What Makes a Top FD?
In this series of articles, we speak to local business leaders and financial experts to discover the essential qualities and attributes needed to make it as a top Financial Director (FD). To kick off the series we thought who better to start with than the winner of CMA and BDO’s FD of the Year Award 2020, Mike Lashmar.
Mike is the Group Finance Director for the Ageas Bowl where he has worked for the past four years. He has previously held high-level finance roles at some of the South’s biggest national and multinational companies including Harbour Hotels Group and British American Tobacco.
Following his win, we spoke to Mike about his career to date, the challenges he feels that FDs are facing in today’s market and his insight into what makes for a top FD.
Climbing through the ranks
Mike started his career with a ten-year stint in practice, where he spent time in different departments – this included Corporate Finance and a secondment to NatWest where he worked on bank deals and sat on credit committees. Upon leaving practice Mike felt it was important to gain some hands-on experience as a Financial Controller at fast growing, dynamic, mid-market businesses – before jumping into an FD role. It was only after almost four years that Mike took the step to join the boardroom as Group Head of Finance with Harbour Hotels Group in 2014.
While Mike has honed his financial skills and knowledge over his career, he feels that it’s the non-financial skills that have been the key to his success as he has developed his FD career; “Communication, leadership and influencing are critical to operating at board level” says Mike. “The finance expertise is a pre-requisite but it is how you as a leader make an impact on the business and around the board table that defines your success.”
It’s more than just the numbers
When asked what he feels are the most important attributes required for him, as an FD, to successfully fulfil his responsibilities, Mike says “Being genuinely passionate about what the business does is integral, you cannot ‘fake it’; you either do and so will put in the hard yards, or you don’t.”
Being open and honest is also an attribute that Mike finds important. This credibility has enabled him to build trust with colleagues, allowing him to keep his finger on the pulse and have solid relationships across the business that help make things happen.
Both in and out of the boardroom negotiation and the ability to influence is a critical skill, but ultimately this comes down to listening: “The best way to negotiate is to understand what the other side wants; negotiation is not about winning more than the other side, it’s about being creative and flexible.”
In addition, Mike says: “Finance is naturally close to the numbers and the performance of the business, but lives in a subjective world, so being able to actively listen, show humility and make a positive difference is a real skill.”
Open communication
Clear and open communication is a reoccurring theme for Mike, highlighting its importance when it comes to what makes a top FD. Clear and consistent communication in the fast-paced business atmosphere helps you to be heard above the noise.
This advice is never more relevant than when it comes to crisis communication. Businesses across the South have been impacted by challenges from the COVID-19 pandemic, but it has also been a time for learning for many businesses. Mike advises that open and honest communication is always the best way forward during a challenging time: “Explain to your stakeholders what is going on, what you need them to do and properly listen to their concerns. The last bit is the most important and takes a lot of effort, but if you can do it, you can surprise yourself with what you can achieve.”
Mike himself has found it a particularly tough time on a personal level too; with a new addition to the family arriving shortly before the first lockdown. The support of his family and friends has been invaluable and enabled him to in turn support those looking to him for guidance: “My wife is a huge inspiration and I couldn’t do it without those around me. Take time to appreciate them no matter how hard and demanding work is.”
An evolving role
We are in an evolving market; the flux from Brexit and COVID-19 creates a lot of uncertainty. With these events changing the way businesses and employees work, it is only natural that the role of the FD will evolve over the next few years. “It’s getting more complex and that will continue to be the case” says Mike. “The role is evolving at a fast pace and you need to understand more about the wider world, not just the GAAP textbooks.”
“The thing that hasn’t changed though is the need to work as a team and support your CEO.”
FDs will need to be able to read what’s happening and spot opportunity, says Mike. The thing that hasn’t changed though is the need to work as a team and support your CEO: “In mid-market businesses you need to be able to support your CEO, whose role is equally plural and complex.”
The next generation of FDs
What is Mike’s advice for young finance professionals with aspirations of becoming an FD? Openness and a willingness to learn is key says Mike: “The best piece of advice I would say is to be open minded. Try new things, be open to learning and don’t assume you know the best way or the right answer.”
This comes with a need for flexibility and humbleness, Mike concludes: “We live in a world that is subjective and changing rapidly and the more you can adapt and be flexible, the greater chance you have of growing and being more valuable.”