CFOs: What ERP solution is right for your leadership style?
As a CFO, the last thing you want is for the decision-making process to be more difficult or less effective. That’s exactly what happens though when CFOs take a one-size-fits-all approach to using business technology like enterprise resource planning (ERP) solutions. Why is this? Because business leadership itself is not a one-size-fits-all endeavor. To ensure the best decision-making, CFOs need an ERP solution that complements their specific leadership style.
Which type of leader are you?
Epicor has found that a CFO’s particular work style, attitude, and approach to technology can have a big impact on their decision-making, and thus on the business’s profit and growth. That’s why it’s critical to choose an ERP solution that suits the type of leader you are.
In 2015, Epicor commissioned a survey conducted by Redshift Research Ltd that surveyed more than 1,500 finance business professionals in 11 countries. The research identified six distinct leadership types of CFO, each with its own strengths and weaknesses that impact profit and growth. These include:
Traditionalists’ impartial nature makes them strong leaders and the least likely to be influenced by personalities and politics when making decisions. But they need to be more flexible and open to change—otherwise they put their organisation at risk to maintain a competitive edge.
Revolutionary CFOs aren’t afraid to think outside the box, work outside of corporate structures, and take risks where necessary that can result in great rewards. However, few of them prioritise working across departments and functions, and could miss out on valuable insight from their colleagues.
The most popular of all working styles, Politician CFOs are participative leaders, collaborative consensus-builders, and cautious decision-makers. They understand the importance of accurate data and collaboration in good decision-making. That said, they may delay decisions and be slow to act on profitable opportunities.
Conductors are creative and efficient. They like to work outside of corporate structures, make decisions based on instinct and gut-feel rather than hard data, and set challenging goals for themselves and their teams. But they may skim over information instead of look into detail, risking mistakes.
Carer CFOs are solid planners who are cautious and carefully think things through and plan for a wide range of eventualities. They’re also concerned about the accuracy of their data, which helps to ensure good decisions. At the same time, they are slow to move and may miss good opportunities as a result.
Visionaries, the most flexible CFO type, easily accept change. They aspire to leverage the power of team-based decision-making and value the timeliness of information. Creative and intuitive, they tend to work outside of existing, formal systems—which can cause them to miss important data.
ERP solutions can support all of the above leadership styles, helping each one play to their strengths and mitigate the risks that contribute to poor decision-making. In upcoming blogs we’ll look more closely at the six leadership styles and explore what aspects of an ERP solution work best for them.
Take our online quiz to find out which leadership style most closely matches the way you work and find out more in our ERP resource centre about how Epicor ERP can help you collaborate more effectively and make better decisions, faster.
Posted by Martin Hill, VP, International Marketing