What finance skills must non-finance managers learn and why?  

An organization's success hinges on its financial standing, so setting the goal of acquiring financial leadership skills in 2024 should be one of the key goals for every non-financial manager.  

While 85 percent of finance teams are in the middle of a finance transformation process today, according to McKinsey, up to 70 percent of these large-scale transformation efforts will not succeed. So why is it that most of these significant projects fall short?  

Some of the most crucial elements for success include a clear focus, ample resources, management attention and buy-in, planning, and celebrating short-term success. 

Acquiring Financial Leadership Skills 

What has been found in the dozens of finance transformations, McKinsey has been involved in is that using a framework like the ADKAR model is key to improving the chance of success. 

A - AWARENESS 

D - DESIRE 

K - KNOWLEDGE 

A - ABILITY 

R - REINFORCEMENT

These traits are imperative for non-finance personnel to imbibe to succeed and be part of successful organizations.  

According to Forbes, every manager should be well-versed with:  

• Basic financial concepts and terminologies, especially the ones used in your industry and organization  
• Cost reduction – think like a cost centre all the time; focus on new ways to generate long-term savings  
• Financial Planning – align yourself with the company's budget and unit budget planning exercises  
• Financial Software  
• How to effectively collaborate with the finance department – they are your right-hand women in your leadership journey  

To manage the next normal, all organizational managers, including non-finance managers, must have budget awareness skills to be able to contribute more holistically to business goals. It should be a priority for CFOs to move to a more Integrated Business Planning setup in 2024. This will not only improve the planning process but also foster much-needed cross-functional collaboration between all teams in the company.  

Adopting Generative AI Skills in Finance Teams 

2023 was the year of Generative AI. Many companies have already experimented with different solutions. CFOs have been hesitant to start using them at large, though, citing concerns over data protection and confidentiality. However, there can be no two ways around experimenting and understanding how it can benefit the company and the finance team. This should continue in 2024, and hopefully, with major software players implementing these tools in their standard solutions, it'll be easier for CFOs and managers to adopt them.  

So, add financial skills to your professional development goals for 2024.  

Which are the skills you would like to add to this list?