Change is often said to be the only constant, and recent years have vividly illustrated this reality. From historically low interest rates to a rising rate environment, renewed recession fears, and uncertainties surrounding potential political shifts like a Trump 2.0 administration, Asia's business landscape has transformed dramatically and will likely continue to evolve in the years ahead.
For chief financial officers (CFOs), embracing discomfort is crucial as their roles expand. Geopolitical and policy changes can introduce volatility, but understanding your organisation's financial health equips you to confront challenges effectively. The key to navigating this complexity lies in driving business results through collaboration and the reinvention of business models.
CFOs must ensure that financial strategies align with swiftly changing market conditions, using insights to guide their organisations through the intricacies of a global economy. By adopting a forward-thinking approach, CFOs can position their companies to survive and thrive amid these changes, fostering sustainable growth and resilience for the future.
The changing landscape of finance leadership
Traditionally, aspiring finance leaders often followed a well-trodden path: starting with one of the Big Four audit firms, acquiring technical skills, and gradually transitioning to commercial roles. However, as Saravanan Raman, CFO of AirAsia, highlights, the landscape is shifting.
Many multinational corporations (MNCs) now implement structured management programmes that rotate finance talent through various roles, providing a broader experience in less time.
While experience in the Big Four can enhance a candidate's profile, it is no longer the sole criterion for success. Companies increasingly recognise the value of diverse experiences from medium-sized and local firms.
"Sometimes people learn more in smaller firms than the Big Four," Raman notes, underlining the importance of depth in experience over the firm's prestige.
Essential skills beyond technical expertise
Asked to name three essential skills that finance leaders must possess to be of value to their organisations, Raman points out that technical prowess, while crucial, is now only part of the equation. He identifies three essential skills that aspiring finance leaders must cultivate:
Project management: Effectively managing multiple projects and deadlines is vital in the ever-changing finance landscape.
Communication: Strong communication skills are paramount. Many finance professionals possess excellent technical skills but struggle to convey their insights effectively.
"Communication is probably the most important criterion when you're selecting or in terms of career development," Raman asserts, emphasising that the ability to articulate complex ideas clearly can set candidates apart in competitive environments.
Stakeholder management: Navigating relationships with various stakeholders is crucial. A finance leader must be able to collaborate with different departments and external partners to drive the organisation's goals.
According to Raman, these skills are often the differentiators in hiring decisions, particularly when candidates possess similar technical qualifications.
"As they grow their career and become senior leaders, having excellent communication and presentation skills becomes critical and non-negotiable." Saravanan Raman
Building a strong foundation
"You can't build a great building on a weak foundation. You must have a solid foundation if you're going to have a strong superstructure." Gordon B. Hickley
Raman advises finance professionals to build a strong foundation early in their careers.
"As long as the foundation is strong, no matter which industry or role you take up, you will always be successful," he states. This foundation includes not only technical skills but also an understanding of both controllership and financial planning & analysis (FP&A).
Investing time in roles that offer learning opportunities rather than chasing immediate financial rewards is essential. Raman's experience echoes this sentiment; he confided that earlier in his career, he took a lower-paying role at a Big Four firm to gain the necessary skills for long-term success.
"Don't chase the money. Let the money chase you," Raman advises, illustrating the importance of prioritising skill development and opportunity over short-term financial gain.
The importance of mentorship
Any discussion with successful leaders, be it finance, technology or operations, will attest to the importance of mentorship in developing your career and helping guide future leaders.
Mentorship plays a critical role in career progression. Raman highlights the need for leaders to cultivate relationships with their teams through regular one-on-ones, which foster trust and motivation.
"Understanding each team member, their strengths, and weaknesses is very critical," he notes. This approach not only aids in individual development but also ensures a cohesive team dynamic.
Research supports the value of mentorship in leadership development. According to a study by the International Journal of Evidence-Based Coaching and Mentoring, mentored individuals are more likely to achieve their career goals and experience higher job satisfaction.
Embracing change and continuous learning
Rapid technological and regulation changes characterise the finance profession. Finance leaders must embrace continuous learning to remain relevant. Raman stresses the importance of adapting to new processes and technologies, stating,
"Always looking to see how I can improve things." This mindset is essential for driving efficiency and innovation within finance teams.
The World Economic Forum's Future of Jobs Report highlights that 42% of jobs require reskilling by 2025, underscoring the necessity for finance professionals to stay abreast of industry trends and invest in their skill development.
Navigating career transitions
When Amazon founder Jeff Bezos considered leaving his well-paying hedge fund job, he developed a regret minimisation framework to determine whether starting a business selling books online was worth walking away from a massive annual bonus.
Transitioning between roles or industries can be daunting for finance professionals. Raman emphasises that having a strong foundation mitigates the risks associated with these changes.
"Think of it as investing for the future," he explains. Understanding the new industry landscape and leveraging existing skills can facilitate smoother transitions.
As the finance sector evolves, professionals must be prepared to adapt quickly. The ability to pivot and learn new skills will be crucial for those aiming for leadership roles.
The road ahead: Preparing for 2025
Looking towards the future, the expectations for finance leaders will only grow. Raman anticipates a positive outlook for 2025, with opportunities for finance professionals to advance their careers.
"Managing costs. Driving business growth. It was quite a challenging year in 2024. I see a positive outlook for 2025," says Raman, emphasising the need for ongoing commitment to excellence even in a thriving environment.
However, he cautions that success will require continuous effort in streamlining processes and enhancing efficiency.
The message is clear for finance professionals aspiring to leadership: invest in your skills, cultivate relationships, and remain adaptable. The journey to becoming a successful finance leader is not merely about climbing the corporate ladder; it's about building a solid foundation, fostering communication, and committing to lifelong learning.
What lies ahead
The journey to becoming a great finance leader is not just a career path but a transformative experience filled with opportunities for growth, learning, and impact. As Raman illustrates, success in finance leadership requires a blend of technical proficiency, superior communication skills, and a commitment to nurturing relationships.
"Aspiring leaders must embrace the challenges and changes of their journey, knowing that every step taken is a step towards more significant influence and achievement. By investing in their own development and that of their teams, finance professionals can enhance their careers and drive their organisations to new heights of success." Saravanan Raman
In a world that prizes agility and insight, let your aspirations soar. Embrace each opportunity to learn, connect, and lead, for the future of finance is bright for those who dare to invest in their potential.
