SUCCESSION PLANNING – HOW EQUIPPED ARE YOU FOR

The role of Mentorship in Finance & Accountancy: How to find and be a mentor

I suspect Mentoring has always been around but the last decade or so has seen it rise to considerable prominence...Its value is probably greater now than it was throughout our history, or at least modern history.I have been exposed to mentoring and mentorship from every angle having proactively sought out my own mentors in the past and in time taken on the role of mentor to others. In my dual roles as a partner within The CFO Partnership and a board director of Sharp Consultancy for over a quarter of a century I have experienced it through osmosis and experience. Mentoring is something very close to my heart.Hopefully in this article I can explain why you should seek out a mentor for yourself, why your skills could make you a great mentor for others, how much satisfaction you might gain from mentoring others and one or two points on what makes a great mentor. Mentoring in Finance:Whilst mentoring can be beneficial in every type of employment and indeed, every walk of life, I believe it has particular relevance in the accountancy and finance sector.Accountants need to develop their management and leadership skills as they progress just like anyone else. They need to develop their self-knowledge and self-awareness like anyone else. They are, however, more exposed to issues regarding ethics and integrity than many other roles/industries. There can be and often is pressure for the results to be better than they are, perhaps to secure further lending or investment, please the boss, even keep their job. More than a few accountants have found themselves at His Majesty’s pleasure having done something they wouldn’t normally have done but have been pressured into. The finance leader (usually Finance Director or CFO) is the key sounding board for the owners/stakeholders; they are often the conscience of the owners. They probably need the ability to say ‘no’ more than other board members – and say yes and encourage. Whilst not responsible for operations, marketing, HR, IT (sometimes they are) and so on they transcend all those areas. They make a mistake – everything can go South very quickly.It is in part for the above reasons that the value of a mentor, someone who can be an independent sounding board, can question you and listen to you, offer opinions and advice is invaluable.Frequently a mentor helps you reach your decision and gives you the confidence to fulfil your plan. They help set challenges into perspective. They ask questions you haven’t thought of and allow you to see things through another person’s experiences. They are calming influencers and confidence builders. As a younger man early in my career I was told the best way of developing fast was to be a sponge, to absorb the greatest attributes of those around me and above me; to become an amalgamation of the best traits of those people. The challenge in accountancy and finance is you can easily find yourself at a relatively young (and hence relatively inexperienced) age in a fairly senior role with perhaps only one or two more senior finance people above you. Even if they are good, it is a very shallow talent pool to learn from. A mentor therefore can help you ‘mentally mature’, hone your decision making, cope with daily stresses, deal with difficult situations, improve as a manager or leader, manage upwards, improve your profile and credibility and build your own personal brand – in effect be the best version of yourself.However, it is worth noting what a mentor is NOT. They are not there to tell you what to do. They are not there to make decisions for you. They are not there to do your job for you. If that is what you are looking for then a mentor is not the solution.Why I became a Mentor:It was a very easy decision for me. By nature, I love helping others (it’s why I’ve loved recruitment for nearly 30 years) and I benefitted so much from formal and informal mentors myself.As an aside, a formal mentor is someone who takes responsibility for mentoring you. Informal mentors are people you surround yourself with who you know you can learn so much from just by being associated with them. There are dozens if not hundreds of people I would class as informal mentors to me; people who probably believe that I have helped them and probably don’t realise just how much they have helped me. Osmosis again!Mentoring someone is surprisingly two-way. You are there to benefit them, but you often benefit from the dynamic yourself. Mentees frequently inspire you to think differently in the same way you hope to inspire them. If you like helping people, then few things are as satisfying as being a mentor. When your mentee has a huge challenge and they are lost at sea, helping them find their way of navigating those choppy waters is one of the most satisfying things you can do. They feel fulfilled. You feel fulfilled.Finding a Mentor:It would be very difficult to try and find a random person to be your mentor. Chances are it will be someone you know well enough to admire and respect. Possibly a colleague, a customer, a supplier, a relative or a friend.You probably need to know them in advance to be sure you’d feel comfortable opening up to them; and be sure they would operate in the strictest of confidence.My first mentor was one of my customers. He was (is) a chartered accountant and at the time had been a partner in private equity for many years. He was inspirational, knowledgeable, vastly experienced in business and because of his private equity experience, had dealt with every size and type of business and every type of management team. I was very nervous asking him, but I plucked up the courage and was surprised by how flattered and delighted he was to be asked.Pick a mentor who might have enjoyed the career and experiences that you hope to achieve yourself. Luckily in finance it’s likely that you have already been exposed to such people.Identify who you’d want and simply ask them in a manner that shows how much you respect them. Give them a very easy way out so they don’t feel trapped in to agreeing ‘I know how very busy you are so there’s absolutely no problem at all if you haven’t got the time or for that matter, if being a mentor just doesn’t appeal to you’.How to be a good mentor:I suspect this is the one area I am least qualified to speak with authority on. I hope I’m a decent mentor, but would I be told if I wasn’t?There are some very sensible things that you can do or avoid doing though:Do ask what they want to get out of the meetingsDo ask what they don’t want to cover Do ask lots of questions; questions where the mentee presents the potential answers.Do explore reasoning; ‘Why’ is not an aggressive questionDo give ideas if requested toDo listenDon’t tellDon’t do it for themDo agree what actions they want to deliver before the next meeting (if that’s something they want you to do)Don’t berate them if they haven’t done what they said they were going to do – you aren’t their managerDon’t be emotional. Be factual. The regularity of the meetings is entirely up to the mentee. I always liked 1 hour every 2-3 months but that’s me. Final Thoughts:Finance is a multifaceted, technical, regulated and challenging discipline. It has huge risks if mistakes are made and can have more ethical/integrity dilemmas than many jobs. Having a mentor in finance can therefore have huge benefits.From a career development perspective, they can make all the difference. Therefore:Decide on what kind of support and advice you would like.Decide what you are trying to achieve in your business and your career.Figure out what kind of prson might have the experience that would be valuable.Do you know anyone like that?Don’t be shy, ask them. Ask them the way I mentioned earlier, and they’ll be flattered (and more likely to say yes).A dog may be for life, but a Mentor doesn’t have to be. If it isn’t working (they all lose their benefit over time) move on to another.Consider doing the same for someone else and mentoring them.

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I am often asked, “what is the one thing that companies can do to improve their recruitment process?” And whilst my answer may sometimes vary depending on an organisation’s particular circumstances, there is one thing which stands out that every company no matter of their size, position within the marketplace or industry sector should give real focus to if they want to ensure greater success from their recruitment and retention efforts: succession planning.

When it comes to succession planning, it is often assumed that this primarily relates to the top job – the passing of the crown so to speak. But effective succession planning should run right throughout an organisation embracing leadership roles, management positions and ensuring that business critical skills are not lost from any area of the operation should an individual move on from the company.

There are numerous scenarios which can occur where it is vital that organisations have one eye on the future; retirement being one of the most obvious and in many ways most straightforward to plan for. However, the majority of situations that can arise will potentially do so with very little notice – a period of absence due to maternity or paternity leave, caring responsibilities, illness or staff moving onto new roles – and companies all too often find themselves in a position where they need to react.

There may be some operations, such as family-run businesses, where the succession routes may appear to be a little easier to navigate; however, these businesses are not without their challenges, should the natural successor harbour career ambitions of a different kind or the skills which are required for the next phase of development need to be sourced externally.

A key factor is recognising that the ‘job for life’ culture is not something which either employers or employees can rely upon. Unless, for example, you are talking about a shareholder in a business, there is very little by way of guarantees that a business owner can give an employee in relation to their long-term job security. Similarly, employers will need to wrestle with their own lack of certainty surrounding talented individuals potentially looking elsewhere for new opportunities to further their careers.

Planning an effective succession strategy can be a balancing act when it comes to weighing up the more immediate needs for the business with potential requirements for the future. However, by affording the matter more care and attention over a longer period of time - with the benefit of considering and reconsidering possible paths in light of changes to business operations - will result in a much more considered outcome than one where necessity and urgency have taken precedence.

Starting sensible conversations early will provide businesses with the opportunity to plan for a smooth transition well enough in advance of even the most out-of-the-blue departures. And it must be stressed that succession planning is not about ‘preventing’ people from leaving – it is about establishing and developing a culture which enables effective processes to deal with people leaving to put in place.

It is important to open channels for constructive conversations where both sides can feel they can be honest about what their career ambitions are and how and when they want to achieve these and what the goals and aspirations are of the business which could provide the opportunities for those to be realised. Nothing should be assumed – and whilst the lack of a completely clear path may cause unease for ambitious employees, it is vital not to over-promise and under-deliver in an attempt to secure their commitment to the organisation.

Taking a flexible approach is key; it may not be about finding that one individual that will step into another’s shoes – for example establishing a new divisional structure may provide opportunities to support talented employees’ career ambitions whilst strengthening the team at a senior level to take the business forward.And by ensuring that the right training and development programmes are in place, this will enable likely successors to harness skills and expertise and to foster their leadership skills in readiness for the future.

A succession plan should be flexible and ever-evolving, subject to ongoing discussions, revisits and adaptions as situations and circumstances change. And change is inevitable as factors from both within and outside a business influence its trajectory, however that change will be far easier to manage with a more successful outcome where there is a clear strategy firmly in place.

Sharp Consultancy specialises in the recruitment and executive search of finance and accountancy professionals. With offices in Leeds and Sheffield our highly experienced team of consultants recruit for temporary, interim and permanent roles across the full spectrum of positions throughout Yorkshire and beyond. CONTACT US today and speak to a member of our team about your recruitment needs or next career move.

SUCCESSION PLANNING – HOW EQUIPPED ARE YOU FOR DEALING WITH CHANGE?

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