One of the most important topics that is least likely to be discussed is the assumption that a combined Head of Finance and Operations role is best for the organiation. While it seems logical to merge these responsibilities, rooted in the logical connection between financial acumen and operational efficiency, it overlooks critical nuances that might impede organizational success. Operations leaders possess the ability to see beyond a department view and understand the organization’s entire value chain, bringing a balcony perspective to the table.
While excellent in their field, many finance leaders tend to focus primarily on financial metrics and may only sometimes grasp broader operational dynamics. This narrow focus can result in a lack of holistic problem-solving, overlooking the interconnectedness of various departments and processes.
Finance professionals excel in their domain due to their ability to manage budgets, analyze financial performance, and ensure fiscal responsibility. However, the skill set required for effective operations management extends beyond financial oversight.
Operations leaders are adept at translating strategic goals into actionable plans that resonate with employees at all levels. They address staff fears of the unknown, encourage critical conversations, and foster a culture of empathy and understanding. Financial expertise does not inherently equip someone with these crucial interpersonal skills. While a finance leader might excel at optimizing costs, they might need more hands-on experience managing operational workflows’ intricacies.
Change management is another critical aspect where finance and operations can diverge. Operations often involve significant shifts in processes, technologies, and workflows. Leaders who resist change or attempt to sabotage new initiatives can be a significant hindrance. I’ve observed that finance professionals, accustomed to stable financial systems and processes, may only sometimes be as adaptable to the rapid and often disruptive changes inherent in operations.
Corporations must urgently reconsider the assumption that the head of finance can also assume the overall operations role. The unique demands of operations leadership encompassing human resource management, holistic problem-solving, change management, and cultural leadership require a distinct skill set beyond financial expertise. By recognizing and valuing these differences, organizations can better position themselves for sustainable success and operational excellence.