The importance of a High-Performing Finance Team - Johnsons MME (2024)

FAQs

What is a high performing finance team? ›

A high-performing finance team has the following attributes: Drivers of value by becoming key influencers of decision makers. Finance vision & strategy aligned with the business. Finance is integrated within the organisation and seen as key business partners of other managers/departments.

A finance team can make your company's daily operations more organized, keep your business competitive and allow faster growth.

The high performance financial function supports the organization in becoming and remaining a high performance organization (HPO), by always keeping the quality of its employees (behaviour of managers and employees), processes and systems (IT) as high as possible.

In conclusion, effective teamwork improves the output and efficiency of fund management firms. It leads to improved decision-making skills, efficient resource management, better risk mitigation, and a motivated and collaborative work environment.

In conclusion, high-performing teams exhibit seven key characteristics: strong leadership, clear communication, trust and collaboration, diversity and inclusion, accountability, continuous learning and improvement, and a results-oriented approach.

The team should have a mix of capabilities that go beyond traditional finance technical skills and incorporate talent that includes leadership abilities, relationship management, problem-solving and soft skills . If these skills do not already exist in the team, they can be developed through training and mentoring.

1. Mitigate financial risk. In many companies, this is the finance team's first, second, and third goal. You're there to ensure that spending is responsible, that team members do what they're supposed to, and to keep the company safe.

Here are some inspiring CFO vision statements to consider: "My vision is to become the trusted financial partner for our organization, driving growth and innovation while maintaining the highest standards of financial integrity and transparency."

Overseen by the finance department, key decision makers use strategic analysis to delve deeper into current operational issues and create an action plan. The overall purpose of strategic finance is to steer the company towards its goals - revenue growth, sustainability, environmental impact, and more.

Financial performance is an important metric to various stakeholders in the business. For investors and shareholders, it provides an indicator of how well the business will be able to generate a return on their investment. For lenders, it lets them know how well the business will be able to repay its loans.

What is strong financial performance? ›

Financial performance is a broad term that describes a company's overall fiscal health. When you hear that a business has strong financial performance, that often means it has growing revenues, manageable debt, and a healthy amount of free cash flow.

The five primary types of performance indicators are profitability, leverage, valuation, liquidity and efficiency KPIs. Examples of profitability KPIs include gross and net margin and earnings per share (EPS). Efficiency KPIs include the payroll headcount ratio. Examples of liquidity KPIs are current and quick ratios.

High-performance finance teams consistently deliver their goals and meet the demands of the business. They are constantly looking for ways to exceed expectations and add value to the end user, such as their internal and external stakeholders.

Strategic Thinking: The ability to forecast future trends and make strategic decisions based on these predictions is key. Communication: Effective communication skills are essential for explaining complex financial concepts to non-financial team members and stakeholders.

The finance department is responsible for daily record keeping and maintaining an accurate history of the company's financial records. It also prepares income statements and supports the management team by providing them with the financial data required for decision-making.

Some of the key roles that you must look at having in your corporate finance department structure are chief finance officer (CFO), finance manager, financial controllers, corporate treasurer, accountants & bookkeepers, payroll manager, and procurement manager.

High finance refers to complex financial transactions that involve a huge amount of money. It is often associated with unethical practices when lending, borrowing, or investing large amounts of money.

In a typical large organization, the Chief Financial Officer (CFO) is the highest-ranking finance officer in the company. Hierarchically speaking, they rank third, behind the Chief Executive Officer (CEO) and Chief Operating Officer (COO) - again, in a typical hierarchy.

The finance professionals' basic activities are the 5 A's - assemble, analyse, advise, apply and accumen.