The finance function has undergone a workplace evolution and continues to experience transformation. Common drivers include ongoing technological, environmental, and political trends.
These developments have also led to an expansion in the role of management accountants to now include digital proficiency and keen interpersonal skills.
The breadth of changes and challenges within accounting and finance organisations is demonstrated in Future of Finance 2.0 Emerging Themes: Workplace Evolution, a research paper published by AICPA® & CIMA®. As part of the 18-month long study, the comprehensive, global research was built upon interviews and roundtable discussions with finance leaders, academics, and students exploring how the accounting and finance profession evolved and what skills are needed in this changing landscape.
Management accountants and leaders can adopt research-based practices to bring their workplaces into the future and adapt to the expanding demands of the finance function.
Flexible modalities of work
Hybrid working environments are a key element of the workplace evolution.
When countries were in mandated lockdowns during the first two years of the COVID-19 pandemic, many organisations were forced to work remotely. As mandates eased and people returned to their offices, hybrid environments were embraced, enabling employees to switch between time spent at home and in the office.
Research participants discussed how working from home boosted their flexibility, productivity, and efficiency thanks to the elimination or minimisation of commuting times and unwelcome office distractions. In-office interactions also received a boost as employees were motivated and targeted to fully utilise their time.
Limitations with hybrid environments were revealed, however. Leaders faced new obstacles in managing and coordinating with their teams. Team building, brainstorming, and conflict resolution were felt to be some areas that lagged in remote environments. Managing a hybrid team that expands across time zones can result in disengaged employees, burnout, and high turnover. To counteract this and promote team engagement, leaders should prioritise communication and promote emotional intelligence within their teams.
Hybrid policies and practices are not yet universal from a regulatory and management perspective, and how an organisation implements its hybrid environment is based on multiple factors, including overall culture. This evoked a variety of responses and opinions from research participants over best practices and overall results — concluding there is no one-size-fits-all solution. The research demonstrated that employees, managers, and leaders should feel empowered in exploring hybrid solutions until a mutually acceptable model is created.
The expansive finance skill set
Technical skills will remain the foundation of the accounting and finance profession, but a need to broaden these skills was revealed in the research. Proficiency in technology, digitalisation, and automation are three new areas of technical expansion.
‘Traditionally, management accountants engaged in business solutions by providing numerical information, but that has changed’, said Dr. Irena Teneva, associate technical director of research and development at AICPA & CIMA, and co-author of the report. ‘With such development, they need to upskill. Their expanded roles demand new skill sets. Technical skills are essential, but also communication, people skills, leadership, and strategic mindset.’
Successful hybrid environments require strong communication skills. Research confirmed a growing list of interpersonal skills including emotional intelligence, mindset, resiliency, leadership, and more.
‘The workforce evolution requires the management accountant to not only have a breadth of technical skills, but an expansive knowledge and the ability to acquire such in an agile manner’, said Lori Sexton, associate technical director of research and development at AICPA & CIMA, and co-author of the report. “Lifelong learning is key to navigating successfully in the workplace of tomorrow.’
Within these hybrid environments, research participants discussed the importance of self-reliance and a decrease in micromanaging. Despite these benefits, interpersonal skills can sometimes erode in hybrid environments and require frequent practice. Research suggested a knowledge gap is now emerging in how professionals conduct themselves virtually and on sight with clients or colleagues.
New conversations spark innovation
Thanks to the diverse pool of research participants, a variety of opinions were shared on the emerging benefits and challenges of the workplace evolution. The collection of responses analysed and shared in the report enables leaders to think critically about their own processes and what practices could work at their own organisations.
‘The research brings important questions to the table’, said Teneva. ‘This will inspire you to introduce agility within your teams.’
‘Expansion of existing skills and development of new abilities are necessary to thrive in the workplace as it continues to evolve’, added Sexton.
The Future of Finance 2.0 Emerging Themes: Workplace Evolution report will help accounting and finance professionals understand the dynamic changes occurring within their workplaces.
The finance function as a whole is expanding, and the Future of Finance 2.0 research programexplores the scope of these changes within the profession. Explore research on digitalization, sustainability, and more to prepare for what’s ahead.
Investing in your professional development now ensures your commitment to the growth and evolution of the profession. Expand your skill set and make better strategic decisions. Discover how data analytics can transform your organisation and learn how to close data analytics skills gaps for future success. Data Analytics Foundation Certificate, Data Analytics Core Concepts Certificate, and Transformative Skills Pack - Digital Mindset.