How to get to FD..

Stephen Hill FCMA CGMAstephen@fd4.co.uk

The Story

Part 1. The route to becoming FD

Part 2. Why FDs need CHARACTER

Part 3. To FD - and beyond...

A (my) route to becoming FDB. Acc Hons (Accountancy and Economics) - University of Glasgow

• Joint honours degree

Procter and Gamble UK (6 years)• Accountant, Financial Forecasting• Senior Accountant, Financial Analysis and Forecasting• Factory Accountant, Manchester• Treasury Manager • Financial Analysis Manager, Personal Care Products

A (my) route to becoming FDProcter and Gamble Divisie Nederland (2 years)

• Group Manager Finance

Procter and Gamble Benelux (3 years)• Associate Controller Financial Analysis

Procter and Gamble Europe (2 years) • Associate Controller, Laundry Detergents - Europe

Procter and Gamble Europe• Finance Director - Southern Europe/Household Cleaning

and Bleach

Route to FD

Themes

Broad range of assignments and organisationsOpen to different opportunitiesDemonstrated achievements with each role Positions of increasing responsibility

Why FDs need CHARACTER

“The mental and moral qualities distinctive to an individual”

But also can stand for ...

C HARACTER

Communication

The imparting or exchanging of information by speaking, writing or using some other medium

COMMUNICATION

Written – ‘one page memo’Speaking – presentations, meetings – think about the

audienceListening - active

C H ARACTER

Habits, 7, Highly Effective People

7 HABITS OF HIGHLY EFFECTIVE PEOPLE

1. Be proactive2. Begin with the end in mind3. Put first things first4. Think win/win5. Seek first to understand ..then to be understood6. Synergize7. Sharpen the saw

1. Be proactive• Take initiative in life by realizing that your decisions are the primary determining factor for effectiveness in your life

• Take responsibility for your choices and the consequences that follow.

2. Begin with the end in mind• Clarify your values and life goals

• Envision the ideal characteristics for each of your various roles and relationships in life

Yo, I’ll tell you what I want, what I really really want..Spice Girls

3. Put first things first• Principle based time management

4. Think win/win• Strive for mutually beneficial solutions or agreements in your relationships

• A "win" for all is ultimately a better long-term resolution than if only one person in the situation had got his way

5. Seek first to understand and then be understood• Communication at its best..• Empathic listening• Diagnose before you prescribe• Then ensure that you are understood

6. Synergise• Combine the strengths of people through positive teamwork, so as to achieve goals no one person could have done alone

7. Sharpen the saw• Physical renewal• Mental renewal• Spiritual renewal

CH A RACTER

Analytical ability and problem solving

ANALYTICAL ABILITY AND PROBLEM SOLVING

Complementary skills in the BoardroomPersonality types (Myers Briggs) • Thinking vs. feeling• Sensing vs. intuition

Cost and investment examples

CHA R ACTER

Range of experiences

RANGE OF EXPERIENCES

Managing your career Finding the right opportunities• Internal vs external moves• Experience to cover any gaps• CV development • Headhunters/recruiters• LinkedIn

International experience?Right time/right place

CHAR A CTER

Appreciation of others

APPRECIATION OF OTHERS

Building the business vs building the organisationTeamwork/synergyRecognition and reward• Private vs. public recognition• Motivation of your staff

CHARA C TER

Creativity and innovation

CREATIVITY AND INNOVATION

Not creative accounting...Recognising the need for and initiating changeChallenging the status quoWorking smarterAdding value

CHARAC T ER

Technical mastery

TECHNICAL MASTERY

Key building blocks c.f. CIMA syllabusCannot be an ‘expert’ in every field• Example – UK Tax code – 10x more complex• Knowing who/what to ask

Need for CPD

CHARACT E R

Envision, Energize, Enable (Leadership)

ENVISION, ENERGIZE, ENABLE

Leadership vs. managementLeaders create the systems that managers manageBoth skills are necessary (in the same person!)

3E model of leadership (P&G)Envision – creates a picture of the future and keeps that vision alive Energize - inspire people to deliver the futureEnable – build people’s capability to achieve better business results

CHARACTE RResilience

RESILIENCE

Recovering from setbacks and pushing onConfidence in your own abilities but learning from

mistakesCreating your own luck

To FD ... and beyond

Experiences as FD

LIFE AS AN FD

Experiences vary according to company and market

LIFE AS AN FD

Strategic vs. operational roles

Strategy development and planningAcquisitions and integration

Divestitures and restructuring Organisation developmentChanges to systems and processesFinancing and treasuryInternal controlsAudit management

LIFE AS AN FD

Sector aspects

Manufacturing vs. servicesB2C vs B2BCompany culture and type of MD/CEOBut transferrable skills

LIFE AS AN FD

Economic situation

Managing in a downturn vs. upturnChange in the markets and legislation

LIFE AS AN FD

Ways of working as an FD

Permanent vs interimFull time vs part time (portfolio)

Beyond FD?

VP Finance/CFO roles (in larger organisations)

General Manager or Chairman roles

BUPA – Stuart FletcherSky – Jeremy DarrochUnilever – Paul PolmanHSBC – Douglas Flint

NED/Consulting type roles

The Recap

Part 1. The route to FD should include a broad range of assignments and organisations, demonstrated achievements with each role and positions of increasing responsibility

Part 2. Why FDs need CHARACTERCommunicationHabits (7)Analysis skillsRange of experiencesAppreciation of othersCreativity and InnovationTechnical MasteryEnvision, Energise, EnableResilience

Part 3. Beyond FD can be up (VP/CFO) or up and across (GM, NED)

How to get to FD..

Stephen Hill FCMA CGMAstephen@fd4.co.uk

Questions?