MOST Analysis

Mission Statement

The first workshop in this program is designed to create an understanding of the model and make sure the underlying corporate infrastructure is ready to support the Financial Leadership Model. We will achieve this by first working to understand the model. After we have completed an overview of the model, we will work on the four competencies of the model. Next, we will review the four leadership traits. We will review existing business processes and elements of the finance team. This will help us to identify potential issues and help set expectations for the team. Finally, we will review the participants in future workshops, discuss the time commitment and availability of the team participants.

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Objectives

01. Understand the financial competency and leadership model.
02. Understand the difference between competencies and leadership traits.
03. Build matrix of competency and leadership expectations specific to the organizational structure and complexity.
04. Review existing business processes related to recruitment, talent evaluation and employee development.
05. Analyze and develop a plan to integrate the model into existing business processes.
06. Calibrate current performance of finance team. (Current)
07. Identify and analyze key personnel and any existing issues. (History)
08. Identify and calibrate expectations on future outlook of the finance team. (Future Outlook)
09. Analyze and determine who should participate in future sessions.
10. Estimate the time commitment for implementation of the process.

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Strategies

01. Each participant is to set aside time to study the elements of the workshop content.
02. Participants to set aside time to meet as a team to discuss the competencies and leadership traits.
03. List and group financial team roles. Assign performance criteria for each competency and leadership for each group.
04. Analyze existing business processes related to recruitment, development, and performance evaluation. Determine where integration with the competency and leadership model is necessary.
05. Develop an integration plan including resolving any differences in terminology and expectations for future modules.
06. Participants should meet to discuss the overall performance of the finance team. The team should review each of the competencies and evaluate if this is a strength or weakness in the current organization. The team should also review the financial leadership’s performance against the leadership traits.
07. List key personnel and any existing issues with the current team as it relates to the financial competency and leadership model.
08. Participants should meet to discuss future expectations of the finance team’s performance. These expectations will be used in modules 6 and 11.
09. List the key personnel that will participate in each of the modules.
10. Determine the estimated time commitment for the participants for each module and analyze the current workload to determine feasibility.

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Tasks

01. Read through the entire workshop and make notes.
02. Schedule a meeting for the participants to meet and discuss the model within 30 days.
03. Set a deadline within the next 30 days to create a matrix of competency expectations and job level and leadership expectations and job level.
04. Schedule a meeting within the next 30 days for key stakeholders to review existing business processes.
05. Set a deadline in the next 30 days for developing a plan to integrate the financial competency and leadership model into business, including expectations for future modules.
06. Schedule a meeting in the next 30 days to discuss the current performance of the finance team as it relates to the financial competency and leadership model.
07. Set a deadline within the next 30 days to review key personnel and existing issues.
08. Schedule a meeting within the next 30 days to discuss the future expectations of the finance team’s performance.
09. Set a deadline within the next 30 days to create a list of participants for each of the modules.
10. Set a deadline for determining and analyzing the time commitment for each of the participants.

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Introduction

Introduction to Financial Leadership

The primary goal of this workshop will be to lay the foundation for implementation of the Financial Leadership Model, review existing corporate infrastructure and plan for participation in future workshops. This workshop should lay the groundwork for future workshops. This workshop will focus internally on the organization and will require participants to engage in open and honest dialogue regarding the performance of the finance function of the company.

There is some preparation work that all participants should complete prior to starting the workshop. The preparation work is detailed in the Preliminary Analysis section. Participants should also read through the Distance Learning section to make sure they establish the proper learning environment. The Tutorial Support section will also provide instructions and details on how to seek support.

Financial Leadership vs Organizational Leadership
It is important to differentiate between financial leadership and organizational leadership. This program will develop the financial leadership skills for the finance team. Organizational leadership is very familiar to all of us. This is the role of the President or CEO of the company. There are many books written on the subject. Organizational leadership is leadership that is necessary to lead the entire organization, to balance the needs of internal and external stakeholders and many other things we see CEOs do.

Financial Leadership is different. The financial leader is not the face of the company and does not have the formal authority of the CEO. Financial leaders need to have the be able to use influence to affect change in an organization. While financial leaders have formal authority, the successful leaders are able to influence others. The ability to use influence to affect change is the key to financial leadership. The Financial Leadership Model will help financial leaders build these skills and the team necessary to build their ability to influence the organization.

Financial Leadership Model
The Financial Leadership Model has two critical components. First, there are competencies that all members of the finance team should have. These skills are necessary for the financial leader to develop on the team in order for their leadership to be effective. The second component is the leadership traits that are necessary for financial leaders to unlock true financial leadership in their organization. These skills will allow the financial leader to adapt to different situations in the business and to become a valued counsel and advocate for the business.

The workshop will introduce the different module components and develop competency matrices for both the Financial Competencies and Leadership Traits. During the workshop we will establish performance criteria for each of the competencies and traits. We will further establish performance criteria for different levels in the organization.

The matrices are a key output for this workshop. The matrices will be further refined and validated as the program progresses. It is important that workshop participants are prepared to discuss current performance of the finance team and expectations based on the model.

Financial Competencies
Successful leaders need to build successful teams. There are four financial competencies that team members need to demonstrate. The more senior the role in the organization, the more skill that is required in each of these competencies. Catalyst, the first competency is the ability to see what and how things need to be done to meet the company goals is the first of these competencies. The second is Reporting or the communicating on the activities of the company while preserving assets with control. Balance, the third competency is the ability to balance different activities and requirements to fulfill the needs of the customer. The final competency is The Curve. This is the ability to use the company objectives to navigate uncertainty.

It is important to have employees with sufficient levels of the competencies for their role in the organization. When employees do not have the sufficient level of these competencies it will create problems with the team’s performance and will be a distraction for the financial leaders of the company.

Leadership Traits
Successful financial leaders have the ability to utilize different skills depending on the situation. The Financial Leadership Model will introduce four key leadership traits that all financial leaders need to be able to utilize. The ability to adapt to different situations are key to long term success.

The first of these traits is Servant Leadership, the ability to demonstrate care about the wellbeing of employees and the ability to communicate in an honest and transparent manner. The second leadership trait is Connector, the ability to connect people, processes, and events to enable execution of strategy. Challenger or the willingness to have tough conversations and challenge the status quo is the third trait in the model. The final trait is Business Advocate, results driven leadership that drives accountability, numerates strategic goals and measure performance of business strategies.

In this workshop we will focus on defining the leadership traits and the level of mastery for different levels in the organization. In later workshops we will discuss more about each individual trait and how the different traits work together. The traits are not different buckets to jump from one to another, rather they are linked and should be thought of as how much of each ingredient is necessary in a given situation.

Data Gathering
During the workshop we will be reviewing several existing internal processes and the individuals that make up the finance team. It is important to gather the data discussed in the Preliminary Analysis so the workshop can work with complete data. Please refer to this section on the specifics and recommendations for gathering data for the workshop. It will be helpful for the participants to share in the data and to have a method for shared access.

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Participant Considerations

Participant Preparation
The workshop is designed to start with the model and begin the process of understanding the model prior to implementation. It is recommended that all participants review the Study Guide, Tutorial Support and Preliminary Analysis prior to the start of the workshop. The Study Guide help each participant prepare for the program and will provide tips to help your success. The Tutorial Support section will provide show you how to request support during the program. The Preliminary Analysis will discuss things the participants should do to prepare prior to the workshop.

The preparation discussed in the Preliminary Analysis does not involve any research. However, the participants should spend time preparing for the Workshop. As discussed in the Preliminary Analysis, participants should spend time gathering the data required, reviewing key internal processes and spending time reflecting on the current performance of the team.
The participants should also spend time reflecting on their own performance as leaders. During the workshop, participants will be discussing the performance of the team. It is important for participants to prepare themselves for this activity by preparing themselves to give and receive feedback. It is important to keep focused on the feedback is meant to improve the performance of the finance team. It is critical that participants ask questions and challenge assumptions during the process.

Guidelines on Feedback
As participants prepare for the workshop, they should keep in mind the three guidelines on feedback that are discussed in the Preliminary Analysis. There is a human element of feedback that needs to be acknowledged. Feedback can be as difficult to give as to received, and participants in the program should remember that it may be as uncomfortable for the person providing the feedback as it is to receive.

It is recommended to establish three ground rules. First, focus on outcomes and not intent or character of the individual. If you present the feedback based on the outcome obtained, the focus will be on the results and not on the person. This is easily done with statements that are structured based on observations, results or facts followed by the perceived consequence. For example, when you come to the meeting late, Tom, it makes me feel that you do not respect my time. In this example, there is nothing that is personally attacking Tom. It is about the fact that he is late, and the consequence is the meeting organizer feels disrespected.

The second guideline is respect. Everyone needs to be respectful of each other. When you focus on the outcome it is difficult to be disrespectful of the person you are giving feedback to. The focus shifts to the outcome. If you assume that Tom does not intend to disrespect the meeting organizer, there is a mutual problem to solve. For individuals accepting feedback showing mutual respect to the person providing the feedback is also required. This means no interrupting or attempting to rationalize your thought process. It is okay to ask questions to seek clarification or to ask for help.

The final guideline is to be truthful. Many times, professional environments people feel the need to soften feedback so to not look ‘mean’ or to allow the other party to save face. This is not that time. There is nothing meaner than not telling someone the truth when they have asked for the truth. If you are hesitating on providing feedback because you feel it might be perceived as mean, ask yourself what is meaner saying something or allowing the situation to continue. Do not confuse being mean for uncomfortable.

Participants should also make sure they understand the rule of quickness. If someone violates the rules or acts in a manner that is not consistent with providing good feedback, they need to be called out quickly. If the team allows poor behavior to go unchecked the rules will not be followed. Please follow the guideline of being truthful. Do not fall into the mean perception trap. It is far ‘meaner’ to allow the poor behavior to continue.

Team / Organization Dynamics
This module will require the participants to meet and discuss the performance criteria for the financial competencies and leadership traits. It will be important for the team to effectively communicate and discuss these issues as a team. Creating the right environment for an open and honest discussion is necessary to for the participants to successful discuss the criteria and build the matrices required.

Prior to any meeting or the workshop, the participants should agree to complete any preparation necessary and be ready to participate. Additionally, two rules need to be agreed upon prior to the meeting. First, unless otherwise noted the conversations and discussions in the room should be considered confidential and do not leave the room. Second, all ideas in the room are equal and are not dependent on any individual’s status in the organization.

During the team discussions all participants should abide by three rules. First, the Platinum Rule. Treat others as you want to be treated. Second, the ‘No Jerk Rule’. A jerk will say what they wish, without regard for others. This does not mean you cannot offer criticism. When tough issues arise, your communication should come from a genuine concern for others or the team. This eliminates the ‘jerk’ component. Finally, the Quickness Rule also applies here. Participants should be quick to call out violations or the rules or poor behavior.

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Matrix Development

Matrix as a tool
During the workshop, the participants will develop a Competency Matrix and a separate Leadership Matrix. Each matrix will have the different competencies or leadership traits along one axis and different levels of skill along the other axis. The participants will need to determine the different organizational levels within the finance team. The performance expectations or mastery of a skill will be different for an individual contributor than it will be for a high-level executive.

The matrices will be powerful tools for your organization. The matrices will help in the evaluation of existing employees, will help evaluate new employees and employees being considered for new roles. Additionally, the matrices will aid in the communication to others in the organization performance criteria and expectations for members of the finance team. This will create transparency and accountability.

Participants should not worry about getting the matrices perfect during the workshop. The matrices developed as part of this workshop will be working drafts that will be improved and honed over the rest of the program.

Developing Competency Matrix
First, we will develop a competency matrix based on the 4 financial competencies: Catalyst, Reporting, Balance and The Curve. The participants in the workshop will need to determine the different levels of competency in the organization. One axis of the matrix will be the four competencies and the other axis will be different competency levels required in the organization. Please see example below.

Once you have established different performance levels, you need to provide a description of the performance required at that level. Participants should keep in mind that this will be a public document that will be shared with all employees on the finance team.

Understanding and Testing the Competency Matrix
Once a draft of the competency matrix is finished, it is important to verify that all the participants have a solid understanding of the matrix and the differences in the performance levels for each competency. During the workshop, the different participants will be asked to explain the matrix to other participants. This will help validate the understanding of the participant explaining the matrix and to make sure both participants are aligned on their understanding of the matrix.

Once the participants are comfortable with the matrix, they can start the validation process. The participants should select a small group of employees and determine if they can identify which level of performance is required for each employee and then compare each employee’s performance to the appropriate standard. The group should also validate a recent group of job candidates that were interviewed. After these exercises are complete the workshop participants should identify any possible issues or items that were not clear in the process. This will be used to further refine the matrix.

Developing the Leadership Matrix
Building the Leadership Matrix will be similar to the Competency Matrix. The matrix will have the 4 leadership traits on one axis and the four leadership traits: Servant Leadership, Connector, Challenger, and Business Advocate. The other axis will show different levels of skill for each trait. Please see the example below:

The leadership traits are different from the competencies. The competencies are specific skills that are separate from each other. The leadership traits are related and are something that financial leaders need to learn how to mix into the appropriate portions. For example, it is difficult to be a Business Advocate if you are unskilled at being a Connector or Challenger. Furthermore, when acting as a Challenger, if you cannot demonstrate Servant Leadership, your message may not be well received.