What makes an outstanding FD?

Thursday, October 14, 2010 | Posted by: Fiona Cullinan
Categories: Financing , Thought Leadership | Tags: business, statistics, finance, research, survey, report, growth, talent, FD, Directorbank, finance director, competition, people, communication, director, recruitment,

Grant Thornton has been working with the Directorbank Group to answer this very question. We asked nearly 350 directors, chairmen, chief executives and executive directors to nominate the best finance directors (FD) they’ve worked with. We then interviewed a final 25 on what it takes to get to the top - and asked what advice they have for their peers in the current economy…

Download the report
The findings of this research and interviews can be found in the Directorbank / Grant Thornton What makes an outstanding finance director report, which is also available to download as a PDF.

Further insight into the thoughts of the outstanding finance directors will be discussed at three events running throughout October, in London, Leeds and Birmingham. We’ll also be posting up some video voxpops from the events here on the blog, as well as some of the report highlights, so do check back.

We asked 350 FDs…
The initial research asked participants to rate the FDs they had worked with in the past and present, what qualities made an outstanding FD, how important the relationship between FD and CEO was, and the difference it made when it was poor. Participants were also asked about the recruitment process, what should have been done about an ineffective FD and what the warning signs of a poor FD were.

Three-quarters had worked with an ineffective FD
The report highlighted some interesting findings. It showed that three-quarters of the directors surveyed had worked with an outstanding FD but, equally, the same number had also worked with an ineffective FD. While many ineffective FDs had been removed, often it had been left too long and 40% of directors said they should have acted sooner.

The shortlist of 25 outstanding FDs urged their peers to be brave and look for investment opportunities in the current economy. They warned against becoming stuck in a cost-cutting mind-set and, while still recognising the need for caution, say that finance directors should be looking to exploit competitor weaknesses and identify the growth opportunities that exist in every market and economy.

Outstanding FDs are not just good with figures
The clear attributes that lift an average finance person into an outstanding FD are people and communication skills. One outstanding FD said: “You have to be trusted and liked in the business. You want managers to share their problems with you, not cover them up or work around you.” That’s not to say that it is a popularity contest and tough decisions need to be taken. FDs need to be decisive and commercial, usually with imperfect information.

We will be publishing some of the key findings here on the Grant Thornton Thinking blogs shortly but would appreciate your thoughts. If you would like to speak to anyone about any of the details in the report, please get in touch with Jo Parr at jo.k.parr@uk.gt.com.

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