The modern finance director is far from the image of the aloof bean-counter of yesteryear. Good financial management is key to successful public services. There probably was a time when the finance role in public service organisations could be conducted from an ivory tower. Those were the days when all we needed to worry about was whether the money was in the budget. But the world has moved on, and so, happily, have finance directors. Today, the organisation is acutely aware of its performance. It is much more focused on what it can deliver with the resources at its disposal. It is constantly striving to improve its offer for service-users and taxpayers. Finance staff can make a distinctive and invaluable contribution to these agendas, but not if they remain remote and inaccessible in their ivory towers. So, the modern finance team should be out there, working in the organisation, engaging and supporting the business, and helping find the right levers to improve performance. Perhaps, most important of all, finance staff are working closely with service managers to help develop their financial skills and awareness. This reflects a growing recognition that good financial management practised by general managers is, for many organisations, a vital missing ingredient which really holds back performance. So, if finance or resources is your role, you will need a strong finance team working for you to ensure this broad portfolio is managed and delivered effectively. Speaking at a recent breakfast meeting organised by Tribal for financial directors, the Chartered Institute of Public Finance and Accountancy (CIPFA) chief executive, Steve Freer, said: ‘The finance director is at the heart of the business, helping it to perform successfully and managing key relationships.' The efficiency agenda of recent years has also brought the finance function to the fore. Its role has developed and grown to include helping to shape the business, driving performance management, and making a reality of good governance. Simply fretting over the budget and being the standard bearer of stewardship and probity for the organisation is no longer enough. As such, the finance director needs to play a leading role in terms of innovation, managing risk and change. To roll out changes and innovations across the organisation, the finance director and his or her team has a role in embedding financial skills and acumen so that good financial management and a passionate commitment to value for money are in the bloodstream, and the whole organisation is equipped to seize every opportunity to make a positive difference to performance. So, what will the coming years bring? The mettle of finance directors is likely to be tested as we enter a period when settlements will be rather less than generous from what we have been used to. Lean times are always more testing than times of plenty, and these challenges range beyond simply making the books balance. Streamlining budget processes may be a positive and productive area of change. While this may seem less than clear-cut – counter-intuitive even – it will free up a significant amount of management and leadership time to focus on the actual business performance of the organisation. ‘When the going gets tough, we really don't want our leaders locked away rehearsing yet more off-the-wall budget options which will never see the light of day,' said Mr Freer. The budget is important but it must be kept in perspective. In order to bring financial management into a position where it is in the bloodstream of the organisation, it must be a central plank of departments as well as the wider organisation, not a side issue or an enemy of creativity. The finance director and their team must develop a wider skill set, engaging with and understanding the business, communicating information and advice which the organisation needs in a way that is accessible to everyone. Doing the budget comes a poor second to doing the business. w Barry Honnah is director of public finance at Tribal
