in IT and help the company make better use of its existing technology?

One way to help employees self-select areas in which they would like to build skills is to start a library of professional books on a range of topics, including: 1) self-help / success titles related to goal setting, time management, life simplification, energy creation, soft-skills, etc.; 2) industry, accounting, general business and management topics; and 3) other relevant or timely topics of interest. Also, offer some titles as audio books, so employees can make commuting more productive by listening in the car or on the train.

Collaborative learning is another popular tactic. Organize "lunch and learn" sessions for employees to share expertise on given topics with colleagues. Invite people from outside the finance team to discuss business and industry issues. Even consider inviting speakers from outside your organization to broaden the opportunities for learning.

Conclusion

The power of a positive culture in improving departmental effectiveness and corporate performance should not be underestimated. The ideas presented here can begin a cultural transformation by improving the psyche of individual employees and the collective morale of your team. By promoting continuous learning and utilizing employees’ strengths, a high-performance team will most certainly be created.