How to Build Your Dream Finance Team
A New Wave of Finance Startups and AI
This year, a record number of 29 companies in the FTSE 100 appointed new CFOs. At the same time, many finance startups are trying to bring automation and AI to the CFO's office. These developments point to a shakeup in finance.
In our latest edition of Sifted Talks, we discussed how startups can retain and build finance teams under these conditions. We also looked into the significance of automation and the future of the finance function.
Speakers:
- Maria Hedengren, Venture Partner, Eight Roads
- Bernard Osta, CFO, Vestiaire Collective
- Martijn Janssen, Sales Director – Europe, Tipalti
- Jean-Bernard Moens, CFO, Omio
Key Takeaways from the Panel
1. Ensure the Finance Team Gets Credit and Visibility
The panel started by discussing why so many CFOs left their jobs last year. Some reasons include the high visibility of the role, emotional strain, and changing market conditions. Osta advised founders to ensure their finance team gets the credit and visibility they deserve. Moens suggested holding frequent Q&A sessions to manage stress and show that leadership "sometimes" has the answers. It can be a way to show that the finance team is trusted and important.
2. Don't Let the Finance Function Boil Over
Next, the panel noted that high CFO turnover might be due to changing market conditions. Moving from a growth-at-all-costs mindset to a smarter, more agile approach is challenging. Osta mentioned that automation could help, but only if the process is well-understood. Moens added that hiring the right people is crucial, especially during challenging times like COVID.
3. Have a Separate Plan for the Finance Function
In good economic times, there is often a desire to grow the finance team quickly. Osta advised against this and said the pace of developing the finance team should be independent of the economy. Hedengren emphasized that CFOs with soft skills are more suited for today’s market.
4. Work on Automation with the Finance Team
Hedengren suggested not dictating how automation should be implemented. Instead, use the 'Ask, Don't Tell' strategy to get buy-in from the finance team. Janssen highlighted that AI and automation should enhance human work, like invoice scanning and flagging potential issues. He warned against pessimism and said these tools can give finance professionals more credibility.
5. Hire Realists Who Can Balance CEO Optimism
In today's challenging economic climate, it's useful to hire staff who can play devil’s advocate, said Moens. Hedengren advised CFOs to become more of a business partner for CEOs, helping them navigate their ideas while balancing optimism with reality.
6. The Future Looks Bright for Finance
The panel ended on an optimistic note about the future of the finance department. Osta mentioned that when Gen X enters finance, it will remain a great place to learn business. Janssen predicted finance processes will become more demanding due to stricter approval processes. However, he remains optimistic, noting that automation can handle boring tasks, allowing finance professionals to focus on making a real impact.
Conclusion
In summary, building a dream finance team involves recognizing their value, managing their workload smartly, and embracing automation thoughtfully. By doing so, companies can look forward to a bright future for their finance departments.
