Embracing Change and Driving Success for Finance Leaders

Episode 130: Are you ready to transform your approach to leadership and steer your organization to success? Unlock the secrets of proactive change management in this riveting episode of The Finance Leader Podcast. We promise you'll discover how turning risk into opportunity can revolutionize your business strategy. Learn from the visionary insights of Steve Jobs and the strategic prowess found in military leadership, as we offer a roadmap to cultivate a culture of innovation and adaptability. From strategic resource allocation to the crucial role of the CFO, we unpack actionable strategies for maintaining relevance in a rapidly changing business landscape.

We delve deep into the art of staying ahead of the competition by embracing change. Hear how monitoring market dynamics and adjusting your approach can help secure a competitive edge. We also tackle the significance of regular SWOT analyses and the power of open communication in anticipating industry shifts. Keep your skills sharp and your career growth on track as we discuss how to prepare for future opportunities amidst changing global business practices. Plus, you'll gain insights into maintaining personal well-being to ensure you're equipped to lead through any challenge. Join us for a compelling conversation that will empower you to guide your team and organization toward sustainable success.

Episode outline:

1. Why leading proactive change is crucial,
2. To be competitive, you must continually be adapting, innovating, and inventing, and,
3. How the CFO can inspire and lead change.

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Chapters

• 0:05 Leading Proactive Change for Success
• 7:25 Embracing Change for Competitive Success
• 13:42 Career Growth and Readiness for Change

Transcript

Stephen McLain: 0:05

The business environment and the global economy are in constant change, so that means that we as leaders must also be leading for change. Not be ready for change, but to be proactive in change. To stay ahead of our competition, we must add the leading change to our list of essential duties so that our organization and our team does not become static. When we don't actively change, we become unable to adapt to the market and our industry specifics. Then our organization is at risk of becoming obsolete. This means that finance leaders must build change into our culture. And don't forget about your own career. You need to be ready by updating your skills and abilities. Don't get complacent. Please enjoy the episode. Welcome to the Finance Leader Podcast, where leadership is bigger than the numbers. I am your host, Stephen McLain. This is the podcast for developing leaders in finance and accounting. Please consider following me on Twitter, Facebook, Instagram and LinkedIn. My usernames and the links are in this episode's show notes. You can also follow Finance Leader Academy on LinkedIn, thank you. This is episode number 130, and I'll be talking about leading change and I will highlight the following topics Number one why leading proactive change is crucial. Number two to be competitive, you must continually be adapting, innovating and inventing. And number three, how the CFO can inspire and lead change.

Stephen McLain: 1:40

Aviation pioneer Amelia Earhart said the most difficult thing is the decision to act. The rest is merely tenacity. The fears are paper tigers. You can do anything you decide to do. Be ready for change in 2025.

Stephen McLain: 1:56

Here in the United States, we have a new presidential administration which will be starkly different from the previous one. Policies will be different, which will permeate every facet of life and business. If you have not done the analysis on your business operations, you need to start today. We have always heard that change is inevitable, but what do we do about it? We love to be in our comfort zone. We love to believe that once we reach a certain level in our career and in our business, we will remain there without much effort, and that assumption is wrong. We need to stay ahead of change because you can never assume that you will have a job tomorrow and that includes your business If you don't update your skills and knowledge. Don't stop learning and don't get too comfortable in any one role. Fight for your position every day, because your competition is not letting up. Your competition will be coming for you. Bet on it.

Stephen McLain: 2:55

Last week, in episode 129,. Empire your Career by Building More Confidence. I talked about moving beyond your comfort zone by developing confidence. When you have more confidence in your abilities, you are more likely to take more risk in your career, which can translate into more opportunities and promotions. If you do not listen to that episode, please do so, because I think it could really help you.

Stephen McLain: 3:18

We need to address the two areas of remaining competitive. The first is your own career advancement and then the second is your organization. You have to grow career potential and then, as a leader, you must ensure your company does not get stagnant in the market. Your skills and mindset must continually evolve to maximize your potential for career progression. If you remain static in your skills and mindset, you will be left behind.

Stephen McLain: 3:43

I do not like complacency on any level. Even if you are the CEO, you need to relook your skills because one significant change can make you obsolete. Are you staying ahead of change, particularly in technology, and are you able to take the right level of risk? Becoming too risk-averse brings stagnation and complacency. Too many senior professionals who trailblazed because they were willing to take on more risk suddenly get scared once they reach the pinnacle of their career. You must embrace the changes that will shape our profession, which includes the use of artificial intelligence, and another example is the recent decision to no longer require 150 credit hours for accounting students. We have to adapt and move on, to ready our organizations for change and ready our teams for when change happens. Our profession is ever-changing, so the skills required to lead in a complex environment are also changing. You lead your team and organization to change. Unless you create a product that has no competition, your organization must continually adapt, innovate and invent.

Stephen McLain: 4:50

Leading change is a constant endeavor, so leaders need to be evaluating markets, volatility, relevant political changes, technology changes and anything related to their market. Do your SWOT analysis often and without bias so you can be ready, and when you do a SWOT analysis, make it a team exercise so you can see different perspectives. When evaluating change is not the time to squelch dissent. You want to hear the bad news too, and hear it early. When you have market intelligence early, you can make a better decision and make it without duress. Change can be intimidating. So often we want stability, but once you settle for stability, you may get left behind. Progressing means growing and it means you never accept the status quo. Well, can I catch my breath? Sure, you can. You need to have a self-care plan and take a vacation to rest In fact, it is essential so you stay strong and ready for change. The most successful people take care of their health needs, which includes physical, mental and spiritual needs. I want you strong in every facet so you are ready to lead necessary change in an often chaotic and unpredictable world.

Stephen McLain: 6:03

Now let's talk about why leading change is so important. Number one why leading proactive change is crucial. Leaders are responsible for steering their organization to success, and this requires them to understand and make timely decisions around change what is changing in industry and in the global economy that will impact what you are doing? Those factors include access to resources, access to labor, access to financing, access to markets, access to transportation routes and many others. My point is that we are always in a constant state of change, so strategic leaders must be looking steps ahead of everybody else to stay competitive and sometimes to even stay in business. The political climate can change just as quickly, which can affect how your business interacts in the market. I love proactive leaders who start to analyze through possible issues that could affect the business. I recommend building contingency plans, especially if your business is unique. For example, if you need a limited resource and having access to that resource is a delicate issue, what will you do if access to that resource becomes very restrictive? How do you pivot? Is there a substitute? Now, when leading change, employee engagement becomes critical. You build more trust when you become more transparent.

Stephen McLain: 7:25

Number two to be competitive, you must continue to be adapting, innovating and inventing. First, ask yourself if your customer is changing. The most risk-taking entrepreneurs, like Steve Jobs, develop products the customer didn't even know they wanted. They created new markets. They know how to assess the risk in developing something to be so desired that they trailblaze innovation, which then makes them the market leader in a new market. Next is to monitor how and if your competitors are changing. Are they emerging into new markets? Are they releasing new products? Do they have new partnerships? How are your competitors changing the industry? What actions do you need to take to counter that? What marketing actions and resource decisions do you need to be considering? What does your product-service mix look like? Are you willing to accept truths about how you fit into the market? Are you relying on a cash cow type of product which may eventually become obsolete, or are you inventing new products? Are you updating your offers to meet the needs of your customer To help with better decision making, how quickly are you getting data and information from your team? Sometimes you need data fast to make better decisions. How long does it take to have critical data in your hands?

Stephen McLain: 8:43

Number three how the CFO can inspire and lead change. The CFO has a significant responsibility when it comes to leading change. The allocation of resources signals commitment. The CFO, as a partner to the CEO, the executive team and the board, should be bringing to the table important changes that they see, and also the CFO should be advocating for the commitment of resources for relevant changes that they all agree on. In turn, the CFO readies their team through transparency so they can do their duties to update the tools they use and what new data needs to be analyzed or even recorded. Your budget should reflect future changes as well.

Stephen McLain: 9:26

Always be planning for change. When you allocate resources, you signal a commitment to the change you are planning for. This indicates to the team to do their planning. In general, the CFO should challenge their team and their peers on assumptions and any factors built into projections and future planning. Everything at some point should be challenged.

Stephen McLain: 9:46

This safeguards against complacency. Are the team's processes still relevant? Are they streamlined? Do they make sense or is time wasted? Are the right people getting the information they need at the right time? Continue to challenge processes and the norms, because processes should evolve as technology evolves and as the company steers in a different direction.

Stephen McLain: 10:11

After processes. The next question would be is your technology up to date? I believe that you should have a regular meeting scheduled specifically suited for evaluating your current systems and any new needs requirements. Most companies have some type of process for this, but it should have an important emphasis. You don't want to suddenly realize your technology is outdated. Studying and implementing change requires leadership and wisdom. You want to focus on the change that is most important and critical to your organization. Doing too much wastes your team's time and also wastes other precious resources. Focus your team on what is important. Align your team and also align with the CEO and your other strategic peers.

Stephen McLain: 10:55

Now I have a quick story. As most of you know, I served in the US Army well over 20 years. The US military leadership is no stranger to leading change, because the nature of global politics and threats is ever evolving. The military plans decades in advance, so they commit the right resources now to develop the systems and platforms to meet the needs in the future. Now, sometimes military planners are right and sometimes they are wrong, but they never stop planning and assessing risk to be ready. These plans often come with a culture shift due to new weapon systems and platforms.

Stephen McLain: 11:31

Now for action. Today, how do you feel about change? Do you hide away from it or do you make it an active part of your leadership duties? Is it a priority? Are you actively engaged in understanding what is happening and how you can adapt better Now? I recommend the following three actions. The first adapt your mindset to be ready for change Now. The next develop the skill to better see what is happening in the future of your industry. And finally, commit resources to the change that makes sense for you, your team and your organization. It comes down to this Keep doing the things that can advance your career and your organization. You owe it to yourself and to your team Now.

Stephen McLain: 12:15

I mentioned this again last week. In the last couple of weeks, I have been asked to speak at an upcoming leadership development program. It's a three-week virtual training event to help you unlock critical skills so you can reach for higher roles in finance and accounting. It is called the Office of the CFO Bootcamp. Topics include the CFO mindset, strategic influence, change leadership and Executive Presence and Communication. You can find more information and how to sign up at financeleaderacademycom select Boot Camp in the top menu. I will also drop a link in this episode's show notes If you are listening to this episode. Later there is a plan for additional workshops, so keep checking that link.

Stephen McLain: 12:58

Today I talked about the importance of leading change, and I highlighted the following points Number one, why leading proactive change is crucial. Number two to be competitive, you must continually be adapting, innovating and inventing. And three, how the CFO can inspire and lead change. The cliche that change is inevitable is true. We are in a constant era of change. The great leaders know this and they plan for it, and they set up their teams to plan for that change. Not every possible change, but the change that is most likely to happen. The great leaders then commit resources to ensure their team and their organization are ready. This is how you stay competitive in the long term.

Stephen McLain: 13:42

Additionally, regarding your career potential, you need to update your skills and abilities so you are ready for the next higher role. Never stop learning and never stop readying yourself for a promotion. Assess your skills gap and take action to develop the skills you lack. Be ready for the next great career opportunity always. I said this earlier in the episode the new American administration will bring new changes to how business is conducted globally, so do your analysis. Be ready. I hope you enjoyed the Finance Leader Podcast. You can find this episode wherever you listen to podcasts. If this episode helped you today, please share with a colleague. Until next time, you can check out more resources at financeleaderacademycom and sign up for my weekly updates so you don't miss an episode of the podcast. And now go lead your team and I'll see you next time. Thank you.