Culture is the silent force behind any successful organisation. While the CFO role is often assumed to have little to do with influencing organisational culture, finance leaders are at the core of shaping a company's culture, writes Jackline Aluda, CFO of Cold Solutions.
A great finance leader should not miss the mark by just protecting the organisation's financial and investment ventures but be the tip of the spear when it comes to strengthening the company’s lifeline: its people.
It is important for finance directors to step up and go over and above the finance function to ensure through a positive culture, as companies gain a motivated work force and attain the vision and successful execution of the organisational strategy.
The finance department, which CFOs head, is a support department, and through it, the CFO is considered one of the senior leaders thave their head in every other department. This is sometimes seen as over stepping. The onus is therefore upon the finance leader to foster a cross departmental collaboration that plays a critical role when it comes to breaking down silos and building alignment with the organisation’s stakeholders. This builds great teams with unbreakable synergy and delivers attractive results.
The financial results of any organisation also speak volumes. They are first communicated through the CFO’s office. A transparent CFO should be open about financial matters, resource allocation, and decision-making. However, it is crucial to approach this with maturity, recognising that oversharing information with employees can have significant consequences. The style of communication can make employees feel they belong and make them more loyal, productive and efficient, which trickles down to better business performance.
Building trust
As a finance leader, one is also a guide on the culture of accountability and transparency. The two values are usually accompanied by integrity and are considered a new form of currency that institutions and societies are keenly after. It is no wonder that either of the three are often picked as the core values of most organisations and pillars upon which organisational culture is built. The communication of financial performance of any organisation must eliminate fear and build trust in internal and external organisation culture.
Followers more often than not do what their leaders do rather than what they say. The members of the institution often observe the character and behaviour of the CFO while they carry out their day-to-day activities. This can be as simple as taking a walk to the shop floor to get a glimpse of how an ordinary warehouse clerk or administrator feels about the just reported financial performance. Employees may adopt or challenge a proposed culture written within the culture’s development strategy depending on the observed reality. Therefore, as CFOs deploy their authentic informal behaviour without letting their departmental goals and key performance indicators fall behind, they indirectly influence culture.
Innovation is also at the centre stage of the evolving role of the CFOs. They play a critical role when it comes to change execution through giving insights and financial direction so that organisations can deliver innovative ideas. Therefore have a responsibility to normalise continuous improvement, making change an expectation and not an exception.
At the backdrop of inclusivity and investments in people, CFO play an important role in influencing decisions related to retention of critical human resources, creating environments suitable for working, provision of tools and equipment that support productivity, and mental wellness initiatives. All these are part of culture enhancement and formation that makes the key resources feel secure and become brand ambassadors.
As a member of the senior leadership team and business partner to the CEO and the board, the CFO should not lose sight of the fact that the rise and fall of any institution lies within leadership. They should thus take a deliberate approach and be visible and vocal in creating an environment where employees feel valued, motivated and aligned towards shared vision of and success of the organisation. CFO as strategists should remember the famous saying ‘culture eats strategy for breakfast’.
