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Understanding and appreciating make good decisions. For example, if you
work for a content producer, the
multiple points of view company might benefit from producing
films or TV shows in territories offering
strengthens your strategic generous tax breaks. A finance manager
aware of territories offering such
thinking skills by engaging the incentives can present the information
and benefits for decision-making on
whole picture. production locations.
2. Schedule time for strategic
thinking and ask questions
Accounting and finance executives tend
to focus on their to-do list and putting
out fires. In the process, they may be
providing past financial information, new in the macroeconomic environment missing the big picture. Set aside and
these finance managers (by whatever title or your specific industry. Read a book, dedicate time specifically for thinking
they hold) now participate in discussions article, or trade publication/newsletter or about the organisation’s goals and the
on growth opportunities, risk listen to a podcast that’s outside your macroenvironment.
management, etc. To confidently core area of expertise. Seek first-hand Do you have a hypothesis for how a
command a place in the discussion, experience, ie, walk the factory floor, current trend could impact demand for
finance professionals need to think more make market visits, spend time at retail your company’s products? Share it with
strategically and be proactive, trusted outlets, and participate in road shows or your network and ask them what you
business advisers. consumer focus groups. Go for coffee might be missing. Asking questions of
This first of two articles looks at how to with peers, within and outside your others (especially those outside your
become a better strategic thinker. organisation, to swap views and normal sphere of decision-making)
Here are three tips to enable that: information informally. helps you discover different
perspectives. Reflecting on the
1. Know your organisation and your Analyse new information and questions yourself forces you to dig
industry/market sector well determine how it affects strategic below the surface and uncover new
Lay the foundation for being more choice opportunities, sharpening your strategic
strategic by educating yourself and your As you solicit new information and thinking skills.
team on your organisation — going ideas, take time to reflect and connect The challenge is to build up your
beyond how it operates, its vision/mission, the information and ideas with your interdisciplinary thinking and gain a
and its strategic goals. experience to spot patterns and draw breadth of diverse experience that will
This means you need to: inferences. For instance, once finance complement your finance knowledge.
y Understand the context in which understands the value proposition a It’s also about recognising what you
your organisation operates — the certain line of products provides, you don’t know and having the curiosity to
industry, other organisations and can contribute to go-to-market strategy explore unknowns.
the competition, the business by presenting analysis including Here’s how to do this:
drivers/levers, regulatory and legal profitability comparisons of alternate
landscapes, and customers and their go-to-market options (say building an Set aside time to think
buying behaviour. internal direct sales force vs. deploying Pencil in some uninterrupted thinking
y Stay updated on market trends, distributor channels). time on your schedule. Examine the
innovations, and technology relevant For better analysis, represent what picture from all angles, trying to link a
to your industry. And broaden your you learn using tools such as a SWOT choice (eg, a new product, new markets,
perspective — maintain awareness (strengths, weaknesses, opportunities, meeting a customer trend, exploiting
of the shifting macroeconomic and threats) analysis, a PESTEL (political, opportunity based on macroeconomic
environment. It’s useful to be able economic, social, technological, factors) with the big-picture goals
to answer questions such as: How environmental, and legal) analysis, and a (company mission and vision, sales
is your organisation positioned in Blue-Ocean Strategy (moving beyond goals, desired market share, etc.).
relation to competitors within your existing markets to create demand). Determine a trend in the
industry? If they are generating faster organisation’s financial data, then ask,
growth, what are they doing new, Be aware of the regulatory and “How do I broaden what I consider?” or
different, or better than you? compliance environment “Is there more I should be aware of?”
Here’s how to do this: A strategically minded finance Review opposing ideas, opinions,
professional should be aware of the arguments, or positions. Understanding
Develop yourself and your team macroenvironment and regulatory and appreciating multiple points of
Spend a half-hour a day (say, three hours opportunities and be able to leverage view strengthens your strategic thinking
a week) doing or learning something such knowledge to help business leaders skills by engaging the whole picture.

22 I FM MAGAZINE I December 2022